Have both reached the end of its usefulness to manage our car population, revenue generation and wealth transfer, reduce car usage, and gridlock traffic jams?
The satellite ERP system should allow [a] motorists to decide the ERP charges, and let it self adjust by motorists during peak hours; [b] make it expensive for those who drive into the CBD areas using it as shortcuts, driving East to West and West to East during peak hours.
Have a new COE category for cars above 3000cc for the rich to compete for the limited number of COEs in that category, and not for them to complete with bidders for COEs above 1600cc to buy cars above 3000cc.
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Time’s ripe to revamp COE system, start charging more for road use, say panellists at ST roundtable
Five out of six panellists felt the time was ripe to review and change the system, given that the technology to control usage has matured. ST PHOTO: KUA CHEE SIONG
Esther Loi
PUBLISHED 10 HOURS AGO on 11th Dec 2023 in Straits Times.
SINGAPORE – The certificate of entitlement (COE) system should be revamped with more emphasis on controlling the usage of vehicles on the road, instead of simply capping their numbers, said panellists at a roundtable organised by The Straits Times.
Five out of six panellists felt the time was ripe to review and change the system, given that the technology to control usage has matured and Singapore is rolling out its next-generation electronic road pricing (ERP) system, which is satellite-based and capable of charging motorists based on distance travelled.
ST hosted the roundtable on Nov 23, 2023 to discuss whether the COE system merely requires tweaks or a major overhaul, in the wake of surging premiums in 2023 with records being set in the larger car and Open categories for six consecutive tender exercises from August to October 2023.
After reaching highs of $150,001 (Category B) and $158,004 (Open), premiums fell across all categories at the first tender in November 2023 after the Government brought forward more COEs from future peak-supply years to raise supply.
Economist Ivan Png, who is Distinguished Professor at the National University of Singapore, said it was time for the Government to “take a big step” and roll out distance-based charging for road usage, which will also indirectly charge for carbon emissions.
The unhappiness over the existing COE system, coupled with a comprehensive MRT network and introduction of satellite ERP, provides an opportunity for change, he added.
“This is the moment to make a big reform, and then put us into a private transport system that will carry us forward for the next couple of decades.”
Others on the roundtable were Associate Professor Walter Theseira, who heads the urban transportation programme at the Singapore University of Social Sciences (SUSS); Dr Victor Kwan, previously a senior motor trader and now senior lecturer with SUSS; automotive consultant and former motor trade veteran Say Kwee Neng; co-founder and chief executive of used-car marketplace Carro Aaron Tan; and ST’s senior transport correspondent Christopher Tan.
Tackling usage to control congestion
Mr Aaron Tan questioned why the COE supply is being crimped by the current zero-growth vehicle policy.
“We’ve been building roads, tunnels and expressways over the last few decades. Our population is increasing too, so why is the COE quota being held constant?” he said in response to ST’s senior transport correspondent Lee Nian Tjoe, who moderated the roundtable.
Mr Christopher Tan said a zero population growth rate for cars was “draconian”.
Prof Png added: “If we’re worried about the problem of emissions from power stations, so we do something about switching from coal to natural gas, or from natural gas to solar energy – that is a natural solution to address the problem.
“We wouldn’t limit the number of power stations.”
Agreeing that more should be done to tackle car usage, Mr Christopher Tan said: “Right now, it’s a total imbalance. So much weight has been put on the ownership-acquisition part and very little on the actual usage. The actual usage is actually what causes congestion, which is what the COE system is trying to tackle in the first place.”
The panellists noted that high COE prices may prompt drivers to use their cars more, which worsens congestion.
Prof Png cited a study he had conducted, which found that motorists who bought their cars between 2008 and 2010 – when COE premiums were low – used their cars less than those who paid high premiums in 2012. “We interpret this as a psychological effect. I spent so much money on this thing so, oh, I should use it.”
MORE ON THIS TOPIC
Are some car buyers ‘masquerading’ as private-hire drivers to secure more financing?
Days of $150k COEs ‘are over’, but system needs thorough relook, say dealers, experts.
Mr Christopher Tan noted that there are no usage-based controls to prevent drivers from using their cars, especially with the abundance of parking spots and well-connected road networks.
“So where’s the usage deterrent? There’s none, practically, for someone who spent $200,000 on a car,” he said.
The proper pricing of road usage would encourage more drivers to switch to using public transport, Prof Png said.
“If you let people own a car, but you make it more expensive to use, they’re going to be happy in a different way. They enjoy that they have the option.
“But now… the choice is too one-sided: I’ve spent a ton of money on the car, and then I pay almost nothing to use it, especially if I have a fuel-efficient car or an electric vehicle. So, of course, I use the car,” he added.
Mr Say believes that having a fixed number of vehicles on the road is not the only cause of high COE prices, citing usage and other factors driving demand such as easy access to loans.
“Because when you have a limited supply of anything, the price eventually is driven by demand,” he said, adding that there has to be a way to “neuter easy access” to financing, citing past examples where the Government intervened on this front and effectively cooled COE prices.
On reforming the existing system, he said: “It boils down to political will to do the right thing.”
Prof Theseira noted that when the Government was justifying the roll-out of ERP in the past, “they were very clear that with better use of electronic road pricing, they could actually see a way to let more Singaporeans own cars because the problem of congestion and cost of car ownership could be controlled much more effectively through road pricing, rather than just upfront charges”.
