Annual operating costs for congestion pricing systems can exceed $161,000,000.

International experience with congestion pricing

Made Public Date
06/07/2011
Identifier
2011-SC00213
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Summary Information

This report examined ITS pricing as a type of road charging designed to reduce traffic congestion. Several examples of international programs implemented between 1975 and 2006 were examined to compare the overall benefits and costs of major road pricing schemes.

The cost information below derived from Table 2 of the report compares electronic pricing costs in seven cities. Project dates were estimated from Table 2 of the reports.
 

Location
Project Dates
(Estimated)
Initial set-up costs including technology cost (millions)
Annual operating costs
(millions)
Annual charge-payer compliance or enforcement costs
Average operating cost per user of the road/network
Trondheim, Norway 1991
$7.50
$3.75
n/a
$0.14
Oslo, Norway 1990
$40.00
$23.26
n/a
$0.25
Bergen, Norway 1986
$8.00
$4.59
n/a
$0.15
Stockholm, Sweden1 2006
$500.00
$35.00
n/a
$0.17
Singapore, Singapore 1998
$130.00
$10.002
$0.17 million3
$0.12
Rome, Italy 2001
$72.00
$4.00
n/a
$0.15
London, England 2003
$170.00
$161.00
$54 million
$4.01


1 Procurement, preparation, running costs during seven month trial. The figures are translated into annual estimates.

2 This figure includes staff costs, payments to contractors for maintenance of the front-end equipment (i.e., gantries and gantry equipment), the backend computer system, agency fees for processing of the transactions, collection of outstanding fee payments and fines, etc. This figure may vary slightly from year to year as, for example, staff costs increase, contracts and service agreements expire, and rates are re-negotiated.

3 These would comprise mainly manpower costs for enforcement related processes and appeals.

System Cost

Congestion Pricing Costs Trondheim (1991) Implementation: $7.50 M Annual O&M: $3.75 M Oslo (1990) Implementation: $40.00 M Annual O&M: $23.26 M Bergen (1986) Implementation: $8.00 M Annual O&M: $4.59 M Stockholm (2006) Implementation: $500.00 M Annual O&M: $35.00 M Singapore (1998) Implementation: $130.00 M Annual O&M: $10.00 M Rome (2001) Implementation: $72.00 M Annual O&M: $4.00 M London (2003) Implementation: $170.00 M Annual O&M: $161.00 M