Toll Highways

[hkskyline]

Background
Toll highways are nothing new. However, with limited infrastructure budgets around the world, would you support tolls to fund expansion and maintenance, such as adding tolls to existing highways or building new toll highways?

N.J. considers turning free highways into private toll roads
By BETH DeFALCO
15 November 2006

TRENTON, N.J. (AP) - Some long and winding roads may lead to New Jersey lowering its sky-high property taxes and increasing aid to school districts.

Besides considering selling or leasing the New Jersey Turnpike and Garden State Parkway, Gov. Jon S. Corzine's administration on Wednesday said it wants more information on the pros and cons of converting several freeways into tollways.

Indiana has leased its northern toll road for 75 years for $3.8 billion.

Specifically, the state is looking to hire transportation consultants to study the conversion of routes 78, 80 and 95, the Pulaski Skyway and the section of Route 440 in Middlesex County between the New Jersey Turnpike and the Garden State Parkway to toll roads, according to a request for proposals released Wednesday.

Privatizing New Jersey roads is just one of the ideas Corzine is considering as a way to help shore up state finances and lower the state's highest-in-the-nation property tax.

"The administration will be looking into the pros and cons, the upsides and downsides and what is in the best interests of taxpayers and users of our assets," said Corzine spokesman Anthony Coley. "After all is said and done, the most favorable option for an asset could very well be to do nothing."

State Senate President Richard Codey has said money earned from transferring control of state assets such as the Turnpike or Garden State Parkway to an outside entity not only could allow the state to slash property taxes by an average of 20 percent, but also increase school funding by $1 billion.

Besides trying to figure out the value of privatizing tollways, consultants will also try to determine the impact adding new tolls would have on nearby roads.

States are allowed to set up tollways on interstate highways but must first get the approval of the Federal Highway Administration.

The Star-Ledger of Newark first reported on the plan for new tollroads in Wednesday's newspapers.

Meanwhile, New Jersey officials have been eying as examples two recent toll-road leases, one in Chicago and one in Indiana, both of which leased roadways to a Spanish-Australian consortium.

Chicago will get $1.83 billion for a 99-year lease.

Under the Indiana agreement, the consortium can begin raising tolls annually either by 2 percent, the rate of inflation or increase in gross domestic product, beginning in 2010. Most of the lease money will be used to help finance hundreds of highway and other transportation projects, according to Indiana officials.

However, some New Jersey lawmakers question the benefits of letting a private company run some of the busiest roads in America.

"I am not convinced that there is support for the sale or lease of the toll roads to a for-profit private company," said Assemblyman John Wisniewski, chairman of the Assembly Transportation and Public Works Committee.

Wisniewski said he doubts a private company can make enough money off a toll road lease without increasing tolls. Otherwise, he said, the state would be making billions off toll roads already.

"If we want more to come out of the road," he said, "we have to put more into the road."

------

Associated Press Writer Tom Hester Jr. contributed to this report.

[alvse]

I'm kinda glad that Perth's freeways & highways are toll free. For what I've seen of europes tollways, they take up alot of space, and unless you have one of those electronic toll cards, you could be queing up to get through. Again, thank goodness we don't have them.

[ChrisZwolle]

In The Netherlands, driving is very expensive. Our tax-rates are high, up to over a thousand euro's a year for a normal diesel-fueled car. Our taxes on gas are among the highest of Europe. When you buy a new car, you have to pay 45% of the price EXTRA to the government, and of course, VAT.

But they are voting for a new way of paying for our road system, mileage-paying , electronically. This will cost the average commuter some 100 - 300 euro's EXTRA each month.

But tolling here is bullshit anyway, the government gains 20 billion euro's each year from automobile-owners, and spend only 2,7 billion of those 20 billion to the road system. No wonder why our country is among the worst in traffic congestion.

[hkskyline]

Hwy. 407 slashes tolls for big rigs
But even large discounts unlikely to lure some truckers
The Canadian Press
5 July 2006
The Hamilton Spectator

TORONTO

Trucking firms whose big rigs frequently ply Canada's first pay-as-you-go highway will now see their Highway 407 tolls slashed by as much as half if they use it during off-peak hours, the road's owner and operator said yesterday.

