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NRA M50 Multi-Point Tolling

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NRA M50 Multi-Point Tolling National Roads Authority Supplementary Report M50 Multi-Point Tolling Preliminary Implementation Plan Date: 20 May 2011 WORKING DRAFT (Issued) Information Note: This report was prepared for the Department of Transport by the National Roads Authority with the assistance of Roughan & O’Donovan AECOM Alliance and Goodbody Economic Consultants. National Roads Authority M50 Multi-Point Tolling Preliminary Implementation Plan Table of Contents Page 1. Introduction 2 2. Project Description (Scope & Objectives) 4 3. Legislative Framework 6 4. Proposed Tolling & Operational Regime 12 5. Delivery / Procurement Approach 24 Appendix A – Map of Proposed Tolling Locations Appendix B – Report on Network Tolling Options, 1 November 2010 Roughan & O'Donovan – Goodbody Economic Aecom Alliance Consultants Grand Canal House Ballsbridge Park Upper Grand Canal Street Ballsbridge Dublin 4 Dublin 4 www.aecom.com www.goodbody.ie/consultants Page 1 of 29 National Roads Authority M50 Multi-Point Tolling Preliminary Implementation Plan 1.0 Introduction 1.1 Background 1.1.1 In November 2010, the National Roads Authority submitted a feasibility report to the Department of Transport setting out a number of options for generating additional revenue from road tolling to support future transport investment and maintenance. This feasibility report (appended to this document for ease of reference) reviewed the following options: ▪ Work-package A: Raising Tolls at Existing Facilities; ▪ Work-package B: Introducing new tolls on existing roads comprising: ▪ Work-package B1: M50 Multi-Point Tolling (M50 MPT); ▪ Work-package B2: Tolling Charges on Dublin Radial Routes; ▪ Work-package B3: Tolling Charges on Jack Lynch Tunnel, Cork; ▪ Work-package B4: Tolling Charges on N18, N9 and N11; ▪ Work-package C: Introducing new toll charges on new roads. 1.1.2 We have been requested by the Department of Transport, Tourism and Sport to develop a Preliminary Implementation Plan for the delivery of work-package B1, M50 Multi-Point Tolling, with the objective of the implementation being to generate revenue. It is recognised that any decision to introduce additional tolling will be made by the Minister rather than the NRA, and that any decision will be subject to statutory procedures. 1.1.3 The previous report highlighted that today only about a third to a quarter of the journeys which are made on the M50 are charged a toll. It highlighted that most journeys on the M50 Motorway are shorter rather than longer with about 45% travelling less than 10km and 90% travelling less than 20 km, out of the overall length of 42 km. 1.1.4 In order to develop the proposed tolling regime (i.e. proposed business model, locations and charging structure, as set out in this document) a variety of tolling scenarios with a range of toll points and locations and a range of toll charges were modelled and assessed. 1.1.5 The current estimates indicate that the introduction of Multi-Point Tolling on the M50 would result in additional net revenues of approximately €48 to €84 million per annum. This would represent additional direct tax revenues to the State of approximately €15 to €25 million and additional revenue to the NRA of approximately €33 to €59 million, in the first full year of operation. 1.1.6 The estimated programme for implementation of M50 Multi-Point Tolling, from the date of Ministerial direction to proceed, is in the region of 24 months as noted previously in the original feasibility study. 1.1.7 The estimated global budget for delivery of Multi-Point Tolling is approximately €32 million (exclusive of VAT), with the majority of this expenditure expected to be incurred during the second year of implementation. Page 2 of 29 National Roads Authority M50 Multi-Point Tolling Preliminary Implementation Plan 1.2 Structure of this Preliminary Implementation Plan 1.2.1 This Preliminary Implementation Plan is structured as follows: ▪ Section 2 – sets out a description of the Multi-Point Tolling project including the scope and objectives; ▪ Section 3 – covers the proposed legislative framework, including requirement for new national legislation (bye-laws) and compliance with existing and emerging EU policy and legislation; ▪ Section 4 – sets out the proposed tolling regimes including, for example, preliminary locations for tolling, toll charging structure (i.e. rates and vehicle classification), the proposed business model including facility for unregistered users, and systems and technology. It also sets out the proposed operational regime including interface with existing tolling operations and the existing national interoperability model; and ▪ Section 5 – covers the delivery and procurement approach – including key work- streams, approvals and timescales and budgets. Page 3 of 29 National Roads Authority M50 Multi-Point Tolling Preliminary Implementation Plan 2.0 Project Description (Scope and Objectives) 2.1 Scope of Additional Tolling on the M50 Motorway 2.1.1 It is proposed to extend the existing tolling regime on the M50 Motorway which is currently tolled at a single location (between Junction 3 and Junction 4) by deploying additional toll points at new locations on the Motorway to increase the coverage of the existing ‘eFlow Barrier-Free Tolling system, which replaced the previous conventional toll plaza in August 2008. 