WRITTEN QUESTION P-1476/97 by Norbert Glante (PSE) to the Commission (23 April 1997)

Subject: The economic benefits of transport telematics

Does the Commission have the findings of scientific studies quantifying the economic benefits to be derived from the extensive use of telematic traffic management systems on the trans-European road network? If so, how great are such benefits?

How highly does the Commission rate the economic benefits per ecu invested in telematic transport systems, and what scientific basis does it use to arrive at such a figure?

Answer given by Mr Bangemann on behalf of the Commission (22 May 1997)

A quantified assessment of the costs and benefits associated with the deployment of telematics applications over a whole transport network such as the TransEuropean road transport network, is a complex activity which requires an overall agreement on the nature and extent of applications to be deployed, the level of investment and the implementation timescale. Furthermore, the costs of certain traffic related problems such as congestion and safety, vary over time and across Europe. For all these reasons, all studies conducted to date depend on the inherent assumptions made and could not claim to provide definite answers to the questions raised by the Honourable Member.

Indications of the likely range of benefits may however be drawn from the research and demonstration activities performed to date and the limited implementation experience of individual Member States and the Commission (the benefits are estimates that should not be used to draw wider conclusions than their original context). The improvement of transport efficiency and the reduction of traffic accidents of 10-20% has been shown in a number of projects, which may lead to thousands of mecus in annual savings due to reduction of external costs of transport, whilst the investment required may range from 0.25 to 0.4 MECU per kilometre. Indicatively, cost/benefit ratios range from 1.7 for incident detection and 2.9 for speed control to 3.6 for ramp control, whereas the respective rates of return vary respectively from 32% and 39% to 101% in a recent United Kingdom study. Strategic traffic control using variable message signs (VMS) for motorways is operational in a number of Member States. In the Ile-de-France region, the system has total estimated annual benefits of FF 550 millions whilst the total investment is FF 680 millions and the annual operating costs FF 50 millions, thus providing very high socio-economic benefits. Similarly, the Dutch automatic motorway control and signalling system led to an overall reduction of more than 20% in accidents and injuries. Other more advanced systems have shown even higher potential benefits, such as the emergency call and priority systems showing a reduction in the emergency response time after the accident of 45% (Germany) increasing substantially survival rates and showing a rate of return of 180% (United Kingdom).

Relevant information can be found in a number of reports, summaries of which are being sent direct to the Honourable Member and to the Parliament's Secretariat.

Finally, Council Resolution of 28 September 1995 ((OJ C 264, 11.10.1995. )) requested the Commission to propose a general strategy and framework for the deployment of telematics applications for road transport, and to include a cost-benefit analysis of the envisaged measures. The Commission is finalising this strategy and framework which will include a rolling action plan and monitoring programme. As part of this action, the Commission will consider the most appropriate way of assessing road transport telematics applications, including the suitability of evaluation methods and scenario development approaches used in earlier studies. The results of such assessments will be part of the monitoring programme envisaged.