Implementing ETC System on Hungarian Motorway Network

K. Tanczos, F. Meszaros: Implementing ETC System on Hungarian Motorway Network KATALIN TANCZOS, D.Sc. Section: Traffic Policy E-mail: [email protected] Review FERENC MESZAROS Accepted: Jul. 5, 2005 E-mail: [email protected] Approved:Dec.20,2005 Budapest University of Technology and Economics Department of Transport Economics Bertalan Lajos 2, H-1111 Budapest, Republic of Hungary IMPLEMENTING ETC SYSTEM ON HUNGARIAN MOTORWAY NETWORK ABSTRACT obtained from road tolls, which are good alternatives of the mainly lacking central budget sources in infra Question of transport infrastructure charges - among oth structure development; furthermore, by tolls which ers - covers calculation and allocation of infrastructure costs can be accurate measures of demand management to referring different users. Cost allocation forms the basis of set wards solving capacity, congestion and environmental ting the user charges. The reason for the existence of applying problems. mileage-proportional pricing system is generally accepted, as the European regulations also discuss this topic seriously. This Before the start of transition in 1989, Hungary mileage-proportional pricing system demands an appropriate lacked a developed motorway network. After the toll collecting system, which meets the requirements of ar structural shift from the planned economy to the mar ranged principles. Among these, the most important principles ket economy, the country played an important role in are equity, effectiveness and efficiency. Electronic Toll Col the NAS (Newly Associated States) region in the last lecting (ETC) systems are an appropriate solution to solving decade concerning the private sector involvement in charging problems in various ways according to the different financing road infrastructure development. The re kind ofsystems. In Hungary the current motorway charging sys gion's first two concession motorway projects (among tem is not an adequate solution for success of these principles in the long-term. A new, mileage-proportional pricing system is a few public ones) had been realised in Hungary. being initiated. This study presents the plans of Hungarian Therefore, the extension of national motorway net ETC system for motorway network, focusing on introductory work could be started by involving private capital. issues. Among several preparatory steps, examining acceptabil This development process resulted in various forms of ity barriers of ETC system for the stakeholders of transport is road tolling regimes and toll collection on the Hun needed. Their problem perception is to satisfy their- often con garian motorways at the end of the 90's. The interest trary- demands in equal, fair and effective ways. The policy im of the country was in the need of a unified tolling sys plementation process also plays an important role to generate tem. In 2000 the government started the implementa sufficient conditions to implement this solution. This contribu tion of the country-wide vignette system; the last step tion is to discuss these objectives in applying the ETC system in in this process was taken in 2004. But this vignette sys an acceptable way. tem cannot solve the financial problems of road sec tor. Moreover, it causes social stress due to its unfair KEYWORDS and inequitable attribution (favouring regular users ETC, motorway, acceptability, Hungary and HGVs contrary to casual users and PCs, the latter of which produce less external costs). The way ahead can be the application of mileage-based pricing sys 1. INTRODUCTION tem. The benefits of applying this approach are gener ally accepted in the world, as the European regula In the enlarged European Union the transport sec tions also discuss this topic seriously. This mileage tor faces many problems, especially the road sector. -based pricing system demands an appropriate toll The increasing traffic volume, the parallel deteriorat collecting system, which meets the requirements of ar ing traffic conditions, and the growing need of finan ranged toll principles. Among these, the most impor cial resources in the road sector force out several tant principles are equity, effectiveness and efficiency. changes both in the European and in the national Electronic Toll Collecting (ETC) systems are an ap transport policies. Road charging is one of the prob propriate solution to solving charging problems in lems to be solved by implementing changes. The im various ways according to the different types of sys portance of this measure can be proven by revenues tems. Prom et- Traffic&Transportation, Vol. 18, 2006, No. 1, 47-52 47 K. Tanczos, F. Meszaros: Implementing ETC System on Hungarian Motorway Network This set up the most important objective, the cor Kong, 2001). Therefore, the providers manage their rect and precise, valid settlement of revenues-expen information sources according to the principle of ser ditures and traffic data, which is the fund of the mar vice and consideration. ginal social cost based pricing. But this new approach Political/regulatory acceptability brings uncertainty among the infrastructure users, be cause they do not know and do not understand its There is a significant difference between the politi meaning and scope. There are many barriers which set cal and public behaviour regarding acceptability. back the fair and efficient implementation and use of While the public stakeholders want to get fair road this measure (Johansson et al., 2003) and influence pricing based on traffic management and environment the behaviour of different groups or stakeholders to protection issues, the politicians and regulators are in wards it. These barriers can be sorted according to dif stead focussing on their own careers and their party in ferent reasons, i.e. at which level are the defects of im terests, by concentrating on pubHc voters and a suc plementation for the policy institution. Therefore, the cessful (re)election process (Tanczos et al., 2004). two main groups are the institutional and the accept The results of previous studies stated that the po ability barriers. litical stakeholders manage less the topic of traffic by It is important to note that the media are an in comparison to the most highlighted level, for example, creasingly important and strong actor of the accept the sustainable development of economic or the finan ability process. There are a few concepts that label the cial problems (Tanczos et al., 2004). However, their media as equal actor to the customers, the politicians personal acceptability in appreciation of pricing poli and the industry, so this contribution will also focus on cies is positive due to its fair properties. The reasons of the effects of the media system. the low socio-political acceptability (based on behav In this resolution there are four main differenti iour of political stakeholders) are identified, where, ated stakeholders' acceptability of the pricing policy: on the one hand, the marginal cost based road pricing the providers', the politicians' and regulators', the is not fully accepted in the professional sphere (politi public's acceptability and the role of media in this cians representing their interests). On the other hand, problem (Schade & Schlag, 2000). This contribution they prefer to justify their policies in terms of practical in its first part is focusing particularly on the accept arguments, rather than in terms of arguments regard ability barriers. ing efficiency and equity (fairness) benefits at a gen After this analysis and utilisation of its results, the eral level (Rothengatter, 2003). Further reasons in existing Hungarian vignette system on the motorway clude less sufficiently featuring the positive effects of network and the new planned mileage-based ETC sys the pricing measures to the politicians' action and tem are evaluated while focusing on the acceptability these positive effects (like environmental benefits) issues. Some conclusions are drawn towards a desired promise less success than other policy issues (like em successful implementation and efficient operation of ployment or regulation policies). this new system in the future. To improve the political acceptability it may be a better solution if the pricing policies were imple mented by politicians who consider the needs of politi 2. GENERAL METHODOLOGY OF cally influential groups, and they allocate the revenues MEASURING AND CLASSIFYING to these stake holders, and they spread out the costs to ACCEPTABILITY OF PRICING groups who have less political potential or who are not INSTRUMENTS well organised in validation of interests. There is a good example in the situation of foreign customers in case of vignette-based charging system on roads, in Providers' acceptability which situation they are loaded relatively more re The provision enterprises are mostly involved in fi garding expenditure than the domestic customers nancing (because of the lack of national budget) and (Tirnar, 1998). in operation (effectiveness) of infrastructure. It is a proven theory that comparing public versus private Public acceptability operated infrastructure, the private operated is more Most problems affecting people are principally ap financially efficient than a public one because of mar pearing in areas with high population density, where ket approach, a private investor wants to get the best people do not have enough living space to reach their interest for the invested money. Furthermore, the pro individual goal of living

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