Heavy goods vehicle taxation in the United Kingdom

Heavy goods vehicle taxation has been the subject of considerable debate in U.K. over the past 15 years. There have been a number of attempts to relate the taxes paid by heavy goods vehicles to the public costs incurred to provide road track for their use. This paper reviews critically the position taken in the last public account of allocation procedures and also outlines recent modifications to the approach. It is suggested that the allocation of public costs is sensitive to some of the assumptions made and that this may result in an over-estimation of the costs associated with road haulage activities. A number of comparative calculations are made using data from both 1975/76 and more recent years to examine this hypothesis.     

Harmonizing heavy goods vehicle taxes in Europe: a British view

One of the biggest unresolved problems regarding the completion of the free internal transport market within the European community is the problem of harmonization of taxation on the road haulage industry. As the highest tax country, Britain might be expected to have to reduce its level of taxes as part of any harmonization.

This paper considers the current methodology of the British Department of Transport regarding the allocation of the track and external costs of road transport, in the light of developments in methodology and experience elsewhere in Western Europe and North America. We find a number of reasons for believing that, far from overstating the marginal social cost of use of roads by the road haulage industry, the current British approach actually understates it. Thus any move towards harmonizing tax levels may reduce taxes in Britain at a time when they should be increasing.     

Acquisition,efficiency and scale economies: An analysis of the British bus industry

The British Bus industry has undergone considerable transformation since privatization. Five major operators have emerged to dominate the market, a position almost exclusively attained through acquisition. This paper reviews the economies of scale argument commonly cited for this change and gives an overview of the acquisition process. It questions whether this argument gives a complete explanation for this industry development. For 58 individual companies, the level of technical efficiency attributable to firms operating at or near the optimum level of output is examined over 5 years to determine if mergers in practice have resulted in scale economies. Technical efficiency is estimated using data envelopment analysis, under assumptions of constant and variable returns to scale. Efficiency scores are then regressed on a time trend and a merger dummy to test whether acquired firms' efficiency has significantly improved above the average. It was found that over the period, efficiency had improved. This improvement, however, cannot be wholly attributed to the achievement of economies of scale. More specifically, there has been an improvement in the internal efficiency of acquired firms and some scale economies within group companies, the latter of which may have resulted from the eradication of competition.     

An econometric analysis of motorway renewal costs in Germany

The analysis of motorway renewal costs presented in this paper was driven by two research questions: First, to analyse the economic process of motorway renewal work and to identify whether there exist economies of scale; and second to identify the influence of traffic volume on renewal costs and to derive an estimate of marginal infrastructure costs as part of optimal road user charges. The analysis is based on cross-sectional data for motorway renewal costs and traffic volume in Germany during the period 1980–1999. Two translog models were estimated, each of them including the factor input prices for labour, material and capital, and a set of regional dummy variables as well as dummy variables for the type of material used for renewal. The first model includes in addition to these variables the sqm of renewed road as explanatory variable. The second model was constructed to analyse the relationship between traffic volume and renewal costs and contains the average annual daily traffic volume of trucks and passenger cars as independent variables. Two main results were derived from the models: First, motorway renewal work is characterised by substantial economies of scale. Second, the relationship between renewal costs and traffic volume is expressed by a cost elasticity, i.e., the ratio between marginal and average costs, which ranges from 0.05 up to 1.17 with a digressive increase of marginal costs.     

Regulatory policy and economies of scale in the U.S. intercity bus industry

After nearly a half century of federal and state regulation, the U.S. intercity bus industry is the subject of proposals which would drastically reduce the extent of governmental control over fare setting, service abandonment, and market entry. An essential requirement for understanding how these regulatory changes might affect the industry is knowing the extent to which economies of scale are present in the provision of intercity bus services. This paper reports on the analysis of economies of scale for both Class I firms and for Class II and III firms. The results show nearly constant returns to scale beyond very low output levels but very strong dependence on the mix of charter and regular-route service provided.     

