It is a form of road pricing typically implemented to help recuperate the cost of road construction and maintenance, which (on public roads) amounts to a form of taxation.

1. Presentation on Closed Toll & Toll Systems
Prepared by
K. Shanmugasundaram

2. Overview
• What is Toll in a Highways?
• Origin of Toll
• Location of Toll Plaza
• Objectives of Tolling
• Potential consequences of tolling
• Method of Collection in Toll Plazas
• Tolling options
• Fee Structure
• Duration of Toll
• Mechanisms for Involving the Private Sector
• Advantage & Dis-advantages of Tolling
• Conclusion
• Questions?

3. What is Tolling?
• A toll road, also known as a turnpike or toll way, is a public or
private roadway for which a fee (or toll) is assessed for passage.
• It is a form of road pricing typically implemented to help
recuperate the cost of road construction and maintenance, which
(on public roads) amounts to a form of taxation.

4. Origin of Toll/ Turn Spike
• The original turnpikes — dating from the 15th century — were indeed spiked
barriers, but they were designed to be placed across roads to prevent sudden
attack by men on horseback.
A Toll bar in Romania dated 19th March 1877

5. Traditional or Conventional Toll Plaza
• Toll plazas are generally designed to accommodate most types of
vehicles, from motorcycles to tractors with trailers.
• Since larger vehicles may require more space, there are often
designated lanes for their use that have been made wider or higher.

6. Location of Toll Plaza
• A toll plaza is a roadway location where tolls are collected. The plaza may be
located on a freeway or expressway (mainline plaza), on a ramp (ramp plaza) or
adjacent to the roadway (bypass plazas).
• Toll Plaza should be located in tangent portion.
• It should be located away from At-grade sections.

7. Objectives of Tolling
One or more of the following objectives are typically the reason for introducing
tolls on the road network:
• New Source of Finance
• "Stable" Source of Finance
• Dedicated Source of Finance
• User Pays and Internalizing of Externalities-congestion related prices
• Regional Equity Issues
• Private Sector Development

8. Objectives of Tolling …..Continued
• New Source of Finance -The toll revenue is a "new" source of revenue, where
previously roads were supported out of general Government revenues. This has
been a major objective in many countries, given pressure to reduce taxes.
• "Stable" Source of Finance- Tolls provide an on going revenue source, which is not
tied to the annual Government budgetary process. This can be particularly
important for raising debt finance outside the national accounts and requires a
Government Corporation or private sector operator.
• Dedicated Source of Finance-The funds from toll revenues can be dedicated to the
support of construction and maintenance for a particular road thereby ensuring
that maintenance funds in particular do not compete with the requirements of
other roads in the network.

9. Objectives of Tolling …..Continued
• User Pays and Internalizing of –Tolls are levied with the express intention of
directing road users to other means of transport, both to ease road traffic
conditions and to encourage use of the railways and inland waterways.
• Regional Equity Issues- Some countries have introduced tolls on one road in order
to support the development of infrastructure networks in less developed regions.
Such schemes can help to transfer wealth from one region of a country to another.
• Private Sector Development- the involvement of the private sector can allow the
government to finance at least part of the road development off balance sheet.
Some governments also use the private sector concessions as a mechanism for
promoting/explaining the introduction and increase of tolls to a reluctant public
using phrases such as "it is not what the Government would want but our hands
are tied by the contract."

10. The potential consequences of road tolling
• The Raising of Revenue
• Development of the Private Sector
• Diversion of Traffic away from the New Road
• Social Impacts
• Political Opposition

11. The potential consequences of road tolling …..Continued
However there are additional consequences which result from the tolls. For example,
tolls
• can discourage unnecessary trips and therefore provide environmental benefits,
• may be too high for the poor to benefit from the new facilities, or
• may be so high that traffic diverts off the new road onto parallel roads which pass
through residential neighbour hoods therefore reducing the environmental
benefits that the new road could have provided.
• Political Opposition - Political opposition to road tolling has been significant in
many countries. The opposition has meant that toll rates have not been increased
as planned or un-tolled facilities have been developed to provide an alternative.
Both actions have negatively affected the financial outcome of the toll project and
have affected the economic return from the road.