2.1.2 It is intended that the existing ‘eFlow’ system will be expanded, as opposed to the procurement of a new system, given that this has been envisaged under the existing procurement and contractual framework. 2.1.3 Note that the tolling regime will continue to be operated to collect tolls directly from the road users for the benefit of the State. In that context, the existing contractor would be paid a fee for supplying and operating the expanded tolling systems, in line with existing contractual provisions. 2.1.4 Analysis to date indicates that the most appropriate solution will require ‘open’ tolling of the Motorway, as opposed to ‘closed’ tolling with ‘entry’ and ‘exit’ tolling, as this is consistent with the existing business model and technology. 2.1.5 It is intended that the toll charges will be related to distance travelled and will comprise of an infrastructure charge component and an environmental charge component, in accordance with existing and emerging EU legislation in this area. Additionally, consideration has been given to a daily and/or journey maximum charge for customers who register for tolling accounts. 2.1.6 It is also proposed to ‘spread’ the tolls to achieve a more equitable charging structure by reducing the current toll charge at the existing eFlow Toll Point (i.e. between Junction 3 and Junction 4) when introducing new toll points. 2.1.7 While the toll charges will be related to the distance travelled by vehicles, it will not be necessary and there will be no requirement to link the transactions captured by the system by a number of toll points (i.e. to attempt to calculate distances travelled), although the system will be required to accommodate the application of a maximum charge referred to in paragraph 2.1.5 above. 2.1.8 It is intended that the new tolling arrangements will be integrated legally and technically within the national system for tolling interoperability – so that existing ‘tag’ and ‘video’ tolling customers with accounts (currently approximately 750,000 vehicles) will be able to use the new tolling facilities without any need to change. The new system will also be required to facilitate future European tag customers as required, in line with existing EETS legislation. 2.1.9 The new system will consist of a number of individual toll points using free-flow (i.e. barrier-free) tolling technology designed to detect On-Board Units (OBUs) and Licence Plate Numbers (LPNs) connected to the current central ‘back-office’ for the management and processing of the tolling transactions. Page 4 of 29 National Roads Authority M50 Multi-Point Tolling Preliminary Implementation Plan 2.1.10 It is intended that the tolling regime will apply to all vehicles using the tolled network with the exception of vehicles that are currently exempted from tolls (e.g. ambulances) on the basis of vehicle class and emissions class for HGVs (in due course and as required). 2.1.11 The business model and business rules for the new tolling regime will be similar to the eFlow’s current business model and business rules in operation today on the M50, with some simplifications and amendments. It is intended that the tolling system will continue to facilitate both registered and unregistered customers with a variety of account options and convenient payment methods. 2.1.12 It is intended that tolls will continue to be discounted for registered customers with tolling accounts. For example, the current toll for a tag registered car is €2.00 and for an unregistered car is €3.00. It is not initially intended that tolls would be variable by time of day or levels of congestion, although this functionality may be requested from system suppliers for future deployment, as and when the need arises, depending on cost. 2.2 Objectives for M50 Multi-Point Tolling Regime 2.2.1 The previous report set out a number of principles reflecting the existing policy objectives which were used to assist with the development and consideration of individual work-packages. In summary these were as follows: ▪ Tolls are most applicable on premium roads with a good level of service (motorway or high quality dual carriageway) and where possible to encourage mode shift; ▪ Tolls should be applied in an equitable manner and other than in exceptional circumstances should be nominal, to the extent that they will not lead to excessive diversion onto unsuitable roads or through environmentally sensitive areas. 2.2.2 As part of preparing this Preliminary Implementation Plan, we note that the overarching objective is to collect additional toll revenues from road users on the M50 and to ensure that this is done in an efficient and equitable manner.
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