Safety outcomes of internationalization of domestic road haulage: a review of the literature

Abstract

The European Union (EU) promotes gradual lifting of restrictions on foreign hauliers involved in domestic road transport of goods (cabotage), and a major deregulation was scheduled in 2014. Due to complaints from several member states facing competition from new EU-countries with lower labour costs, this process was postponed until 2015. An important aspect related to such a deregulatory reform includes potential consequences for transport safety and accident risk factors. The main aims of the current paper are therefore to examine the potential transport safety outcomes of increasing internationalization of domestic road haulage, and to examine potential accident risk factors of foreign hauliers. This is done by reviewing the research literature. This paper shows that the heavy goods vehicle (HGV) accident risk varies with a factor of up to 10 in European countries, and that the accident risk of foreign HGVs is approximately two times higher than that of domestic HGVs in the studied European countries. The paper points to several risk factors and concludes that better data on accident risk and risk factors must be gathered in order to enable European authorities to correctly analyse and respond to this important traffic safety challenge.     

Comparison of road freight transport trends in Europe. Coupling and decoupling factors from an Input–Output structural decomposition analysis

Decoupling road freight transport from economic growth has been acknowledged by the European Union as a key means to improving sustainability. It is therefore important to identify both the coupling and decoupling drivers of road freight transport demand in order to determine possible factors that may contribute to reduce road transport in the future without curbing economic development. This research proposes an Input–Output (IO) structural decomposition analysis (SDA) to explain road freight transport in terms of a set of key factors that have strongly influenced road freight demand in recent decades in European countries—such as economic growth, economic structure and the evolution of road transport intensity (including improvements in both supply and transport systems). This methodological approach allows us to quantify and compare their contribution in different European countries to either increase or decrease road freight transport demand. The empirical basis for this analysis is a dataset of nine European countries which have IO tables and road transport data available from 2000 to 2007, comprising data on domestic production, imports and exports as well as tonne-kms for 11 types of commodity classes. The results show that, as a whole, aggregate road transport demand has grown—driven mainly by economic activity—but this growth has been strongly curbed in some countries by changes in road freight transport intensity and moderately by the dematerialization of the economy. International transport has been also proven to be a key factor driving road freight transport volumes. Moreover, the increased penetration of foreign operators in national haulage markets appears to have reinforced the final decoupling levels observed in some cases.     

Evaluation of the policies in British local transport plans with regard to the promotion of rail freight

Over the last couple of decades there has been a trend in Western Europe and North America towards making the railway industry more able to compete successfully with road for freight haulage through deregulation and/or structural change. This trend has been drive, partly, by a concern to produce more commercially viable railway industries, but also by concerns to reduce the environmental impacts of road haulage through modal shift. The latter in particular has led to the development of public policies supportive of rail freight, particularly at the national or international levels. This paper reports on qualitative research that analysed public policy aimed at promoting rail freight in Britain but, unusually, the focus was on local rather than national policy. The research was an investigation of the approach of local authorities to the encouragement of rail freight as evidenced through their Local Transport Plans. The paper concludes that in Britain there has been a significant amount of local policymaking for rail freight and that although national policy matters are of overriding importance, the role of local policy is significant and can be developed further.     

Transport bottlenecks and Tanzania's economic problems

Abstract

The paper discusses Tanzania's transport problems in the context of the prevailing acute economic crisis. It looks at the development of the transport system, especially the rail and road network, from the German days to the new Chinese‐built Tanzania‐Zambia Railway. The East‐West orientation of the major parallel rail lines and roads reflects the dependency of the economy on export‐import trade. A major challenge to the transport system is the haulage of agricultural products, mainly for export but also for the internal market, not to mention the haulage of imported commodities.

The provision and utilization of transport services is discussed in the context of the historical, and institutional setting of the road haulage industry, particularly its public and private sector configurations. Due to scarcity of foreign exchange, both sectors, especially the private, are starved of vehicles and spare parts.

The operation of ocean and lake shipping services and Air Tanzania are discussed. It is recommended that the latter should concentrate on essential domestic services plus some limited regional services. External financing of transport projects and its implications are also considered.

It is concluded that despite the break‐up of the East African transport system, the Tanzanian transport system, although shaky, has avoided major breakdowns and in some cases, especially in trade, has provided the foundation for at least medium‐term improvements. More attention is recommended to organizational problems of track use by freight and passenger carriers and to making the best use of existing facilities.     

