Discussion paper

The road ahead: how an efficient, fair and sustainable pricing regime can help tackle congestion

Price regulation Regulator strategy Roads Infrastructure Traffic congestion Melbourne
Attachment Size
apo-nid70795.pdf 5.45 MB

This is the first in a series of papers on transport network pricing from Infrastructure Victoria’s research program. The overall aim of this series is to examine the options, challenges and opportunities for transport network pricing in Victoria.

This paper outlines the problems with the current approach to transport pricing in Victoria, and the benefits and limitations of introducing a new road pricing regime to reduce congestion and make the most efficient use of the state’s transport network. It builds on the work undertaken for Victoria’s draft 30-year infrastructure strategy, which recommends:

  • Improving transport modelling tools to better assist long-term strategic transport planning.
  • Introducing a transport network price regime that will reduce congestion and crowding and enable faster travel times for high value trips, considering all modes and with a focus on addressing equity concerns.

 We will deliver the final infrastructure strategy to Parliament in December 2016. This paper aims to support discussion with all Victorians about transport network pricing reform by:

  • Defining transport network pricing.
  • Identifying the need for road pricing reform and how to address problems with how we pay for roads and congestion.
  • Proposing an evaluation framework for assessing the impact of road pricing models.
  • Describing four possible road pricing models – area/ cordon, corridor, partial and whole-of-network.
  • Providing a preliminary discussion of key issues for designing an efficient, fair and sustainable pricing regime.

This initial analysis focuses on road pricing regimes in metropolitan Melbourne as a first step towards proposing a comprehensive transport network pricing regime that includes roads and public transport.

Publication Details
Access Rights Type: