Russian Journal of Logistics and Transport Management, Vol.3, No.2, 2016
1 'J
©Anton Gaev and Igor Ivakin
1National Research University Higher School of Economics
2Ltd 'Techno-traffic'
TOLL ROADS ANALYSIS: ALLOCATION OF SOLUTIONS FOR THE RUSSIAN FEDERATION
Abstract
The study contents the information about the types of the toll roads and its comparison. The main aim of the paper is to find the best type for Russian logistics. To achieve this goal an analytical research, system dynamics and agent-based modelling were used to define the most suitable type for the future development of the road system of the Russian Federation.
Keywords: transport, open toll roads, closed toll roads, tracking systems, vignette, a distance-based toll road.
1. Introduction
Roads are dominant among other ways of transport for freight and passenger movement throughout the world. In Latin America, the road transport makes more than 80% of domestic passenger transportation, over 85% in some countries, such as Brazil. In Africa, the proportions are even higher. The more significant fact is that it still growing rapidly in many parts of the world. In Asia, from 1984-1994, the road networks of Pakistan, Malaysia, Indonesia and the Republic of Korea grew in length by more than five percent per year (Estache et al., 2000). In Eastern Europe, the dominance in transferring goods gradually moves from rail to road transportation. These countries are now witnessing a rapid expansion in demand for road transport. In Russia, the total freight moved by road has increased from just over ten percent to almost forty percent within the first decade after the end of the Soviet Union (Bousquet et al., 2001).
In reflection to the rapid economic growth and increasing levels of car ownership over the last two decades the demand for high-standard highways in Thailand, Philippines, Malaysia, Indonesia, and China has increased substantially. Permanently increasing demand on transport infrastructure and the addition of new requirements for the safety of movement and protection of the environment causes raising funds that cannot be gained from the state budget (Li et al., 2010). Due to the limited resources available for financing infrastructure development, many countries have implemented toll roads for funding highway development (World Bank, 1999).
Private toll roads are an alternative for public road infrastructure. The interest in them is growing because of ability to private funding instead of
government expenses on building and maintenance of the road infrastructure and unloading of public road traffic (De Palma et al., 2000). The income received from toll roads is reconsidered as a sufficient source of financial support for maintenance of existing road infrastructure. In particular, from 1973 to 1995 state budget contributions to the French national road system dropped from 56% to 22%, while toll revenue increased from 32% to 57% during the same period. In Norway, toll revenue represents 32% of the state budget for the national highway system, the equivalent figure for Spain is around 46% (World Bank, 1999).
An advanced transport infrastructure gives an ability to enhance the overall economy progress by increasing the speed of goods turnover and the mobility of the workforce. Toll roads give to the customers a choice to save the time for travel by paying cash. Moreover, the acceptance of user-pay principle is growing too that is why the demand for toll roads becomes more stable (Hensher et al., 2013).
The timeliness of this study is proved by active improvement of existing transport infrastructure of the Russian Federation that has been demolished in the 90s and was not properly developed in USSR. That has caused overloading of existing roads and the necessity of toll roads construction. This particular research is concentrated on the analysis of existing toll roads in Russia, mostly on the oldest and more developed one - M4 'Don'. The main aim of the research is to analyse all the existing types of toll roads and to recognise the most suitable solution for the Russian Federation.
2. The types of the toll roads
The publications concerning the toll roads are focused on the price for the service (Janson et al., 2014; Woo et al., 2015; Feng et al., 2015) or on the privatisation of the toll roads (Bel et al., 2009; Chen et al., 2007; Swan et al., 2010). The other significant topic in toll road discussion is the demand forecast (Bain, 2009; Welde et al., 2011; Lemp et al., 2009). These specific topics are considerably significant for contemporary research because the toll roads in Europe were built half a century ago and the discussion mostly holds about the necessity of privatisation. In the US, the intercity highway system and the toll roads that currently exist do not question the need for other new toll roads. That is why the topic of comparing the types of the toll roads is not relevant for them. However, the developing Asian countries do have an issue with the most suitable type of the toll road for their countries. An example would be the research of Jou et al. (2012), which address that Taiwan faced during the implementation of their toll road system the same problems that Russia experiences nowadays. So far, the Russian government company 'Avtodor' utilises an open toll road system for M4 'Don'. That is the oldest type of the toll roads that has been known for hundreds of years when the tax for using the road
was taken nearby the road, at special checkpoints. This system uses the same principals nowadays, and it is the most popular type of toll roads among many of countries around the world.
