Tolling as a Finance Tool and the MnPASS System
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Transcript of Tolling as a Finance Tool and the MnPASS System
Tolling as a Finance Tool and the MnPASS System
June 2012
Nick ThompsonMinnesota Department of Transportation
Tolling Purpose by Type General Tolling primarily used to raise revenue
for facility development and management. Every vehicle pays.
Cordon Tolling manages access to defined urban zone to reduce urban congestion; revenues are used to cover operational costs, excess revenues may be used to enhance transit service
Express Lanes Congestion Pricing primarily used to manage demand and ensure facility performance; may or may not raise excess revenue. Users have choice not to pay.
Express Lanes Tolling Example
SR 91, California◦ Privately financed facility built in the median of
the existing SR 91 corridor ◦ Four lanes, 10 miles long◦ Two access points◦ All users pay, but there is a free alternative◦ Prices vary by time of day, day of week, day of
year◦ Peak period rate is $8.95 ◦ Revenue $35.4 M / year
GENERAL TOLLING SR 520, Seattle,
Washington◦ Tolls reinstated on
existing floating bridge in December 2011.
◦ Change from all free to all drivers pay
◦ Revenue used to finance new $2 billion bridge replacement
◦ Revenue: $60 M /yr growing to $120M/yr
EXPRESS TOLL I-95, Miami, Florida
◦ Converted to High Occupancy Toll Lane in 2009 to tolling.
◦ Time of day pricing◦ Almost all drivers pay◦ Revenue covers private
contribution to construction and profit
◦ Peak rate $8◦ Revenue generated: $12
million/year
Examples
A healthy, multimodal transportation system is a critical element to the region’s economic vitality and quality of life
Key challenges ◦ Aging infrastructure ◦ Congestion/mobility ◦ Rising costs ◦ Tight fiscal constraints
Key strategies in state and regional long range (20 yr.) transportation plans ◦ Low Cost/High Benefit solutions◦ Multimodal investments◦ MnPASS System
Context for MnPASS
What isMnPASS?
▸MnPASS – MN’s congestion pricing brand name
▸Operates during peak weekday AM & PM rush hours – free and open to all during non-peak ▸ Buses, carpools (2+) & motorcycles use for free – solo drivers can choose to use for a fee avg. $1.25-$1.50
Insert infographic here
MnPASS on I-35E
Steady annual growth since opening in 2005◦ currently 23,000 transponder holders
Over 90% satisfaction rate among customers◦ reliability and choice valued most◦ customers stay customers
Transit users and operators strongly support system◦ transit riders & carpoolers represent >80% of MnPASS users ◦ Transit/carpoolers do not pay to use the system
User demographics representative of corridor population
2011 Revenue/Expenditures◦ Revenue: Tolls/Fees-$2.64M◦ Operations & Maintenance Expenses: $2.5M◦ Purpose is to maintain congestion free speeds (50-55mph) in MnPASS
lanes, not to maximize revenue
MnPASS System Use & Performance
Faster, safer more reliable travel options
Regional transit system improvement
More efficient, cost-effective congestion management
MnPASS is a market based approach that better aligns user cost and benefit
Highway performance and people throughput maximization for future generations
Why is MnPASS a key strategy?
Reliability – Travel time reliability is critical to the region’s economy, transit system and quality of life
Sustainability – ◦ Peak period mobility investments are the highest cost infrastructure
investments we make◦ Last mobility investment chance for many corridors (including 35E)◦ Investment benefits must be sustained for the long term (20-30 yrs.)◦ Contains the pressure for future investments
MnPASS is the most efficient and cost-effective way to ensure such reliability and sustainability ◦ Traditional general purpose lane expansion cannot provide this level
reliability and sustainability
Why MnPASS, cont.
I-35E MnPASS Project - typical cross-section