ROAD PRICING IN LONDON, STOCKHOLM AND SINGAPORE A WAY FORWARD FOR NEW YORK CITY INTRODUCTION Image: Matthias Rhomberg/Flickr, 2007 Congestion Relief Pricing: A Key district (CBD) below 60th Street, tolls on the four Part of a Comprehensive Urban East River bridges (the Manhattan, Brooklyn, Transportation Strategy Williamsburg, and Queensboro bridges), and for-hire-vehicle surcharges. Now with endemic gridlock both at street level and below ground, The debate over congestion pricing in New congestion pricing is back on the political York City has been decades in the making. agenda—this time with support from Governor Mayor Michael Bloomberg introduced an Cuomo, who earlier this year called congestion implementation plan for congestion pricing pricing “an idea whose time has come” and in his on Earth Day in 2007, but the concept has 2018 State of the State (SOtS) address referenced been well known for many years, with Tri-State “an exclusive zone in Manhattan where additional Transportation Campaign (TSTC) analyzing charges could be paid.” Now, as we await the work and advocating for congestion pricing as early of the “Fix NYC” advisory panel, whose mission as 1993 in its Citizens Action Plan. However, is to find solutions to public transit funding despite gaining wide support from leading shortfalls and crippling congestion in Manhattan’s transportation and environmental groups, CBD, we can look to other cities to assess the Mayor Bloomberg’s plan failed in the legislature success of their congestion pricing schemes. in 2008. Since then, the MoveNY coalition has developed and fought for a proposal to establish Currently, some drivers—those traveling over Port a congestion pricing system, including tolling Authority and MTA bridges and tunnels—already travel into the Manhattan central business pay tolls to enter the CBD. Last year, MTA bridges 2 and tunnels were converted to open road tolling, light on those cities’ congestion pricing systems, which would help facilitate congestion pricing. In and outline lessons from which state and local the SOtS, Cuomo encouraged the Port Authority decision-makers can learn. to convert its bridges and tunnels to open road We examine congestion pricing programs in three tolling as well. Nevertheless, nearly three-quarters cities around the world: London, Stockholm, of drivers entering the Manhattan core—those and Singapore. In each, several patterns crossing over the four City-owned bridges on have emerged that hold lessons for New York the East River and those crossing 60th Street City as state and local governments consider southbound—enjoy a free ride. Meanwhile, transit congestion pricing. In these cities, pricing has users, whether via subway, bus, commuter rail, rationalized the cost of entering the tolled ferry, or CitiBike, pay fares and fees for the cost area and fairly charged drivers for some of the of their travel. In total, 96% of people entering negative externalities of their decision to travel the CBD on a daily basis pay some fare or fee by car into the zone. This has encouraged more (excepting those arriving on foot or personal efficient travel decisions, sped up traffic flow, bicycle); a mere 4%, those using cars or trucks, improved journey time reliability, and—of special do not. importance for New York—raised annual revenue The Manhattan CBD south of 60th Street is streams of over one hundred million dollars. the most transit-rich area of the city, and most Each city also employed auxiliary improvements commuters into the CBD do not do so via a motor complementary to congestion pricing that vehicle. However, those who drive or take for- enabled alternate transit modes to handle the hire vehicles into this area increase congestion overflow from the roads. and impose severe delays on other street-level Each city’s scheme was established and has travel. In particular, the failure to toll the East evolved based on localized problems, goals, River bridges and auto travel across 60th Street social norms and innovative solutions, and New encourages bridge shopping and the resulting York would be no different. However, in all three excess vehicle miles traveled. This incentivizes cases, city officials knew road pricing would congestion and greenhouse gas emissions, enable them to avoid the traditional approach especially in gridlocked zones near the entrances of highway widening to increase road capacity, and exits to the bridges. which is significantly more costly and has been The recent rise in congestion in New York City shown to be ineffective at reducing congestion. has multiple causes: repeated subway failures, The matrix on the following pages summarizes unregulated app-based for-hire vehicles, each city’s population, congestion pricing population growth, increased freight movement, scheme, operation, payment system, as well as construction activity, and increased tourism and costs and revenues. Case studies of London, pedestrian volumes. All of these have put growing Stockholm, and Singapore follow the matrix. demands on the transportation system’s capacity, This report concludes with a discussion of key and it is past time to implement solutions. To lessons for a future New York City congestion do so, we should look globally. A number of relief pricing scheme. While congestion pricing international cities have successfully implemented by itself won’t solve every transportation congestion pricing as a part of a larger challenge our city faces, it is an integral part of transportation strategy. This report aims to shed a holistic strategy to make urban transportation more efficient, sustainable and equitable. 