Toll Roads in Australia: An Overview of Characteristics and Accuracy of Demand Forecasts

Abstract

A primary motivation of this paper is to draw together, in one source, information on the nature, extent and performance of Australia's evolving toll road network which is currently spread across many disparate published and unpublished sources. This paper provides key information (e.g. length, toll rates, year opened, operator(s) and payment alternatives) on all of the fully interoperable toll roads in Australia that are present in Sydney (e.g. the M2, M4, M5, etc.), Melbourne (CityLink and EastLink) and Brisbane (the Gateway Bridge, the Logan Motorway and the Gateway Extension). Where available, we compare and discuss actual traffic levels and forecasts, revealing the sizeable gap or ‘error’ in forecasts, especially during the first year of operation. Ordinary least squares regression and panel random effects regression models are developed to identify potential sources of explanation of differences in error forecasts between the Australian toll roads at various points post the opening date. A separate analysis of a sample of toll roads in the USA was also undertaken that supports the main findings from the Australian toll road network. Key influences on errors in forecasts are the capacity of a toll road, the elapsed time that the toll road has been in place, the specific period of time in which a tolled road is introduced into the network (which influences the complexity of route options including multiple tolled routes and hence toll saturation), the length of the tolled route, the presence of cash payment and the charging regime (i.e. fixed vs. distance‐based or variable user tolls).     

How much is too much for tolled road users: Toll saturation and the implications for car commuting value of travel time savings?

The current practice of forecasting the demand for new tolled roads typically assumes that car users are prepared to pay a higher toll for a shorter journey, and they will keep doing so as long as the toll cost is not higher than their current value of travel time savings. Practice ignores the possibility that there could be a point when motorists stop driving on toll roads due to a toll budget constraint. The unconstrained toll budget assumption may be valid in networks where the addition of a new toll road does not result in a binding budget constraint that car users may have for using toll roads (although it could also be invoked for existing tolled routes through a reduction in use of a tolled route). In a road network like Sydney which offers a growing number of (linked) tolled roads, the binding budget constraint may be invoked, and hence including additional toll links might in turn reduce the car users’ willingness to pay for toll roads to save the same amount of travel time. When this occurs, car users are said to reach a toll saturation point (or threshold) and begin to consider avoiding one or more toll roads. Whilst toll saturation has important implications for demand forecasting and planning of toll roads, this type of behaviour has not been explored in the literature. We investigate the influence that increasing toll outlays has on preferences of car commuters to use one or more tolled roads as the number of tolled roads increases. The Sydney metropolitan area offers a unique laboratory to test this phenomenon, with nine tolled roads currently in place and another five in planning. The evidence supports the hypothesis that the value of travel time savings decreases as a consequence of toll saturation.     

Route choice preferences: insights from Portuguese freight forwarders and truck drivers

ABSTRACT

Exploring route choice in the context of tolled alternatives can support road operators to achieve better utilization of the infrastructure, as well as maximizing revenue collection. The research presented in this paper is conducted in the context of OPTIMUM, a European Union-funded project. The research objectives include a two-component system of models that proactively calculates commercial vehicles’ toll prices. The component presented in this paper rests on the development of a route choice model that estimates the probabilities of using two alternative routes (toll road vs. national road), based on route attributes and user characteristics. To explore the usefulness of the proposed methodology a case study involving 50 truck drivers and 25 freight operators was conducted in Portugal between January 2016 and November 2017. Results from the route choice model reveal interesting insights about the role of incentives in the choice of toll roads, the perspectives of the different decision-makers and produce Values of Time for the study area.     

Toll product preferences and implications for alternative payment options and going cashless

There has been a great deal of research on deriving estimates of the value of travel time savings (VTTS) as a way of converting travel time benefits of toll roads relative to free routes into monetary units, the major user benefit in the development of forecasts of traffic and hence revenue streams. By contrast there has been almost no consideration given to identifying the role that various tollroad products play in establishing preferences for toll routes over non-tolled routes. Increasingly tollroads give users the option to pay by cash at a toll booth, by electronic tolling or by a pre- or post-paid debit and credit account system involving vehicle identification. The efficiency gained by electronic tolling for both the users and the operator have resulted in moves in many jurisdictions to eliminate cash collection entirely (or not introduce it when introducing a new tolled road facility), and to introduce a range of pre- and post-payment options. This has been accompanied by a growing move to distance-based charging in some contexts which is more cumbersome to structure with a cash option. This paper investigates current and potential travellers’ preferences for a range of toll products and how much individual’s are willing to pay for very specific toll products. Data from a stated choice experiment is used in a mixed logit model to establish the role that toll products play in the context of offered times and costs of alternative routes, in choosing between alternative ways of paying for the use of tolled routes.

