Tolling In India – From Road Usage Charging To Misusage Recording And Penalization

November 27, 2010

Over the decade investments for broadening and refurbishments of roads / highways in India, have made Government, Infrastructure companies, banks and financial institution mature enough to manage and execute contracts on Annuity or BOT basis vide the PPP model. Policies for the road usage charging as a recovery to the investment and ongoing maintenance of the infrastructure asset – Roads / Highways / Expressways were brought in with a clear audit mechanism to ensure quality roads and safety to the users. This is how the need for technology oriented Tolling system arise. But the challenge was to model the Tolling system specs to meet the Indian conditions and also to ensure no leakage to the revenues collection. Which means, vehicle count, exemptions and vehicle classification need to be accurate. Secondly any incidents and violations need to be recorded. Over the last few years the technology driven tolling industry has matured and has gained understanding to Indian requirements. Resulting in bringing right competition with the growing international / reputed tolling companies to participate. Now the concern is no more selecting tolling system but a right company providing not only tolling systems but also service them cost effectively over the long drawn concession period. Having understood that today the concessionaires are looking at matured established tolling system provider companies. This has forced International companies to think on having local establishment independently or through Joint Ventures to address the Indian market. And I am of the opinion that these entities shall reap the present mature market for implementing Tolling systems over Highway / Expressway and subsequently maintaining them over decades.

Going further, today the developers/ concessionaires /infrastructure companies have different challenge. Most of the reputed companies have multiple HIGH VALUE investment BOT projects, which are at different locations and stretches. Any unwanted incident can result into huge revenue loss even with best tolling and ITS systems. Monitoring multiple projects become difficult unless and until one haves Central Data Center (CDC) hooking all the projects to monitor and analyse individual operation report to justify actions like mobilize manpower, financial investment , subcontract etc. In true sense the CDC acts as DSS (Decision Support System). This is the time the concessionaire / Developers/ O&M companies need to look into reputed IT companies and make worthy investment for the CDC. But the point is which IT companies? One who are well established with quality standards to ensure stability, scalability of the IT system and must understand Tolling, ITS and Road infrastructure segment to interact and scope the CDC requirements. To name few NIIT Technologies Ltd, HCL, Wipro, TCS, CMC are the ones to look into.

New Business Emergence in Tolling – The State Border Check post in India

Across the state border entry points, various checks are performed on commercial vehicles carrying goods for Overloading, Permits, Vehicle fitness, PUC etc. and have to collect taxes like Entry Tax, Motor Vehicle Tax, Penalties etc. Presently these activities are manual and human dependent raising possibilities of manipulation and errors in classifying vehicle(s) and payment collection. Secondly physical check leads to substantial time spend. This results in huge queue in border check post. To facilitate, ease and to speed up the process, toll systems are brought in to classify vehicles, check overloading, capture and record vehicle registration no. plate and account tax collection / penalties. As “Border Check Post Automation” is an emerging business, will take a while for the tolling and auditing system to evolve and standardize. IT Systems has to play a very vital role and all the border check post integration has to happen centrally from a single location to monitor, analyse and to make decisions. The good part to this emergence is thinking happening in Government and hopefully will result into collection of accountable revenues across all the state border entries and investment for the progress of the country.

Debashish Debsikdar
Practice Head – Surface Transportation & Airport
NIIT Technologies Ltd.

Written by ITW Editor · Filed Under Guest Editorial, Guest Editorial, Tolling

TrafficInfraTech Expo, February 2-4, 2011

November 21, 2010

India’s first international expo on Traffic is designed to provide an overview of the hitherto untapped potential of traffic and traffic management industries in India and to bring global technologies to the country at NSIC Exhibition Complex, New Delhi.

TrafficInfraTech aims to bring together policy makers and national & international players providing traffic management solutions, products/systems and traffic infrastructure – railways, airports, sealinks, metros, monorails, skywalks, bridges and flyovers.

For more information:
Please visit: http://www.trafficinfratechexpo.com/
or
Download TrafficInfraTech Show Brochure (PDF)

Written by ITW Editor · Filed Under Expo & Events, TrafficInfraTech

Delhi-Gurgaon Expressway: Job Unfinished

November 16, 2010

These days driving on the Delhi Gurgaon Expressway in Peak Hours, perhaps you are asking yourself, what must be the traffic condition at toll plaza and at entry road to my office? How much time is needed? Will the traffic move fast or slow? It’s been more than 2 years since the highway became operational but the degree of difficulty in driving on this has increased sharply in recent months as more and more sections are
becoming congested.

Delhi Gurgaon Expressway

When Delhi Gurgaon Expressway was conceived by NHAI, the main objective was to provide high-speed connectivity between Delhi and the commercial hub, Gurgaon. However, today instead of providing speed connectivity it has become a subject of argument between, NHAI, Concessionaire and planning authorities of Haryana and New Delhi.

January 2008 marked the completion of the much-awaited Delhi Gurgaon Expressway but due to lack of proper planning, poor traffic forecasting, unplanned traffic management, poor urban design and lack of traffic enforcement it became a nightmare for the users. Further the increased traffic added to the mess in management of the highway and concessioner faced a huge challenge in starting the operations.