Multioutput analysis of trucking operations using spatially dissaggregated flows

The operation of a trucking system at a national scale is analyzed by means of an operating multioutput cost function, which recognizes flows with different origin and destination as distinct components of the transportation product. The original, fully disaggregated, information on O-D specific flows is used to generate distance-weighted and pure-flow output vectors, whose dimension allows for the estimation of flexible cost functions. Different models are compared in terms of O-D specific marginal costs and second derivatives in common units, obtained through manipulations of both the estimated parameters and their variance-covariance matrix. Results indicate that marginal costs are not proportional to distance. Constant returns prevail in the operation of the system, simultaneously with economies of spatial scope and cost complementarity between flow pairs, with one exception which suggests some regional specialization. On methodological grounds, the bias on scale economies introduced by the single aggregated output measure (ton-km) becomes evident, and partial aggregation in terms of distance-weighted zonal flows seems more appropriate than pure flow aggregation when distances are heterogeneous. The multioutput formulation with O-D specific flows under a flexible form of the cost function, is recommended for meaningful policy analysis of transportation systems.     

Institutional structure of New Zealand licensed road freight carriers

Road freight transport in New Zealand has operated under government regulations since 1936, primarily to protect the freight revenue of the New Zealand Railways. In 1983 an Act was passed to deregulate the freight transport industry and to switch over to a qualitative licensing system. This is expected to have some impact on competition within the road freight industry as well as between road and rail. This paper analyses the institutional structure of the road freight industry at the pre‐deregulation phase. The trend over the last few years, shows that the number of single vehicle owners (mostly owner‐drivers) and their share in the industry is growing at a faster rate than others. The vehicle authority distribution varies widely from one region to another in the country. Economic factors like employment, population, urbanization etc. could not explain this variation. The segregation of demand by existing government regulations appears to be the main reason for such diversity in vehicle authority distribution. Apparently there is no monopoly trend in the aggregate nor in the regional distribution. However, many owner drivers work closely with large firms, which may change the concentration observed in the distribution of vehicle authorities.

Productivity is relatively high for one person operations, i.e., mainly owner drivers. It then goes down and then rises to a certain limit. This gives an indication of the possibility of economies of scale, the single vehicle firms being an exception.     

Hub location with flow economies of scale

A characteristic feature of hub and spoke networks is the bundling of flows on the interhub links. This agglomeration of flows leads to reduced travel costs across the interhub links. Current models of hub location do not adequately model the scale economies of flow that accrue due to the agglomeration of flows. This paper shows that current hub location models, by assuming flow-independent costs, not only miscalculate total network cost, but may also erroneously select optimal hub locations and allocations. The model presented in this paper more explicitly models the scale economies that are generated on the interhub links and in doing so provides a more reliable model representation of the reality of hub and spoke networks.     

The taxi industry: working conditions and health of drivers,a literature review

The taxi industry plays an important role in urban transportation systems, both in economic and mobility terms. In the case of the former, it provides employment for a large number of people and circulates significant amounts of money. In the case of the latter, it is a flexible means of transportation capable of arriving at any destination. Although the way the taxi industry is organised varies across countries and even within countries, some factors are shared at varying latitudes of the globe. Working conditions, habits, health, and exposure to road crashes have been a subject of interest for researchers from various disciplines, including medicine, psychology, and economics. However, much of this research focuses on a part of the problem and is not mutually referential. A review of the literature may be useful not only to researchers of diverse disciplines but also to industry representatives and those public officials responsible for transportation, road safety and health policy. This article provides a comprehensive review of the working conditions of taxi drivers, their relationship to road risk exposure and their consequences on the health of workers. It also includes information on coping strategies and protective behaviors. The review is based on a Scopus database search. The search covered the period from 1990 to 2015. This initial search was complemented with other database searches, which yielded some additional studies. Our goal was to summarise existing knowledge, identify possible lines of research and suggest some practical recommendations. It would be important (a) to reduce the workload, establish adequate time for breaks, and provide access to healthcare, (b) to implement actions to promote and maintain healthy habits, (c) to diagnose, detect and treat indicators of occupational fatigue and stress, and (d) to develop programs that make it possible to evaluate work concerns and broaden coping strategies to foster positive changes.     