While there may be unhappiness on the ground if distance-based charging is rolled out, he said: “Since we’re already unhappy with COE, why not say, look, let’s just relook everything and accept that the alternative might be more efficient from an economic perspective, and also maybe not be that much more painful from the psychological perspective either.”
MORE ON THIS TOPIC
Updated LTA transit app prioritises public transport users; no plans to integrate ERP2.0 for motorists
Motor Mouth: Time to go without a car?
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Reducing volatility
Prof Theseira said the high COE premiums and price volatility are “symptoms of a system that isn’t working as well as it should”.
Dr Kwan describes the current price volatility of COEs as a “feast or famine” situation arising from the 10-year COE cycle.
The switch from a forecast system – which estimated the number of available COEs based on the forecast number of deregistered vehicles every year – in 1999 to one based on actual deregistration figures in 2010 led to a sudden plunge in COE quotas, as most of the existing cars were still new and not undergoing deregistration.
In turn, this pushed up COE prices dramatically, Dr Kwan said.
Prof Theseira noted that the COE quotas originated from vehicle stock numbers in the 1990s, which may be outdated. He asserted that these figures were not determined by any research or scientific mechanisms either.
Unlike the other panellists, Dr Kwan feels the COE system is “not broken” and requires only tweaks.
He believes the fundamental demand-supply system can “sort itself out” with minor adjustments such as charging more for usage and increasing the supply vis-a-vis Singapore’s population growth.
MORE ON THIS TOPIC
472,000 S’pore resident households owned cars in 2022, up from 459,000 a decade earlier
COE prices could spike further if a category for car-leasing firms is created: Chee Hong Tat.
With more COEs from future peak-supply years being brought forward to fill the present supply troughs through the Government’s “cut and fill” approach, ST’s Mr Tan noted that this will be a gradual process of flattening the disruptive feast-and-famine COE supply cycle.
He noted that from 2015 to 2021, there were about 100,000 five-year COE renewals for vehicles that would need to be scrapped once they reached the end of their statutory lifespans.
It is “better late than never” to bring these 100,000 COEs earlier into the market, since the increase in supply effectively brought about a fall in COE prices across the board earlier in November, he added.
He hopes that COE prices will continue to stabilise, though he cautions that it will not be an overnight fix.
Dr Kwan supports this view, adding that the Government is “on the right track” as COE prices will likely stabilise at a reasonable level through this measure.
Prof Theseira said the fixed COE tenure of 10 years creates the problem of perpetuating any present changes or mistakes in the future, when existing COEs lapse 10 years down the road.
He added that policymakers are understandably cautious about further levelling out COE supply across the years.
“Today, lots of people complain about COE prices, but not that many are actually buying a car and facing that high price. But when they come to the bumper years – the next couple of years – when people who own mass-market cars are going to be deregistering them and buying a car, they will be expecting COE prices to be at the level that is consistent with a very large COE supply,” he said.
“So if you were to take their COE from that period and redistribute them to now, all of a sudden, they’re going to find that the prices are not as low as they thought they would be, and then you have a different political problem.”
He called for a return to the drawing board to study if there should be a more flexible system that accurately reflects the costs of driving and congestion.
“In my ideal scenario, you would have a system where it might not be cheap to drive a car in Singapore. I don’t think it ever will be cheap because of our constraints,” Prof Theseira said.
“But at least the price will be somewhat predictable. And it won’t change a huge amount in the month-to-month or year-to-year basis. It will change reflecting underlying supply and demand for using vehicles in Singapore. But it won’t be dramatic, and I think that will be better for everybody.”
MORE ON THIS TOPIC
Fix COE system to preserve its original intent.
The ripple effects of high COE prices, beyond driving up the cost of new cars
ERP 2.0 unit installation to start with company vehicles on Nov 1, 2023; motorists can opt out of touchscreen display.
Motorists who opt out of installing the touchscreen display (right) can still access key on-board unit (OBU) information via compatible smartphone apps. (Photo: CNA/Hanidah Amin).
Grace Yeoh
@GraceYeohCNA
23 Oct 2023 05:30PM
(Updated: 23 Oct 2023 11:49PM) in channel newsasia.com.
SINGAPORE: Company vehicles will be the first to get the new on-board unit (OBU) required for the ERP 2.0 system when the Land Transport Authority (LTA) rolls out its installation from Nov 1, 2023.
These vehicles include buses, goods vehicles, taxis and motorcycles that are registered to an organisation.
The new Electronic Road Pricing system, known as ERP 2.0, will be satellite-based and can detect whether a vehicle is in a congested area.
While ERP 2.0 has the capability to support distance-based charging through its global navigation satellite system, LTA said on Monday (Oct 23) that it has “no immediate plans” to introduce distance-based charging.
Every OBU will comprise three components: A processing unit, an antenna and a touchscreen display. For motorcycles, these three components will be integrated into a single-piece unit.
Having taken in public feedback, LTA noted that motorists can opt out of installing the touchscreen display, the agency said in a press release.
Some motorists had complained that the new unit would be too bulky and inelegant when the design was first announced in 2020.
Related:
Want to opt out of ERP 2.0’s touchscreen display? Here’s what it will mean for you
The processing unit containing the payment card is installed on the driver’s left side. (Photo: CNA/Hanidah Amin).
All other vehicles will be progressively fitted with the OBU, beginning with new vehicles from the first quarter of 2024. Installing the remaining existing vehicles will be scheduled in batches “based on the age of the vehicles”, said LTA.