It is very sad to see this highway in such a sorry state of affairs where the issues are not addressed by the stakeholders but just being passed on to each other. Today, contrary to high expectations, this highway is just another ordinary road and is not able to give a nice driving experience to the road users and leave a good impression on the users.

The aesthetic perception for highway user is very bad indeed which conjures up images of choked Hero Honda road with overflowing drain water, poor service roads, narrow entries and exists, poor landscaping and toll plaza lanes welcoming commuters with choked lanes and driver criss crossing the lanes. This highway in the National Capital Region of India is far from creating an impression on any visitor from abroad who touches it when he enters the city and suburbs. It is a far away from the natural landscape and aesthetic quality which we can see internationally in all highways. Concessionaire was given the design with which he has to construct and operate now.

Expert highway planners and traffic engineers were not able to envisage for amenities required for the highway. The high cost of right-of-way acquisition generally prohibited the creation of buffer zones between highway and neighbourhood. Bridges, overpasses, skyways, fencing, sound barriers and interchanges that are a basic necessity on this stretch were not envisaged and now after development these are being accommodated in an unplanned manner. These unplanned and graceless structures are not well designed and lacks the aesthetic appearance.

The biggest challenge on this highway in the coming years would be circulation of traffic. Traffic planning and enforcement has not been addressed adequately leaving concessionaire of the highway helpless. For more than 50 villages on both sides of the road, this is another massive freeway which is used without payment of any toll, without any policy and without any documented right since they were overlooked at the planning stage. Today the challenge for the office going people is not just to drive on this but taking the entries and exits on this as well. All entries and exists are narrow and curvy lacking center lines and ample shoulders. At peak hours it takes more than 40 minutes which is almost double the time for crossing the highway. Prime commercial areas and prime residential localities of Gurgaon close to these exits and entries are facing the
heat of this oversight.

Since it began operation, safety has been a big issue and it has also achieved the notoriety of being called “The Killer Highway”. There are only limited over-bridges along the entire stretch to cater to the communities living on either side of the heavily populated areas through which the expressway runs. Right from fencing to over-bridges, everything is being implemented on a need basis now. Few issues are still un-addressed like movement of two-wheelers which is almost equal to the existing traffic on the expressway and effort has not been made even to count them so that some planning can be done for accommodating them on this highway. Half completed service roads and poor signages have also added risk to the users on the highway.

This development is not without its drawbacks – traffic congestion is a serious issue, especially at the toll plaza. During peak hours, it can easily take up to 15 minutes to cross the toll plaza which would have taken a minute to cross if managed properly. The highway operations staff needs lot of training in highway management and operations. The benefits that construction of this expressway offered in terms of employment and connectivity is outweighed by traffic congestion. The toll plaza at the Delhi-Gurgaon border has also proved inadequate in handling the increasing traffic, leading to traffic jams during peak hours. Though the plaza is tag enabled, only 35-40 percent of the traffic that passes through avails of this facility and that too with lot of mess.

From dense fog in winters to scorching heat waves in summers, from over loaded truck on the main highway to two wheelers zipping from all directions, from the encroached service roads in Haryana to un- authorized parking on service roads, from high speed to bad traffic etiquettes on Expressway, from Cash Users in Tag Lanes to Blacklisted Tag users, from lack of Basic Amenities to power failures in highway lighting, from lack
of VMS signages to stray animals on Highway, there are lot of issues that need to be addressed in Highway Management.

Highways are not only meant for driving. Internationally highways are meant to give a pleasant experience to the users where they feel safe to drive and reach their family and home in time. Aesthetics of expressway in terms of median, edges, lighting and road furniture is developed in such a fashion that it adds to the driving experience. The idea is to choose pleasing aesthetic solution which appeals to the users without compromising the safety issues of the highways.

To conclude, the Delhi Gurgaon Expressway has not only made developed localities of Gurgaon more accessible, it has also facilitated development of new localities. Master Plan 2021 has opened many sectors for development which benefitted with better connectivity after completion of this expressway. However, the quality of services on the Delhi-Gurgaon expressway might get worse if not addressed on time. Gurgaon is already booming and it needs improved connectivity and a sharp reduction in travel time, both within the city as well as to and from the national capital. All stake holders and people involved in this project need to sit together and seriously deliberate to address all outstanding issues. A time bound plan for addressing these issues can be done only by a truly innovative way of thinking about the freeway in the urban environment.

All said and done, much work still remains to be done……

Sachin Sharma
Executive President -Infrastructure
Bajaj Hindusthan Ltd
www.bajajhindusthan.com

Written by ITW Editor · Filed Under BOT, Expressway, Gurgaon, Highway, NHAI, Sachin Sharma, Toll Plaza, Tolling

Kapsch TrafficCom acquires Mark IV IVHS

November 9, 2010

Kapsch TrafficCom acquires Mark IV IVHS, the largest supplier of electronic toll collection (ETC) equipment in North America.