The discount program is designed to help ease the increasing rush-hour congestion on the 108-kilometre highway, while drawing more traffic from the jam-packed Highway 401.

"During peak hours we are experiencing congestion," said Dale Albers, a spokesperson for 407 ETR, the company that owns the highway.

"(This) will help lighten the load during the peak and encourage truckers and other companies to use it during off-peak hours."

The incentive is part of a settlement reached in March that ended a series of bitter disputes between the company and the Ontario government over toll increases and other issues.

Car drivers will have to wait at least few more months for a similar break on tolls that was also agreed to in the settlement.

For truckers, however, the savings are immediate -- and potentially substantial. A typical 18-wheeler using the obligatory transponder pays 48.75 cents a kilometre during peak hours.

Until now, the discount for driving outside of rush hours -- between 6 and 10 a.m. and from 3 to 7 p.m. on weekdays -- amounted to just two cents.

That discount now increases to as much as 23 cents a kilometre for driving at night and on weekends and 12 cents for usage at other off-peak times.

The highway operator says 300 trucking companies already qualify for the maximum discount, but estimates tens of thousands of trucks could see some form of savings.

But even the hefty discount won't lure some truckers onto the highway.

"It's just cost-prohibitive for us -- that's a significant chunk of our revenue based on a per-kilometre basis," said Brent Byers, vice-president of APPS Transport Group that operates about 60 trucks out of Brampton.

"And in particular on the off-hours is when you really aren't inclined to use it, because the rest of the roads aren't congested, so why would you pay?"

There are some rules for companies to qualify for the maximum saving.

They have to pay their bills within 60 days, trucks must have the transponder and drive more than 600 kilometres per month on the highway.

Under the terms of the contract with the province, toll levels on the 407 are linked to traffic reductions on the jam-packed Highway 401.

The breaks on the tolls "will certainly help that," said Albers.

In 1999, the former Conservative government of then-premier Mike Harris sold a 99-year lease to the private consortium to run the 407 as Canada's first private toll road.

The tolls have skyrocketed since and the company and province were inundated with public complaints about incorrect billing and heavy-handed collection tactics.

The Liberal government sued over the toll increases but lost, leading to the settlement.

To alleviate congestion, 407 ETR is also spending $100 million to add lanes to a 100-kilometre stretch of the road above Toronto.

[hkskyline]

Province rules out suggested tolls on highways around Toronto
21 February 2008
The Canadian Press

TORONTO - Ontario Transportation Minister Jim Bradley has dismissed a suggestion from a blue-ribbon panel that the province implement road tolls on 400 series highways in the Toronto area.

``Our government has said _ repeatedly _ it will not be placing tolls on existing 400-series highways,'' Bradley said Thursday.

``Road pricing'' is among the tough choices facing the region, according to the panel appointed by mayor David Miller to review the city's financial situation.

It says tolling the Gardiner Expressway, Don Valley Parkway and other highways around Toronto could raise $700 million to improve transit in the region.

``The idea is to take a ring road around the city and put it in a single entity that you can (turn into) a toll highway that is your entrance to the city,'' said panel member Larry Tanenbaum.

``It needs to be seriously considered by all levels of government,'' fellow panellist Paul Massara said.

Even so, the province must approve any changes relating to highways, Bradley said.

``They were built originally without tolls on them; they were built on that condition,'' he said of the 400 highways, 407 being the sole exception.

[10ROT]

My state in the US, Connecticut, does not have toll highways. In fact, it is the only state in the East Coast not to have them. Tolls have a bad experience here since there was two accidents that killed people that had to deal with toll booths.

A consequence of that is that we have a higher fuel tax than most of our neighbors. Gas prices are usually 25-30 cents higher here than in Mass or RI. And they get to drive in our roads free while we have to pay for ours. How's that? :mad:

I suppose that I would support a toll system to lower the dependence on fuel taxes that CT has for funding, however the problem with the barriers is that they encourage more congestion. The state needs to look at electronic tolling alternatives. But at the current issue, this rests on the plans of our neighbors.