3 ROAD PRICING MATRIX Metropolitan Population Pricing Scheme Year Scheme % Change In 2016 Description Primary Goals Launched Since Launch • Reduce congestion • Improve air The cordon pricing scheme uses automatic quality and public number plate recognition in an 8 mi2 area health 7.3 million 8.7 million 19% (21 km2 zone). Vehicles are registered London • Improve journey in 2003 automatically by cameras that photograph time reliability the number plates. The system consists of for car users Transport overhead gantries, cameras at all entrance • Create a long- for London points, pavement markings, and street term funding signage. source for public transit improvements The cordon congestion tax scheme uses • Reduce automatic number plate recognition, in a congestion 13 mi2 area (35 km2 zone). Vehicles are • Improve air Stockholm 1.9 million 2.1 million 10% registered automatically by cameras that quality and public in 2007 photograph the number plates. The system health Swedish consists of overhead gantries, cameras at • Improve journey Transport all entrance points, pavement markings, time reliability Administration and street signage. The scheme was for car users launched in 2007 after a successful trial in • 2006. The electronic road pricing (ERP) scheme is fully automatic on specific routes, times of day, and directions, with variable pricing designed to respond to congestion in real-time. Vehicles are required to have • Reduce an in-vehicle unit on the dashboard and a congestion Singapore 3.9 million 5.6 million 44% smart card with fare stored on it. Overhead • Improve journey in 1998 gantries detect the type of vehicle, the time reliability Land congestion of the route at specific times, for car users Transport and deduct the variable fee from the smart Authority card. The ERP scheme was launched in 1998, replacing a cordon pricing scheme that was first implemented in 1975. 4 Pricing Scheme Payments, Costs and Revenues Ancillary Transportation & Policy Initial Annual Annual Payment Hours Improvements Investment Operating Cost Net Revenue 7:00am- 6:00pm • 300 new buses Monday-Friday • Updated bus routes Flat daily fee of £11.50 (US $15.21) There is no charge • Improved frequency £161.7 £130 £137 on weekends, Bank of buses Payments can be made by million million million/year Holidays, or the days • 8,500 park-and-ride telephone, text message, (USD $214 (USD $172 (USD $182 between spaces online, by post, or via million) million) million) Christmas Day and • Bike/pedestrian registering for auto pay. infrastructure New Year’s Day, nor during nights (6:00pm to 6:59am). Variable pricing based on 6:30am- 6:30pm • 197 new buses time of day. Highest peak Monday-Friday • 16 new bus routes period cost per passage is • 2,800 new regional There is no charge 35 krona (US $4.14). 2 100 1.3 billion park-and-ride spaces on weekends, public billion krona million krona krona/year • Bike/pedestrian The owner of the car is holidays or the (USD $236.7 (USD $11.8 (USD $155 infrastructure sent a monthly invoice for day before public million) million) million) • Taxis and for-hire the total charge incurred. holidays, nor during Vehicles, such as Payments can be made by nights (6:30pm – Uber, also pay the tax mail, online or by direct 06:29am), nor during debit from a bank account. the month of July. • Parking fees inside the $0 -$4.00 (US $0 - $3.00) restriction zone were are collected on a per-pass doubled basis at over 50 points 7:00am-8:00pm • Buses and bus within and surrounding the Monday-Saturday S $200 S $25 S $150 central business district. frequency increased There is no charge million million million/year Rates vary for different • HOV+4 lanes were on Sundays, public (USD $110 (USD $18.5 (USD $100 roads and time periods established holidays, or after 1pm million) million) million) depending on local traffic • 15,000 park-and- the day before a public conditions. ride spaces were holiday. established outside of The in-vehicle unit costs the restriction zone $150.00 (US $111.00). 4 5 A A L H B R G Y A R O A D C ROV N R Y O A B R D O E E S E D DALSTON N V D L I W R LONDON E L E E A L R E R O CHALK T R O A D BRONDESBURY O R G B O T A F O R E S E N D E A A N U R C EN D O V E R A FARM OA D F E D E ON R M K S ET RD A C FO T .