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Mark F. Muriello Assistant Director Tunnels, Bridges & Terminals

Value Toll Pricing at The Port Authority of NY & NJ. Mark F. Muriello Assistant Director Tunnels, Bridges & Terminals. Value Pricing Regional Workshop. Washington, D.C. June 4, 2003. The Port Authority of NY & NJ. Congestion: A Sense of Urgency. Annual Cost $10 Billion

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Mark F. Muriello Assistant Director Tunnels, Bridges & Terminals

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  1. Value Toll Pricing at The Port Authority of NY & NJ Mark F. MurielloAssistant DirectorTunnels, Bridges & Terminals Value Pricing Regional Workshop Washington, D.C. June 4, 2003

  2. The Port Authority of NY & NJ

  3. Congestion: A Sense of Urgency • Annual Cost $10 Billion • Peak Volumes at Key Links Exceed Capacity • By 2020 Expect Hours of Delay Up by 60% • Heightened Region-wide Air Quality Concerns • Overburdened Freight Routes Hurt Competitiveness

  4. ENVIRONMENTAL IMPACT CONGESTION MARKET POSITION DEMAND JOBS COST CAPACITY SERVICE REVENUE DELAY STATE of REPAIR Region’s Prosperity at Stake

  5. Investing in Interstate Mobility • TB&T - Preserve and Stretch Vehicular Capacity • Intelligent Transportation Systems Technology • Staten Island Bridges Modernization • Asset Replacement and State-of-Good-Repair • PATH - Enhance Reliability and Efficiency • New, State-of-the-Art Passenger Cars • Updated Signal System and Automatic Train Control • Continued Station and Service Improvements

  6. Investing in Gateway Mobility • Aviation - Airport System Revitalization • Rail Access Projects - AirTrain, EWR Monorail, NEC • Approach and Terminal Roadway Improvements • Parking Lot Expansion and E-ZPass Fee Collection • Port - Deep Water (Hub) Port Capability • Intermodal Terminal Redevelopment and Expansion • Access Roadway Improvements • ExpressRail Expansion

  7. The Overall Goal Ensure financial self-sufficiency for the Interstate Transportation Network. Interstate Network Net Income ($ millions) Actuals Projections

  8. Encourage mass transit by differentiating pricing in corridors with mass transit alternatives. Eliminate frequency-based toll discounts to support traffic management objectives. Pricing Policy Objectives Encourage shifts to off-peak travel to address peak-period congestion.

  9. Create pricing incentives targeted toward commercial traffic management. Establish toll rates that are easily implemented and collected. Pricing Policy Objectives Increase the E-ZPass market share at Port Authority crossings.

  10. Port Authority Passenger Car Toll History 1970 $ 1.00 1975 $ 1.50 1984 $ 2.00 1987 $ 3.00 1991 $ 4.00

  11. New Pricing Approach • High cash toll for all crossings. • Deep E-ZPass discount for autos in off-peak periods. • Reduced E-ZPass discount for autos during peak periods. Weekdays: 6 - 9 a.m. and 4 - 7 p.m. Weekends: 12 Noon - 8 p.m. • Deep discounts for truck trips in weekday overnight period (Midnt. - 6 a.m.)

  12. Auto Toll Rates Off-Peak Hours Peak Hours CASH All Hours New Rate $4.00 $5.00 $6.00 Old Rate $3.60 $3.60 $4.00 Discount Programs (available all hours with special registration through E-ZPass account) Carpool Program: $1.00 per trip for vehicles with E-ZPass and 3 or more people verified in vehicle. SI Bridge Program: $50 for 20 Trips in a 35-day period at the Goethals and Bayonne Bridges and Outerbridge Crossing with E-ZPass.

