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Showing posts with label Belarus. Show all posts
Showing posts with label Belarus. Show all posts

Tuesday, 11 March 2014

News briefs - Australia, Belarus, Israel

Australia - Queensland Government to privatise motorway company

Queensland Motorways is a company owned by the Queensland Investment Corporation, the Queensland State Government's holding company for commercial state owned enterprises.  It owns three key toll roads in Queensland, but also acquired from Brisbane City Council the Go Between Bridge, which I profiled over two years ago as being an unprofitable disaster.

Queensland Motorways have paid the Council A$112 (US$98) million for the 50 year tolling rights to the bridge.

Previously it acquired the disastrous Clem 7 toll tunnel motorway, which is subject to a lawsuit over demand and revenue forecasts.  It paid A$618 million (US$538 million) for the road, not bad given it cost A$3 billion to build.

So now the Queensland Government thinks it is a good time to divest itself of this investment.  The Australian reports it is worth about A$4 billion (US$3.5 billion)

The report says:

Groups likely to be interested in Queensland Motorways include superannuation heavyweight Industry Funds Management, Abertis/Hastings and groups out of Canada including the Canadian Pension Plan Investment Board or the Ontario Teachers Pension Plan.

Of the listed groups, Transurban could purchase the asset with partners, a source said.



Belarus - tolling of existing highways to be expanded

ITS International reports that the Belarus electronic toll system has been expanded to a network of 118km of highways as of January 2014.  This expands the extent of the network to 933km, with the whole system installed and operated by well-known Austrian toll systems provider, Kapsch.   The expanded network will include eleven new gantries for charging and enforcement. The report claims that customers are registered from Belarus, Ukraine, Russia, Poland and Lithuania.

The system uses DSRC, not GNSS technology, paralleling that which has long been in place in Austria, and similar systems on networks in the Czech Republic and Poland.

I wrote about the Belarus system a couple of years ago.   It is branded BelTol  and charges cars €0.04 (US$0.06)  and up to €0.12 (US$0.17)  per km for trucks. Both rates seem rather cheap.  Germany charges between €0.14 and €0.29 per km for trucks, Slovakia €0.08-€0.24 and Austria €0.16-€0.44 per km.   No toll system in Western Europe charges cars by distance across a network electronically.


Israel - New HOT lane being studied

According to Israeli business news website, GLOBES, Ayalon Highways Ltd (a central government owned company responsible for managing Israel's Highway 20) is investigating the value of introducing a HOT Lane on the highway between Roads 1 and 5.  

However, the report is contradictory, which some claiming that a lane will be taken from the existing road, and the Ministry of Transport claiming that discussions are about a new (additional lane).  

The road will connect with the privately owned H-1 HOT lane that was opened in 2011 between Ben Gurion Airport and Highway 20, which I noted at the time,  and is driven entirely by heavy congestion on the existing lanes.  

The proposed lane would offer toll free access for buses, but the "high occupancy" requirement would be 4 car passengers, suggesting that there is a real interest in ensuring the lane maintains a good level of service, although it is far too early to consider what the potential toll levels would be.

Proposed new HOT lane in blue, existing H1 lane in yellow








Wednesday, 7 March 2012

Belarus to introduce national highway toll system

The Republic of Belarus is rarely in the news. Often referred to as the last dictatorship in Europe, it is closely aligned with Russia, having once been a republic of the USSR and has been led, since independence, by a strongman Alexander Lukashenko. The state and the economy is largely run on a version of the Soviet model, with most industries government owned and political debate in the media subject to constraints. So to read the news that it is looking to impose a user pays toll system across its highway network is curious at least.

The news originally came from a news report about Austrian toll equipment supplier Kapsch, which reported that it had won a contract worth €267m to install and operate tolls on 2,743km of roads using DSRC technology (commonly referred to as “tag and beacon”). It includes operation of the system for 20 years. The system will be fully electronic free flow, which of course can present issues in some countries regarding pursuit of violators. However, Belarus has tight border control so can easily enforce against foreigners, and presumably the rather strong state addresses that issue for its own nationals.   Curiously, opponents of GPS enabled distance tolls sometimes cite the system as "eye in the sky" or "big brother". One would have thought had this been useful, a state like Belarus would have implemented such a system to keep track of its citizens.  The DSRC system being implemented will only record vehicles passing certain points, and only on the national highways.   It will be useless in keeping track of vehicles in cities or rural areas.

The first phase of implementation is to come into effect by 1 July 2013 and will see Kapsch investing in the entire system and recovering the costs from the toll revenue. The toll will apply to all vehicles, except for “Customs Union” cars (which may be a reference to the Customs Union with Russia). It is not clear whether this means private cars of citizens in Belarus and Russia are exempt. If so, it will mean a significant number of vehicles will not be paying tolls.

Belarussian website, Telegraf reports that Belarus has one toll road now - M-1/E30 - Brest (Kozlavichy) - Minsk - Russian border (Radki).

Belarus's sole existing toll road
It is intended that all “first category” roads will become tollways, except the Minsk ring road. This makes sense as the purpose of urban ringways is to take traffic off of urban streets, and tolling will be more likely to divert traffic in that context.

Undoubtedly, this move is driven by Belarus’s geography as a transit point between Russia and the EU (and less so between “mainland” Russia and its enclave of Kaliningrad). Increasing truck and car traffic offers Belarus the chance to make some money from tolls. Nothing in the reports indicates what will be done with the revenue, beyond cost recovery, with no announcements of directing funding into highways or the like. However, the proposed network of tollways is very extensive indeed, so it will be interesting to watch developments.

For Kapsch to do business in Belarus is obviously a feat of effort, which I need not really explain further to those who know how Belarus works.  Having access to revenues for so many years will be worth a lot, but the warning for Kapsch is of course whether Belarus remains the state that it is.  If/when the current President is no longer in power, it may be contracts with the current regime are not worth much, indicating that Kapsch better get the capital value of its investment out of the system sooner rather than later.   With such a fast implementation programme for Kapsch, it will be out to demonstrate that it can do this efficiently and effectively, and hope that it proves to be an entree into the far larger market to the east of Belarus.   I look forward to reading further about proposed pricing, payment systems and enforcement approaches.