Preparations for the Mileage Charging Electronic Toll Collection in Hungary Árpád G. Siposs, Toll Strategy Manager, KKK Coordination Centre for Transport

Preparations for the Mileage Charging Electronic Toll Collection in HungaryÁrpád G. Siposs, Toll Strategy Manager, KKKCoordination Centre for Transport Development

Workshop on Road User Charging Systems, Warsaw, June 12, 2007

Tolling History in Hungary / 1

First master plan for speedways: 1942

Motorway constructions started: 1961

„500 km of Toll Motorways” programme: 1970-1976

Attempt to introduce the vignette system: 1989

Toll collection by Concessionaires: 1996-2004

Continuous expansion of vignette system: 2000-2004

Electronic registration and control of vignettes: from 2002

Preparations for mileage based ETC: from 2003

Tolling History in Hungary (1-2)

Current Vignette System (1-3)

Traffic & Revenue Forecasts (1-9)

Frame of a New Toll Policy (1-4)

Scope of the ETC System (1-6)

Tolling History in Hungary / 2

The Former Manual Tolling Facilities

M1/M15BOT

19961999

M5BOT

19972004

M3State

19991999

M5PPP

from2004






Current Vignette System / 1


Structure of the Vignette System in 2007

• Four user charge categories:• D1 D1 3.5 t 3.5 t D2 D2 7.5 t 7.5 t D3 D3 12 t 12 t D4 D4 (7.5 t (7.5 t buses: 1 category buses: 1 category

))

• Four network extensions widening by categories:• for D1, D2, D3, D4 exempted m’way & e’way sections:for D1, D2, D3, D4 exempted m’way & e’way sections: 44 44

km,km,

• for D1 only on m’ways for D1 only on m’ways ((with exemptedwith exempted by-passing sectionsby-passing sections)):: 668 668

km,km,

• for D2, D3, D4 on m’way by-passes as well + e’ways:for D2, D3, D4 on m’way by-passes as well + e’ways: 221 221

km,km,

• for D4 on 42 trunk road sections around the country as well:for D4 on 42 trunk road sections around the country as well: 470 470

km,km,

• (above the 933 km speedway network) totally charged:(above the 933 km speedway network) totally charged: 1359 1359

km.km.

• Five validity periods:• valid for valid for 11 calendar day (for calendar day (for D2, D3, D2, D3, D4)D4),,

• valid for valid for 44 consecutive days (for D1 consecutive days (for D1 with a summer season price)with a summer season price),,

• valid for 10 consecutive daysvalid for 10 consecutive days,,

• valid for 31 consecutive daysvalid for 31 consecutive days,,

• yearly vignette (from January 1 to the next January 31)yearly vignette (from January 1 to the next January 31)..







Traffic & Revenue Forecasts / 1

0

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 (year)

(%)

Virtual Toll Level Vignette Price Level Vignette Incomes Network Length Vehicle Mileage

The Main Weakness of the Vignette SystemTolling History in Hungary (1-2)





The virtual toll level will further decrease with 40% by 2013The virtual toll level will further decrease with 40% by 2013!!

Traffic & Revenue Forecasts / 2

Reasons to Shift to Mileage Charging

• 31% of traffic outputs caused by foreign vehicles31% of traffic outputs caused by foreign vehicles

but onlybut only

27% of income is generated by foreign vehicles;27% of income is generated by foreign vehicles;

• 63% of 1 day truck vignettes bought by foreign vehicles, 63% of 1 day truck vignettes bought by foreign vehicles,

they pay less / km in a transit trip than a domestic they pay less / km in a transit trip than a domestic

personal car pays / km in a year;personal car pays / km in a year;

• 115050 countries countries & & more than 3 m registered licence platesmore than 3 m registered licence plates::

personal cars:personal cars: 5555% domestic users;% domestic users;

goods vehicles:goods vehicles: 75% foreign users75% foreign users;;

• average off motorway trip length: average off motorway trip length: 38 km (no vignette) 38 km (no vignette)

average on motorway trip length:average on motorway trip length: 173 km (vignette)173 km (vignette)..






Traffic & Revenue Forecasts / 3(in 2006)

A gyorsforgalmi utak igénybevételével megtett utazások hosszeloszlása díjmentes szakaszok nélküla matricás (2M(DN)) és a teljesítményarányos (5T (DN)) díjrendszer esetén

0%

5%

10%

15%

20%

25%

hosszkategória [km]

2M (DN)

5T (DN)

Source: Transman Kft.

(km)

Average distribution functions for the mileage charging and the vignette system






Traffic & Revenue Forecasts / 4(in 2006)Cost Allocation Study

•Calculation of cost generation share by vehicle Calculation of cost generation share by vehicle

categories for cost components & road categories.categories for cost components & road categories.

•Toll level depending category multipliers were Toll level depending category multipliers were

recommended recommended (4 categories / basic toll level(4 categories / basic toll levelss in 2005 terms) in 2005 terms)::

•cost recovery: cost recovery: 1,0-1,3-2,0-5,31,0-1,3-2,0-5,3 4,7 4,7

HUF/km,HUF/km,

•virtual from vignettes: virtual from vignettes: 1,0-1,3-2,0-5,31,0-1,3-2,0-5,3 5,6 5,6

HUF/km,HUF/km,

•low: low: 1,0-1,4-2,2-5,51,0-1,4-2,2-5,5 7,5 7,5

HUHUF/km,F/km,

•acceptable: acceptable: 1,0-2,0-3,0-4,21,0-2,0-3,0-4,2 12,0 12,0

HUF/km,HUF/km,

•European average: European average: 1,0-2,0-3,0-4,21,0-2,0-3,0-4,2 17,0 17,0

HUF/km,HUF/km,

•optimum for disposable income: optimum for disposable income: 1,0-1,4-2,0-2,51,0-1,4-2,0-2,5 22,0 22,0

HUF/km,HUF/km,

•maximum income: maximum income: 1,0-1,4-2,0-3,11,0-1,4-2,0-3,1 30,0 30,0

HUF/km.HUF/km.







•Forecasts for 4 road network schemes:Forecasts for 4 road network schemes:

•only motorways with free sections, only motorways with free sections,

•only motorways, no free sections, only motorways, no free sections,

•motorways & expressways, no free sections, motorways & expressways, no free sections,

•motorways &motorways & expressways + parallel roads for goods vehicles. expressways + parallel roads for goods vehicles.

•Calculation of sensitivity analysis for 7 mileage Calculation of sensitivity analysis for 7 mileage

depending toll levels + the vignette system.depending toll levels + the vignette system.

•Lower than „European average” toll levels had a Lower than „European average” toll levels had a

10 years catch up period 10 years catch up period higher revenue growth. higher revenue growth.

•Forecasts for: 2008, 2010, 2015, 2020.Forecasts for: 2008, 2010, 2015, 2020.

The Forecast ScenariosTolling History in Hungary (1-2)






Sensitivity Results / 1

Source: Bauconsult Kft.

Toll levels forsensitivity:

Network Schemes

Toll Incomes(billion HUF)






Traffic & Revenue Forecasts / 7(in 2006 & 2007)Toll Level Proportional Comparison / any Category

years

HUF/

km

ELMKA AKA EU average ÉKMA ÁAK ETC






Traffic & Revenue Forecasts / 8(in 2007)Feasibility Study Inputs

• With a restriction of the cases evaluated in 2006 to a With a restriction of the cases evaluated in 2006 to a

more reasonable set of varieties new calculations:more reasonable set of varieties new calculations:

• motorways & expressways + transit („E”) roadsmotorways & expressways + transit („E”) roads + all + all trunktrunk roads; roads;

• „„do nothing” case: the pure vignette system;do nothing” case: the pure vignette system;

• mixed tariff model (Vignette mixed tariff model (Vignette 3,5 t < ETC) 3,5 t < ETC),,

alternative tariff model (choice: Vignette or ETC alternative tariff model (choice: Vignette or ETC 3,5 t < ETC), 3,5 t < ETC),

only ETC tariff model (ETC for all vehicle categories),only ETC tariff model (ETC for all vehicle categories),

• 3 networks × 3 tariff choices × 3 toll levels = 27 cases3 networks × 3 tariff choices × 3 toll levels = 27 cases..

• FFor a 5 years operational or a 5 years operational projectproject term term (2009-2013). (2009-2013).

