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Managed Lanes: More than a Revenue Tool

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David Ungemah, senior planning manager at Parsons Brinckerhoff, shares his thoughts on the "Innovative Funding & Financing" panel at the 2012 Charlotte Chamber Transportation Summit.

David Ungemah, senior planning manager at Parsons Brinckerhoff, shares his thoughts on the "Innovative Funding & Financing" panel at the 2012 Charlotte Chamber Transportation Summit.

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  • 1. Managed Lanes More than a Revenue Tool © Parsons Brinckerhoff, 2012.
  • 2. David UngemahParsons Brinckerhoff National Managed Lanes Director2012 CHARLOTTE CHAMBERTRANSPORTATION SUMMIT April 13, 2012 © Parsons Brinckerhoff, 2012. 2
  • 3. We’re Paying Less, Driving More April 13, 2012 © Parsons Brinckerhoff, 2012. 3
  • 4. As Fuel Economies Go Up,Revenues Go Down Light Duty Truck Passenger Vehicle Hybrid Electric Vehicle 20 mpg 30 mpg 50 mpg 0 mpg NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax Miles / Year $ 0.39 $ 0.18 $ 0.39 $ 0.18 $ 0.39 $ 0.18 $ 0.39 $ 0.18 20,000 $ 392 $ 184 $ 261 $ 123 $ 157 $ 74 $ - $ - 15,000 $ 294 $ 138 $ 196 $ 92 $ 118 $ 55 $ - $ - 10,000 $ 196 $ 92 $ 131 $ 61 $ 78 $ 37 $ - $ - April 13, 2012 © Parsons Brinckerhoff, 2012. 4
  • 5. Restoring Purchasing Power• Federal tax increase of 10¢ just to restore purchasing power from 1998 (AASHTO) April 13, 2012 © Parsons Brinckerhoff, 2012. 5
  • 6. A Story of Fiscal Concerns• A Nation of Debtors • National: $15.6 Trillion • State: $1.1 Trillion • Local: $1.7 Trillion• Long term policy needs • Social Security: $7 Trillion • Trust fund exhausted in 2036 • Medicare gap: $38 Trillion • Trust fund exhausted in 2014 April 13, 2012 © Parsons Brinckerhoff, 2012. 6
  • 7. Transportation Consequences• Transportation Reduction maintenance and in Increase improvement is New In Urban Congestion expensive ($5+ Capacity Trillion) The Widening• … But doing nothing Transportation is also expensive … Depression Funding & Inflation & Of Total Service Gap Wage Tax Decline• … Yet it’s unlikely Revenue to change given all the other Erosion of issues this Economic country faces. Vitality April 13, 2012 © Parsons Brinckerhoff, 2012. 7
  • 8. Looking Ahead • “One Size Fits All” doesn’t work anymore • Restore the “User Pays” principle • New technologies open new doors April 13, 2012 © Parsons Brinckerhoff, 2012. 8
  • 9. OK, so now what?THE LINK TO MANAGEDLANES April 13, 2012 © Parsons Brinckerhoff, 2012. 9
  • 10. Fighting Congestion• Reduces Capacity When Needed Most• Hinders Commerce• Costs $100+ Billion Annually• Expensive Infrastructure to Resolve April 13, 2012 © Parsons Brinckerhoff, 2012. 10
  • 11. April 13, 2012 © Parsons Brinckerhoff, 2012. 11
  • 12. What If?• Guaranteed Congestion Free Freeway Lanes• Safe and Reliable Travel• Long Term Return on Investment April 13, 2012 © Parsons Brinckerhoff, 2012. 12
  • 13. What are Managed Lanes?What are they? What are the benefits?• Dedicated Lanes • Greater throughput • “Freeway within a • Transit & carpools Freeway” • Travel time reliability• Proactively Managed • Decreased fuel • Real-time response to supply and demand consumption• Preservation of • Improved air quality Capacity • Revenue generation April 13, 2012 © Parsons Brinckerhoff, 2012. 13
  • 14. Managed Lanes Design• Initially tolled managed lanes were fully-separated facilities. SR-91 I-25 I-15 I-10 4/23/2012 © Parsons Brinckerhoff, 2011 14
  • 15. Managed Lanes Design• New Managed Lanes are more integrated into the freeway with less physical separation. SR-167 I-95 I-85 I-35W 4/23/2012 © Parsons Brinckerhoff, 2011 15
  • 16. More Efficiency Each lane is moving 1400 vehicles at 25 mph Each lane is moving 1500 vehicles at 60 mph April 13, 2012 © Parsons Brinckerhoff, 2012. 16
  • 17. Transit Compatibility April 13, 2012 © Parsons Brinckerhoff, 2012. 17
  • 18. Managed Lanes GenerateRevenue April 13, 2012 © Parsons Brinckerhoff, 2012. 18
  • 19. The Challenge of ManagedLanes Gee, Wally. Why• I’ve already would you put a paid for it! toll on a freeway?• Don’t trust government with more of my money• Tolls never go away!• Unfair to (fill in the blank) April 13, 2012 © Parsons Brinckerhoff, 2012. 19
  • 20. Imagining the Benefits • There is no reason to put up with congestion anymore • Active observation and management • Restores user pay principle • Helps pay for the specific capacity needed April 13, 2012 © Parsons Brinckerhoff, 2012. 20
  • 21. WHAT’S HAPPENING INNORTH CAROLINA? April 13, 2012 © Parsons Brinckerhoff, 2012. 21
  • 22. Charlotte Region Fast Lanes April 13, 2012 © Parsons Brinckerhoff, 2012. 22
  • 23. Charlotte Region Fast Lanes April 13, 2012 © Parsons Brinckerhoff, 2012. 23
  • 24. I-77 Public-Private Partnership• New Managed Lanes • Convert existing HOV lane • Extend facility north / south • Expand two lanes in each direction• Private Partners • Revenue risk by private entity • 50 Year agreement • Maximize private financing; minimize public funds • Dynamic pricing April 13, 2012 © Parsons Brinckerhoff, 2012. 24
  • 25. FINAL THOUGHTS April 13, 2012 © Parsons Brinckerhoff, 2012. 25
  • 26. What If We Could…• Build projects by leveraging new funding without increasing taxes?• Empower local governments to invest in needed roadways?• Right-size our highway system, so as to reduce project costs and other impacts? April 13, 2012 © Parsons Brinckerhoff, 2012. 26
  • 27. David Ungemah ungemah@pbworld.comApril 13, 2012 27 © Parsons Brinckerhoff, 2012.

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