Enabling a More Powerful
Regulatory Paradigm
Through Heavy Vehicle Road Pricing
Tony Wilson
Australian National Transport
Commission
Australian Transport Environment


Approx 7.7m km2 of land
mass
Population of 19.7 million
–
–

64% in urban areas
concentrated around
East coast
808 000 km of roads,
primarily:
–
–
chip seal
2 lane rural roads
Australian Transport Environment

Federation of 8 States and
Territories
–

who have constitutional
responsibility for transport
NTC set up to develop
national approaches
–
regulation and heavy vehicle
pricing
Australian Transport Environment




82% land mass of US
7% population of US
77% land mass of Europe
2.6% population of Europe
Australian Transport Environment


Long distances between major centres
Reliant on road transport
–
long haul


–
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
urban and regional distribution
Small base to finance infrastructure
Negative public perception of heavy vehicles
–

export industries
inter-city
including clear impact on infrastructure
Managing heavy vehicle use of road network a priority
Objectives of Road Pricing

Road pricing can be used to
–
–
–
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–

raise revenue
finance infrastructure expansions
manage demand for road space
manage emissions and noise
manage road wear
The latter is the focus in Australia
Traditional Approach

Prescriptive rules used to control road wear
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–

blunt
resulted in systems of pricing based on aggregates
Australia charges heavy vehicles their share of
construction & maintenance costs
Australian Heavy Vehicle Pricing


Two-part pricing
Based on averages
Average km
Cost/Revenue ($)
35000
30000
25000
20000
15000
10000
5000
0
0
50000
100000
150000
200000
Annual distance travelled (km)
Revenue
Cost
250000
Cost Allocation Process
Expenditure
Measures of
Road Use
PCU km
km
ESA km
New Roads
Cars
Cars
Running
Expenses
Small trucks
Pavements
Large trucks
Small trucks
Small trucks
Large trucks
Large trucks
Allocated
Costs
Cars
Small
trucks
Large
trucks
Relationship Between Road Use &
Costs



Not well understood
Poor data
Vertical loads the
emphasis
Other Factors
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
Horizontal loads
Tyre impacts
Dynamic loads
De Beer, 1996
Incentives for Change


Limited while the blunt, prescriptive approach to
regulation remains
Australia gradually making the shift
–
–
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performance-based standards
outcomes-focussed compliance systems
intelligent access program
Performance-based standards


What a vehicle
should do…safety
and infrastructure
outcomes
Instead of what
it should be like
Compliance & Enforcement
IAP Service
Providers
Fe
C
er
tif
ic
at
i
Au on
e
di & O
fo
tin n
rS
g -g
er
oi
v ic
ng
e
Intelligent Access Program
ss
Inf
or
ma
co
tio
mp
n
&
l
i
a
Ot
h e nc e
r D Re
a ta p o
r ts
nt
rvi
ce
Se
s
No
n-
ce
Ac
ce
me
rv i
ge
Se
na
Certi
Req fication
uirem
ents
Aud
it &
R ep P I
o rt s
or
ef
Ma
Jurisdictions
Fe
et
Certification &
Audit Group
Fle
3rd Party
Certifiers
Access Rights
& Concessions
Compliant
Behaviour
Transport
Operators
Examining Variable Pricing


Looking at flexible approaches to regulating
road use
Drivers different to other countries
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–
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revenue issues and demand management in
Austria & Germany
cross-border equity/revenue in the UK &
Switzerland
demand management in London and the US
infrastructure management in Australia
Possible Flexible Arrangements

Vehicles choose the mass they operate at
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within safety and bridge constraints set by
PBS
using compliance systems that guarantee
agreed outcomes
intelligent monitoring and enforcement
Other Possible Arrangements

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
Access to a broader range of routes
Improved methods of dealing with planning
issues such as new industrial or primary
industry activity
Optimum use of multiple transport modes by
varying what’s allowed on roads
Pricing an Essential Component


Flexible arrangements won’t be possible if
additional road and bridge wear is not paid for
by the users
Currently developing options to design variable
heavy vehicle pricing arrangements
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Development 2003-2006
Implementation late 2006
Future Considerations

Inclusion of broader social costs
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
Apply to all heavy vehicles
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
emissions, noise, congestion
Both are a shift in objectives that would need to be
carefully considered
Better understanding of links between road use
and costs
–
allow a further shift away from aggregated
approaches to pricing
www.ntc.gov.au