Type of Scheme
- Cordon-based variable pricing scheme where drivers must pay to enter the central business districts.
Date of Introduction
Background
- During 1960s and 70s, car ownership was much higher relative to its per capita income. In 1960s alone, car population doubled and motorcycle tripled, income was constantly rising.
- To maintain its economic prospects as a prominent manufacturing, commercial and trading centre yet control its growing problems of congestion and environmental pollution, the Singapore Government's Land Transport Authority (LTA) introduced road pricing as part of an overall demand management strategy.
- Current system of Electronic Road Pricing (ERP) is based on a pay-as-you-use principle.
- First road pricing scheme, the Area Licensing Scheme (ALS), was introduced in the Restricted Zone (RZ) in 1975.
- Scheme was subsequently extended to the major expressways with the Road Pricing Scheme (RPS).
- In September 1998, the Electronic Road Pricing (ERP) system replaced the paper-based manual system for the RZ and expressways.
- In September 1999, ERP was extended to arterial roads beyond the RZ.
Aims
- Main objective of pay-as you-use system was to optimise road usage by making motorists more aware of the true cost of making a journey by car and thus reduce congestion.
- Secondary aims were:
- To encourage use of public transport or car pooling.
- To encourage use of alternative routes and times of travel.
- To provide a smoother ride with more assured journey times for drivers who choose to pay the charge.
How it Works
Charges:
- Scheme operates in two areas: central business districts - where scheme applies from 7.30am to 7.00pm - and expressways/outer ring roads - where charges apply in the morning between 7.30am and 9.30am.
- Charges are levied on a 'per pass' basis and rates are based on traffic congestion levels at the pricing points.
- To discourage motorists from speeding up or slowing down to avoid higher charges, ERP changes are more gradual in immediate run up to a time/charge change point.
- Traffic conditions on the expressways and roads are regularly reviewed. After the review, ERP rates can be adjusted to minimise traffic congestion.
- Charges vary according to class of vehicle.
Exemptions:
- Buses and Emergency Vehicles.
Technology:
- All vehicles must be fitted with an On-Board Unit (OBU) which is able to communicate with the overhead gantries located in the charging area.
- Payment occurs via a smart card (CashCard) which is inserted in to the OBU and deducts the charges instantaneously from the smart card as it passes under a gantry.
- CashCards can be purchased at banks, selected Petrol Stations and 7-Eleven Outlets and can be topped-up at ATM machines.
- OBUs were fitted free of charge by the Land Transport Authority when Electronic Toll Collection was first introduced in 1998.
Enforcement
- Cameras located in overhead gantries take photos of license plates of vehicles whose drivers pass through a gantry without a properly inserted CashCard in the OBU or with a CashCard with insufficient balance to pay for ERP charges.
- Driver will then receive a letter requesting payment of outstanding charge plus an administrative charge of $10, within two weeks of the violation.
- If administrative charge and outstanding charge are not paid within this period, they will receive a Notice of Traffic Offence offering to compound the offence for $70 payable within 28 days. Upon expiry of the Notice, the matter will be referred to the Court.
- The fine for passing through a gantry without an OBU warrants a $70 fine.
Revenue
- Annual Revenue is $80 million (operating costs are $16 million).
Benefits/Results
- Reduction of nearly 25,000 cars during peak times and an increase in average traffic speed of approximately 20%.
- Traffic in the zone reduced by 13% during charging periods.
- Total vehicles using the roads in the RZ has reduced from 270,000 to approximately 235,000.
- Car pooling has increased and fewer solo motorists drove in the RZ.
- Many vehicle trips have shifted from peak to non-peak times.
- ERP has been effective in maintaining a speed range of 45 to 65 km/h for expressways and 20 to 30 km/h for major roads.
Public Opinion
- Rate of violations fell by 40 per cent after the first few months suggesting a decrease in opposition.
- A survey found 75% of respondents felt it was fair to charge vehicles according to congestion they caused, and more than 60% supported congestion management measures other than high vehicle ownership taxes.
Website
Singapore Government, Land Transport Authority:
www.lta.gov.sg.
References
Luk, J. and Chung, E. (1997). Public acceptance and technologies for road pricing. ARR 307, pp 26.
Dr Chin Kian Keong, Land Transport Authority (2002), Road Pricing: Singapore's Experience.
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