12. Method of Collection in Toll Plazas
• Although all tolls are collected at toll plazas, the method of toll collection
can significantly change the design of a toll plaza.
• In the future, there may be as many toll plaza types or classifications as
there are roadway classifications (freeway/expressway, arterial, collector
roadway, local street).
• Similar to the roadway classification system, the classification of toll plazas
may be based on operating speed and volume of traffic that can be
processed.

13. Tolling options
There are two types of toll collection systems available. These are:
• Closed Toll System { Manual Toll Collection (CTS/MTC) }
• Open Toll System { Electronic Toll Collection (ETC)}

14. Closed Toll System (CTS)
Toll Plaza Geometry

15. Typical layout of Closed toll
plaza

17. Manual Toll Collection (MTC) & Manual Road Charging (MRC)
The most traditional approach for collecting charging or toll collection is the manual one.
The most significant components of a MTC / MRC system are:
• Toll Plaza / Booths
• Road Side Equipment (RSE)
• Toll Collectors & Staff
• Cash Handling System
• Back Office System

18. Components of Closed Toll System (CTS)

19. Manual Toll Collection ( MTC)
• Manual toll collection is most widely used collection method in India.

20. Rate of fee as per new fee rules
(a) The rates of fee shall be uniform for both
public funded and private investment
projects.
(b) Fee for use of a section of National
Highways of 4(four) or more lanes for the
base year 2007-2008 shall be the product of
the length of such section multiplied
by the rates specified hereunder:-
Fee Structures

21. Fee Structures ……. Continued

22. Duration of toll
• Potential objectives in raising tolls are manifold. They include:
 covering construction or rehabilitation costs- which requires a long period of
tolling.
 covering maintenance and operations costs- which requires continued tolling,
 creating a stream of revenues - requires tolling to continue until the required
network is complete and requires the earlier roads to generate surplus
revenues for investment in new ones.
 ensuring that road users bear the full cost of their travel directly, by pricing
the externalities- which also requires continued tolling.

23. Mechanisms for Involving the Private Sector
• Depending on Government objectives the method of private sector involvement
should vary. There are four different basic options:
• Maintain and operate contracts.
• Rehabilitate, Operate, Transfer (ROT) contracts.
• BOT contracts.
• Corridor management/maintenance contracts.

24. Advantages of Manual Toll Roads Systems
• Accessibility, mobility and safety.
• The level of service(LOS) are increased.
• Toll roads provide a critical diversion of traffic that generates a variety of economic
benefits for individual drivers, businesses, tourists, and local homeowners.
• Travel time saved as a result of reduced traffic congestion during just the daily
peak periods.
• Million gallons of gasoline can be saved every year, as a result of improved fuel
efficiency.
• Savings in travel time, travel cost , increase in comfort and convenience.
• Manual systems offer more available jobs.

25. Disadvantages of Manual Toll Roads Systems
• Due to manual intervention , the processing time is highest.
• The need to stop or slow down at the toll plazas. This causes time wastage to
motorists.
• Congestion in toll area due to queue resulting in rear-end crashes, wastage of fuel
and air pollution.
• One is the increased operating cost of vehicles to motorists.
• The inherent extra costs associated with the construction, operation and
maintenance of toll plazas and facilities for toll collection.
• The toll roads system is associated with corruption and revenue theft, and loss of
income to its builders.
• Social consideration and public opposition to toll roads.
• Manual toll collection lanes can handle about 350 vehicles per hour.

26. Conclusions
• Toll roads represent a step in the direction of developing rational highway design.
• By providing economic incentives (and disincentives) for selected routes and travel
times, the toll road system helps create a more efficient vehicle movement
system throughout the region. Further implementation of toll roads and time-
based toll pricing will contribute to more balanced highway usage and additional
economic benefits.
• Sufficient peak capacity to carry the full volume of traffic can be handled by toll
highways without a significant decrease in the level of service.

27. References
• Traffic Engineering And Management - Dr Tom V. Mathew, IIT Bombay
• NJTA Design Manual - Facility Buildings / Toll Plazas
• Review of Toll Policy for National Highways- The Secretariat for the Committee on
Infrastructure Planning Commission, Government of India Yojana Bhawan,
Parliament Street ,New Delhi - 110 001

28. Questions