The OBU exercise is expected to be completed by end-2025. More details about installation for individual vehicles will be announced early next year.
The installation of the units was previously delayed to 2023 due to a global microchip shortage caused by the COVID-19 pandemic.
All eligible Singapore-registered vehicles – except those due for mandatory deregistration during the course of the OBU installation – will get their unit for free.
Installation is also free if motorists complete it within the two-month period stated in their letter, email and/or SMS notification.
Related:
More cars, higher congestion charges: Experts on what it would be like if COE was replaced with ERP 2.0
The processing unit containing the payment card is installed on the driver’s left. (Photo: CNA/Hanidah Amin)
TOUCHSCREEN DISPLAY OPTIONAL, BUT “STRONGLY ENCOURAGED”.
All Singapore-registered vehicles must have the new OBU installed.
Motorists are “strongly encouraged” to install all three OBU components to access the “full range of features”, such as paying for roadside parking, said LTA.
However, motorists who wish to opt out of installing the touchscreen display will still be able to access key OBU information via compatible mobile applications on their smartphones instead. Such applications include LTA’s ERP 2.0 app or other third-party apps listed on LTA’s OneMotoring site.
To help developers create apps that integrate and display ERP 2.0 data, while maintaining “strict security safeguards” on such data, LTA has also released a software development kit.
Mobile apps will display such information from the OBU: Road pricing alerts, charging information, information about payment status, traffic information, card balance and status, and backend payment account indicator.
For motorcycles, the OBU components – a processing unit, an antenna and a touchscreen display – are integrated into a single-piece unit. (Photo: CNA/Hanidah Amin).
Related:
ERP 2.0 unit installation to start with company vehicles on Nov 1; motorists can opt out of touchscreen display | Video.
The touchscreen display will give motorists ERP-related information like ERP charges and card balance. It will also provide road and traffic updates, such as the location of Silver Zones, School Zones, speed cameras and bus lanes.
Silver Zones are specially designated residential areas with a high proportion of seniors, where the speed limit is reduced.
When ERP 2.0 is fully rolled out, the touchscreen display can support additional features, such as real-time traffic alerts like road closures and accidents, as well as payment for roadside parking. Singapore-registered cars will also be able to pay for tolls at the checkpoints.
All motorists will be given all components of the unit. If those who initially opt out of installing the touchscreen display eventually change their mind, they can visit authorised workshops to install the touchscreen display at their own cost.
The OBU is designed to work with existing systems, including ERP and parking gantries. There will be no change to how motorists are currently charged for ERP during the transition period, said LTA.
Source: CNA/gy(ac)
Can Singapore have higher car ownership and still be car-lite?
Let’s revisit the proposal in the 1990s to shift costs to usage rather than ownership.
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ERP is a form of consumption tax.
If you garage your car, do not drive it out, you will not incur ERP charges.
Will the Govt have the political will to go one more step, and that is to tax the rich directly with a 3% Sales Tax on expensive goods sold at more than S$1000 at retail?
The rich, when they do not keep their money but spend it, they will have to pay the Sales Tax, a consumption tax.
It is unlike the GST Tax hitting at all.
The demagogues will not curse the Sales Tax unlike the GST Tax.
To increase the GST rate above 9% in the long run is not the solution.
A 3% Sales Tax when implemented wef 2028 is the solution.
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ERP rates at five locations to go up by $1 from Feb 13, 2023,
LTA said the changes are in response to traffic conditions observed throughout January. PHOTO: ST FILE
Sarah Koh
UPDATED 7 MINS AGO on 6th Feb 2023 in Straits Times.
SINGAPORE – Electronic Road Pricing (ERP) rates at five locations will go up by $1 from Feb 13 in response to increased traffic.
The Land Transport Authority (LTA) said on Monday that the rates will all go up during nine specified time periods at the following locations:
Ayer-Rajah Expressway (AYE) after North Buona Vista towards Tuas
Four gantries on the southbound Central Expressway (CTE) after Braddell Road and the Pan-Island Expressway (PIE) slip road to southbound CTE
Southbound CTE auxiliary lane to PIE (Changi)/Serangoon Road
Kallang-Paya Lebar Expressway (East Coast Parkway) after Defu Flyover
Westbound PIE before Eunos
LTA said traffic has been building up on several stretches of expressways, and these changes have been made in response to traffic conditions observed throughout January this year.At the AYE after North Buona Vista towards Tuas gantry, motorists will pay $2 from 5.30pm to 6pm, and $1 from 7pm to 7.30pm.For the set of four gantries on the southbound CTE after Braddell Road and the PIE slip road to the southbound CTE, the rate goes up to $5 from 8.30am to 9am, and $4 from 9am to 9.30am.
At the southbound CTE auxiliary lane to PIE (Changi)/Serangoon Road gantry, the rate will be $4 from 9am to 9.30am, and $3 from 9.30am to 10am.
ERP rates at three locations to increase by $1 from Nov 19
New variant of phishing scam involving ERP tolls emerges
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Roll-out of satellite-based ERP system delayed by global chip shortage
SINGAPORE – The transition to the next-generation Electronic Road Pricing (ERP) system is delayed yet again – this time by the global chip shortage.
The Land Transport Authority (LTA) said on Wednesday (Nov 17) that the roll-out – last planned for end-2021 – will now happen in the second half of 2023.
The authority said the chip shortage is expected to end only around end-2022 and early 2023.
The initial plan was to start replacing the current ERP in-vehicle units with new on-board units (OBUs) last year. This was eventually pushed to the end of this year because of the Covid-19 pandemic.
As installation of OBUs – involving almost one million vehicles – would take 18 months, the new ERP system is unlikely to be switched on until at least 2025.
The new satellite-based ERP system will replace the current 23-year-old system, which LTA previously said was reaching the end of its operational life.
It will have more features than the current one.
Besides providing information on ERP charging locations and rates, the OBU will provide information such as real-time road traffic updates as well as locations of nearby school zones and Silver Zones, LTA had said.
The killer application of the new system is its ability to charge for distance travelled. LTA, however, had indicated earlier that this function would not be rolled out initially.
But Deputy Prime Minister Heng Swee Keat announced last year that the distance-charging function was still “several years away”.
In a joint press release with system contractors NCS and Mitsubishi Heavy Industries, LTA explained that the pandemic had boosted global demand for microchips.
More people bought electronic devices to work or study from home. Lockdowns also led to the suspension of operations in major semiconductor foundries across multiple countries.
LTA said this “severely impacted the production of electronic devices across multiple sectors, from consumer electronics to industrial machines and automotive”.
LTA chief executive Ng Lang said: “We would like to seek motorists’ understanding as we work closely with our partners to resolve the production challenges brought on by Covid-19.
“Our priority is to ensure that the installation exercise proceeds smoothly. We will give ample notice to motorists and the motor vehicle industry ahead of the installation exercise.”
But motorists are in no particular hurry to switch to the new system.
Business consultant Albert Lee, 62, said: “I am relieved, since I can’t be sure that with the new system, other car-related taxes will be tweaked eventually in favour of distance-based charges.
“Logically, with distance-based pricing, other charges should be reduced. We should not be penalised for ownership, but for usage.”
Freelance motoring writer Wong Kai Yi, 32, said: “It is a good thing that the system is delayed.
“Hopefully, the time extension means the authorities can rethink the design of the new on-board unit, which looks cumbersome.”
In response, LTA said it is also studying whether information from the OBU can be transmitted and displayed on smartphones.
“We will be engaging the industry on the possible ways to implement this option,” a spokesman added.
However, The Straits Times understands that the OBU will still have to be installed somewhere in the vehicle even if the smartphone option proves to be feasible.
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ERP readers to be replaced with free satellite-based units from 2021: LTA
By DARYL CHOO
LTA
The new on-board unit (OBU) has a touchscreen display that can provide real-time road traffic updates.
Published08 SEPTEMBER, 2020UPDATED 08 SEPTEMBER, 2020
SINGAPORE — Motorists will have to replace their vehicle’s Electronic Road Pricing (ERP) readers from the second half of next year, as the authorities prepare to roll out the new satellite-based ERP system in mid-2023.
The replacement of in-vehicle units (IUs) with the new on-board units (OBUs) will be free for existing Singapore-registered vehicles and will take place over 18 months, the Land Transport Authority (LTA) said in a statement on Tuesday (Sept 8).
Resembling a smartphone, the more sophisticated OBU has a touchscreen display that can provide real-time road traffic updates, and locations of nearby school zones and silver zones to alert motorists to look out for children and seniors.
The touchscreen display, together with the antenna, will be mounted on the windscreen near where the IUs are now installed. A separate processing unit will be installed beneath the dashboard. The new system will work with existing cards for ERP and car park payments.
The new OBU has a separate processing unit (pictured). Photo: LTA
Motorcycles will be fitted with a smaller single-piece design.
Read also: Satellite-based ERP system to be rolled out from 2020
The replacement of the IU with the OBU is mandatory for all Singapore-registered vehicles, aside from some exceptions such as tractors, construction vehicles, airport vehicles and some classic and vintage vehicles.
LTA said: “The ERP system was first introduced more than 20 years ago in 1998 and the infrastructure is reaching the end of its operational life. In the meantime, technology has advanced and offers us better solutions.”
As the OBU uses the global navigation satellite system, the next-generation ERP system will collect data from users, LTA said, adding that it will only use anonymised or aggregated data for traffic management and transport planning purposes.
Read also: LTA to trial equipment for satellite-based ERP, number plate recognition systems
Vehicle-specific data will be used only for payment, charges and enforcement while summons related to non-payments will largely continue to be auto-generated.
“To prevent unauthorised access and improper use of the data, there will be robust security and strict safeguards in place, including penalties under the Public Service (Governance) Act,” LTA said.
The new on-board unit (OBU) for motorcycles. Photo: LTA
Read also: ERP rates to be increased by S$1 at three gantries along CTE
With the move to the next-generation ERP system, the “bulky” gantries now will also be phased out and replaced by smaller ones at the ERP locations.
The authorities previously stated that they aimed to roll out the new ERP system from 2020, but LTA said in its latest statement that the installations will begin next year “due to the impact of Covid-19 on global supply chains”.
LTA’s then-chief executive Chew Men Leong had said in 2016 that the new ERP system can “provide the option… to look at how we can charge motorists based on the distance (they travel on) priced roads”.
The authorities, however, stressed that the current ERP cordon-based congestion pricing framework will remain.
“How ERP works will not change,” Transport Minister Ong Ye Kung wrote on Facebook in a post on Tuesday reminiscing about the history of the ERP.
“What will change is (that) there is no need for big gantries anymore,” he added. Instead, they will be phased out with smaller ones at the ERP locations.
“All vehicles will be scheduled to do a replacement, which I was told takes less than an hour to install. LTA will come out with the details,” Mr Ong wrote.
In 2016, LTA awarded a S$556 million tender to a consortium comprising Mitsubishi Heavy Industries (MHI) Engine System Asia and NCS to build the next-generation ERP system.
MHI Engine System Asia is an engine and generator manufacturer, while technology service provider NCS is a subsidiary of telecommunications company Singtel Group.
Read more at https://www.todayonline.com/singapore/erp-readers-be-replaced-free-satellite-based-units-2021-lta
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New ERP system’s flexibility must enhance traffic management
Grateful my letter was published at last though heavily edited.
ST confirmed that they would publish it but instead they published two other letters in two separate Sunday Times giving different viewpoints.
I could see that ST prefer the other two ideas and dropped mine.
I wrote to Today, and I am grateful Voices published it this morning, 1st April 2016.
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New ERP system’s flexibility must enhance traffic management
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PUBLISHED: 4:15 AM, APRIL 1, 2016 in Today Voices
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I refer to the report “New ERP system ‘will offer flexibility in charging’” (Feb 26). To justify its cost of S$556 million, the satellite-based Electronic Road Pricing (ERP) system must allow for faster changes in ERP charges.
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When frequent drivers are affected by traffic jams, they would surely want the charges raised to discourage the huge number of motorists passing through that particular road during that time slot.
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But many motorists are still unconvinced that our Certificate of Entitlement and ERP systems are necessary to keep our tiny island free of gridlock.
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They must remember that our CBD is at the southern edge, and there is a large catchment area in the middle of our island.
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These fixed, unique features of our landscape affect the flow of traffic from one end of the island to the other.
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Other Singaporeans want the Government to control the vehicle population further, thus depriving many who need a vehicle from owning one.
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Let us not forget that overuse of vehicles, not vehicle ownership, contributes to congestion.
Our traffic management should be enhanced with the aim of ending public scepticism about the ERP system as a revenue-generating tool for the Government rather than for managing traffic. The satellite system should make this happen.
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The original full text of my letter:
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I refer to “New ERP system ‘will offer flexibility in charging’” in Today, 26th Feb 2016.
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To justify spending S$556m, the main enhancement of the satellite ERP system must be in removing LTA’s responsibility from fixing the ERP gantry charges by leaving it to the motorists to decide the charges and the level of congestion that they are prepared to live with and accept.
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The satellite-tracking ERP real-time, interactive satellite-based system should allow for faster changes in ERP charges.
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It should allow the motorists to decide among themselves the level of charges, and they should bear the consequences of gridlock traffic jams if they decide to manipulate the ERP charges far too low.
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Surely, the system will self-adjust the charges as the top 30% high-usage drivers when affected by massive traffic jams would want to raise the charges for the following month to discourage the huge number of cars passing through that particular ERP gantry and time slot.
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Also, LTA should use the system to incentivise and discourage motorists from using the CBD as a shortcut passage way to drive across the island during peak hours. This can be achieved by tracking the number of vehicles that take less than 15 minutes to cross the CBD from one end to the other.
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However, many motorists are still not convinced that our COE and ERP systems are necessary in keeping our compact island of 713 sq km free of traffic gridlock situations.
They must always remember that our CBD is at the southern edge and the reservoir catchment areas are in the middle of our tiny island of 5m people.
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All these fixed and unique features of our landscape affect the flow of traffic from one end of the island to the other.
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Some Singaporeans even want the Govt to control the vehicle population further, thus depriving many who need a vehicle from owning one.
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We must not forget that vehicle ownership does not contribute to congestion, but overuse of vehicles does.
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The ultimate aim in enhancing our traffic management is for MOT to end the dissatisfaction and scepticism in the public domain that the ERP system is inequitable, and that it is not for managing traffic flow but a revenue generating tool for the Govt.
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The new satellite system should make this happen.
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My letter to ST Forum, not published:
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I refer to the report, “Satellite-based ERP: Great technology but what’s the policy?” [by Han Fook Kwang, ST, March 13).
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We need both the Certificate of Entitlement and Electronic Road Pricing to keep Singapore’s compact 713 square kilometres free of gridlock.
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Making it expensive to drive is more important than controlling the vehicle population as vehicle ownership does not contribute to congestion, but overuse of vehicles does.
To achieve these objectives, the satellite-tracking ERP real-time, interactive satellite-based system should allow for faster changes in ERP charges.
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For example, the system should identify cars that frequently pass an “ERP gantry”, the electronic satellite-based point of entry, during a certain time of the day in each month.
The Land Transport Authority should send an e-application and invite these owners to propose the next month’s ERP charges for that time slot and ERP gantry. The invited motorists should submit the forms via What’sApp or Internet using SingPass password verification.
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The various new charges for that ERP gantry should be the average of the top 30 per cent of the amounts proposed by these motorists. LTA should use its website to disclose the final computation and figures to the public. However, LTA shall set the base-rate minimum charge for each ERP gantry.
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The ERP charges for lorries and motorcycles should be a certain percentage of those for cars. LTA should decide the percentage for each ERP gantry and time slot.
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This new feature should allow the motorists to decide among themselves the level of charges, and they should bear the consequences of gridlock traffic jams if they decide to manipulate the ERP charges far too low.
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The system will self-adjust the charges as surely the top 30% high-usage drivers when affected by massive traffic jams would want to raise the charges for the following month to discourage the huge number of cars passing through that particular ERP gantry and time slot.
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Also, LTA should use the system to incentivise and discourage motorists from using the CBD as a shortcut passage way to drive across the island during peak hours. This can be achieved by tracking the number of vehicles that take less than 15 minutes to cross the CBD from one end to the other.
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To justify spending S$556m, the main enhancement of the satellite system must be in removing LTA’s responsibility from fixing the ERP gantry charges, leaving it to the motorists to decide the charges and the level of congestion that they are prepared to live with and accept.
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The most important feature politically is for the satellite system to end the dissatisfaction and scepticism in the public domain that the ERP system is inequitable, and that it is not for managing traffic flow but a revenue generating tool for the Govt.
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Satellite-based ERP: Great technology but what’s the policy?
by Han Fook Kwang
Editor At Large
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PUBLISHED MAR 14, 2016, 5:00 AM SGT in Sunday Times
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So, Singapore is set to become the first city in the world to have a satellite-based road pricing system.
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Come 2020, eyes in the sky will replace those gantries – all 77 of them – to monitor the movement of every vehicle, 24 hours a day.
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According to what’s been said so far, the new technology will enable the authorities to charge motorists based on how far they travel in a congested area.
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The more they use the roads, the more they might have to pay, a feature the existing gantry-based system does not have.
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It can also be used to implement parking charges without requiring the use of coupons, thus saving on enforcement costs.
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If you trace how far road pricing technology has travelled from the days of the manually policed gantry in the 1970s requiring at least two traffic wardens, to the present system without the need for human eyes, and finally to one using orbiting satellites, you have to marvel at the progress achieved.
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If cracking the congestion problem was mainly about employing the right technology, Singapore might well be on the road to a final solution.
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But is it?
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Don’t bet your Toyota on it.
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Not even if it costs $556 million, which is the price of this newfangled system.
If there’s one thing about Star Wars- type gizmos, they don’t come cheap.
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But if it works and results in smooth-flowing traffic – which makes the most efficient use of pricing, charging everybody who uses the road fairly and effectively, making Singapore a model of road pricing – it would have been worth every dollar.
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The $556 million question is, will it?
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Problem is, there is that other troublesome part called policy that often gets in the way.
So, what exactly is the policy that will be in place to control the usage of vehicles on the roads come 2020 when the new system goes live?
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That’s what I really want to know.
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Alas, compared to the information pouring out on the technology front, the news on the policy side looks like a sputtering bus.
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Not much has been said about what the thinking is which will make use of those all-seeing satellites.
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You have to go back to a parliamentary sitting in 2014, when then Transport Minister Lui Tuck Yew answered a question posed by an MP on how the new system would affect frequent road users such as cabbies and commercial vehicle drivers.
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This was what Mr Lui said: “We want to make sure that it is an equitable system. Today, you are charged the same rate, no matter how long you stay on the road…
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“Going forward, we do have the option of pricing it in a different way. We will have to make sure that we take into account some of the implications on different groups of users and try to arrive at as fair a solution as possible.”
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That was it, but there were hints there which pointed to what was in his mind – charging for distance travelled, and charging different groups of users differently.
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What seems clear is that the Government isn’t thinking of just carrying on the policy as before but wants to explore new ways of charging road users.
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This is the right approach as it would have been a waste of taxpayers’ money if the new investment, with all its advanced technical capabilities, merely replicated what the present gantry-based system was doing.
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That would be like buying a Ferrari to drive in a carpark.
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But the pity is that the issues Mr Lui raised were not debated, nor were they subsequently expanded outside the House.
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And before you know it, the tender has been awarded and work on the new system started.
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This is the problem: Shouldn’t policy be settled first before so much money is spent on new technology which enables the authorities to do things which have not been decided yet?
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In deciding on a satellite-based system, is Singapore putting the technology cart before the policy horse?
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Wouldn’t it have been better to first have a vigorous discussion on what a fairer, more equitable road pricing system might look like?
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How would one charge a taxi driver compared to one who drives a commercial van or a bus?.
And what about a private motorist compared to others who drive professionally?
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Other policy questions: With the ability to charge based on distance travelled, what should be the overall approach to congestion pricing in Singapore?
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Should it retain the present way of pricing to discourage motorists from entering a defined cordon in the city?
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Or should specific roads that are congested be targeted?
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Then, there is the big bus in the room: How ought usage be charged relative to ownership taxes such as certificates of entitlement and Additional Registration Fee?
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Many critics have questioned if the two work in opposition to each other.
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They argue that the more motorists have to pay all those upfront costs, the more likely they will use their vehicles, ERP charges notwithstanding.
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So, what’s the right balance?
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You have to get the policy right first, then use technology to implement it.
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The thing about policy is that, unlike technology, you can’t buy it off the shelf.
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Every city has to develop its own based on its special circumstances and needs.
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In fact, there are some places where no technology is deployed to discourage motorists from driving into their urban centres.
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Boston in the US hasn’t allowed the building of new carparks in the city for decades.
You can’t drive to work because you won’t be able to park your car.
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No technology, just good old-fashioned policy.
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I don’t have the answers to what might work for Singapore, but I wish these issues were discussed before making the decision to buy expensive technology which may or may not be needed depending on the answers to those policy questions.