Modal shift from road haulage to short sea shipping: a systematic literature review and research directions

ABSTRACT

Modal shift from road haulage to short sea shipping (SSS) has been advocated by authorities and researchers for more than two decades. This paper provides a review of literature on modal shift and pinpoints paths for future research on topics in six categories: (1) factors influencing SSS competitiveness, (2) the policy-oriented perspective, (3) environmental legislation, (4) SSS performance, (5) port characteristics, and (6) the multi-agent perspective. In particular, we propose first, in evaluating the performance of SSS versus road haulage in different trade corridors, three performance-related dimensions – the economic dimension (e.g. external costs), the environmental dimension, and the dimension of service quality – should be considered. Second, researchers should use rich, real-world, numerical data and operational research techniques to identify the relative importance of individual drivers and barriers for a modal shift from road haulage to SSS. Third proposed direction is related to assessing which groups of actors certain policies should target. In doing so, researchers should extend their policy-related focus beyond the European Union, which has long encompassed the major geopolitical scope of research on the modal shift. Fourth, to moderate the adverse impact of environmental legislation on SSS, strategic solutions need to be identified. Fifth, we also suggest that the influence of contingencies, particularly port strikes and cyberattacks, on SSS operations and approaches for managing them should be investigated. Sixth, the economic and financial advantages of coordination and alliance for each transport chain agent need to be evaluated.     

The economics of bus deregulation in Britain

This paper reviews some of the arguments which have been put forward on the economics of bus deregulation, particularly the paper by Gwilliam and others. It argues that the experience of road haulage licensing is relevant. The evidence there suggests that liberalization has not had the adverse effects that many predicted and that in most respects one could expect bus deregulation to have no less favourable consequences. The main difference between buses and road haulage is over how far bus drivers might revert to the old practices of the 1920s of chasing, tailing, etc. which were said at the time to be a major cause of consumer dissatisfaction. The paper reviews the economics of some of these practices and suggests which might be discounted and which need further attention.     

Distance and time in intermodal goods transport networks in Europe: A generic approach

This paper is about distance and time as factors of competitiveness of intermodal transport. It reviews the relevance of the factors, evaluates time models in practice, compares network distances and times in alternative bundling networks with geometrically varied layouts, and points out how these networks perform in terms of vehicle scale, frequency and door-to-door time. The analysis focuses on intermodal transport in Europe, especially intermodal rail transport, but is in search for generic conclusions. The paper does not incorporate the distance and time results in cost models, and draws conclusions for transport innovation, wherever this is possible without cost modelling. For instance, the feature vehicle scale, an important factor of transport costs, is analysed and discussed.Distance and time are important factors of competitiveness of intermodal transport. They generate (direct) vehicle costs and – via transport quality – indirect costs to the customers. Clearly direct costs/prices are the most important performance of the intermodal transport system. The relevance of quality performances is less clarified. Customers emphasise the importance of a good match between the transport and the logistic system. In this framework (time) reliability is valued high. Often transport time, arrival and departure times, and frequency have a lower priority. But such conclusions can hardy be generalised. The range of valuations reflects the heterogeneity of situations. Some lack of clarity is obviously due to overlapping definitions of different performance types.The following parts of the paper are about two central fields of network design, which have a large impact on transport costs and quality, namely the design of vehicle roundtrips (and acceleration of transport speed) and the choice of bundling type: do vehicles provide direct services or run in what we call complex bundling networks? An example is the hub-and-spoke network. The objective of complex bundling is to increase vehicle scale and/or transport frequency even if network volumes are restricted. Complex bundling requires intermediate nodes for the exchange of load units. Examples of complex bundling networks are the hub-and-spoke network or the line network.Roundtrip and bundling design are interrelated policy fields: an acceleration of the roundtrip speed, often desirable from the cost point of view, can often only be carried out customer friendly, if the transport frequency is increased. But often the flow size is not sufficient for a higher frequency. Then a change of bundling model can be an outcome.Complex bundling networks are known to have longer average distances and times, the latter also due to the presence of additional intermediate exchange nodes. However, this disadvantage is – inside the limits of maximal vehicle sizes – overruled by the advantage of a restricted number of network links. Therefore generally, complex bundling networks have shorter total vehicle distances and times. This expression of economies of scale implies lower vehicle costs per load unit.The last part of the paper presents door-to-door times of load units of complex bundling networks and compares them with unimodal road transport. The times of complex bundling networks are larger than that of networks with direct connections, but nevertheless competitive with unimodal road transport, except for short distances.     