  13. Commercial Toll Rates: Truck Tolls Off-Peak Hours Peak Hours Overnight Hours CASH All Hours New Rate $ 5.00 $ 6.00 $ 3.50 $ 6.00 (per axle) Old Rate $ 3.60 $ 3.60 $ 3.60 $ 4.00 (per axle)

  14. Elected Officials & Community Groups Business & Industry Groups Special Interests Transportation Interests Stakeholder Outreach

  15. Public Communication Plan Wide-ranging customer communications program and materials. • Web Site • Toll-free Telephone Information • Direct Mail • Advertisements • In-Lane Materials • Toll Plaza Handouts

  16. The New Jersey Television Network The Importance of the Media The importance of using the media effectively cannot be overstated. Newspapers, radio, and television stories and interviews: • Ensuring the facts are presented accurately. • Keeping the program in the public eye. • Informing the public about the needs and objectives.

  17. Favorable Newspaper Editorials Outreach to the editorial boards of the major regional newspapers paid tremendous benefits. November 18, 2000 The Cost of Crossing the Hudson … Price hikes are inherently painful, but these are worth applauding, if not demanding, as a matter of fairness and as a means to fight congestion. Most effective means of educating the public and shaping opinion. January 18, 2001 The Case for Hikes … (The Port Authority) has devised a rate change designed to prevent a web of traffic jams from strangling bistate commerce. January 29, 2001 As good as could be … The increases across the board are manageable, and it’s reasonable that after a 10-year hiatus, a toll increase was due.

  18. Toll Revenue Time of Day Risk Assessment Avg. Toll Scenario Testing Temporal Traffic Distribution X Volume Weekday Type Regional Economic Variables r2 Plaza Projections Vehicle Occupancy Vehicle Type E-ZPass Shares Price Elasticity The Value Pricing Era = $$ Toll Revenue The Static Pricing Years

  19. Incremental Revenue Projections Incremental Annual Revenue Projection = $150 million. • Model based on price elasticities derived from mid-1990s research. • E-ZPass participation estimated through price trade-offs. E-ZPass market share projected was approximately 4% greater than actual experience. • Growth in E-ZPass transactions realized more slowly. • Revenue generation greater than expected.

  20. Toll Revenue Comparisons Toll Revenue (in $ millions) Actual Plan Actual Plan Plan Actual

  21. Value Pricing: Future Revenue Enhancement • Current toll structure provides authority to change peak and off-peak hours. • Future strategies to adjust pricing in smaller increments. • Time of Day • Travel Corridor • Vehicle Type • Managed Roadway • Potentially less complicated to advance. • Opportunity for smoother revenue infusion to sustain interstate transportation network.

  22. Value Pricing: Regional Coordination Regional coordination of pricing in the future will ensure optimal traffic management benefits. • Coordinated hours for maximum impact. • Jointly targeted market segments (auto, trucks) to manage demand. • Coordinated E-ZPass Customer Service statements to encourage behavioral change.

  23. Roadway Capacity Solutions Intermodal Connections Only one piece of a much larger puzzle. Roadway Pricing Transit Capacity & Services New Technology & Efficiency Roadway Pricing and Corridor Management Relationships exist and benefits will be realized.

  24. Value Toll Pricing at The Port Authority of NY & NJ Mark F. MurielloAssistant DirectorTunnels, Bridges & Terminals Value Pricing Regional Workshop Washington, D.C. June 4, 2003

  25. Value Pricing: The Initial Experience Encourage shifts to less congested periods. 2nd Qtr 5-10 AM Pctg. Traffic Distribution * Does Not Include Holland Tunnel

  26. Value Pricing: The Early Experience Encourage shifts to less congested periods. 5-10 AM Pctg. Traffic Distribution 5-6 AM Total Traffic

  27. Value Pricing: The Initial Experience Encourage shifts to less congested periods. 5-10 AM Pctg. Traffic Distribution 6-7 AM Total Traffic

  28. Value Pricing: The Initial Experience Encourage shifts to less congested periods. 5-10 AM Pctg. Traffic Distribution 5-6 AM Total Traffic 6-7 AM Total Traffic

  29. Value Pricing: The Initial Experience Encourage shifts to less congested periods. 2nd Qtr 3-8 PM Pctg. Traffic Distribution * Includes Holland Tunnel

  30. Value Pricing: The Initial Experience Increase E-ZPass market share at PA crossings. Autos Weekday E-ZPass Market Share Trucks 2001 2002 2003

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