c) Institutional weakness - there is no doubt that a congestion pricing scheme requires a competent traffic and transport planning agency to plan, design, implement and moreover manage a scheme on a continuous basis. Response: as described in Chapter 4 competent traffic planning agencies are not present in many developing cities. However, the implementation of a congestion charging scheme will be complex and even with a "traffic management agency" is in place, more is likely to be needed. An agency is required with sufficient professional skills and vision to deal with political issues, public consultation, publicity, traffic and transport planning, operational management, enforcement, financial administration and numerous other aspects. The magnitude of the task cannot be underestimated and developing cities contemplating congestion pricing will have to seek new ways to develop schemes. The creation of a multi-disciplinary team for the development of a scheme will be a minimum but the self-financing nature of congestion charging suggests that the whole process - planning, design, implementation, operation, management - might be contracted out; however, there is no known experience of this approach;
d) Congestion Pricing is not a “stand alone” policy - In some developed countries (for example in UK where congestion pricing is at the top of current transport agendas in many cities) there is concern by cities that if they introduce congestion pricing then there will be migration of business and commerce to neighbouring cities which do not introduce pricing. In a like manner, it has been argued that congestion pricing in the centre of a city will transfer economic activity to outer, presently un-congested, areas of the city. While land use changes are not instantaneous and while travel patterns depend on many factors, these arguments need to be addressed. Response: in broad terms is that (i) congestion pricing will increase, not penalise, city efficiency and should make the city more attractive to business and commerce, (ii) congestion pricing should not be regarded as the only transport policy for a city; indeed, the revenues from a congestion pricing scheme should be earmarked for improvements to the transport system as a whole and to public transport in particular and thus maintain the viability of the congested area and (iii) land use controls have to be exercised.
9.11.10. Cordon pricing versus area pricing -cordon pricing is most easily understood, and probably the most practical, scheme. It can offer the advantages of straightforward enforcement at a well defined set of locations (although supplementary cordons are theoretically possible), does not need to deal with residents in any special way (as with area licensing) and has flexibility of pricing by time of day which can be easily adjusted. Lack of a national, accurate, up-to-date, easily accessible vehicle registration system for tracing offenders may be a bar to remote enforcement say by cameras and vehicle number plate recognition (see also subsequent discussion on electronic pricing) and this may dictate that direct enforcement at the cordon is needed. Thus a scheme may not be feasible unless there is adequate road space (or adequate road space can be constructed similar to "toll plazas") for direct enforcement actions. Area pricing (essentially the purchase of a licence to operate within an area) has been proposed in the past as it affects all journeys to/from and within an area and theoretically allows enforcement to be applied to stationary vehicles although this raises issue of how to deal with parked vehicles which may legitimately be out of use. However, there are no
known operational schemes and in particular, enforcement poses difficult practical problems.
9.11.11. Manual/paper based or electronic - the emerging issue is whether cordon or area pricing should be a manual, "paper based" scheme or should be based on some form of electronic charging. Experience of the early Singapore Area License Scheme shows that a “paper based”, manually enforced cordon pricing scheme is feasible; simple technology is not a bar to congestion pricing in developing cities. In the past (Hau, previously referenced) concluded that manual, labour intensive systems had a better cost-benefit ratio than electronic road pricing. However, in the last 2 years, electronic pricing has been shown to be operational (in Singapore) and may become a viable technical alternative as costs of equipment reduce in real terms. The considerations which might affect selection of a manual or electronic scheme in a developing city include:
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