Initial findings from an Australian-first, real-world trial of road charging options has shown motorists could be willing to embrace a different way of paying for the nation’s roads.  

Fuel excise currently contributes 57% of Australia’s total road-related revenue. However, the growing popularity of fuel-efficient cars and the arrival of affordable electric vehicles mean that this revenue source has been decreasing steadily for years.

According to CSIRO modelling, Australia may be facing a reduction of up to 45% in the revenue it needs to build and maintain its roads by 2050.

The Melbourne Road Usage Study was designed to gauge motorists’ understanding of the current road funding system and assess their attitudes and preferences toward and behaviours under various user-pays options. 

Transurban Chief Executive Officer Scott Charlton says the first stage of the study suggests a user-pays system could work in Australia, providing fair, sustainable and flexible funding for the infrastructure needed to support our communities’ growth and liveability.

The 18-month study, led by Transurban and supported by independent research and technology specialists, looked at how people used their cars on Melbourne’s road network under different charging options.

Two models with distinct purposes were considered:

• Usage-based model – this model tested participant responses to a user-pays funding approach that is more transparent and sustainable as a funding source. Three usage-based charging options were tested: charge per kilometre; charge per trip; and ‑at rate (capped kilometres).
• Congestion-based model – this model tested how motorists responded to demand-management charging signals to reduce road use in highly congested geographies or at peak travel times. Two congestion-based charging options were tested: cordon (area); and time of day

The trial involved a representative sample of Melbourne car owners installing a small GPS device in their vehicles and providing important insights at regular intervals throughout the study period. More than 1600 drivers drove 12 million kilometres under a range of charging options.

“Our research clearly found that the more information people received about how Australia currently funds its roads, the more positive they became about the need for reform,” Charlton says.

“Getting direct and transparent feedback about how they used the road and the associated costs, made participants more willing to consider changing their driving habits, even after only a short period of time.”

Charlton says study participants were also clear about what they wanted to see if a new system was implemented to replace today’s unfair and opaque charges.

Their priorities included:

• Transparency – clear information about how much they travelled and what it cost
• Choice – genuine transport options and flexibility around working hours and services to allow them to make changes to how they use roads
• Fairness – an equitable system that was fair for everyone, regardless of where they lived, their income, or the car they drove and that funds raised were allocated to transport projects and maintenance
• Checks and balances – their privacy protected and personal information managed in a secure way.

Charlton says raising the community’s awareness of Australia’s current situation was an important step in the reform process.

“The research found 96% of Australians have little or no knowledge of fuel excise as our key source of road funding, let alone the inequity and unsustainability issues associated with it,” he says.

“Like everyone living in Australia today, we want road networks to operate as efficiently as possible – if the network is running smoothly so too are our roads.

“We have the opportunity now to design and implement a road charging system that will support our changing demographics and take advantage of the opportunities that technology will offer over the next decade.

“Our real-life trial has shown that technology was not a barrier to the implementation of a new road charging system.”

The results of the Melbourne Road Usage Study’s second stage, which was testing participants’ responses to two congestion-based charging options, will be included in the full report due out October 2016.

Further information on the Melbourne Road Usage Study can be found at www.changedconditionsahead.com.