Bayesian network-based formulation and analysis for toll road utilization supported by traffic information provision

Congestion pricing has been proposed and investigated as an effective means of optimizing traffic assignment, alleviating congestion, and enhancing traffic operation efficiencies. Meanwhile, advanced traffic information dissemination systems, such as Advanced Traveler Information System (ATIS), have been developed and deployed to provide real-time, accurate, and complete network-wide traffic information to facilitate travelers’ trip plans and routing selections. Recent advances in ATIS technologies, especially telecommunication technology, allow dynamic, personalized, and multimodal traffic information to be disseminated and impact travelers’ choices of departure times, alternative routes, and travel modes in the context of congestion pricing. However, few studies were conducted to determine the impact of traffic information dissemination on toll road utilizations. In this study, the effects of the provisions of traffic information on toll road usage are investigated and analyzed based on a stated preference survey conducted in Texas. A Bayesian Network (BN)-based approach is developed to discover travelers’ opinions and preferences for toll road utilization supported by network-wide traffic information provisions. The probabilistic interdependencies among various attributes, including routing choice, departure time, traffic information dissemination mode, content, coverage, commuter demographic information, and travel patterns, are identified and their impacts on toll road usage are quantified. The results indicate that the BN model performs reasonably well in travelers’ preference classifications for toll road utilization and knowledge extraction. The BN Most Probable Explanation (MPE) measurement, probability inference and variable influence analysis results illustrate travelers using highway advisory radio and internet as their primary mode of receiving traffic information are more likely to comply with routing recommendations and use toll roads. Traffic information regarding congested roads, road hazard warnings, and accident locations is of great interest to travelers, who tend to acquire such information and use toll roads more frequently. Travel time formation for home-based trips can considerably enhance travelers’ preferences for toll road usage. Female travelers tend to seek traffic information and utilize toll roads more frequently. As expected, the information provided at both pre-trip and en-route stages can positively influence travelers’ preferences for toll road usage. The proposed methodology and research findings advance our previous study and provide insight into travelers’ behavioral tendencies concerning toll road utilization in support of traffic information dissemination.     

Modelling route choice behaviour in a tolled road network with a time surplus maximisation bi-objective user equilibrium model

In this paper, we propose a novel approach to model route choice behaviour in a tolled road network with a bi-objective approach, assuming that all users have two objectives: (1) minimise travel time; and (2) minimise toll cost. We assume further that users have different preferences in the sense that for any given path with a specific toll, there is a limit on the time that an individual would be willing to spend. Different users can have different preferences represented by this indifference curve between toll and time. Time surplus is defined as the maximum time minus the actual time. Given a set of paths, the one with the highest (or least negative) time surplus will be the preferred path for the individual. This will result in a bi-objective equilibrium solution satisfying the time surplus maximisation bi-objective user equilibrium (TSmaxBUE) condition. That is, for each O–D pair, all individuals are travelling on the path with the highest time surplus value among all the efficient paths between this O–D pair.We show that the TSmaxBUE condition is a proper generalisation of user equilibrium with generalised cost function, and that it is equivalent to bi-objective user equilibrium. We also present a multi-user class version of the TSmaxBUE condition and demonstrate our concepts with illustrative examples.     

The impact of signal control on land-side traffic patterns at the Dallas/Fort worth airport

The Parkway Corridor is the primary ground facility at the Dallas/Fort Worth (D/FW) International Airport. It consists of an expressway for passengers to-and-from terminals and a service road mainly for employees of airline-associated agencies to access the service areas. As the Parkway Corridor is a natural short cut in the region, it has attracted more and more through commuters who usually choose to use the service road so as to circumvent the toll plazas on the expressway. The dramatic increase in both the volume and speed of through commuting traffic in recent years not only impedes service activities, but also raises safety concerns. The D/FW Airport Board is considering the installation of a series of traffic signals to regulate the cruise speed and thereby discourage use of the service road by commuters. This research is conducted to evaluate its effectiveness and potential impact on traffic patterns along the Parkway Corridor. A systematic approach, integrating queueing theories (G/M/m), discrete models, and traffic assignment, is proposed in this research, which allows the user to project the traffic distribution on each route with only the information obtained by traffic counts. Numerical results of alternate control strategies and a sensitivity analysis with respect to key parameters, such as the toll and cycle length of traffic signals are also reported.     