Vienna, November 5, 2010. Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the Vienna Stock Exchange in the prime market segment, has agreed to acquire through subsidiaries the businesses of MARK IV IVHS, part of MARK IV, LLC (U.S.), in the United States, in Canada and in Mexico for a purchase price of USD 70 million (approximately EUR 50 million), subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the business. The transaction is structured as a stock purchase of the holding companies which own the Mark IV IVHS business, and closing is targeted for 30 November 2010.

MARK IV IVHS is a designer and manufacturer of dedicated short-range communication (DSRC) devices that are widely used by highway, toll, turnpike, tunnel, and bridge authorities to enable intelligent transportation systems (ITS) such as electronic toll collection (ETC) and automated weigh station bypass. With more than 21.8 million transponders on-the-road and more than 3,700 lanes equipped, MARK IV
IVHS is the largest supplier of ETC equipment in North America. MARK IV IVHS has enabled many landmark ITS deployments, including: the world’s first non-stop, all-electronic toll road (Highway 407 ETR, Canada); interoperability between truck electronic preclearance systems and toll collection (PrePass); and, the E-ZPass® system of the 24 toll authorities in 14 states who comprise the E-ZPass® Group in the Northeastern United States. E-ZPass® is a regional ETC system that can be used throughout the Northeast and Midwest regions of the United States. MARK IV IVHS also recently announced a contract award in exico. With 142 employees, MARK IV IVHS generated in its last fiscal year 2009/2010, ended February 28, 2010, net sales of approximately USD 50 million (approximately EUR 36 million) at a clear positive free cash flow and at an EBITDA margin accretive to the EBITDA margin of Kapsch TrafficCom Group generated in its last fiscal year 2009/2010, ended March 31, 2010.

Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS). Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management. With approximately 240 references in 39 countries on all five continents, and with more than 19 million transponders (on-board units – OBUs) delivered and nearly 13,000 lanes equipped, Kapsch TrafficCom has positioned itself among the leading uppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has ubsidiaries and representative offices in 25 countries. With currently almost 1,500 employees, Kapsch TrafficCom Group generated revenues of EUR 216 million (approximately USD 300 million) in its last fiscal year 2009/2010, ended March 31, 2010.

For more information, please contact:
Marcus Handl
Investor Relations
Kapsch TrafficCom AG
Phone: +43 (0) 50 811 1120
Am Europlatz 2, A-1120 Vienna, Austria
E-mail: [email protected]
www.kapschtraffic.com
www.kpasch.net

Written by ITW Editor · Filed Under ETC, Kapsch

PWD Haryana invites bids for road project

November 9, 2010

The Public Works Department (PWD), Haryana, proposes to take up four-laning of a road project on DBFOT basis.

The PWD has invited tenders from interested parties for the development of Rai Malikpur (Rajasthan border)-Narnaul-Mahendragarh-Dadri-Bhiwani-Kharak corridor. The project spanning 151 km is to cost Rs 1,201.70 crore. The last date of submission of bids is 1 December 2010.

Written by ITW Editor · Filed Under BOT, Haryana, PWD

HCC ties up funds for projects in Bengal

November 9, 2010

Hindustan Construction Company (HCC) has mopped up funds for three road projects in West Bengal. Together, the projects entail a cost of Rs 3,300 crore and have a debt component of Rs 1,600 crore.

Yes Bank is the sole debt arranger and syndicator of the debt. Other financial institutions are India Infrastructure Finance, Dena Bank , Syndicate Bank and Oriental Bank of Commerce. The total loan tenure is 12 years and the interest rate is 10.8 per cent.

The projects include four-laning of Baharampur-Farakka section on NH-34, covering a distance of 103 km; development of existing two lanes into four lanes between Farakka and Raiganj (103 km) and between Raiganj and Dalkhola (50 km), also on NH-34. HCC has acquired the required land and work will commence in November 2010.

The projects that will be executed on DBFOT basis are to be completed by mid-2013.

Written by ITW Editor · Filed Under BOT, NHAI, NHDP

Etawah-Chakeri section to be six-laned

November 9, 2010

The NHAI proposes to upgrade a road project in Uttar Pradesh.

The Authority intends to take up six-laning of the Etawah-Chakeri (Kanpur) section of NH-2 from Km
323.475 to Km 483.687 under NHDP Phase V. The project is expected to cost Rs 1,698.50 crore.

RFQs have been invited from prospective entities, with last date of submission being 10 December 2010.

Written by ITW Editor · Filed Under BOT, NHAI, NHDP

Bids invited for road project in Chhattisgarh

November 9, 2010

The NHAI proposes to develop a highway in Chhattisgarh on BOT (Toll) basis under DBFOT pattern under NHDP Phase IV.

The Authority has invited bids for four-laning of Orissa Border-Aurang section from Km 88/000 to Km 239/000 of NH-6. The road having a length of 150 km is to cost Rs 1,260 crore. The bids have to be submitted by 7 December 2010.

Written by ITW Editor · Filed Under BOT, NHAI, NHDP