The most advanced technology allows drivers to perform the payment without decreasing the speed of movement. Particularly, in Singapore, all the roads are equipped with the toll gates without barriers. Besides, every car in the country is equipped with a transponder, which can be bought or rent for a certain period. The money is deducted each time a vehicle passes through the toll gates (Olszewski et al., 2005).
One more type of toll roads that is popular among small European countries is the vignette system. Any vehicle may traverse around the country in any direction at any distance at any time after the purchasing of a special sticker, which should be attached to the front glass of the car. The researchers do question the efficiency of this type of payment, because the calculations show that other ways of receiving payment are more profitable than the vignette. One of these studies was held in Slovenia, where one of the significant sources of the state income is payment for toll roads, the national debt in 2009 was around 4 billion Euros (Kramberger et al., 2012).
The current technology progress also allows to controlling the car movement by utilising Global National Satellite System (GNSS). The technology is known for over two decades, but no country in the world that uses any of contemporary global tracking systems, perhaps due to the mistakes made by global positioning that cost much money per customers, and it is still not ideal enough for such utilisation (Salos et al., 2014). Besides, as in the Singapore example, the necessity of strict direct control over compliance with a law is persistent and constant, and demands significant expenses.
It should be noted that the payment organisation process is considerably expensive. For example, approximately 180 million Pounds were collected by London's toll scheme, but 115 million were spent on the administration of the system (Estache et al., 2000). As a result, in London, standard cordon tolls were implemented that are much cheaper to operate, and there are no ways to avoid the payment by drivers because the physical barrier cannot be detoured (Lindsey, 2008). Operating costs are a significant proportion of revenues, for instance, for Singapore with its electronic toll collection is 21%, London - 50%, Stockholm - 22%, State Route 91 in Ontario, Canada - 57% (Lindsey, 2008). The reason behind is that electronic toll collection includes many operations, including searching for cars' location and their identification, maintenance of customers' accounts, error handling, organisation of transponder sales (Wang et al., 2011). In contrast, the expenses per barrier toll rings in Oslo and Bergen are 10% and 5%, respectively (Ieromonachou et al. 2006).
The last toll road alternative is closed toll roads (Table 1). When first closed toll roads was launched, the drivers used to exchange their tickets with checkpoints information on them to 'reduce' the distance covered and pay less
for the transit. Soon the exchanges stopped, especially after the implementation of transponders and electronic data collection (Yang et al., 2004). The payment is made at the location where the vehicle leaves the toll road and is calculated from the time of usage and distance travelled. As a rule, the system is equipped with flow systems, which allow passing through checkpoints without receiving the ticket. The transponder catches the time and place of entrance, as well as quits, calculates and receives the payment automatically. The additional advantages of this type of toll roads are the total profit for the economy due to the increasing movement speed of goods, the decreasing traffic fumes, fuel burned and, as a result, the decreased transport expenses (Soriguera et al., 2008). However, the mistakes in the expected number of vehicles passing through the checkpoint of closed toll roads may lead to traffic jams at the entrances and the exits due to the lack of pay lanes (Bel et al., 2009).
Table 1
The comparison of the toll road types.
Criterion Open toll road Closed toll road Vehicle tracking system Vignette
Infrastructure Checkpoints across the main road Checkpoints at the entrances/exits GNSS, cameras Stickers
Police control for keeping the law Minimum Minimum Maximum Medium
Expenses for the infrastructure Medium Medium Maximum Minimum
Traffic Along the main road At the entrances/ exits At the usual places At the usual places
Verhoef (2002) found that the most optimal type of pricing schemes in terms of second-best congestion pricing is a toll-cordon highway and it performs better than area licenses, pay-lanes or 'free-lanes'. Bousquet et al. (2001) analysed the demand for a toll and recognised that the risk related to a road often depends on the fact that the toll roads have to be built into integrated networks. It is often forgotten that the tolled part of a road network benefits tremendously from the existence of a public road network around it (Estache et al., 2000). The value of a specific road depends on the extent to which it benefits from a complement of public roads (Bousquet et al., 2001).
3. Applications for the Russian Federation
Any tracking system controlled by the government would be reconsidered by people of any nation as interference into their private life, and Russian population would not be exclusion. Even in the case of implementation of
tracking devices into every vehicle, the necessity in strict control will arise, so that it would lead to additional expenses. Besides, the overall tracking of the distance travelled would not resolve the main issue that toll roads are built for: reducing the traffic in the problem areas.