The closest toll roads to Connecticut are:

Massachusetts Turnpike (I-90), which is mostly toll-free, but there are barriers. It's pretty close to the CT border.

http://www.northeastroads.com/massachusetts050/i-084_eb_exit_004_02.jpg

The toll bridges of NYC, which cost $4.50-6 (depends on the bridge and what direction you go)

This is the Whitestone Bridge (I-678), which costs $4.50
http://www.northeastroads.com/new_york400/i-678_sb_exit_017_01.jpg

New York Thruway. This is I-90 near Albany
http://www.northeastroads.com/new_york050/i-090_wb_exit_000_02.jpg

New Jersey Turnpike: I-95 before it meets I-80
http://www.northeastroads.com/new_jersey050/i-095e_nj_tpk_nb_exit_016e_03.jpg

All pics from aaroads.com

[Jeroen669]

A consequence of that is that we have a higher fuel tax than most of our neighbors. Gas prices are usually 25-30 cents higher here than in Mass or RI. And they get to drive in our roads free while we have to pay for ours. How's that? :mad:

You think those are big differences? Differences in fuel prices are much bigger here. E.g. in Luxembourg the gas is currently almost €0,40/l cheaper as in Holland!

[FM 2258]

Hwy. 407 slashes tolls for big rigs
But even large discounts unlikely to lure some truckers
The Canadian Press
5 July 2006
The Hamilton Spectator
<snip>

That's a damn good idea. They should do that for trucks on our new Texas 45 and Texas 130 tollways here in the Austin area. That would really take more trucks off of Interstate 35.

[ChrisZwolle]

^^ That's $ 2.4 per gallon :D

[Dan1113]

I love the fact that Sweden has pretty much no toll roads (other than the two bridges to Denmark and Norway). :D Sure they might get roads built faster, but then having to pay tons of money everyday to drive on a road is a lot worse than having a slightly slower road while the motorway gets slowly built. We've managed a pretty good motorway system here in sweden even without tolls, but of course it'd be better with tolls...but I prefer it this way. (But of course this does not always hold...just look at Norway: lots of tolls but like 200km total of motorways, heh.)

[ChrisZwolle]

All roads are toll roads, however, you'll pay for them differently, like via all kinds of taxes. Tax em to death! seems to be the motto of our government.

[bgplayer19]

Thank god there are no such things here in Bulgaria!

[Nielsiej13]

In Normandy, ( Le Havre ) You have to pay €6,50 to cross this bridge.. I've been there last year.. Nice bridge :) http://lumerphoto.romandie.com/get/10461/Pont%20de%20Normandie3289_1_1_1.JPG

[Timon91]

^^From this point of view it seems very steep.

[Verso]

Thank god there are no such things here in Bulgaria!

How not, when you have to pay for driving on Bulgarian roads?

[x-type]

How not, when you have to pay for driving on Bulgarian roads?

i guess it's only for foreigners

[Morsue]

^^From this point of view it seems very steep.

When the Tour de France went over the bridge a few years ago it was a 2nd category climb.

[Czas na Żywiec]

Do you have a side view of that bridge? I'd love to see one. :)

[10ROT]

You think those are big differences? Differences in fuel prices are much bigger here. E.g. in Luxembourg the gas is currently almost €0,40/l cheaper as in Holland!

Then again, I live in the US. :D

[hkskyline]

Toll evaders could lose cars
16 September 2008

DOVER, Del. (AP) - A new Delaware law could punish toll evaders with the temporary loss of their car.

The Delaware Department of Transportation and the Delaware River and Bay Authority are working jointly to identify the most serious toll cheats on Interstate 95, Route 1 and the Delaware Memorial Bridge.

Those with unpaid tolls and penalties totaling more than $1,000 could have their cars impounded until they pay up.

Drivers with an outstanding toll obligation are advised to promptly contact the DRBA or DelDOT to resolve their debt.

[hkskyline]

Atlanta car pool lanes may soon charge toll
18 September 2008

ATLANTA (AP) - Drivers wanting to use the car pool lane on Atlanta interstates soon might have to pay for the privilege.

The Georgia Department of Transportation is moving forward with a more than $400 million plan to convert all 44 miles of HOV lanes in the city to toll lanes. Large car pools and buses could ride for free, but single drivers and small car pools would have to pay.

State officials hope to start construction in 2010.

Meanwhile, the state is looking for federal grants to finance the project. About half of the money would go to converting the HOV lanes and the rest would go to mass transit and park-and-ride lots.

State officials don't yet know how much the toll price or minimum car pool size would be.

