Enhancing Urban Mobility Through Congestion Charging


Cities around the world continue to grapple with the need to reimagine transportation. One innovative solution is City Deals starting with an emphasis on how people and business use transportation to enhance economic outcomes and improve wellbeing. A close ally to City Deals is the concept of congestion charging in urban environments as a means of supporting improved allocation of space across all transport modes.

 

Urban Mobility

Urbanisation has lead to increased economic opportunities and growth. However, transport strategy and investment has failed to keep pace. The result is ever increasing competition for space in the urban realm, with cars still dominating despite worsening congestion and pollution. Congestion negatively impacts both transport users - facing highly unreliable travel times - and the quality of life for urban dwellers.

 

What is Congestion Charging?

The core idea is simple: charge a fee for vehicles entering congested streets or zones during peak hours. This economic disincentive encourages changes to travel behaviour (including an increase in use of public transport), reduces traffic volume, and consequently mitigates the impact of congestion on people. Congestion charging is not a new concept, but the introduction of City Deals provides an alternative avenue for consideration.  

The Makings of a City Deal

City Deals involve collaborative agreements between central and local government, private enterprise, and the community to reshape the way we think about the urban environment including transportation, housing and - most fundamentally - supporting job creation. Key elements are:

 

1. Public-to-Private partnerships (P2Ps):

Not to be confused with PPPs (although these can also have a role), P2P thinking in City Deals hinge on promoting collaboration between public and private entities. Private companies who see value creation in the Deal can bring new financing options, while the public sector takes on a regulatory and planning role.

 

2. Technology Integration:

Smart sensors, data analytics, and automated payment systems streamline the process for implementing congestion charging, making it more efficient and user-friendly. While schemes like London use dozens of cameras across the city to capture number plates, modern schemes can use a wider variety of technology to achieve the same outcome.

 

3. Localism in action:

City Deals promote decision-making at a local level to ensures solutions align with the diverse needs of the population. For example, new transport investments should align with the needs of residents and enterprise, not impose a conceptual model of a perfect city on people and communities.

 

4. Alternative Transportation Infrastructure:

By building congestion charging into a City Deal, opportunities are created for investment in alternative transportation options, as well as improvement to the urban realm to make it more people friendly.


Economic Impact

Congestion charging is not merely about reducing traffic; it can also provide economic benefit by enhancing the efficiency of transportation networks, reducing travel times, and improving business productivity. While not the primary objective, revenue generated from congestion charges can then also be reinvested into further urban development projects.

 

Environmental Stewardship

One obvious advantages of incorporating congestion charging into a City Deal is the positive impact on the environment. By discouraging unnecessary vehicle use and promoting sustainable transportation alternatives, the result is lower carbon emissions, improved air quality, and a greener urban landscape.

 

Case Studies

London implemented congestion pricing in 2003, allowing it to invest significantly in improved bus services, and supporting walking and cycling. For example. all 865km of high priority bus routes across London were comprehensively examined, metre by metre to make best use of road space for all road users (pedestrians, cyclists, buses, taxis, vehicles) between street frontages - something that would not have been possible without congestion charging.

Singapore's Electronic Road Pricing (ERP) system effectively managing traffic flow through dynamic pricing.

Meantime, in New York City and new scheme is slated to be introduced in Manhattan in 2024.

Challenges

The implementation of congestion charging is not without challenges. Public resistance, and concerns about equity, are typically at the forefront. This makes incorporation into City Deals a very attractive option, since mitigation strategies can be built into the Deal, and furthermore resistance is likely to be lower when it is clear what will be provided in return.


Linda Meade

Linda leads Kalimena’s infrastructure investment advisory work. Linda established Kalimena after a career spanning over a decade respectively at Deloitte and PwC, including time spent in London, Geneva and Wellington. Up until 2020 she was lead partner in New Zealand for Deloitte Access Economics, and the partner in charge of the Infrastructure, Economics and Business Modelling team. Linda’s areas of expertise are in designing and applying investment systems and processes, tailored to the type of infrastructure, the sector, and the desired outcomes. Linda specialises in social infrastructure (education, health, housing) and transport.  She is most interested in projects where there is a clear understanding of the desired outcomes for people and communities in New Zealand, working mostly with public sector clients. 

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