Route Choice Models Used in the Stochastic User Equilibrium Problem: A Review

Several route choice models are reviewed in the context of the stochastic user equilibrium problem. The traffic assignment problem has been extensively studied in the literature. Several models were developed focusing mainly on the solution of the link flow pattern for congested urban areas. The behavioural assumption governing route choice, which is the essential part of any traffic assignment model, received relatively much less attention. The core of any traffic assignment method is the route choice model. In the wellknown deterministic case, a simple choice model is assumed in which drivers choose their best route. The assumption of perfect knowledge of travel costs has been long considered inadequate to explain travel behaviour. Consequently, probabilistic route choice models were developed in which drivers were assumed to minimize their perceived costs given a set of routes. The objective of the paper is to review the different route choice models used to solve the traffic assignment problem. Focus is on the different model structures. The paper connects some of the route choice models proposed long ago, such as the logit and probit models, with recently developed models. It discusses several extensions to the simple logit model, as well as the choice set generation problem and the incorporation of the models in the assignment problem.     

Traffic forecasts under uncertainty and capacity constraints

Traffic forecasts provide essential input for the appraisal of transport investment projects. However, according to recent empirical evidence, long-term predictions are subject to high levels of uncertainty. This article quantifies uncertainty in traffic forecasts for the tolled motorway network in Spain. Uncertainty is quantified in the form of a confidence interval for the traffic forecast that includes both model uncertainty and input uncertainty. We apply a stochastic simulation process based on bootstrapping techniques. Furthermore, the article proposes a new methodology to account for capacity constraints in long-term traffic forecasts. Specifically, we suggest a dynamic model in which the speed of adjustment is related to the ratio between the actual traffic flow and the maximum capacity of the motorway. As an illustrative example, this methodology is applied to a specific public policy that consists of suppressing the toll on a certain motorway section before the concession expires.     

Trial-and-error method for congestion pricing scheme under side-constrained probit-based stochastic user equilibrium conditions

A toll pattern that can restrict link flows on the tolled links to some predetermined thresholds is named as effective toll solution, which can be theoretically obtained by solving a side-constraint traffic assignment problem. Considering the practical implementation, this paper investigates availability of an engineering-oriented trial-and-error method for the effective toll pattern of cordon-based congestion pricing scheme, under side-constrained probit-based stochastic user equilibrium (SUE) conditions. The trial-and-error method merely requires the observed traffic counts on each entry of the cordon. A minimization model for the side-constrained probit-based SUE problem with elastic demand is first proposed and it is shown that the effective toll solution equals to the product of value of time and optimal Lagrangian multipliers with respect to the side constraints. Then, employing the Lagrangian dual formulation of the minimization method, this paper has built a convergent trial-and-error method. The trial-and-error method is finally tested by a numerical example developed from the cordon-based congestion pricing scheme in Singapore.     

Time-dependent congestion pricing system for large networks: Integrating departure time choice,dynamic traffic assignment and regional travel surveys in the Greater Toronto Area

Congestion pricing is one of the widely contemplated methods to manage traffic congestion. The purpose of congestion pricing is to manage traffic demand generation and supply allocation by charging fees (i.e., tolling) for the use of certain roads in order to distribute traffic demand more evenly over time and space. This study presents a framework for large-scale variable congestion pricing policy determination and evaluation. The proposed framework integrates departure time choice and route choice models within a regional dynamic traffic assignment (DTA) simulation environment. The framework addresses the impact of tolling on: (1) road traffic congestion (supply side), and (2) travelers’ choice dimensions including departure time and route choices (demand side). The framework is applied to a simulation-based case study of tolling a major freeway in Toronto while capturing the regional effects across the Greater Toronto Area (GTA). The models are developed and calibrated using regional household travel survey data that reflect the heterogeneity of travelers’ attributes. The DTA model is calibrated using actual traffic counts from the Ontario Ministry of Transportation and the City of Toronto. The case study examined two tolling scenarios: flat and variable tolling. The results indicate that: (1) more benefits are attained from variable pricing, that mirrors temporal congestion patterns, due to departure time rescheduling as opposed to predominantly re-routing only in the case of flat tolling, (2) widespread spatial and temporal re-distributions of traffic demand are observed across the regional network in response to tolling a significant, yet relatively short, expressway serving Downtown Toronto, and (3) flat tolling causes major and counterproductive rerouting patterns during peak hours, which was observed to block access to the tolled facility itself.     

