ELECTRONIC ROAD PRICING IN HONG KONG: AN OPPORTUNITY FOR ROAD PRIVATIZATION?

The Hong Kong Government investigated the feasibility of introducing electronic road pricing (ERP) to the territory as a means of controlling congestion. By selectively charging road users at busy times and places, road pricing offers a method of restraining the usage of vehicles on the road network and is potentially more equitable and more efficient than the main alternative policy option, restraint of car ownership. To assess all aspects of the feasibility of ERP, the government engaged Transpotech to carry out a 2-year pilot project. A full subset of the road system engineering components of a road-pricing system ran successfully for more than 6 months in the central area of Hong Kong. Evaluation of the system has shown that there are no technological barriers to the introduction of ERP in Hong Kong. A major transportation study was conducted to assess the effects of road pricing in Hong Kong. The results showed that full system would be extremely efficient and cost-effective, and a number of viable schemes were presented. The accounting, administrative, and legislative aspects of ERP were fully investigated and reported on by Transpotech. These aspects present no problems. ERP was presented as a method of restraining traffic and not as a way of financing roads. Privatization issues were not explored in the studies, nor in subsequent discussions. ERP was not well received by local people and the government of Hong Kong is not proceeding with the implementation of a full ERP system.