I. Germany > Toll Collect System still works without any problems ; development of tolled km

1. Road Pricing Updates 2010from Germany and EuropeI. Germany > Toll Collect / Discussion on extensionII. Europe > Country NewsIII. EU > “Eurovignette III”TRB Congestion Pricing CommitteeWashington HiltonJanuary 26, 2011

2. I. Germany > Toll Collect System still works without any problems; development of tolled km and toll income influenced by worldwide economic crisis; substantial increase of the share of “clean trucks” on the tolled network. Source: Toll Collect GmbH

3. Germany > Discussion on extension • Permanent discussion regarding pro and contra an extension of road user charges to all types of vehicles and all roads. • Recommendations of the “Pällmann- Commission“ regarding a systematic paradigm-shift to user charges as well as the “Call to action” based on the publication “10 years Pällmann-Commission” are frequently quoted. • April 2010: German “Agency for the Environment” published an “appraisal” of a comprehensive introduction of VMT based charging of cars on all roads; the agency urgently recommends it.

4. June 2010: “German Triple A” (ADAC) published its “appraisal” of the same subject, based on a remarkable version of a cost- benefit hocus-pocus. Result: severe economic damages for the whole country. • September 2010: Vice-president of the German Research Society on Roads and Transport: “The traditional tax financing of the roads is no longer appropriate; a shift from the tax based financing to a user-based financing is urgently needed”. • Most politician and representatives of lobbyist-organisations admit having two opinions regarding the direct user financing of roads: > official: against! > unofficial: in favor! • The actual perspective of financing the road infrastructure is characterized by speakers of all political parties as a “black hole”.

5. The last two strong winters made the consequences of a latent neglect of road maintenance more than clear. • The extension of road user charging is continuously stated by the government to be “not on the agenda” for the actual legislative period; nevertheless the topic remains on the agenda of the public discussion. • Congestion pricing in metropolitan areas / city-tolling is still frequently discussed, but not yet in a stage close to an implementation in any German city.

6. Road charging of trucks in the EU – current situation II. Europe > Country News 2010 Source: EU Directorate for Mobility and Transport 2010 Actualization for some countries on the following charts

7. Countries in alphabetical order • Belgium: Planned to join the project in The Netherlands; now planning VMT-based charging of heavy goods vehicles and (time-related) electronic vignettes for cars using the main road-network; start from 2013 onwards (first HGV, later vignettes for cars). • Czech Republic: Considered an extension of the VMT-based charging of heavy goods vehicles on main road network to cars as well as to secondary and tertiary roads for 2011/2012; plans have been postponed. • Denmark: In fall it was decided on a prequalification for implementing a VMT-based charging system for heavy goods vehicle using main road-network; plans were put on ice after the project in The Netherlands has been stopped.

8. France: Preparations for extending the VMT-based charging of heavy goods vehicles (≥ 3.5 tons) to main roads other than toll-roads in 2012 / 2013; trials will start in the Alsace region later this year; the charges are named eco-tax; the revenue is announced to be used exclusively for “alternative transport infrastructures”. In June 2010 the French parliament accepted a law allowing all cities with more than 300.000 inhabitants to introduce congestion pricing - provided, they have a good public transit system. • Hungary: Plans / Considerations for changing from time-related electronic vignettes for all kind of vehicles using main roads to VMT-based charges are underway; realization frequently delayed.

9. Poland: Introduction of VMT-based charges for heavy goods-vehicle (≥ 3.5 tons) using national roads scheduled for July 1, 2011. • Portugal: Gradually switch underway from shadow-tolls to VMT-based charges for all kind of vehicles using express-ways. • Slovakia: Introduction of VMT-based charging of heavy goods vehicle (≥ 3.5 tons) using main roads started on January 2010. • The Netherlands: Project of a comprehensive paradigm-shift to user financing the road-infrastructure based on distance- and strain-related charges for all vehicles on all roads was cancelled by the new government.

10. UK: The Royal Automobile Club Foundation published a study “Governing and Paying for England’s Roads”; “preferred solution” variable tolls for all types of cars and trucks on all roads. I recommend the study as common platform for all stakeholders regarding the discussion about the future of financing and governing the road-infrastructure. There are indications for the introduction of time-based vignettes for heavy goods vehicles in the next years.

11. III. Eurovignette III “Implementation of the polluter pays principle” • Eurovignette: “Directive of the European Parliament and of the Council on the charging ofheavy goods vehicles for the use of certain Infrastructure.” • The directive in force (Eurovignette II) authorizes, but does not oblige, Member States to levy “user charges” (time based) or “tolls” (distance / strain based) on heavy goods vehicles with a maximum laden weight of 3.5 tons and more … • … provided that it does not result in anydiscrimination and that the charges are set at a level which does not exceed the recovery of costs which are necessary to maintain and replace the road infrastructure > direct / internal costs.

12. October 15, 2010: The Ministers of Transportation of the EU Member States voted in favor of new rules to allow Member States to levyadditional charges tocover costs of air and noise pollution and to better manage problems of congestion. Agreement: • No obligation to earmarkrevenues generated by the tolls for projects in the transportation sector but a mere recommendation to do so (original proposal: strict earmarking). • No specific levy on congestion (original proposal: introduction of additional charges based on congestion related external costs). • Allowance of arate of variation up to 175 % (existing directive: up to 100%, proposals: up to 500 %) limited to 5 hours per day (proposals: up to 8 hours). • Member States may exempt vehicles under 12 tons maximum laden weight from tolls if they consider this necessary (original proposal: no exemption).

13. Agreement is a compromise on the compromise-proposal of the Belgium EU-Presidency regarding the original proposal of the EU-administration based on the “Greening Transport Package”. • “EU deal on green road toll leaves few happy.” • The final decision is up to the European Parliament; it is expected for this year.

14. Thank You Dr.Eng. Andreas Kossak AK Research & Consulting Moorweg 6 D – 22453 Hamburg Phone: +49 (0)40 553 24 58 Fax: +49 (0)40 553 65 59 E-Mail: DrKossak@aol.com