Towards a practical method to establish comparable values of travel time savings from stated choice experiments with differing design dimensions

Individual’s process the information in stated choice (SC) experiments in many different ways. In order to accommodate decisions rules that are used in processing information, there is good sense in conditioning the parameterisation of stated choice design attributes on these rules. In particular, rules might be invoked to cope with the dimensionality of the SC design. In this paper, we investigate the impact of rules such as attribute aggregation and reference dependency on preference profiles for specific design attributes, as well as the design specification, as we vary the dimensionality of an SC design. The heteroscedastic extreme value logit model is estimated to identify the role of design dimensionality and attribute processing rules, after accounting for scale differences across sixteen pooled data designs The empirical evidence, drawn from a study in Sydney of car commuter route choice, suggests that accounting for the way that stated choice designs are processed, given their dimensionality, does make a statistically significant difference on measures of willingness to pay, as does accounting for scale differences between pooled data designs. This evidence has practical value in guiding the design of SC experiments and in adjusting results from different SC designs when comparing the evidence. We propose a simple adjustment formula to use in adjusting VTTS from different studies so that they are comparable. From a practical policy perspective, the evidence sends a warning about the risk of undervaluing mean VTTS if the attribute processing rules are not accounted for.     

Viability of new road infrastructure with heterogeneous users

This paper explores the importance of heterogeneity in value of time and route choice when assessing the viability of new road infrastructure to alleviate congestion problems. The model incorporates strategic interaction between road operators in a cost-benefit framework and several competitive regimes are considered. It is then employed to establish the financial and socio-economic viability of a congestion pricing demonstration entering Madrid city centre, where road users have to choose between a free but highly congested road and a priced free-flowing road (semi-private regime). A logit estimation is undertaken with information from a questionnaire among road users in the Eastern Madrid area to obtain users’ value of time and of congestion.The tolls obtained generate a traffic reallocation towards the new roadway such that revenues suffice to render the infrastructure socio-economically viable. The private and the low toll regimes generate similar welfare gains that are close to the first best. Yet the former supposes large losses to users. The low toll and the semi-private regimes do not raise such distributional concerns. However, the low toll regime requires a sufficiently high traffic growth rate to make it financially viable; this does not happen for the other competitive regimes.     

A path-based flow formulation for the traffic assignment problem

In order to improve cooperation between traffic management and travelers, traffic assignment is the key component to achieve the objectives of both traffic management and route choice decisions for travelers. Traffic assignment can be classified into two models based on the behavioral assumptions governing route choices: User Equilibrium (UE) and System Optimum (SO) traffic assignment. According to UE and SO traffic assignment, travelers usually compete to choose the least cost routes to minimize their own travel costs, while SO traffic assignment requires travelers to work cooperatively to minimize overall cost in the road network. Thus, the paradox of benefits between UE and SO indicates that both are not practical. Thus, a solution technique needs to be proposed to balance UE and SO models, which can compromise both sides and give more feasible traffic assignments. In this paper, Stackelberg game theory is introduced to the traffic assignment problem, which can achieve the trade-off process between traffic management and travelers. Since traditional traffic assignments have low convergence rates, the gradient projection algorithm is proposed to improve efficiency.     

Enhanced traffic information dissemination to facilitate toll road utilization: a nested logit model of a stated preference survey in Texas

This paper investigates the effects of the provision of traffic information on toll road usage based on a stated preference survey conducted in central Texas. Although many researchers have studied congestion pricing and traffic information dissemination extensively, most of them focused on the effects that these instruments individually produce on transportation system performance. Few studies have been conducted to elaborate on the impacts of traffic information dissemination on toll road utilization. In this study, 716 individuals completed a survey to measure representative public opinions and preferences for toll road usage in support of various traffic information dissemination classified by different modes, contents, and timeliness categories. A nested logit model was developed and estimated to identify the significant attributes of traffic information dissemination, traveler commuting patterns, routing behavior, and demographic characteristics, and analyze their impacts on toll road utilization. The results revealed that the travelers using dynamic message sign systems as their primary mode of receiving traffic information are more likely to choose toll roads. The potential toll road users also indicated their desire to obtain traffic information via internet. Information regarding accident locations, road hazard warnings, and congested roads is frequently sought by travelers. Furthermore, high-quality congested road information dissemination can significantly enhance travelers’ preferences of toll road usage. Specifically the study found that travelers anticipated an average travel time saving of about 11.3 min from better information; this is about 30 % of travelers’ average one-way commuting time. The mean value of the time savings was found to be about $11.82 per hour, close to ½ of the average Austin wage rate. The model specifications and result analyses provide in-depth insights in interpreting travelers’ behavioral tendencies of toll road utilization in support of traffic information. The results are also helpful to shape and develop future transportation toll system and transportation policy.     

