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| Title: |
Incremental pricing to unlock heavy vehicle productivity |
| Article Date: |
16 Jan 2009
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Moving heavier payloads safely and better targeted road spending is the key focus of a feasibility study of incremental pricing for heavy vehicles released by the National Transport Commission (NTC) today.
Incremental pricing allows transport operators to carry additional mass above national regulated limits by paying the asset owner (i.e. road agencies, councils) for the extra road wear and tear.
“Incremental pricing will deliver increased productivity and fewer trucks on the road for the same freight task, resulting in lower freight rates, better safety and fewer transport emissions,” said NTC Acting Chief Executive Meena Naidu.
“It could also help target infrastructure investment to fix ‘last mile’ bottlenecks, which strangle productivity.”
Ms Naidu said results of an NTC-commissioned survey showed reasonably strong support from industry to carry additional mass and a willingness to pay for this option.
Broad interest was shown across all industry sectors, truck types and routes, particularly with machinery, cars and trucks, petroleum and grocery carriers.
Key issues addressed in the feasibility study include:
The study also builds on the work done by Queensland, New South Wales, Victorian and South Australian state governments in progressing incremental pricing trials.
Incremental pricing is a major component of the Council of Australian Governments’ (COAG) road pricing reform agenda to deliver increased productivity with better links between road use and funding.
“NTC is committed to developing a practical scheme that works for industry as well as government,” added Ms Naidu.
Public comment on the feasibility study is sought until 27 February 2009.
NTC will also be holding stakeholder focus groups in late February/early March 2009. Expressions of interest to attend, including an outline of issues you wish to discuss, should be forwarded to Matthew Clarke, Senior Manager Economics at mclarke@ntc.gov.au
For more information:
What is COAG's road pricing reform agenda?
Following the Productivity Commission inquiry into road and rail freight infrastructure pricing (December 2006), COAG met in April 2007 to consider the Productivity Commission’s recommendations and agree to a long term reform plan.
COAG’s road pricing reform program will improve the link between road use and funding. This will be done in stages over seven years; including incremental charges for heavier (more productive) loads.
The first phase focuses on developing the building blocks for mass-distance-location based charges through research and policy development, including incremental pricing. State governments were requested to volunteer to conduct incremental pricing trials.
Better pricing signals will encourage use of the right truck on the right road at the right price; and investment on the right roads in the right place at the right time.
The Productivity Commission has estimated that COAG’s transport productivity reform agenda could deliver $2 billion in overall benefits. |
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