Estimates to implement and operate a comprehensive VMT-based charging system for all road use in the Netherlands by 2016 averaged $2.255 billion and $667.59 million per year, respectively.

Experience with mileage-based user fee systems in the Netherlands.

Made Public Date
12/14/2011
Identifier
2011-SC00241
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Summary Information

This report covered a small-scale study of vehicle-miles traveled (VMT) fee systems to help state officials and other policy makers discuss the implementation and operational costs of alternative revenue-generating systems. The Dutch intend to implement a comprehensive VMT based charging system for all road use in the Netherlands. Cost data collected from three competing proposals were evaluated and summarized below.

Initial estimates indicated that operating costs would require about seven percent of the revenue. About 50 percent of operating costs were administrative and about 15 percent were attributed to the tolling and enforcement operations. In the United States, operating costs would likely be higher, and require about 20 percent of revenue. Capital costs can vary greatly depending on the need to implement new fee collection systems and the costs of onboard units (OBU). Although current estimates indicate that OBU costs are high, these costs are expected to decline. In the Netherlands, for example the cost of OBUs decreased from $225 per unit to a range of $106 to $175 per unit in about one year (Ministry of Transport, 2009). In the United States, requirements for privacy and security measures can also influence cost.

The following three alternative VMT fee systems were proposed to accommodate eight million Dutch vehicles and any foreign vehicles operated in the country.
 

Major Components Siemens T-Systems Vodafone
OBU Thin Thick Thin
Communication Cellular & DSRC Cellular & DSRC Cellular
Calculation of charges Back office OBU Back office
Visitors Fixed tolls or temporary units Fixed tolls or temporary units Temporary units
Enforcement Fixed, movable,
and mobile
Fixed, movable,
and mobile
Cellular & fixed,
movable, and mobile


The data below excerpted from Table 29 of the source report shows cost estimates for each alternative VMT fee system. Euros were converted to dollars using a ratio of 1.25 dollars per euro. In addition, a 15 percent contingency allowance was added to each cost estimate.

 

 

Cost Item
Siemens
T-Systems
Vodafone
Average
Across
Providers
INITIAL SET UP COSTS (in $000s)
OBUs
$1,890,411
$1,698,067
$1,664,625
$1,751,034
Administrative
$5,498
$217,631
$133,688
$118,939
Collection
$85,531
$41,397
$41,687
$56,205
Enforcement
$119,251
$81,355
$77,625
$92,744
Miscellaneous
$202,225
$201,285
$304,750
$236,087
Total
$2,302,916
$2,239,735
$2,222,375
$2,255,009
ANNUAL OPERATING COSTS (in $000s)
OBUs
$165,938
$126,908
$37,375
$110,074
Administrative
$111,132
$510,427
$406,813
$342,791
Collection
$110,976
$231,283
$58,938
$133,732
Enforcement
$11,883
$80,751
$54,625
$49,086
Miscellaneous
$18,446
$24,087
$53,188
$31,907
Total
$418,375
$973,456
$610,939
$667,590
ANNUAL DEPRECIATION (in $000s)
OBUs
$41,508
$267,006
$232,875
$180,463
Administrative
$4,550
$31,973
$27,313
$21,279
Collection
$2,156
$5,304
$10,063
$5,841
Enforcement
$8,947
$14,257
$10,063
$11,089
Miscellaneous
$5,917
$10,351
$10,063
$8,777
Total
$63,078
$328,892
$290,377
$227,449

Source: Based on data from the Dutch Ministry of Transport, Public Works, and Water Management (2006)

 

 

System Cost

See Summary