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Don’t get me wrong: I have nothing against modern science and this new satellite system might well be the right one for Singapore and worth its sky-high price.
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But we won’t know until the policy issues are discussed and settled.
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Which should start now, or yesterday.
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New ERP system ‘will offer flexibility in charging’
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BY
AMANDA LEE
leeguiping@mediacorp.com.sg
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PUBLISHED: 4:16 AM, FEBRUARY 26, 2016 in Today newspaper
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SINGAPORE — Motorists reacted to the impending roll-out of a new satellite-based Electronic Road Pricing (ERP) system warily, saying they would want to see clearer signage near the zones where ERP charges apply, as well as what the charges are.
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Landscaping supervisor Angie Ng said conspicuous signs could be placed about 1km away from the ERP zone to alert drivers. “Big signs can alert me earlier, in case I want to make a detour to avoid ERP charges,” said the 54-year-old who has been driving for the past 20 years.
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Switch to road pricing based on distance ‘only a matter of time’
FEBRUARY 26
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The charges should also be prominently displayed at every ERP zone, with Mdm Christina Li, 55, an office worker, noting that it would otherwise be difficult to know how much she was paying and keep track of how much she needs to spend every month.
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Salesman Andrew Koh hoped to have more information on how the system would be implemented on the ground, which could have implications for processes like filing claims for ERP charges with employers. “With the new system, is there a way to claim from the company?” said the 60-year-old.
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SIM University senior lecturer Walter Theseira said the main benefit of a satellite-based system is increased flexibility in road charging. “Flexibility is generally a good thing because it means charges can be varied more finely in response to congestion and demand.
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For motorists, this potentially means a smoother traffic flow,” he said.
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To help motorists get used to the system, SIM University adjunct associate professor Park Byung-joon suggested having a smartphone app which provides GPS navigation that can help direct drivers away from ERP areas.
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He also pointed out that drivers could pay their ERP charges on a monthly basis and online payment could be made available to drivers for convenience.
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Concerns over privacy under the new ERP system were also raised previously when it was first revealed the authorities were adopting it, and the Land Transport Authority (LTA) had assured it had factored this into the design of the new system.
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The necessary safeguards will be incorporated in the system such that only data necessary to perform relevant functions will be collected, an LTA spokesperson had said previously.
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Separately, under the new ERP system, there will be automatic payment for off-peak car owners who drive during the peak periods.
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Banker Jonathan Yang, who owns an off-peak car, welcomed the move.
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“(It saves) us the hassle of buying the e-coupons as well as preventing incidents where we forget to buy after using the car,” said the 27-year-old.
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Measures To Manage Road Usage
in http://www.onemotoring.com.sg
1. As announced by Mr Raymond Lim, the Minister for Transport, the Land Transport Authority (LTA) will be making changes to the Electronic Road Pricing (ERP) system to enhance its effectiveness in managing traffic congestion on the roads. With the changes, a total of 16 new ERP gantries will be activated this year, and this includes the 5 gantries which were announced in August 2007 last year but have not been activated.
2. The ERP changes will be phased in gradually, starting with the Central Business District (CBD) and Orchard Cordons in July 2008. This is to give time for motorists to adjust their travel plans and allow for the impact of the changes in the CBD and Orchard Cordon to work its way through the rest of the road network.
3. The enhancements to the ERP system, the implementation of new ERP gantries and how the new ERP criteria will take effect are outlined below.
Enhancements to the ERP System
4. The ERP system has essentially remained unchanged since its introduction in 1998. As traffic volumes today are far different from a decade ago, enhancements are necessary to ensure the ERP system’s effectiveness. As part of the Land Transport Review, the LTA has studied and reviewed the matter carefully, and will be implementing the following changes to enhance the ERP system from July 2008:
a. Use the 85th Percentile Speed Measurement Method
The current threshold speeds (45 km/h on expressways and 20 km/h on arterial roads) were set 10 years ago. Today, the threshold speeds are close to the point where traffic flow can deteriorate rapidly into the unstable zone where ‘stop-start’ conditions become common. In order to create a buffer, LTA will use a more representative method of measuring actual traffic conditions for ERP rate reviews, with speeds determined using the 85th percentile speed measurement method, instead of using average speeds as is done currently. The 85th percentile speed measurement method is also an international traffic engineering practice for assessing traffic conditions. With the revised speed measurement method, motorists will be assured of smooth travel on ERP-priced roads at least 85% of the time;
b. Increase the Initial ERP Charge and Rate Increment
Motorists today are less sensitive to the rate structure which has remained unchanged since 1998. For ERP charges to remain effective in influencing motorists’ behaviour, LTA will raise the incremental ERP charge from $0.50 to $1. In addition, the ERP base charge, which is the starting charge for a new ERP gantry point, will
be increased from the current $1 to $2. These changes will improve the effectiveness of the ERP system, so that each time ERP rates are adjusted, motorists who still choose to drive on these roads would see a visible improvement in traffic flows.
c. Manage Congestion in the City Area
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To address the congestion in the city area, LTA will introduce the Singapore River Line, comprising 5 new ERP gantries that run roughly along the Singapore River to discourage through traffic from using the city for outbound trips, and Saturday traffic.
New ERP Gantries
5. LTA has been monitoring traffic conditions closely on the roads, and has assessed that 16 new ERP gantries are necessary to help manage congestion at the identified locations. The LTA will phase in the implementation of the 16 gantries as shown below.
