Mobility pricing could hit $8 per day: Report
Drivers could end up paying an average of between $3 and $8 per day to get around Metro Vancouver if decongestion charging is introduced in the region.
The cost estimates were in a report presented by the Mobility Pricing Independent Commission to a joint meeting of TransLink’s Mayors’ Council and board of directors on Thursday.
The report caused concern for a number of the region’s mayors, who called it a good start and agreed the conversation needs to take place, but worried that mobility pricing would not be fair or affordable for residents.
“Going through the report, definitely some of the charges that are talked about here are definitely up there and certainly are going to catch people’s attention,” said New Westminster Mayor Jonathan Coté, who described mobility pricing as a difficult, complex and controversial issue.
It’s been proposed that mobility pricing could pay for transit and transportation improvements in the region, replace the declining gas tax and deal with traffic gridlock.
The commission looked at two options for decongestion charging, both of which could reduce congestion by 20 to 25 per cent.
One option is congestion point charges, where drivers are charged when they pass a certain location — including bridges — and complemented by further charges at locations on the Burrard Peninsula.
Based on early analysis, a regional congestion point charge would cost the average driving household $5 to $8 per day, or $1,800 to $2,700 per year. This option would see the regional gas tax, which is 17 cents per litre, remain in place so that people who don’t cross tolled points would still contribute to paying for transportation.
The capital cost to establish congestion point charges would be in the $150 million to $300 million range, with annual operating costs of $110 million to $200 million. It’s estimated it could bring in annual net revenues in the range of $1.1 billion to $1.5 billion.
The other decongestion pricing option is distance-based charges that vary by time and location, meaning drivers would be charged for each kilometre they drive, but the amount would vary depending on where they go and at what time.
The analysis shows that a multizone distance-based charge could cost the average driving household $3 to $5 per day, or $1,000 to $1,700 per year. Fuel tax could be eliminated under this option.
The exact number and boundaries of zones are still to be determined, but for the purpose of analysis eight zones were identified.
Capital costs could be in the range of $400 million to $700 million, with annual operating costs between $300 million and $500 million. If capital costs are annualized over 7.5 years, it’s expected that annual net revenue would be in the range of $1 billion to $1.6 billion.