The Expressway Authority of Thailand (EXAT) is preparing to raise tolls in September on its first- and second-stage expressways in Bangkok by at least five baht, to a range of 50 to 115 baht depending on vehicle size. The increases are in line with the concession that the state agency has with the system’s operator, SET-listed Bangkok Expressway Plc (BECL).
My first reaction on hearing the news was, “What, again? Prices of everything are going up.”
However, it has been a while since expressway tolls rose. The contract between the EXAT and BECL says rates can be adjusted every five years, based on changes in the Consumer Price Index. The increase amounts to 11.1% from five years ago, compared with compounded inflation over the same period of closer to 16%.
But in accepting the fact that tolls must rise, I am also reminded that tolls based on distance, rather than the fixed rates used in Thailand, are the norm in most countries.
Few people probably remember that former prime minister Thaksin Shinawatra proposed distance-based expressway tolls during his first term in office, but the idea never took off.
In 2004, the Office of Transport and Traffic Policy and Planning (OTP) devised new distance-based rates ranging from 23 to 45 baht to replace the existing 40-baht fixed rate. BECL was expected to spend around one billion baht to install a new system to accommodate the change.
At the time, I thought the plan was fairer to motorists, and would also allow the EXAT to attract more customers. Although the minimum toll was lower than the fixed rate, the increasing number of vehicles on the expressway might offset lower tolls per car for shorter distances.
The idea never went any further, and nine years on, drivers are still paying fixed tolls.
I think now is a very opportune time to rethink road pricing. Bangkok is facing worsening traffic, as thousands of new cars bought in response to tax breaks for first-time buyers hit the roads.
Instead of the pay-as-you-go principle, the government should change to a better system, which could not only serve the different demands of motorists, but also help traffic in Bangkok flow more easily.
According to the EXAT, traffic volume on all expressways in November averaged 1.65 million cars per day, with daily toll revenue of 60.7 million baht. It forecasts 2 million vehicles and 61 million baht in daily revenue by April.
The Electronic Road Pricing (ERP) system in Singapore is a good one to emulate. The rates vary for different roads and time periods depending on local traffic conditions, which range from S$0.25 to S$7 (6 to 170 baht) per trip. It uses short-range radio communication systems to deduct charges from smart cards inserted in vehicles, similar to the EXAT EasyPass system.
The ERP concept is based not only on distance but also on when you drive. Motorists know they’ll pay more at peak times, and can make decisions accordingly. The system is designed to be fair for motorists on the one hand, and to control traffic flow on the other hand.
The Singapore government sees traffic congestion as a major threat to physical and mental health. It also believes it’s a waste of time to spend more than an hour to arrive at a destination. I’m sure most people agree with this concept.
It costs more to buy a car in Singapore than almost anywhere else in the world. First you need a permit which in most cases can cost more than the car itself. Still, people buy cars, but the ERP system and good mass transit encourage Singaporeans to commute via public transport.
The ERP system is appropriate for Thailand’s expressways and also the central business districts, where effective solutions to traffic congestion are badly needed. Different toll rates will at least help manage the flow of traffic naturally. Motorists who cannot afford the higher rate will choose other ways or use public transport instead.
Some expressways in the country have electronic systems, collecting tolls in accordance with distance travelled. This is a good time to change to a single system.
More than 1.4 million vehicles were sold last year and nearly 800,000 of these from the government’s first-car policy are gradually being delivered. Just imagine the traffic snarls Bangkok can look forward to.
Clearly, it’s the government’s duty to prepare for the coming traffic problem. Not only should it lift road tolls, but also it should rethink the collection system with a goal to encourage the use of public transport. After all, why spend billions of baht on new transport infrastructure if people don’t use it?