The tracking system with cameras along the certain roads would also cause the strict control from the police indeed, as Russian drivers tend to block their license plates in any way imaginary possible to prevent themselves from paying fines for speed limit violence or other violations. Most probably they would do the same to avoid payment for toll roads. The strict control provided by the police would also cause additional expenses, and this option does not seem as a relevant solution for Russian toll road issue.
It is uncommon for large countries as Russia to implement the vignette system. The travelling distance possible in the Russian Federation is enormous, and the creation of one tariff for the whole country would be whether too small to cover all the expenses on maintaining the road infrastructure or too high for drivers to use the federal roads. Besides, strict police control in this situation would also take place that provides the government with additional expenses.
The government company 'Avtodor' has decided to implement open toll roads for Russian road infrastructure. A significant nuance should be reconsidered that, according to the national law, there should be a free alternative for the toll road. That is why open toll roads do resolve traffic issue, but only in terms of unloading the existing free alternative routes. However, this system does not provide a faster approach in the long run as it is irrational at its core. The same success would have subway system where passengers had to pass turnstile after every station passed.
As the number of cars on M4 increases, the traffic jams form all across the highway because every checkpoint attempts to come up with almost the same amount of cars, which constantly increases every weekend and significantly jumps up every summer. The toll road is built to decrease the traffic at free highways, but the existing M4 toll road system only creates more traffic on it than it was before. As a result, it becomes necessary to open all the gates of the toll road and let the vehicles pass for free, so, the whole toll road principle does not work on M4. Nowadays, there are 7 paid roads on M4. According to 'Avtodor', utilising of one pay lane costs 7 128 287 Rubles, and the company uses 152 lanes (Russianhighways.ru, 2011).
Our hypothesis is that an implementation of the closed toll road would solve some of the issues that the current system has. According to the world practice, an entrance and exit to the closed toll road should be provided with every 11-17 kilometres of the highway. However, this data is based on European countries with a high density of population and other roads. Russian geography allows to form the entrances and exits near other roads of the federal and regional level, and near relatively large settlements, that is why the frequency of entries can be reduced. Besides, Russian law gives permission to build a toll
road only in the case, if there is an alternative free road, so all the settlements can be serviced by these alternative routes, and the entrances and exits can be made only near populated villages, towns and cities.
To compare these two systems, we may address to the experience of other countries: open toll roads in France and closed toll road system in Italy. The expenses per maintenance in these countries are 25% and 27%, respectively (World Bank, 1999). As it can be seen, the difference is almost insignificant and depends on the number of toll lanes used.
4. The models
To test the hypothesis, two models have been created using InsightMaker software, a simulation program based on JavaScript (Insightmaker.com, 2016). The traffic at every checkpoint was modelled using system dynamics implemented in InsightMaker. In order to get the time a car spends on passing through the whole toll road, agent-based modelling was utilised. The first model represents the current toll road type and has the following structure (Figure 1).
Time of the arrival to the first checkpoint
Average number of
cars an hour at 1st Flow at' Vchiclcs to the checkpoint checkpoint
1st checkpoint with 14 lanes in Flow cif Vchiclcs out of the cbcckpairrt
Average number of cars an hour at 2nd Flow of Vchiclcs to the chcckpo checkpoint
2nd checkpoint
with 14 lanes in Flow af Vchiclcs oui of the chcckpaint each direction 1
Fig.1. The current open toll road type (model 1).
The time of the day variable sets a coefficient that represents the difference between the average traffic and an hour of a day. It is based on 'Yandex Traffic Jams' service based on the data of Yandex company, concerning the traffic congestion and the number of cars on the road (Yandex, 2014). This variable shows in what proportion the number of cars in the definite hour is compared to the average number of vehicles on the road in an hour. For
example, the coefficient for 18 hours is 2.02 and at the night time from 2 a.m. to 5 a.m. the coefficient is 0.13.
A figure of average number of cars was received from several data sources including the official website of the 'Avtodor' company (2017) and some publications of Russian papers, such as RIA (2015) and Rossiyskaya Gazeta (2010). It is possible to set any value as an average number of cars an hour in the range from its real average value to its maximum stated at summer highest numbers gained from the same sources. As a result, the highest average number of vehicle passed through the checkpoint near Moscow end is estimated as 2083 cars an hour. Two checkpoints that are situated on the road surrounding Voronezh are used by average 833 cars an hour. This number on the highway in Tula region and Lipetsk Region are 625 and 462, respectively. The mass media claim that at peak days in summer the number of vehicles passing through each checkpoint was 37128 an hour. That is why this number is chosen as the maximum.
