Tolling and Congestion Charging in Norway

1. Tolling and Congestion Charging in Norway Presentation at the NFP/NI Workshop Frankfurt April 7, 2011 Chief Engineer Bjørn Sandelien Norwegian Public Roads Administration

2. Norway • Population: 4.86 million (1/1-2010) • Area: 324.000 km2 (mainland) • GDP per capita: 50000 EUR • 458 cars/1000 inhab • Fatalities 43 per 1 mill inhab (2010) • Foot 22 % • Bike 4 % • Public transport 9 % • Car driver 52 % • Car passenger 11 % Transport mode from National travel survey 2009

3. Discussion of terms - Wikipedia • Road Pricing • General term for all kinds of fees for the use of roads (including fuel taxes, registration fees, tolls, congestion charges, congestion fees that can vary according to time, traffic situation, type of road or vehicle category). • It is made clear that Road Pricing has two two distinct different purposes either: Revenue generating or regulation of traffic

4. Tolling and Road Pricing are warranted in different laws • In Norway tolling is not considered road pricing • Tolling – The Road Act • Road Pricing – The Road Traffic Act

5. External costs unit values Kilde: CE Delft ”Handbook on estimation of external cost in the transport sector Desember 2007. Oppdrag fra European Commission DG TREN

6. Pricing in a finance and traffic regulation perspective How can we move politicians to quadrant B? A High B Common Goals? Win - win Both Congestion Charging and financing Political desires Tolling projects Financing ability C D *Fuel tax like in Tromsø *Financing through public funds Congestion Charging (London & Stockholm) Low High Low Traffic Regualation Ability

7. Principles and National Policies • The main purpose of tolling in Norway is to raise funds for infrastructure, not to influence demand • All user charge projects have to be based on local initiative and approval • All toll projects must be approved by Parliament (Storting) • The period of toll collection is normally limited to 15 years • Normally at least 50 % of construction costs has to be financed by tolls • Those paying the toll must also benefit • Separate toll collection companies for each project/scheme

8. Three main categories of Toll Road projects in Norway • Coastal projects replacing ferry links - bridges, sub sea tunnels • Projects on main roads connecting inland cities - capital road construction, major improvements • Toll Rings in the largest cities - capital road construction, transit infrastructure, bikeways and pedestrian network

9. Funds for Investments 1971 -2007 Mill 2007 NOK Govn. funds National roads Tolls etc Counter-cyclical labor markets funds Govn. Funds County roads

11. We have a long history of tollingA Gate Boy – an early pricing practice

12. Road tolling to maintenance An example from app 1865: Sign showing ”Kleivmannen” requesting money to maintain the abandoned ”Kongevei/kingsroad” near Kristiania/Oslo

13. Bergen the pioneering city • A demanding topography created a willingness to pay for tunnels and bridges • A private tolling company was established in 1953 by an enthusiastic merchant Fritz C Rieber and built and operated the Puddefjord Bridge, Eidsvåg Tunnel, Løvstakk Tunnel and the railroad Tunnel through the Ulriken mountain. The Nygård’s Bridge was built by a private company as a toll project in 1851. Tolls were collected from both vehicles and pedestrians until 1871. Puddefjord Bridge

14. Why was the toll ring in Bergen accepted? The Bergen toll ring opened in 1986 and was the first in the world after the Singapore area license scheme in 1975 • A long tradition of toll financing of bridges and tunnels in the city region • A political alliance between the Norwegian Labor and the Conservative Party in favor of the toll ring • National government offered extraordinary state funds to match the net revenue from the proposed toll cordon resulting in doubling of the funds to road investment • Low fees

15. Why the toll rings were accepted? • Lack of investments in urban roads over a 20-30 years period due to a strong rural bias in Norwegian regional and transport policy • Excessive congestion and environmental problems • Generally a substandard main road system • Tolls would result in realization of projects 30-40 years sooner than possible with national funds alone

16. The Oslo Toll Ring Packages 1990-2007 Package 1 – Main road package • Establishing a toll ring around Oslo city • 45% national funds, 55% tolls 2001-2007 Package 2 – Public transportation package • 2 NOK extra for passing the toll ring • 0.75 NOK added on the ticket price for public transportation 2008-2012 Package 1+2 - Extension 2008-2027 Package nr 3 – a political proposal • Revenue also for public transport operation

17. Oslo Toll Ring Experiences • Reduced delay due to removal of bottlenecks • Reduced overall traffic 3-5 % • Increased public transport 6-9 % • Road space above ground available for other uses • Removed barrier effects from the surface street network • Reduced noise from above ground traffic • Less pollution (high chimneys, filtering) • Improved traffic safety

18. Organization of a Toll Company • Usually a corporation or a cooperative society • Ownership majority by municipalities/counties • Representatives from municipalities/counties in majority on the board • The Company must be established before project approval in Parliament • A signed contract between the National Government and the Company regulates the right to collect tolls • Operation of the collection scheme is regulated in an agreement between the Company and the Public Roads Regional office

19. Thank you for listening! bjorn.sandelien@vegvesen.no