[hkskyline]

Slovenia's road tax system unfair to foreigners: EU
2 October 2008
Agence France Presse

Slovenia, under criticism from the European Commission, denied Thursday that recently introduced road vignettes discriminated against short-term visitors.

"Slovenia's position remains unchanged unless we receive some additional arguments," junior transport minister Peter Verlic told journalists.

The European Commission said earlier it had sent Slovenia "a letter of formal notice to stop discriminatory treatment of occasional users on Slovenian toll roads."

The dispute is over road stickers for cars and motorbikes that Ljubljana introduced in July. They are valid only for six or 12 months.

This worked against foreign nationals or foreign residents who only occasionally used Slovenia's motorway network compared to Slovenian nationals or Slovenian residents, the Commission said in a statement on its website.

Slovenia should allow foreign residents transiting through the country to buy a shorter-term vignette, the Commission suggested.

The motorway stickers, which cost 35 euros (55 dollars) for six months and 55 euros for a year, have also been criticised by automobile associations and tourist organisations in Germany and Austria.

Their nationals often drive through Slovenia to their holiday destinations in Croatia, Greece or Turkey.

But Slovenia's transport ministry said in a statement Thursday: "There is no direct or indirect discrimination (of foreign drivers) since both domestic and foreign users have equal possibilities to use the vignettes."

Verlic added: "The introduction brought exactly what the government expected: better flow on the highways, less waiting at tolls and a reduction of transit on local roads."

[ChrisZwolle]

I feel like Verlic thinks we don't wanna pay tolls at all. I don't think that's true, I don't mind paying a little toll, but they should introduce short-term vignettes for like 2 days for say, € 5 - 10. Or take the usual north-south routes, and multiply the distance by € 0,1 per km. That's still a pretty high price, but nothing like the € 35 madness.

[Timon91]

^^That 2 day vignette would be a good idea, but that other idea about the north-south routes is not. When coming from any country in north-western Europe (Netherlands, Luxembourg, Belgium, Denmark, Germany......) and heading for Zagreb, you drive approximately 190 kms in Slovenia. When doing that route twice (you want to go back home, of course) you pay 2×190×0.1 = 38 Euros. Than the €35 vignette is still better. However, this is still to expensive, I agree.

[Dan1113]

You have to pay 35 euros even if you're just driving through? That's ridiculous.

[Timon91]

^^Unfortunately, yes. I believe that there are people who made maps with toll-free roads for transit traffic :lol:

[x-type]

You have to pay 35 euros even if you're just driving through? That's ridiculous.

yes, even if you use Pyhrnautobahn (Zagreb - Maribor - Graz...) for silly 15 km of motorway you must paj 35€ (bypassing is really bad, you must go through centre of Maribor and really low important local roads, and still you're using rounabout at Pesnica which is under tolling

[hkskyline]

Tight budgets, rising costs have NY highway managers putting off paving and other projects
13 October 2008

ALBANY, N.Y. (AP) - New Yorkers weathering the national economic downturn can expect another sort of rough ride as state and local highway managers rework road construction plans, scaling back or postponing projects ranging from bridge reconstruction to road resurfacing.

They blame tight budgets, rising inflation and the high price of oil, which has driven up the cost of asphalt, the key ingredient in sealing roadways to keep out pothole-causing moisture. Asphalt, also known as blacktop, is derived from crude oil, and its cost has been rising so far and fast that it is busting some highway construction and maintenance budgets.

"The price has quadrupled in the last six months or so, and in some cases there have been shortages," said A.J. Castelbuono, president of the Associated General Contractors of New York. "That's something that just wasn't anticipated."

Managers at the New York State Thruway Authority -- who rely heavily on toll money to pay for construction and maintenance -- said this month they're putting off $250 million worth of planned projects. They blamed rising construction costs and a decrease in toll-paying drivers.

The Thruway's scaled back roadwork plans come just months after officials there approved a new series of toll hikes they said were needed to pay for the work. Projects taken out of the plans through 2011 include replacing toll barriers and rebuilding and resurfacing roadways and bridges.

The problem is spreading beyond the 641-mile superhighway, though. State and county project planners, facing the same rising costs and an uncertain outlook for future funding, are backing off of some previously planned roadwork.