Error and optimism bias in toll road traffic forecasts

Traffic forecasts are employed in the toll road sector, inter alia, by private sector investors to gauge the bankability of candidate investment projects. Although much is written in the literature about the theory and practice of traffic forecasting, surprisingly little attention has been paid to the predictive accuracy of traffic forecasting models. This paper addresses that shortcoming by reporting the results from the largest study of toll road forecasting performance ever conducted. The author had access to commercial-in-confidence documentation released to project financiers and, over a 4-year period, compiled a database of predicted and actual traffic usage for over 100 international, privately financed toll road projects. The findings suggest that toll road traffic forecasts are characterised by large errors and considerable optimism bias. As a result, financial engineers need to ensure that transaction structuring remains flexible and retains liquidity such that material departures from traffic expectations can be accommodated.

The influence of interview location on the value of travel time savings

The value of travel time savings (VTTS) is used as input in traffic forecasting models and cost-benefit analyses, and it is typically estimated in stated choice studies in which preferences are derived. However, preferences are affected by the recollection of prior experience, and evidence suggests that the recollection of an event is different than the actual experience. Although the choice of interview location is likely to affect how long it has been since the respondents travelled, evidence is somewhat limited on the influence of interview location on VTTS. This paper investigates the role that interview location plays in the VTTS of ferry travellers. We find that the mean value of headway time savings is significantly higher among respondents interviewed onboard ferries than among those interviewed at home. The mean value of onboard time savings is significantly lower among those interviewed onboard the ferries than among those interviewed at home. Failure to take into account the influence of interview location might lead to biased estimates. To the extent that such biased estimates are used in cost-benefit analyses, this bias will affect the calculated welfare effects of changes in frequency and speed on scheduled passenger transport, resulting in suboptimal allocation of public resources.     

Estimation of origin-destination matrices from link traffic counts on congested networks

Conventional methods for estimating origin-destination (O-D) trip matrices from link traffic counts assume that route choice proportions are given constants. In a network with realistic congestion levels, this assumption does not hold. This paper shows how existing methods such as the generalized least squares technique can be integrated with an equilibrium traffic assignment in the form of a convex bilevel optimization problem. The presence of measurement errors and time variations in the observed link flows are explicitly considered. The feasibility of the model is always guaranteed without a requirement for estimating consistent link flows from counts. A solution algorithm is provided and numerical simulation experiments are implemented in investigating the model's properties. Some related problems concerning O-D matrix estimation are also discussed.     

The influence of (toll-related) travel costs in residential location decisions of households: A stated choice approach

In this paper, we investigate the impact of travel costs, in particular toll costs, on the residential location choice of households, using a stated choice survey. Within the stated choice experiment, car drivers that frequently face traffic congestion, traded-off several trip-related (including toll costs) and house/location-related factors in their decision where to locate. If we look at the influence of different variables, toll and fuel costs seem to be important. Respondents are more sensitive to travel costs (i.e. toll and fuel costs) than to equally high (monthly) housing costs. Travel time appears to play a less important role, as indicated by a low value of time (VOT). In addition, location-related factors, such as the type of location and the number of bedrooms, turn out to be important factors as well. It can be concluded that respondents generally speaking prefer to pay higher housing costs and accept longer travel times to avoid (high) travel costs. Finally, if we look at the difference in preferences in relation to toll and fuel cost, we can conclude that toll costs are valued more negatively than fuel costs, although the differences are small.     

Vertical separation as means to establish interoperability in road tolling in Europe

As more European roads become tolled by various means, an increasing share of road users become subject to more than one tolling scheme in their regular driving. This can be especially burdensome for long distance hauliers, who may pass several countries and tolled motorway systems during the course of 1 day. For this reason, a range of projects have been initiated attempting to increase the level of interoperability between tolling systems, many of which with only limited success. By analyzing current incentives, costs and benefits for toll operators and road users, we conclude firstly that the current level of interoperability is likely to be lower than socially optimal, and secondly that a direct regulation making the provision of interoperability mandatory is likely to be in excess of what is socially optimal. We argue that vertically separating the monopolistic toll operators could be a cost-efficient way to achieve a socially optimal level of interoperability as a equilibrium market outcome.