• AA feasibility study calculated the costs for the different feasibility study calculated the costs for the different

cases, to predict the results of the new ETC systemcases, to predict the results of the new ETC system..







Sensitivity Results / 2Toll Incomes(billion HUF)

Toll levels forsensitivity:

Tariff Choices &Network Schemes

Source: Bauconsult Kft.






Sensitivity Results / 2

Frame of a New Toll Policy / 1

Proportionality & Equity in All Dimensions

• Under the user & polluter pays principles:Under the user & polluter pays principles:

• user charges & tolls should cover infrastructure costs of mainly the user charges & tolls should cover infrastructure costs of mainly the

(extra) service levels (basically as service fees on m’ways & e’ways);(extra) service levels (basically as service fees on m’ways & e’ways);

• charging for geographical & time dependent mitigation measures charging for geographical & time dependent mitigation measures

(from beginning to avoid diverting heavy vehicle traffic,(from beginning to avoid diverting heavy vehicle traffic,

but later for demand management for all categories);but later for demand management for all categories);

• charges & tolls should gradually include charges & tolls should gradually include externalities as well.

• Proportional burden should be implemented between:Proportional burden should be implemented between:

• frequent & infrequent users (mileage charging);frequent & infrequent users (mileage charging);

• vehicle categories according to their cost generation share;vehicle categories according to their cost generation share;

• service levels of roads if it does not cause measurable diversion to service levels of roads if it does not cause measurable diversion to

lover level roads.lover level roads.







Gradual Implementation in Different Dimensions

• Proportionality differences should be alleviated from Proportionality differences should be alleviated from

bigger to smaller ones:bigger to smaller ones:

• those should pay more (or real usage dependent) first whose those should pay more (or real usage dependent) first whose

participation in the cost allocation is much deviated from (lower participation in the cost allocation is much deviated from (lower

than) the justifiable level;than) the justifiable level;

• incentives should be given for more environmentally friendly incentives should be given for more environmentally friendly

vehicles (from beginning preferably);vehicles (from beginning preferably);

• introduced measures should be operable & enforceable at an introduced measures should be operable & enforceable at an

economically feasible leveleconomically feasible level.

• Setting of user charge and toll levels should take into Setting of user charge and toll levels should take into

account social & economical affordability at any time.account social & economical affordability at any time.







The Most Important Changes with ETC Solution

• To stop devaluation of flat rate vignette incomes To stop devaluation of flat rate vignette incomes

user charges & tolls together should user charges & tolls together should cover at least cover at least

yearly operation, maintenance and reconstruction costsyearly operation, maintenance and reconstruction costs

of the charged network.of the charged network.

• To meet this target To meet this target first the more heavy vehicles will be first the more heavy vehicles will be

shifted to mileage dependent tollshifted to mileage dependent toll aiming at to avoid aiming at to avoid

international traffic diversion because of neighbouring international traffic diversion because of neighbouring

foreign charging systems as well.foreign charging systems as well.

• The network extension will cover The network extension will cover gradually the road gradually the road

network from higher to lower levelnetwork from higher to lower level with a possibility for with a possibility for

a total coverage for the heaviest one in the future.a total coverage for the heaviest one in the future.







The Usage of Incomes Generated by Tolling

• The The incomes form road user charges & tolls should be incomes form road user charges & tolls should be

earmarkedearmarked for the charged road network to keep and for the charged road network to keep and

improve the service level & mitigate environmental improve the service level & mitigate environmental

effects of the given sections or on the physically or effects of the given sections or on the physically or

functionally competing roads.functionally competing roads.

• The incomes from demand management like charging The incomes from demand management like charging

parts should be allocated for environmental purposes, parts should be allocated for environmental purposes,

other transport modes or for the public transport.other transport modes or for the public transport.

• The amount and usage of incomes should be published The amount and usage of incomes should be published

regularly.regularly.






Scope of the ETC System / 1

Forecasted J3+J4 Category Traffic in 2009


Optimisation of the Network Extension

• Sorting of trunk road sections by revenue generationSorting of trunk road sections by revenue generation






Share of Toll Incomes Depending on the Extension on the Trunk Road Network

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

90,00%

100,00%

0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00% 90,00% 100,00%

Tolled Network (%)

To

ll I

nc

om

es

(%

)


Optimisation of the Network Extension

• Where is the Optimum Extension?Where is the Optimum Extension?






