Japanese stimulus: Government subsidizes tollroad travel

March 31, 2009 at 5:12 pm

(Source: TOLLROADSnews.com)

Japanese tollroads have put into effect discounted tolls under a huge subsidy program from the central government. The discounts came into effect on bridges March 22 and on most expressways March 28. The discounted tolls were a centerpiece of an economic ‘stimulus package’ prime minister Taro Aso announced last October.

The traffic stimulus measure is touted as helping revive highway travel which is down about 4%, and to revive associated spending on gasoline and diesel fuels, car service, hotels, new cars and electronics. However it is also obviously influenced by lobbying and PM Aso’s desire for public acclaim. 

The measure announced as lasting two years and Y500b ($5b) has been set aside in a supplementary Japanese Government budget, but the subsidy program may end up costing a whole lot more. Meanwhile airline and rail interests complain the measure will take customers away from them.

The most spectacular discounts come on the interurban ticket or trip-based toll system run by the three regional expressway companies. Here a maximum toll of Y1000 ($10) is now in effect weekends and holidays for vehicles equipped with a transponder. This greatly encourages long trips by car.

Shinkansen or ‘bullet train’ bookings are expected to drop away.

Tokyo to northern Honshu, for example, a distance of over 400 miles (700km) normally costs about Y14k ($140) for a car but will be tolled the new maximum Y1000 toll or $10 at weekends. There are also major savings on a popular interurban run between Tokyo and Nagoya of 325km (200 miles) on the Tomei Expressway. It usually costs Y7100 ($71) in tolls so there’s a saving of Y6100 ($61) or 86%.

On many urban expressways with a single barrier toll on entry the toll is being reduced from Y700 ($7) or Y800 ($8) to Y500 ($5). Under the crude toll-on-entry ramp the toll paid is already a flat rate regardless of distance traveled. 

The government’s aim in paying for the toll discounts is apparently to generate more travel when roads are relatively uncongested. 

The discounts range in size. Some Tokyo metro area tolls are only discounted at night 10pm to 6am, some Sundays and holidays.

On Sundays and holidays, the Tokyo Metropolitan Expressway will charge Y500 ($5) on several Tokyo routes, down from the current Y700 ($7). The toll on its Kanagawa ‘lines’ will be cut to Y400 ($4) from Y600 ($6), while on the Saitama line will be reduced to Y300 ($3) from Y400 ($4).

Tolls on the Hanshin Expressway in the Osaka region will be discounted on full weekends and national holidays. Hanshin’s east lines will be Y500 ($5) from the current Y700 ($7), and the west and south lines will be Y350 ($3.50) from Y500 ($5).

In April there will be more discounts in the form of credits for tolls paid on other systems for long journeys through multiple toll companies roads. 

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Wall Street Journal: Florida Highway Upgrade Goes Private

March 8, 2009 at 10:34 pm

Florida Deal With Spanish-Led Group Serves as a Model for Cash-Strapped States

(Source:  Wall Street Journal)

In a deal struck last week, a Spanish-led group will be paid as much as $1.8 billion over 35 years to design, build, operate and maintain three new toll lanes along traffic-clogged Interstate 595 near Fort Lauderdale. The agreement came as something of a surprise during a period of turmoil in credit markets, and many experts called it a model for how states and private investors can work together to upgrade the nation’s aging roads, bridges and other transportation infrastructure.

“This project is a harbinger of what we may be seeing over the next decade or so, as we don’t have enough money for major construction,” said Robert Poole, director of transportation studies at the Reason Foundation, a free-market think tank.

Photo Courtesy:  Mike Stocker/The Sun-Sentinel

Interstate 595 near Fort Lauderdale, Fla., will get three new toll lanes as part of a deal struck last week.

Interstate 595 near Fort Lauderdale, Fla., will get three new toll lanes as part of a deal struck last week.

Florida, Texas, Virginia and many other states are increasingly looking to road-privatization deals to close a growing gap between their infrastructure needs and their available resources. Even with an additional $48 billion in stimulus funds on its way to states for transportation work, many states are being forced to cut projects because traditional sources of such funding, such as gasoline taxes and levies on vehicle sales, have declined.

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Washington Beltway – HOT Lane Project Update

March 4, 2009 at 12:55 am

(Source:  Washington Post)

Here’s a look at what drivers will encounter during the construction phase of Virginia DOT’s HOT lanes project at the Braddock Road interchange.  The project will create special lanes on the Beltway open to high-occupancy vehicles, or those willing to pay a toll.

Tax-by-the-mile rejected by Arizona transportation experts

February 23, 2009 at 9:04 pm

(Source: KTAR.com)

Taxing motorists on how many miles they drive instead of how much gas they buy is an idea that wouldn’t fly in Arizona, according to transportation experts.

The idea was floated by Transportation Secretary Ray LaHood last week, but quickly rejected by President Barack Obama.

LaHood said gas taxes can no longer be expected to fund highway and bridge construction.

Linda Gorman of AAA Arizona said she doubts the idea would have much support in Arizona.

“For Arizona, I would be very surprised, because while, in many instances the country has gone more liberal, Arizona has stayed a little bit more conservative, so it’s typically not a discussion that bodes well in this environment.”

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