Spatial impacts of road pricing: Accessibility, regional spillovers and territorial cohesion

Road pricing policies are gaining prominence in EU countries. These policies have positive impacts leading to mobility patterns which are socially and environmentally more desirable, but they also have negative impacts. One negative impact is to be found in regional accessibility, due to the increase in generalized transport costs. This study presents a methodology based on accessibility indicators and GIS to assess the accessibility impacts of a road pricing policy. The methodology was tested for the Spain’s road network considering two road pricing scenarios. It enables not only the more penalized regions to be identified but also negative road pricing spillover effects between regions. These effects are measured in terms of accessibility changes occurring in one region produced by charges implemented in another region. Finally, the study of accessibility disparities (by calculating inequality indexes for each of the scenarios considered), provides policymakers with useful information regarding the impact of road pricing policies from the point of view of territorial cohesion.     

Reducing the energy consumption of heavy goods vehicles through the application of lightweight trailers: Fleet case studies

Reducing the empty weight of articulated heavy goods vehicle trailers is one avenue that needs to be explored in reducing the carbon footprint of the road freight industry as a whole. A statistical analysis of two heavy goods vehicle fleets operating in the United Kingdom has helped to identify double-deck trailers used in grocery haulage and ‘walking-floor’ trailers used in bulk haulage as two examples of trailers that can benefit significantly from lightweighting. Energy consumption of numerous articulated heavy goods vehicles is quantified through an idealised drive cycle analysis reflecting a long haul journey over a highway. This energy analysis allows for a mass energy performance index to be established. The analysis has shown that reducing the empty weight of trailers by 30% can cause reductions of up to 18% and 11% in mass energy performance index for double-deck trailers and ‘walking-floor’ trailers respectively. Using this approach, trailers that will benefit the most from weight reduction can be identified systematically, allowing for lightweighting strategies to be implemented more effectively. Strategies to reduce empty trailer weight and improve vehicle utilisation are also discussed.     

Complementing distance based charges with discounted registration fees in the reform of road user charges: the impact for motorists and government revenue

The call for a congestion charge is getting louder and more frequent in many countries as major metropolitan areas experience increasing levels of road congestion. This is often accompanied by a recognition that governments need to find new sources of revenue to maintain existing road networks and to invest in new transport infrastructure. Although reform of road pricing is almost certain to occur at some time in the future in a number of countries, a key challenge is in selling the idea to the community of road users as well as a whole raft of interest groups that influence the views of society and politicians. Simply announcing a need for a congestion charge (often misleadingly called a tax) does little to progress the reform agenda. What is required is a carefully structured demonstration of what might be done to progressively introduce adjustments in road user charges that are seen as reducing the costs to motorists while ensuring no loss of revenue to government. In this paper we show, in the context of Sydney (Australia), that this can be achieved by the reform of registration fees in the presence of a distance-based charging regime that can deliver financial gains to motorists, with prospects of revenue growth to the State Treasury.     

A decision analysis framework for intermodal transport: Comparing fuel price increases and the internalisation of external costs

This paper presents the impact of fuel price increases on the market area of intermodal transport terminals. Aim of this research is to determine whether an increase in fuel prices is sufficient enough to raise the market area of intermodal transport to the same degree that would be accomplished by stimulating intermodal transport through policy instruments. Therefore, several fuel price scenarios are analysed in order to verify the impact of different fuel price evolutions on the market area of unimodal road transport compared to intermodal transport in Belgium. The LAMBIT-model (Location Analysis for Belgian Intermodal Terminals), which is a GIS-based model (Macharis and Pekin, 2008), is used to analyse the different fuel price increases and enables a visualisation of the impact on the market area. The LAMBIT model incorporates the different network layers for each transport mode by setting up a GIS network that includes four different layers: the road network, the rail network, the inland waterways network and the final haulage network. The geographic locations of the intermodal terminals and the port of Antwerp are added as nodes in the network and the Belgian municipality centres are defined and connected to the different network layers. Based on the different fuel price scenarios representing respectively a fuel price increase with 10% (low price case), 50% (business as usual case) and 90% (high price case), the results of the LAMBIT model show that the market areas rise in favour of intermodal barge/road and intermodal rail/road. Depending on the scenario, the degree of modal shift however differs. Additionally, in order to compare policy measures with the effect of a fuel price increase, the internalisation of the external costs is analysed with the LAMBIT model. For some years, the European Commission is supporting the idea that transportation costs should reflect the true impacts on environment and society, and is relentlessly pushing towards the so called ‘internalisation of external costs’ as a policy instrument in order to establish fair and efficient pricing of different transport modes. This requires monetarizing the external effects of transport and adding them to the already internalized costs in order to give the correct price signals. Results of this comparative analysis performed with the LAMBIT model are also presented in this paper.