A report by the International Bridge, Tunnel and Turnpike Association showed the number of trips taken by drivers on toll roads increased 14 percent, from 5 billion trips in 2011 to 5.7 billion in 2015. The association also noted a 20 percent increase in electronic tolling over that period.
Today, Connecticut, Michigan and Wyoming are considering various types of tolling, while Texas, Colorado, Florida, North Carolina and Virginia are opening toll roads or lanes—or implementing congestion pricing—to pay for the nation’s backlog of massive transportation and infrastructure needs.
One type of tolling, dynamic tolling, is suitable for major freeways as well as congested urban areas. The word dynamic—meaning constant change or constant activity—is fitting for a toll road that fluctuates rates depending on the amount of traffic congestion. The interesting part about dynamic tolling, also known as congestion pricing, is that the fees can be scheduled, with the highest rates set during the busiest time(s) of day. Conversely, tolls can be left uncapped to fluctuate with changing traffic, as they do along the 10-mile stretch of I-66, where the rate hit $40 at 8:06 a.m. on a Tuesday late 2017. So far, 40 jurisdictions nationwide have adopted dynamic tolling since southern California adopted the first one in 1995.
While they are often criticized as “Lexus Lanes,” toll roads and congestion pricing work. As an example, along I-95 in Fairfax County, Va., there has been an average of 25 percent reduced delay in the general purpose lanes during commuting times. Those not involved in congestion pricing are reaping the rewards of those in the HOV lanes.
On a typical Thursday morning, I-95 express lanes offer significant time savings to all drivers. The general-purpose lanes may run 18 to 50 minutes as you travel around the D.C. Beltway, whereas the I-495 express lanes can often be less than a 10-minute drive. Keep in mind, congestion pricing can encourage mass transit use and carpooling.
Another reason tolling will continue: Tax revenue generated from gasoline is going to continue to drop. It will get to the point where electric vehicles will become a large portion of the automobile fleet and the amount of gasoline used will continue to decrease. As gasoline use drops, so does the gas tax revenue. Lack of gas tax revenue will continue to reshape transportation and, in turn, impact the construction and development industries.
Tolling in Cities
In a recent study, the Partnership for New York City found that congestion costs the city $20 billion annually in lost time and revenue. Today, in midtown New York City, the average travel speed is less than 5 MPH.
For a construction firm who is working in any major city, getting workers and materials in and out is a major concern in completing a project on time and on budget. Tolling will help expedite downtown projects for construction firms.
Major cities throughout the United States are currently studying whether or not they want to use dynamic congestion pricing in business districts as a way to help avoid ongoing intersection delay and gridlock. During the morning peak hour, it may cost $5 per vehicle to enter the city between 6:00 a.m. and 10:00 a.m., and then there might be no charge until noon, with another charge during the evening rush. Essentially, the more congested the roadways become, the higher the price a motorist has to pay.
Congestion pricing is touted as a viable solution for gridlock in cities. Initially, these types of surcharges were met with hostility, but the positive effects have been hard to deny. Immediately following the initiation of zone charging, London saw congestion reduced by 25 percent and average travel speeds increased by 30 percent. Imagine what that would do to many businesses bottom lines, or how much faster a major construction project could be completed.
Remember there is no such thing as a free ride. Everything must be rationed when things are finite, such as capacity and roadways. This is not price gouging; rather, it’s a simple matter of supply and demand. The thought process behind dynamic tolling and congestion pricing is meant to move people, not cars.
