Mark F. Muriello Mark F. Muriello Assistant Director Assistant Director Tunnels, Bridges & Tunnels, Bridges & Terminals Terminals Value Toll Pricing at Value Toll Pricing at The Port Authority of NY & NJ The Port Authority of NY & NJ Value Pricing Value Pricing Regional Workshop Regional Workshop Washington, D.C. Washington, D.C. June 4, 2003 June 4, 2003
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Mark F. Muriello Assistant Director Tunnels, Bridges & Terminals
Value Toll Pricing at The Port Authority of NY & NJ. Mark F. Muriello Assistant Director Tunnels, Bridges & Terminals. Value Pricing Regional Workshop. Washington, D.C. June 4, 2003. The Port Authority of NY & NJ. Congestion: A Sense of Urgency. Annual Cost $10 Billion - PowerPoint PPT Presentation
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Mark F. MurielloMark F. MurielloAssistant DirectorAssistant Director
Investing in Gateway Investing in Gateway MobilityMobility
Ensure financial self-sufficiency for Ensure financial self-sufficiency for the Interstate Transportation Network.the Interstate Transportation Network.
The Overall GoalThe Overall Goal
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ActualsActuals ProjectionsProjections
Pricing Policy ObjectivesPricing Policy ObjectivesEncourage shifts to off-peak travel Encourage shifts to off-peak travel to address peak-period congestion.to address peak-period congestion.
Encourage mass transit by Encourage mass transit by differentiating pricing in corridors differentiating pricing in corridors with mass transit alternatives.with mass transit alternatives.
Eliminate frequency-Eliminate frequency-based toll discounts to based toll discounts to support traffic support traffic management objectives. management objectives.
High cash toll for all crossings.High cash toll for all crossings.
Deep E-ZPass discount for autos in Deep E-ZPass discount for autos in off-peak periods.off-peak periods.
Reduced E-ZPass discount for autos Reduced E-ZPass discount for autos during peak periods. during peak periods.
Weekdays: 6 - 9 a.m. and 4 - 7 p.m.Weekdays: 6 - 9 a.m. and 4 - 7 p.m. Weekends: 12 Noon - 8 p.m.Weekends: 12 Noon - 8 p.m. Deep discounts for truck trips in weekday Deep discounts for truck trips in weekday
overnight period (Midnt. - 6 a.m.)overnight period (Midnt. - 6 a.m.)
Auto Toll RatesAuto Toll Rates
CASH CASH All HoursAll Hours
PeakPeakHoursHours
Off-Off-PeakPeakHoursHours
New Rate New Rate $4.00 $5.00 $4.00 $5.00 $6.00$6.00
Old RateOld Rate $3.60 $3.60 $3.60 $3.60 $4.00$4.00
Carpool Program:Carpool Program: $1.00 per trip for vehicles with E-ZPass and $1.00 per trip for vehicles with E-ZPass and 3 or more people verified in vehicle.3 or more people verified in vehicle.
SI Bridge Program:SI Bridge Program: $50 for 20 Trips in a 35-day period at the $50 for 20 Trips in a 35-day period at the Goethals and Bayonne Bridges and Goethals and Bayonne Bridges and Outerbridge Crossing with E-ZPass.Outerbridge Crossing with E-ZPass.
Discount Programs Discount Programs (available all hours with special registration through E-ZPass account)(available all hours with special registration through E-ZPass account)
Elected Elected Officials Officials & Community & Community GroupsGroups
Business Business & Industry & Industry GroupsGroups
Special InterestsSpecial InterestsTransportationTransportationInterestsInterests
Public Communication PlanPublic Communication Plan
Wide-ranging customer Wide-ranging customer communications program communications program and materials.and materials.
Web SiteWeb Site Toll-free Telephone Information Toll-free Telephone Information Direct MailDirect Mail Advertisements Advertisements In-Lane MaterialsIn-Lane Materials Toll Plaza HandoutsToll Plaza Handouts
The Importance of the MediaThe Importance of the MediaThe importance of using The importance of using the media effectively the media effectively cannot be overstated.cannot be overstated.
Newspapers, radio, and Newspapers, radio, and television stories and interviews:television stories and interviews: Ensuring the facts are presented Ensuring the facts are presented
accurately.accurately. Keeping the program in the public Keeping the program in the public
eye.eye. Informing the public about the Informing the public about the
The Cost of Crossing the Hudson… Price hikes are inherently painful, but these are worth applauding, if not demanding, as a matter of fairness and as a means to fight congestion.
Outreach to the editorial Outreach to the editorial boards of the major boards of the major regional newspapers regional newspapers paid tremendous paid tremendous benefits.benefits.
January 29, 2001
As good as could be… The increases across the board are manageable, and it’s reasonable that after a 10-year hiatus, a toll increase was due.
January 18, 2001
The Case for Hikes… (The Port Authority) has devised a rate change designed to prevent a web of traffic jams from strangling bistate commerce.
Most effective means of Most effective means of educating the public and educating the public and shaping opinion.shaping opinion.
Toll RevenueToll Revenue
== $$ Toll $$ Toll RevenueRevenue
XX
Avg. TollAvg. Toll
VolumeVolume
The Static The Static Pricing YearsPricing Years
rr22
Plaza ProjectionsVehicle Type
Regional
Economic
Variables
Weekday
Type
Vehicle
Occupancy
Price
Elasticity
E-ZPass Shares
Temporal
Traffic
Distributio
n
Time
of Day
Scenario Testing
Risk
Assessment
The Value The Value Pricing EraPricing Era
Model based on price elasticities derived from mid-1990s Model based on price elasticities derived from mid-1990s research.research.
E-ZPass participation estimated through price trade-offs.E-ZPass participation estimated through price trade-offs.
E-ZPass market share projected was approximately 4% E-ZPass market share projected was approximately 4% greater than actual experience.greater than actual experience.
Growth in E-ZPass transactions realized Growth in E-ZPass transactions realized more slowly.more slowly.
Revenue generation greater than expected.Revenue generation greater than expected.
Toll Revenue ComparisonsToll Revenue Comparisons
535.0
670.0
698.4
542.0
662.4
704.2
$400
$450
$500
$550
$600
$650
$700
$750
2000 2001 2002
Toll Revenue (in $ millions)Toll Revenue (in $ millions)
Current toll structure provides authority to Current toll structure provides authority to change peak and off-peak hours.change peak and off-peak hours.
Future strategies to adjust pricing in Future strategies to adjust pricing in smaller increments.smaller increments.
Time of DayTime of Day Travel CorridorTravel Corridor Vehicle TypeVehicle Type Managed Roadway Managed Roadway
Potentially less complicated to Potentially less complicated to advance.advance.
Opportunity for smoother Opportunity for smoother revenue infusion to sustain revenue infusion to sustain interstate transportation interstate transportation network.network.
Regional Regional CoordinationCoordination
Coordinated hours for maximum impact.Coordinated hours for maximum impact. Jointly targeted market segments (auto, trucks) to Jointly targeted market segments (auto, trucks) to
manage demand.manage demand. Coordinated E-ZPass Customer Service statements to Coordinated E-ZPass Customer Service statements to
Regional coordination of pricing in the future Regional coordination of pricing in the future will ensure optimal traffic management benefits.will ensure optimal traffic management benefits.