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Mattias JUHÁSZ MSc in Civil Eng. Departmental Eng., PhD student

XV Conference of the Italian Association of Transport Economics and Logistics (SIET) "Transport, Spatial Organization and Sustainable Economic Development" Venice - September 18-20, 2013. Mattias Juhász – Tamás Mátrai – Gergely Gál

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Mattias JUHÁSZ MSc in Civil Eng. Departmental Eng., PhD student

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  1. XV Conference of the Italian Association of Transport Economics and Logistics (SIET) "Transport, Spatial Organization and Sustainable Economic Development"Venice - September 18-20, 2013 Mattias Juhász – Tamás Mátrai – Gergely Gál The possibility of introducing congestion charging in Budapest - assessment of the theoretical alternatives Mattias JUHÁSZ MSc in Civil Eng. Departmental Eng., PhD student Department of Transport Infrastructure, Széchenyi István University 2013.09.27.

  2. Budapest and its agglomeration • Capital of Hungary (since 1873): • 525 km2, 1.700.000 inhabitants • Geography:Buda hills – Danube – Pest plateau • 2 level municipal governance:23 districts + Municipality of Budapest • Political, commercial, financial andcultural center of Hungary • Agglomeration (81 settlements): • 2538 km2 • 800.000 inhabitants

  3. Transport system of Budapest • Modal Splitinthe city: 60% PT / 40% car • Road network: • Full length of the road network: 4500 km • Length of the main road network: 1200 km • 9 Danube crossings for road(including M0 bridges) • Over 1000 traffic signaled intersections • 1.700.000 car trips/day (600.000 from the aggl.) • Public transport network: • Underground (3+1), suburban railway (5), tram (32), trolley bus (16), bus (206), night bus (38), boat (3), other (3) • Length of the public transport network: 1100 km • Number of stops and stations: ~4700 • Rolling stock: app. 3000 vehicles • 1,39 billion passengers/year, 5,16 billion pkm/year

  4. Main problems • Unpredictable financing • Lag in PT fleet renewal • Unsecured funding for maintenance • Lack of investments • Growing motorization • Deterioration of public transport system • Road congestion in the city centre • Air quality problems • Too centralized road network(bridges) • „We got used to …” • Residential parking problems • PT fare reductions • Limited strategic planning

  5. Reasons why the idea of congestion charging arose in Budapest? • Significant increase in the number of vehicles (+25%) • Deterioration of publictransportation (80% > 60%) • Centralizedtransportnetwork • Limited spaceinthe city centre • Urban sprawl (250.000 peoplein 25 years) • Decreaseintheaveragespeed (35 >> 20 km/h) • External cost from road congestion has become one of the largest transport-related cost in Budapest (Erhart, 2007)

  6. Internalization of external costsAvoid a social trap…

  7. The story of congestion charging in Budapest • Studiesin 1992 and 2001 • 2007: weshouldtrycongestioncharging(experiencesfrom London and Stockholm + peak of trafficvolumes) • Studiesin 2008 and 2009 (pre-feasibilitystudy) • 2009: resolution of the European Commission on the EU subsidy of metro line M4(congestion charging as a supplementary measure in order to achieve environmental targets) • 2010: a thoughtlesspoliticalcampaign (CC for free PT) • 2011-2013: detailedfeasibilitystudy

  8. Ahead of an awkward decision • 2013 – the feasibility study is ready with detailed suggestions • Municipal elections in 1 year • It would be very difficult to accept the proposal(acceptance is around 25-30%) • But it would be also unpleasant to reject it(M4 metro resolution) • However, the deadline is quite hazy(“end of the 2007-2013 programming period”) • „Negotiating with the EU about prerequisites” seems to be the political solution for some time

  9. Feasibility analysis • Politically- and publicly-wanted analysis(Shall we introduce it? How much is it?) • Difficulties as there wasn’t any goals but there were some hard restrictions • „Complex goal” (revenue, congestion, environment)led to a very comprehensive analyses of the theoretical alternatives and kept every detail open • MCA, CBA, CEA, transport modeling

  10. Feasibility analysis • Zonal, cordon pricing and complex solutions • Investment cost:8-35 mEUR + additional investments (10-200 mEUR) • Operational cost: 8-30 mEUR / year • Estimated revenue: 25-180 mEUR / year • Economic BCR: 3.5-6 • Revenue / cost: 5-9

  11. Official results • Cordon charging in the line of the Outer Ring Road (Hungária-gyűrű) and the Buda Ring (Budai körút)[C3 alternative in the paper] • A gradual introduction is also possible [e.g. C0 (bridges) as a first step and C3 or Z3 as a second] • Keywords: simplicity and cost-efficiency • daily charge • monitoring the inbound traffic • modeled on “Area C” (Milan) • further possibilities in time-based differentiation

