North Carolina Turnpike announces first toll rates - 13.5c/mile 8.4c/km

North Carolina Turnpike Authority (NCTA) announced its first toll rates - a base toll of 13.5c/mile (8.4c/km) for cars using transponders. The tolling on the Triangle Expressway in the western area of Raleigh is due to begin in December 2010.

NCTA is implementing cashless all-electronic tolling from gantries over the mainline and on ramps. The 30.4km (18.9 miles) of mostly 2x3 lane expressway will have 4 toll points on the mainline and four pairs of ramp toll points. Tolls for cars will be 50c, 60c, 75c and 30c at the mainline toll points an 30c, 75c/60c, 35c and 25c on the ramp pairs that are tolled.

The toll rates were chosen just short of the peak of what Wilbur Smith (WSA) calls its toll sensitivity curve - the forecast of system revenue by toll rates. According to the WSA curve maximum revenue would be gained by 14.5c/mile (9c/km). At higher toll rates than 14.5c/mile gross revenue would fall - because traffic would be reduced by more than the per vehicle toll increased.

NCTA has followed a standard WSA recommendation to pitch tolls close to but just a bit short of revenue maximizing rates.

Rates quoted above are base rate tolls for a Class 1 Passenger Vehicle, a car with a transponder account.

Premium tolls for video

The toll structure is heavily weighted to encourage transponder use by car drivers and to collect on the higher costs of collecting video tolls - "Registered video" (RV) tolls for cars are twice the transponder toll rate. Registered video is where the customer has registered information with the authority so they can be billed easily.

"Unregistered video" (URV) tolls for cars are three times the transponder toll rate. They are where the toller has to search out the name and address of the vehicle owner via motor registry databases or other address sources to bill for the toll.

NCTA has three vehicle classes: cars, straightbody trucks, and tractors with trailers (the 407ETR classification system).

Straightbody trucks pay twice the car rate and combination vehicles or tractors and trailers pay three times the basic car transponder toll. Truck tolls don't incur a video premium. That is they are same regardless of payment mode.

Time savings

A WSA presentation made along with the announcement of toll rates shows peak period time savings from using the tollroad at 11 and 13 minutes on the eastern and western arms of the Y-plan expressway. The base toll rates are $2.15 and $2.40 for each of the earms. When motorists value time saved at more than $11/hour and $11.70/hour the tollroad is a good buy over the longer free roads.

Traffic and revenue study

An investment grade traffic and revenue study has confirmed the preliminary revenue potential of the Triangle Expressway, indeed mid-term 2015 to 2020 it increased the revenue estimates by 15% or so.

Transactions (daily) and toll revenues are now forecast:
2012 55k $17.4m
2015 115k $35.2m
2020 164k $52.1m
2025 200k $77.9m
2030 230k $97.3m
(daily read off graph/365)

Interesting sensitivity analysis by WSA shows the dominant role of regional (population) growth in the prospects for the tollroad. Commuter rail or not, express bus or not has no discernible effect on the tollroad's revenue. Neither does ET share. Fuel costs have an effect but not large. Value of time saved, similarly - a 20% lower than assumed value of time cuts revenues 10%, 20% higher produce 10% more. Different levels of economic growth also have a small effect. Connectivity of the tollroad through completion of the Southern Wake Freeway helps revenues up by 12%.

But it's population growth that's the really big factor. 30% higher growth boots revenues 41% over the forecast level, while 30% less growth in the region has a 26% effect on revenue.

Procurement begins in August

JJ Eden NCTA operations chief says RFPs for supply of the toll system will be issued in August. The toll system will be broken into four parts:

- lane systems and integration

- customer servicer center design and construction

- operations and staffing of CSC

- traffic management center

Lane systems is the most intriguing. Eden says he wants to leave until February 2009 a decision on transponder-reader systems (RFID). So proposals are being sought and a vendor will be selected before it is clear whether NCTA will go with E-ZPass or not.

Eden says the technology issues are in a state of flux because of the E-ZPass IAG's recompete of its electronic toll systems: "We'll ask (vendors) to write E-ZPass interoperability as an option in their proposals."

The procurement for the Triangle Parkway at least at the Customer Service Center level will be designed to serve the Mid-Currituck Bay Bridge which will be going to a concession style procurement aiming for an opening around the same time as the Triangle Parkway.

Animation

NCTA has a neat animation of all electronic tolling on their website - look under 'What's new". It was produced for NCTA by PBS&J. Nice graphics but it needs voice over.

http://www.ncturnpike.org/

TOLLROADSnews 2008-04-18