There are two types of lanes used on M4 'Don': an automatic transponder lane and a lane with the cashier. The time spent on passing the lane was gained empirically on the lanes of the same type used on Western High Speed Diameter in St. Petersburg. The recordings showed that on average a vehicle spends approximately 5 seconds to pass through transponder lane and 15 seconds to pass through the cashier. This time consists of arriving at the checkpoint, stopping in front of the barrier until its ascending, paying to the cashier in case the absence of transponder and passing through lane. The necessity to stop in front of the barrier was fixed at the increased traffic as the transponder does not always catch the signal appropriately. Observation also figured out that approximately two times an hour a vehicle that does not have a transponder or has got 0 balance stands on the lane for the automatic pass and has to reverse and stand on the cashier lane. Certainly, it takes some time and depends on the number of cars that gather behind that vehicle. Therefore, the number of cars passing through the pay lane should have been 720 vehicles an hour (the amount was gained from 3600 seconds in hour divided into 5 seconds that a car needs to pass the barrier), but this number is decreased by 15 seconds needed for 2 cars to reverse and stand in the right lane and 5 seconds for each vehicle behind in that lane because they should reverse too to let the slip up car to drive to the cashier lane.
The model represents the situation when all the lanes are constantly utilised. In other words, the throughput is always maximised for each checkpoint. The average number of vehicles an hour is multiplied by the road congestion coefficient gained from Yandex research. This number of cars forms an incoming flow that arrives at the checkpoint, and spreads among the total number of the toll lanes. The checkpoint itself represents a stock where the vehicles delayed for a certain amount of time. Approximately 90% of the cars use the cashier lane, while 10% use the transponder lane if there is a queue on
the cashier lane. Otherwise this 10% may use any lane. The division on 90% and 10% is also gained from empirical research performed on Western High Speed Diameter in St. Petersburg. Every vehicle with a transponder needs 5 seconds to pass through the checkpoint and all others need 15 seconds to pass through the cashier. The limit on the checkpoint throughput is set on the outgoing flow and is set as an hour divided by the time needed to pass the lane and multiplied at the number of lanes.
In this situation, all the checkpoints pass all the average traffic coming to them, except for the first checkpoint in Moscow Region (Figure 2).
• pass 71
• pass out of Voronezh
• pay 228
• pay 322
• pay 339
• pay 355 Km
• pay 380 Km
Opay 401 Km
• pay 416
• pay 460
• pay 517
• pay 62 km
• pay 71
• pay out of Voronezh
Fig. 2. The simulation output of the model with average number of vehicles.
It will take 7 hours for a car to drive through the whole distance from the first checkpoint near Moscow to the last one near Voronezh, if the car arrives at the first checkpoint at 10 a.m. (the time of the arrival at the first checkpoint is also can be set up). It should be reconsidered that every weekend the traffic increases by 25% along the M4 highway and at the Moscow Region checkpoint it doubles. These values can be set in the model by increasing the average number of cars an hour on the stated values. In that case, the distance from the beginning to the end of the toll road can be covered by 9 hours and the traffic jams would appear at every checkpoint. The first checkpoint in Moscow region would have the most desperate situation as the throughput of this checkpoint would not let all the vehicles gathered around to pass through it from the morning to the late evening. The model clearly describes the summer situation, if the average number of cars at every checkpoint would be set on maximum. The traffic at every checkpoint was constantly increasing, and the road services had to let the vehicles pass for free to ease the situation (Figure 3).
Time (Hours)
• pass 71
• pass out of Voronezh
• pay 228
• pay 322
9 pay 339
• pay 355 km
• pay 380 km
• pay 401 km
• pay 416
• pay 460
• pay 517
• pay 62 km
• pay 71
• pay out of Voronezh
Fig. 3. The simulation output of the model, describing the weekend situation.