Toll Incomes and Tolling Costs for Speedway and Trunk Road Network

0,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

0 1000 2000 3000 4000 5000 6000 7000

Tolled Network (km)

To

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nd

To

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ts in

Sp

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Te

rms

(m

HU

F/k

m)


ETC Solution Should Cover

• New vehicle categories New vehicle categories (above 3.5 t + starting tolls in 2007 terms)(above 3.5 t + starting tolls in 2007 terms)::• J2: all buses & goods vehicles with 2 axles:J2: all buses & goods vehicles with 2 axles: 26,50 HUF/km26,50 HUF/km• J3: goods vehicles with 3 axles:J3: goods vehicles with 3 axles: 33,00 HUF/km33,00 HUF/km• J4: goods vehicles with 4 or more axles:J4: goods vehicles with 4 or more axles:40,00 HUF/km40,00 HUF/km

• Network length:Network length: in 200in 20088: 3,500 km: 3,500 km in 2013: 4,in 2013: 4,1100 km00 km speedways:speedways: 1.000 km1.000 km 1,500 km 1,500 km

parallel roads:parallel roads: 1,000 km1,000 km 1,1,4400 km 00 km

other trunk roads:other trunk roads: 1,500 km1,500 km 1,1,2200 km00 km

• Traffic Traffic in AADTin AADT:: in 200in 2008:8: 0,000 v/d 0,000 v/d in 2013:in 2013: 0,000 v/d 0,000 v/d

speedways:speedways: 3,410 v/d3,410 v/d 33,0,06060 v/dv/d

parallel roads:parallel roads: 950 v/d950 v/d 910910 v/dv/d

other trunk roads:other trunk roads: 1,5601,560 v/dv/d 1,1,740740 v/dv/d

• Incomes:Incomes: in 200in 20088: 26 mHUF/km: 26 mHUF/km in 2013: 34 mHUF/km in 2013: 34 mHUF/km

speedways:speedways: 61 mHUF/km61 mHUF/km 64 mHUF/km 64 mHUF/km

parallel roads:parallel roads: 6 mHUF/km6 mHUF/km 12 mHUF/km 12 mHUF/km

other trunk roads:other trunk roads: 12 mHUF/km12 mHUF/km 23 mHUF/km23 mHUF/km







Enforcement is Key Element of Free Flow Tolling

• Where is the economic optimum of enforcement levels Where is the economic optimum of enforcement levels

cost & total system income (fraudulent user rate)? cost & total system income (fraudulent user rate)?

• Performance level of the enforcement is calculated in Performance level of the enforcement is calculated in

origin & destination models origin & destination models (( charged traffic outputcharged traffic output))..

• Optimising the number of fixed enforcement sections Optimising the number of fixed enforcement sections

++ mobile enforcement vehicles & their shifts.mobile enforcement vehicles & their shifts.

• Precise mapping of fixed enforcement sections.Precise mapping of fixed enforcement sections.

• The enforcement part of the ETC system should be The enforcement part of the ETC system should be

implemented & operated by ÁAK Zrt.implemented & operated by ÁAK Zrt. (State Motorway (State Motorway

Managing Co. Ltd.)Managing Co. Ltd.)







Scope of ETC Services to be Tendered

• Tendering & contracting by Coordination Centre for Tendering & contracting by Coordination Centre for

Transport Development (former UKIG, now: KKK).Transport Development (former UKIG, now: KKK).

• Mileage based multilane free flow system which can Mileage based multilane free flow system which can

distinguish:distinguish:• the section, time, distance of usage,the section, time, distance of usage,

• the exempted vehicles,the exempted vehicles,

• the vehicle categories,the vehicle categories,

• the environmental sub-categories.the environmental sub-categories.

• Design, finance, 5 years of operation, with a call option Design, finance, 5 years of operation, with a call option

or transfer at the end of the project life time.or transfer at the end of the project life time.






Thank You for the Attention!

Workshop on Road User Charging Systems, Warsaw, June 12, 2007

Documents

Preparations for the Mileage Charging Electronic Toll Collection in Hungary Árpád G. Siposs, Toll Strategy Manager, KKK Coordination Centre for Transport