Managing the Road

In 1975, Singapore identified its increasingly problematic traffic conditions and worked to develop a system to help alleviate congestion downtown. The city began charging drivers a flat fee for unlimited entries into Singapore’s central business district using paper vouchers and tickets, and almost immediately reduced traffic by 45 percent. While average vehicle speeds increased from 11 mph to 21 mph, the city also saw a 25 percent reduction in crashes. By 1988, Singapore outgrew its system of paper tickets and upgraded to the Electronic Road Pricing (ERP) system in place today.

Today’s ERP system has more than 25 overhead tolling gantries that recognize refillable debit CashCards inserted in a custom transponder installed in every vehicle. The gantry automatically deducts the price of the toll from the driver’s card and displays the remaining balance on the transponder’s display screen. The installation of the ERP system decreased traffic another 15 percent, while allowing for Singapore’s drivers to maintain travel speeds of 30 to 40 mph. Drivers pay anywhere from 30 cents to $1.90 USD to enter the zone, depending on the level of traffic throughout the day. Every year, it costs about $10 million to operate the ERP system, but revenues average approximately $50 million. With an initial investment of close to $125 million, ERP already has paid for itself.

Cities struggling to address gridlock and its effects – including poor air quality, lost time, and wasted money – can learn by studying the evolution of Singapore’s congestion relief program. Initially, Singapore's program missed a key component: nearly 12 years after introducing congestion fees to drive downtown, the city established its first public mass transit system. Until then, private bus operators provided limited access to transit, forcing many to walk or bike very long distances to downtown. Travelers who could not afford to pay daily fees to drive downtown had no good alternatives. Today, approximately 65 percent of Singapore’s commuters use the city’s integrated bus and rail network, which extends beyond the downtown tolling gantries. Both Singapore and worldwide transportation experts have learned that adding transit capacity and services is essential to any congestion reduction program, and should be coordinated with the implementation of congestion fees.

Photo Courtesy of Michelle Lee

For additional information

ERP Fact Sheet – Environmental Defense Fund
Land Transport Authority – Singapore Government

NEWS

Local News

Richard Rodriguez chosen as CTA chief – Chicago Tribune “After serving less than a year as Chicago airports chief, Richard Rodriguez was selected Thursday to rescue the CTA from a financial nose-dive.”

CREATE partners complete Corwith interlocking project – Progressive Railroading “Now functional, the bridge provides significant benefits to trains moving in and out of BNSF Rail Co.'s Corwith Yard, one of the nation’s busiest intermodal yards, CREATE partners said in a winter 2009 newsletter.”

CTA: Maintenance? Way short of the mark—Crains “A transportation system the size of the Chicago Transit Authority typically requires $1 billion in repairs and upgrades annually. But with only about $500 million to spend each year on maintenance, the CTA has failed to keep up.”

Stuck in traffic today? – Chicago Sun Times “Between 5 and 6 p.m. Thursday is now the most-congested travel hour of the week in the Chicago area, according to authoritative INRIX National Traffic Scorecard, a yearly look at traffic congestion across the nation.”

CTA, RTA clash on funding shortfall – Chicago Tribune “As riders brace for the possibility of major cuts in service, the CTA and the organization that oversees transit spending couldn't even agree Wednesday on the severity of a budget shortfall.”

Mass-transit 'doomsday' looms yet again – Chicago Tribune “The sinking economy is driving Chicago-area mass-transit agencies into the ground, according to new data marking a quick return to budget crises.”

World News

Gas tax: Paying cents to save big bucks – Boston Globe “An increase of even 25 cents per toll or transit trip amounts to more than $10 per month for regular users, so current toll payers and transit riders save if tolls and fares are frozen and the gas tax rises by the proposed 19 cents per gallon.”

Mayor Plans to Close Parts of Broadway to Traffic – New York Times “The city plans to close several blocks of Broadway to vehicle traffic through Times Square and Herald Square, an experiment that would turn swaths of the Great White Way into pedestrian malls and continue Mayor Michael R. Bloomberg’s effort to reduce traffic congestion in Midtown.”

Los Angeles exploring deal to lease parking structures and meters to a private firm – Los Angeles Times “In a bid to potentially raise hundreds of millions of dollars for ailing city coffers, Los Angeles Mayor Antonio Villaraigosa is exploring whether to allow a private party to lease the city's parking structures and possibly its meters.”

'Smart' parking meters catching on across U.S. – USAToday “Although some form of the technology has been used outside the USA for about 20 years, and here for at least 10, it's catching on in more and more cities as aging parking meters need to be replaced and new technology is being introduced.”

The transformation of transportation – Boston Globe “In the last federal budget, the government gave highways four times more money than mass transit. The stimulus brings the ratio under 2-to-1.”

Miles of Idled Boxcars Leave Towns Singing the Freight-Train Blues – Wall Street Journal “Tens of thousands of boxcars are sitting idle all over the country, parked indefinitely by railroads whose freight volumes have plummeted along with the economy.”

LaHood Talks of Mileage-Based Tax—Washington Post “Transportation Secretary Ray LaHood suggested yesterday that the Obama administration might embrace a new and controversial way to pay for highway and transit projects: charging motorists a tax for every mile they drive.”

Obama Tells Mayors to Spend Wisely – New York Times “President Obama told the nation’s mayors on Friday that he would hold them accountable for how they spend the money in his $787 billion economic stimulus package, which he described as “a true partnership” between the federal government and cities that have been too long neglected by Washington.”

Smart Roads. Smart Bridges. Smart Grids. – Wall Street Journal “This vision -- known as "smart" infrastructure -- promises to make the nation more productive and competitive, while helping the environment and saving lives. Not to mention saving money by making what we've got work better and break down less often.”

Resources

Paying Our Way: A New Framework for Transportation Finance – National Surface Transportation Infrastructure Financing Commission
Reinventing Sao Paolo at the Urban Sustainability Age - Portal Educatorium: Digital Library on Architecture, Urban Design & Sustainable Urban-Economic Development
Getting Around: Fuel Use of Various Modes of Transportation – Good Magazine

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Contact Information

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