2002

PA awarded top prize in Dutch Road Pricing Model competition - 24 July 2002

The Dutch government has awarded PA Consulting Group the top prize in a competition to design a new business model for national road-use charging.

The objective of the competition, for which 92 submissions were received, was to stimulate interest and innovation to facilitate the introduction of charges for all road users, based on distance. A central component of the plan in the Netherlands was the 'mobimeter' - a GPS* based device to record road usage - and the competition sought to identify services which would complement and add value to this core strategy.

PA's submission suggested a lower specification 'zonimeter' and a structured road user tariff system, in which users choose which device to buy, depending on their pattern of usage, that is, distance, road type and time of travel. The solution was low cost and low risk and would provide incentives to all categories of road users. It would also fit well with policy objectives and could be more effectively phased in over a longer period.

The jury considered PA's model "highly innovative from an organisational, technical and business modelling point of view".  According to the report, the jury found " the differentiation by mobimeter accuracy and the link to tariffs a novel idea" and that "…carefully calculated different scenarios demonstrated that the innovation would reduce overall system costs significantly".

Phil Jeanes of PA commented: "The introduction of road user and congestion charging is high on the transport agenda across Europe as governments consider extending road charges from HGVs to all vehicle classes and cities such as London introduce congestion charging. PA's experience in the UK and Germany ensured a submission which was both innovative and practical and could provide a blueprint for integrated collection of all road user charges."

* Global Positioning System

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For more information, please contact:

Polly Ferguson PA Consulting Group 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 7333 5653 Fax: +44 20 7312 4612 E-mail: polly.ferguson@paconsulting.com

Notes to editors

1. The Netherlands Roadpricing project

In an area of 34.000 sq. kilometres, with 118.000 km of roads, the Netherlands will have to accommodate approximately 8 million vehicles by 2010. Research carried out by the Dutch government suggests that the best way to solve daily recurring traffic congestion and share the cost of road maintenance is via a variable road pricing system. This system would charge drivers according to road use rather than vehicle ownership. The Roadpricing project was a collaboration of the Ministry of Traffic, Public Works and Water Management and the Ministry of Finance. The introduction of variable road pricing was planned for 2006, although parts of the project were put on hold in June due to political uncertainties.

The competition was held in May 2002. Submissions were ranked on the basis of innovative potential, feasibility and operational dynamics. The jury consisted of: Pieter Winsemius (McKinsey), Peter Vervest (D-age) and Hennes de Ridder (TU Delft).

For more information see http://www.roadpricing.nl/

2. Road User Charging in the UK.

HGV Distance Charging
The Chancellor announced the UK Government's intent to introduce charging for heavy goods vehicles in the April budget. It is planned for introduction in 2006.

Congestion Charging
A number of schemes are under consideration in major cities. London's scheme is due for introduction in February 2003. The charge is a daily charge for using roads within a defined area of Central London.

DIRECTS Pilot Project
A pilot project for charging road users for specific roads with a trial area of Leeds is currently underway for the Department for Transport

PA is the Department for Transport's Road User Charging Systems Adviser

3. PA Consulting Group

PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating worldwide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of some 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.

PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.

PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.

PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.

We are proud that our clients say "PA makes it happen".

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