Presentation

Presentation to IBTTA BERLIN
GNSS/CN HGV TOLLING – LESSONS FROM NEW ZEALAND
13 September 2011
Introduction
• In 2009 EROAD implemented the world’s first network-wide
autonomous GNSS/Cellular Eruc system for HGVs.
• Presentation reviews New Zealand Eruc experience:
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RUC background
institutional and procurement model
compliance and enforcement
agency experience
user experience
technology lessons
policy lessons
future directions.
New Zealand
 Population 4.5 million.
 200,000 HGVs.
 RUC raises €500 million p.a.
 92,000 km public road network.
 Economy based on farming, forestry,
fishing, wine, food, technology, film and tourism.
Jack’s Geography Lesson
You are down here
RUC Background
• Paper-based RUC regime in operation since 1978.
• Pre-payment RUC applies to HGVs over 3.5 tonnes and light
diesel vehicles based on weight, distance and location.
• HGV RUC levied on individual trucks and trailers.
• Hubodometers or electronic distance recorders used to verify HGV
vehicle distances.
• Odometers used for LV RUC but plagued by widespread fraud.
• Refunds available for private and off-road travel.
• Paper-based RUC system well founded but significant compliance
costs and evasion.
Move to Eruc
• Independent Review recommended move to electronic RUC
system for HGVs. In particular:
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no ability to purchase and manage RUC Licences online
paper based system susceptible to fraud and difficult to enforce
manual off-road refund process cumbersome
hubodometers are mechanical devices prone to failure and errors
high cost and administration of changing failed hubodometer
accidental non-compliance penalises honest operators.
Eruc provides innovative platform to modernise RUC regime.
Regulatory changes enabled entry of private Eruc providers.
LV RUC being reviewed as part of new Road User Charges Bill.
First approved Eruc Toll Service Provider (TSP).
Enforcement
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Enforcement via visual inspection of OBU and audit.
No online access provided to enforcement agencies.
Faults/tampers resolved by EROAD and logged.
Provision for TSP to report errant client behaviour – high threshold
adopted.
• RUC related data can be requested by enforcement agencies.
• Vehicle/travel/speed data confidential unless requested by Court.
• Overarching statutory privacy framework protects client
information.
EROAD
• Fully integrated technology, tolling and services company.
• Design and manufacture OBUs for trucks, trailers, assets and LVs.
• Design and operate secure payment and value-added gateway –
business model based on tolling and specialist HGV services.
• EROAD system approved after extensive field trials, independent
testing and 3rd party security review.
• On target to collect NZD100 million of HGV RUC in 2012.
• Top performer in Swedish Eruc trials - achieving 99.6% worst case
charging accuracy and 100% charging compliance.
• Dedicated to building an international technology company based
on NZ reference site.
Architecture
Client RUC - % Total HGV RUC
Client RUC Distance – km millions
Ehubo OBU
Tubo (Trailer) OBU
RUC Summary
Online RUC
Off-Road Refunds
Daily Activity
Service Module
Over-speed Report
Idle Report
Fuel Management
Mobile RUC
Driver ID
Agency Perspective
• Government has not incurred any costs or borne any risks to
develop or operate the EROAD Eruc service.
• Reduced evasion and lower enforcement costs from robust
security.
• Lower agency costs from removal of need to support paper-based
RUC system.
• Ability to support additional RUC reforms, electronic logbooks and
other regulatory services.
• Platform for improved infrastructure planning and management.
• Wider improvement in economic growth from lower administration
costs, improved compliance and increased industry productivity.
Client Perspective
• HGV users pay EROAD a monthly fee of €40 per month plus €3
RUC transaction fee (€2 Agency + €1 EROAD).
• Fee covers hardware, data, updates and value-added services.
• EROAD relies on voluntary take-up as operators can choose to
remain with paper-based RUC system.
• Generates significant reduction in administration costs, greater
operational transparency and enhanced management control.
• Provides working capital savings and supports legal compliance –
clients typically achieve 200% to 500% ROIs.
• Open platform and ability to access additional value-add services.
Client RUC Stars
Technology Lessons
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GNSS/Cellular tolling technology proven and cost effective.
OBU reliable and able to cope with extreme environmental conditions.
Security model detects and prevents fraudulent attack and operable
with degraded sensor data and poor cellular coverage.
Secure architecture able to support complex tariffs: time, distance,
location, mass, emissions and dynamic congestion pricing.
Technology platform can support wide range of value-added services
and 3rd party applications.
Scale and deployment can be readily achieved because no
requirement for specialist roadside infrastructure.
Overall system costs estimated to be well below 5.0% of revenues.
Policy Lessons
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NZ Eruc system demonstrates it is feasible and cost effective to
introduce electronic road charging across an entire country.
Contestable TSP model encourages innovative and service orientated
suppliers motivated by commercial opportunity.
Certification model minimises requirement for government to bear
technology risks, or meet capital and operating costs.
Regulatory and commercial services can be delivered with same
platform to lower agency and client costs.
Hybrid system (paper/electronic) meets different user requirements
(low km and foreign) and avoids big-bang implementation.
Trusted 3rd party providers help overcome privacy concerns.
LV RUC well-founded but reform/technology required to improve
compliance and reduce odometer related fraud.
Thank You
Brian Michie
Director
brian.michie@eroad.com
P:
+64 9 927 4700
D:
+64 9 927 4712
F:
+64 9 927 4701
M:
+64 21 376 964