  12. Effect on road traffic

  13. Effect on public transport

  14. Results of our assessments • It depends on the goal… • General priority could be: • Cordon charging on the inner bridges [C0 alternative] • Cordon (or zonal) charging in the line of the Outer Ring Road (Hungária-gyűrű) and the River Danube [C2 or Z2 alternative] • Cordon (or zonal) charging in the line of the Inner Ring Road (Nagykörút) and the River Danube [C1 or Z1 alternative] • Cordon (or zonal) charging in the line of the Outer Ring Road (Hungária-gyűrű) and the Buda Ring (Budai körút) [C3 or Z3 alternative] • Gradual introduction of congestion charging would be useful (e.g. 1. C0, 2. C2, 3. C3., 4. time-differentiation)

  15. C0 alternative • Affected daily traffic:360.000 between 7:00-19:00 • Investment cost:around 8 mEUR • Additional investment need:around 10 mEUR • Annual operational cost:around 8 mEUR • Estimated revenue:25-60 mEUR depending on the fees • Time diffentiation could make it fair • Further development would be easier from the revenue • However, there are socail issues…

  16. Conclusions • Road congestion cannot be eliminated by physical measures alone (Eliasson, 2010) • Even it won’t be solved by the credit crunch • Traffic calming isn’t enough, structural reforms needed • User or polluter pays principle • Congestion charging is one of the possible measures • Anyway… we cannot expect that congestion charging will solve everything

  17. Lessons learnt • It is indispensable to have an explicit and relevant goal • Formulating goals and restrictions is a job for policy-makers (in cooperation with transport professionals), while designing the charging system is a job for experts • System design is not working with impossible restrictions or with conflicting interests • After setting the goal(s) decision-makers have to consistently take the responsibility for it • It needs time to plan and implement a congestion charging scheme, so plan the political process accordingly • Communication + conscious and well-timed stakeholder involvement are essential

  18. References • BKK Centre for Budapest Transport - TRENECON-COWI Ltd. (2013): Fővárosi személyforgalmi behajtási díj bevezetése, döntéstámogató tanulmány (Introduction of congestion charging in Budapest, Decision-support study) • Eliasson, J. (2010): So you’re considering introducing congestion charging? Here’s what you need to know - An FAQ based on Stockholm’s experiences. ITF/OECD round table, discussion paper no. 2010-4 • Erhart, Sz. (2007): A budapesti közlekedési dugók okai és következményei (Reasons and consequences of road congestions in Budapest). Közgazdasági Szemle LIV. pp. 435–458. • Juhász, M. (2012): Budapest főváros XI. kerület (Újbuda) városközpont közlekedésfejlesztési kérdései – A Hamzsabégi út fejlesztésének vizsgálata (Transport development issues of the city centre of Budapest XI. District (Újbuda) – Examination of the development of Hamzsabégi Road). MSc thesis. Széchenyi István Egyetem. • Monigl, J. & Berki, Zs. (2001): Modelling the impacts of road pricing in Budapest. Transman Consulting. • Orosz, Cs. & Pásti, B. (2002): Kielégíthetetlen közlekedési kereslet – fejlesztési és finanszírozási lehetőségek Budapesten – útdíjakkal vagy nélkülük? (Insatiable transport demand – development and financing possibilities in Budapest – with or without road charges?) Városi közlekedés 2002/4. • Pápay, Zs., Lukovich, P. & Orosz, Cs. (1992): Útdíjfizetési rendszer alkalmazásának lehetõségei Budapesten (The possibilities in the application of a road pricing system in Budapest). BME Innotech Ltd. • Smeed, R. J. (1949): Some statistical aspects of road safety research. Journal of the Royal Statistical Society, Series A (General), Vol. 112. • Smeed, R. J. (1964): Road pricing: the economic and technical possibilities. HMSO. • Városkutatás Ltd. (2008): Efficient transport management in Budapest (Hatékony közlekedés-menedzsment Budapesten) • Városkutatás Ltd. (2009): A fővárosi személyforgalmi behajtási díj előzetes megvalósíthatósági vizsgálata (Pre-feasibility study of the congestion charging in Budapest)

  19. Acknowledgement This research was realized in the frames of TÁMOP 4.2.4. A/2-11-1-2012-0001 „National Excellence Program – Elaborating and operating an inland student and researcher personal support system convergence program” The project was subsidized by the European Union and co-financed by the European Social Fund

  20. Thank you for your kind attention! Mattias Juhász mjuhasz@sze.hu

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