# Presentation: 774260

## Congestion Management:Leverage  & Finance 

- Steve Lockwood
- PB Consult

## Expansion of Congestion/Loss of Service

*Traffic Congestion and Reliability: Trends and Advanced Strategies for Congestion Mitigation* FHWA, 2005

**Notes:**
Q

Point: Obvious, just a reminder “why we are here”

Supply-demand balance in time

Congestion increase spatially, temporally, intensity

{sure acceptable “congestion” is perception and local)

## Causes of Performance Loss:Not Just Capacity

- Causes of Performance Loss:Not Just Capacity

**Growth in Demand**

**Notes:**
This should also go in the front of all state DOT documents and presentations

The fifty percent rule

Note: how good is this data

## Why Congestion Management is as Important as Capacity (Reliability)

- 2007 Annual Mobility Report, TAMU

## Congestion Management Strategies

- New Capacity (50% of delay today)
- Systems Operations (Supply Management): re “incidents” (50% of delay)
- Pricing (Demand Management): (percent of delay depends on extent of applications)

## Three Strategies for Congestion

| New Capacity | 
Systems
Management | Pricing |
| --- | --- | --- |
| Facility-by facility | Network-wide | Facility or Network |
| Long cycle | Short-term | Medium term |
| Cover some costs (toll) | Low cost | May cover costs |
| Context-constrained | No impacts | Policy constrained |
|  Low C/E | High C/E | Med C/E |

## 2. Systems Operations Does Make a Difference

| SO&M COMPONENT | CONGESTION/DELAY | SAFETY |
| --- | --- | --- |
| 1. Ramp Metering | -9-11% total delay |  |
| 2. Dynamic Messaging | -0.5% incident delay |  |
| 3. Variable Speed Limits | -5% total delay | -5% fatalities |
| 4. Integrated Corridors | -10% total delay  |  |
| 5. Incident Management |  |  |
| Detection | -4.5% incident duration | -5% fatalities |
| Surveillance Cameras | -4.5% incident duration | -5% fatalities |
| On-Call Service Patrols | -25-35% incident duration  | -10% fatalities |
| All Combined | Multiplicative reduction | -10% fatalities |
| 6. Weather Management  | -3% total delay (Northern) |  |
| 7. 511 only | -3-5% total delay, rural only |  |
| 8. VII | -12%  total delay |  |

**Future options for the National System of Interstate and Defense Highways, NCHRP, 2007**

**Notes:**
Note change on slide

Ramp metering vs “IM” (all elements)

Ramp metering addresses both types of congestion

Do we really know (measurement problems) – what baseline

Missing: CWZ Management

## Leverage: Long-term Benefits(Interstate example)

|  | Delay (billions of hrs) |  |  |  | Safety |  |
| --- | --- | --- | --- | --- | --- | --- |
| Scenario | Capacity | Incident | Total | Savings | Fatals | Savings |
| Deployment Trends | 949 | 203 | 1,153 | -5.6% | 195K | -0.7% |
| Aggressive Deployment
 | 685 | 111 | 796 | -34.8% | 179K | -8.9% |

**Future options for the National System of Interstate and Defense Highways, NCHRP, 2007**

**Notes:**
Q

This sort of lame – which suggests the problem

Pick easy winners:

Focus on CWZM
Winter operations
Major incidents
Emergency response

Capitalize on emergencies, incidents

Example from Study of maximum deployment vs. trends

## Progress is Slow: Could Use an   Incentive

- Progress is Slow: Could Use an   Incentive

- FHWA Deployment Tracking

## Barriers to Improved Operations

- Legacy Culture and organizations
- Authorizing Environment
- Fragmented jurisdictions
- Trained Personnel
*Dedicated Funding (now 1 % national = $1-2B)*

## Funding Methods to Encourage Increased Systems Operations

- Planning Requirements
- Performance Reporting (reduced Oversight
*Technology investment Higher funding match for operations*
*Dedicated program funds*
*Off- the top funding by performance*
*Service Target-based funding*
*Deliberate Interstate Policy*

## 3. Pricing :Tolls Account for 5% of Highway Revenue 

- Other Dedicated Taxes include dedicated sales and property taxes and value capture revenues
- General Fund Revenues include income taxes, property taxes, general sales taxes, other valorem taxes
- Last year with data available at all levels of government is 2004. Latest information as of January 2006.
- (1) Calendar Year (2) Fiscal Year

- The Changing Landscape of Highway Finance
- in the US, Benouaich, PB Consult

## 3. Pricing (toll) Projects – How much?

- Greenfields Opportunities?
- Greenfields feasibility and mixing?
- Non-Greenfields = NHS (where the congestion is)
- Conversion Acceptability (HOT path)?
- Constraints where lanes additions involved
*Where the Action is: The Nation Highway System Network = 162K miles and 45% of VMT (28% is Interstate) *

## Current Status of Toll Project Development

- Not including TTC

## Current Status of Toll Project Development

## The Next Decade:  Toll Role?

- Current toll revenues $7B
- Current highway revenues $140B
- Trend based *total expenditure for new capacity* $30-$40 (higher than trend)
- Trend-based *toll expenditures for new capacity* $8-$10B  (exclusive of concession payments)
- Large Growth  states 50%-plus
- Trend-based toll *revenues *based on Trend 15-17B (exclusive of concession payments)
- Trend-based total *revenues *$165-$170B

## Barriers to Toll/Pricing Development

- Resistance to Conversion
- Need for network level development
- Concern for network effects (diversion)
- Consideration of Equity (dual system?)
- Stakeholder/User control (state, local)
- Politics of excess funds investment
- Credibility of owner/manager with major funds

## Methods to Encourage Greater Use of Pricing for Congestion Management

- Congestion management targets (to foster pricing)
- Interstate Conversion Forgiveness
- Service Target funding with incentive to meet
- Credit enhancement, etc.
- Aggressive match bait
- Deliberate Interstate Policy

- Vision:  Vehicle-Infrastructure Integration Mixes VMT pricing and Advanced Operations

**Notes:**
New tight fit – coordinated

Elements tied together by info and wireless comms
Elements utilized automatic controls and computation

Major advances possible

Active safety (some off-board infra-dependent)
Mobility – prob, conditions
CRM: auto as veh service platform (warrentee)
Convenience services

## Needed: New Institutional Evolution

| Characteristic | 20th Century | 21st Century |
| --- | --- | --- |
| Org. Model | Gov’t. Department | Authority (enterprise) |
| Management style | Bureaucratic, stable  | Entrepreneurial |
| Mission | Develop system | Meet service expectations |
| Resources | Tax politics | User fees/capital market |
| Consumer signals | Indirect only | Organized customers/prices |
| Focus | System Development | Systems Operations |
| Serviceshed | Political jurisdiction | Consumer orbit/market |
| Partners | Legislative authority | Users, Markets |
| Perf. Criteria | On budget/schedule  | Customer satisfaction |
| Technology | Procurement-driven | Best available |

**Notes:**
Q
Later you might think about this