Planners at the New York State Department of Transportation who had 325 projects in the works are expecting to pull 30 of them from this year's plan. That's because the $1.7 billion they had to work with in this year's budget isn't going as far as expected, said Carol Breen, an agency spokeswoman.

Budget managers are still figuring out which projects will have to be postponed and expect to have a list in the next few weeks, Breen said.

"We're definitely scaling back, we just don't know exactly where yet," she said.

So-called "megaprojects" -- such as the rehabilitation of the Alexander Hamilton Bridge and Highbridge Interchange Ramps on the Cross Bronx Expressway and the reconstruction of a stretch of Route 17 between exits 116 and 121 in Orange County -- won't be affected.

But state highway managers will likely defer other types of routine work, including plans to resurface 670 miles of road throughout the state. "We're going to have to scale that down," Breen said.

Roadwork contractors have noticed a big difference this year, Castelbuono said.

The typical flurry of notices about upcoming contracts for work that needs to be done before the cold weather sets in has been conspicuously absent, he said.

"We can't figure out exactly what they're trying to do," Castelbuono said. "When you delay letting a project by a week or two, you don't just lose a week or two -- especially at this time of year."

Less road resurfacing this fall is likely to mean more potholes next spring.

That's because potholes are caused by snow melt and rainwater that seep through cracks in the road surface to the underlying dirt and gravel. As the water freezes and thaws, it weakens a section of the road and ultimately causes a pothole.

County highway managers are scrambling to get their roads in good shape for the winter as well, but most are scaling back their plans or finding other ways to cut costs, said James Brady, president of the New York State County Highway Superintendents Association.

"Everyone's in the same boat," said Brady, who is Wayne County's highway superintendent. "If your budget last year allowed you to do one mile, this year with the higher costs its about a half mile."

With higher costs and stagnant budgets, county highway managers are being forced to cut back their maintenance and construction or find less costly ways to do the work, Brady said.

In Livingston County, Highway Superintendent Don Higgins said his crews are doing a little bit of both.

On major reconstruction projects there, workers used a method known as chip sealing -- which sprays a light layer of asphalt over a layer of crushed stone -- instead of the more expensive hot mix asphalt, Higgins said.

"It's not as long lasting, and its noisier because the surface has the stones exposed," he said. "But it seals the roadway, which is the most important part."

[hkskyline]

Maine Turnpike toll hikes expected in February
Wednesday October 15, 3:12 pm ET
By Glenn Adams, Associated Press Writer

AUGUSTA, Maine (AP) -- Maine Turnpike users can expect to see toll increases averaging 23 percent in February, a year sooner than expected, turnpike Executive Director Paul Violette told a legislative committee Wednesday.

The speedup in toll increases is unavoidable, given declining revenues, increased maintenance costs and the impact of the Wall Street financial collapse, Violette told the Transportation Committee in advance of votes that will set the stage for the hikes.

The turnpike normally adjusts tolls in five-year cycles, but even after canceling some projects and cutting back others it sees no alternative to moving up the toll increases by a year, Violette said. The last toll hike was in February 2005.

"The authority has no choice," Violette said following the committee meeting. He noted that without an increase in tolls, which will amount to about $20 million, the trustees who represent turnpike bond holders can impose the increase themselves.

The turnpike authority on Thursday is expected to ask its staff to formulate new rates for the various vehicle classifications and turnpike user groups. By Dec. 12, it will vote on the new toll structure, which would go into effect Feb. 12, 2009, a year sooner than new tolls would take effect in more economically stable times, Violette said.

Last March, the authority reduced its operating budget by more than $1 million per year and put $3 million worth of projects on hold, Violette said. Then, seeing a decline in traffic as fuel prices spiked this summer, the 100-mile highway's overseers terminated $3 million worth of projects and reduced others by $2 million, Violette said.

It soon became clear that no amount of cutting could forestall jumping a year ahead with a toll increase, Violette said.

"I know it's a tough time. We have searched high and low for a way to avoid this," Violette said.

Declining revenues, due in large part to people's tendency to drive less when gas prices shoot up, and increased construction and maintenance costs create a doubly whammy that affects financing for the state's network of non-toll highways. State officials have been struggling to come up with solutions so highways and bridges can be kept in shape.