The second model, which was built, tests the hypothetical situation when the closed type of the toll road is implemented. That is why the highway M4 itself has only two checkpoints that stand across this road. These are the same checkpoints that represent the beginning of the first sector of the existing toll road and the end of the last one. The proposed model has 11 entrances and exits that lead to other main roads, cities and towns spread around M4. By 'Avtodor' estimates, 40% of the traffic is formed by cars that do not go via the main direction of the highway, in other words, they turn away from the highway at some point of the distance. (Russianhighways.ru, 2016). That is why the model includes a probability that a vehicle entered the road on Moscow entrance has 60% chance to move to the end of the toll road. The remaining 40% were spread among another exit in proportion in regard to the population of nearby cities and towns. This model has at least 110 lanes that successfully maintained its normal capacity. It includes two lanes in each direction on every exit as the minimum, 10 lanes for Voronezh entrance and 10 for the exit, 15 lanes in each direction at the beginning and the end of the toll road. The number of lanes at every checkpoint can be varied, depending on what the user desires to achieve: decreasing of the traffic or reducing the expenses for maintenance of the toll road by utilisation of a smaller number of lanes (Figure 4).
Time (Hours)
Fig.4. The proposed alternative - closed toll road type (model 2).
At new circumstances described by the second model, it would still take 7 hours for a car to drive through the whole distance from the first checkpoint near Moscow to the last one near Voronezh, if the car arrives at the first checkpoint at 10 a.m. However, at the increased weekend traffic the distance from the beginning to the end of the toll road can be covered by 8 hours. That is an hour less than at the open toll road type. The issues at the first checkpoint would still appear, but the absence of traffic jams up until the exit from the toll road saves an hour for a driver.
Taiwan highways experienced the same issues on their toll roads. Previously, they used open toll highway system. Meanwhile, the number of cars coming to the road from Taipei was significantly higher than at the end of the toll road. That is why the closed toll highway system based on the distance travelled was proposed to motivate users to use whether other entrances or the alternative roads while leaving the capital city. The research made by Jou et al. (2012) reconsidered this issue from the point of the willingness of drivers to pay. As a result, they proved that drivers' behaviour would change to the usage of other entrances and alternative roads. It can be an addition to the results made by this research, and it would help to solve the situation at the entrance and exit to Moscow.
Anyhow, even the minimum number of lanes would help to achieve both goals: the traffic is reduced due to the elimination of the checkpoints along the highway, and it reduces the company expenses for approximately 300 million Rubles. Besides, an implementation of new toll road type would lead to a decrease of the expeditors' expenses. Consequently, the prices of g oods would fall as well. The number of toll gates can also be modified. New entrances and exits can be built along M4 for the money saved by reducing the checkpoints on the main road. For example, more interchanges can be constructed in Moscow direction, as it had been done several years ago. The addition of one more transponder gate and one more cashier gate would decrease the traffic in that
direction by 2000 vehicle an hour, and the 'Avtodor' company would still save much money on the reduction of toll gates along the M4 (Figure 5).
• pass 71
• pass out of Voronezh
• pay 71
• pay out of Voronezh
Fig. 5. After the addition of 2 more toll gate at Moscow checkpoint.
It is necessary to reconsider that the main aim of the M4 toll road is to collect money for financing infrastructure development. That is why the methods of the license plate recognition system on the entrances and exits of the toll road were not reconsidered due to its considerably high cost. The only example of this highway system was built more than a decade ago in Canada. It has interchanges every 2 km because of the urban nature of the highway. To eliminate the congestion, a decision was made to dispense with manual means of toll collection and operate as an 'open road' facility. A toll supply contract for $102 million a year was issued to provide both a transponder-based system (discounted for frequent travellers) and a license plate video-imaging system (for casual users; Ibrahim et al., 2008). The comparison between plate-recognition and barrier toll expenses was shown above in the types of the toll roads chapter (50% in London and 5%, in Bergen). As a result, the implementation of that system is reconsidered as too expensive by most of the toll road operators and 'Avtodor' would not be an exception.
5. Conclusions
It is necessary to note that an open toll road is easier and faster to build. Some closed toll roads around the world were originally open toll roads systems that have been reconfigured for better performance. More effective usage of closed toll highway system is gained with its growth. Permanently two more toll roads are being built in Russian Federation: M11 Moscow - St. Petersburg and A107 that would become a toll ring road around Moscow. These two roads and M4 together may create a perfect example of toll highway system with a significant
number of entrances and exits. It would help to spread the traffic along these interchanges and reduce the congestion.
A more significant route for creating toll roads in Russia is the eastern highways M7, M5 and its extensions. Nowadays, they are in poor condition, very overloaded and their throughput does not comply with the demand on the road. Besides, the east direction is significant for the economic development of the country. The closed toll highway system together with several highways added to M4 would make the whole Russian transport system more effective and profitable.
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