April 2008 – Operation of 5 gantries that were announced in Aug 2007
6. In August 2007, LTA had announced that ERP gantries would be installed at 5 locations, namely (i) Upper Bukit Timah Road; (ii) Toa Payoh Lorong 6; (iii) Upper Boon Keng Road; (iv) Geylang Bahru Road; and (v) Kallang Bahru Road. These gantries would be activated only when traffic speeds fall below the optimal speed range. LTA has been monitoring the traffic conditions at these 5 locations closely, and has established that traffic speeds on all 5 roads have fallen below the optimal speed threshold based on the current speed criteria .1[1].
7. Therefore, LTA will be activating these gantries from 7 April 2008. The operating hours of these 5 gantries will be from 7.30am to 9.30am. Please refer to Annex A for the location and ERP rates of these gantries.
July 2008 – Operation of 5 new gantries along the Singapore River in the CBD
8. The five gantries on the Singapore River Line will run roughly along the Singapore River from Clemenceau Ave to Fullerton Road, separating the commercial and shopping areas such as the Suntec area from the office-based areas such as Shenton Way/Robinson Road. These 5 gantries serve to reduce through traffic from using the city area for outbound trips in the evening, similar in concept to the Orchard Cordon where ERP was implemented to reduce through- traffic which would otherwise use Orchard Road to get to other areas. Traffic speeds on these roads are below the optimal speed range, based on the revised
[1] Using the average speed measurement method [1] Using the average speed measurement method
[1] Using the average speed measurement method [1] Using the average speed measurement method criteria.
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9. To better manage the speeds within the Orchard and CBD cordons, the ERP operation hours for the CBD will start from 7am to 8pm on weekdays. The ERP for Orchard Cordon will start from 10am to 8pm on weekdays.
10. The 5 gantries on the Singapore River Line will come into operation on 7 July 2008, and will operate from 5pm to 8pm on weekdays. Two of the new gantries – namely Eu Tong Sen Street and Fullerton Road (towards Esplanade Drive) – will operate on Saturday from 10am to 8pm. The rate increase of $1 will be applied if the traffic conditions closer to July warrant it for each of the half-hour time slots.
11. Please refer to Annex B for the locations of these gantries.
12. On Saturdays, the gantries at Eu Tong Sen Street and Fullerton Road (towards Suntec City), together with the existing CBD gantries north of the Singapore River Line, will help to demarcate the Bugis-Marina Centre Cordon as traffic conditions within this cordon have deteriorated below the optimal speed threshold. The Bugis- Marina Centre Cordon and the existing Orchard Cordon will operate during the same hours on Saturdays and will help in managing traffic in the City area on Saturdays. [Please refer to Annex C for the location of the different cordons.]
November 2008 – Operation of 6 new gantries on arterial roads and expressways
13. Based on the new ERP criteria (i.e. 85th percentile speed measurement method), traffic speeds at 6 locations on arterial roads and expressways have fallen below the optimal speed range, and ERP is needed to manage the congestion that is building up at these areas. The new gantries will operate from 3 November 2008 onwards, and they are as shown below. Please refer to Annex D for the location of the 6 new gantries.
a. 3 new gantries on roads along the Outer Cordon in the morning. LTA will be installing new gantries at the following 3 locations along the Outer Cordon to address the congestion on these roads, namely (i) Commonwealth Avenue; (ii) Jalan Bukit Merah; and (iii) Alexandra Road.
b. 2 new gantries on expressways in the morning. One gantry is along AYE (westbound), near Alexandra Road, and the other is along PIE (westbound), near Eunos.
c. New gantry on Serangoon Road in the evening. To address the congestion on Serangoon Road during the evening peak hours, LTA will be installing a gantry there.
14. The operation hours and ERP rates at each of the 6 gantries above will be determined and announced closer to their implementation in November 2008. [Please refer to Annex E for a map showing the location of the Outer Cordon.]
Implementation of New ERP Criteria and Rates on Existing ERP Gantries
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15. LTA will be phasing in the implementation of the new ERP criteria and new ERP rates on existing ERP gantries to allow time for motorists to adjust their travel plans. The new criteria will first be applied to the CBD and Orchard Cordon in July 2008 before being extended to other roads progressively. This will also allow for the impact of changes in the city area to work its way through the rest of the road network. If the new ERP rates in the CBD and Orchard Cordon result in fewer motorists driving on the roads leading to the city, ERP rates need not be adjusted if speeds do not fall below the threshold speed.
16. The following is the schedule for the application of the new ERP criteria (i.e. 85th percentile speed measurement method and ERP rate increment of $1) on existing ERP gantries:
- July 2008 – to be implemented on gantries in CBD and Orchard Cordon (on weekdays) and Orchard and Marina Centre Cordon (on Saturdays).
- November 2008 – to be implemented on gantries on roads within and up to the Outer Cordon. Map showing the location of the Outer Cordon is given in Annex E
- February 2009 – to be implemented on all gantries islandwide
17. Before the new ERP criteria is applied to the respective areas, LTA will continuewith using the existing ERP criteria in the quarterly ERP rate reviews.Conclusion18. “The main aim of the ERP changes is to keep our roads smooth flowing and ensure a high quality urban environment. We are putting a lot of effort into making public transport a viable alternative to driving and we hope that more motorists will give it a try.” said Mr Yam Ah Mee, LTA Chief Executive.
Last Updated on 30/01/2008
tankoktim 