Sen. Dennis Damon, who co-chairs the Transportation Committee, described the twin pressures of lower revenues and higher costs as the gaping jaws of an alligator.

"The alligator's mouth is opening wider and wider," the Trenton Democrat warned at Wednesday's meeting.

A resolution to be voted on Thursday by the turnpike authority says toll highway revenue projections for 2008 have been revised from 2.5 percent growth to negative 1.7 percent. It says general highway construction costs have increased by more than 38 percent since 2005.

Costs of specific maintenance items have also increased sharply since 2005, it says. Diesel fuel is up 117 percent, deicing salt is up 83 percent and paving mix has risen 82 percent.

Still, the Maine Turnpike says its per-mile charges for passenger cars and commercial vehicles are among the lowest in the nation.

Violette said Maine is not alone in raising its tolls, saying similar increases are being imposed on other highways including New Jersey's turnpike and Garden State Parkway. Increases have been under discussion in Massachusetts and New Hampshire raised its turnpike tolls last year.

[hoosier]

You know, there is a way to avoid all of these budget shortfalls, toll road privatization, and toll hikes. And that is to INCREASE funding for infrastructure at the federal level, which has been woefully shortchanged over the past few decades. Increased infrastructure spending will create jobs and hel pull the economy out of recession.

[hkskyline]

Perhaps we need a 1930s-style infrastructure push once again.

[hoosier]

Perhaps we need a 1930s-style infrastructure push once again.

I agree. It would really help the economy. Congress is considering another stimulus package would include increased infrastructure spending.

[hkskyline]

Illinois tollway eyes bonds for $1.8 bln plan

CHICAGO, Oct 15 (Reuters) - The Illinois State Toll Highway Authority would issue bonds to finance a $1.8 billion plan to add special bus and ride-sharing commuter lanes and new interchanges to the tollway system, Gov. Rod Blagojevich and tollway officials said on Wednesday.

The bonds would be backed by increased toll rates for commercial vehicles and for single-passenger cars using the new commuter lanes, according to a statement.

The 80 miles of so-called green lanes would cost $400 million, while the interchanges carry a price tag of $1.4 billion.

"The Illinois Tollway has the solid financial foundation and the engineering capabilities to immediately begin the process of building these long-awaited interchange improvement projects," said John Mitola, the tollway authority board chairman. "In addition, the introduction of green lanes reduces our impact on the environment, while saving drivers time and money."

The tollway board, which runs the 286-mile system in northeastern Illinois, is expected to vote on the plan at its meeting next month, following a public hearing, the statement said.

[marki]

Here is a small table I've made of toll roads and statistics in Australia.


Toll Road $ revenue (Mil) trips (Mil) Tolls AU$
CityLink 362.8 247.9 1.65 to 6.21
M1 (Eastern Distrib) 75.3 17.4 5.00
M2 (Hills) 120.6 33.8 4.40 to 6.60
M4 (Western Mwy) 88.5 40.6 2.75
M5 (South Western Mwy) 163.6 42.3 3.80
M7 (Westlink) 153.2 41.8 0.44 to 6.57
Gateway Motorway 90.6 33.6 2.90
Logan Motorway 69.9 37.2 2.00 to 3.20
Sydney Harbour Tunnel 43.7 ? 3.00
Sydney Harbour Bridge 85.91 ? 3.00
Lane Cove Tunnel unknown unknown 2.69
Cross City Tunnel unknown unknown 4.07

Mark.

[hkskyline]

Mass. turnpike spent $160K on raises as tolls hikes weighed; official says money saved overall
22 November 2008

BOSTON (AP) - The Massachusetts Turnpike Authority gave $160,000 in raises to 13 managers in the last year, even as it prepared for toll hikes to pay down Big Dig debt.

But the agency's executive director, Alan LeBovidge, said the raises went to employees promoted to take on the responsibilities of positions that were eliminated. He said the savings from the job eliminations outweighed the cost of the raises.

The Turnpike board voted last week to raise tolls around Boston, including doubling them to $7 at the Sumner and Ted Williams tunnels.

Michael Widmer of the Massachusetts Taxpayers Foundation told The Boston Globe the timing of the raises, as unpopular toll hikes were considered, was unfortunate.

But he added the workers are taking on broader duties, and the agency needs strong management during tough times.