Manufacturing News

Incremental pricing to unlock heavy vehicle productivity

MOVING heavier payloads safely and better targeted road spending is the key focus of a feasibility study of incremental pricing for heavy vehicles released by the National Transport Commission (NTC) today.

Incremental pricing allows transport operators to carry additional mass above national regulated limits by paying the asset owner (i.e. road agencies, councils) for the extra road wear and tear.

NTC Acting Chief Executive Meena Naidu said incremental pricing will deliver increased productivity and fewer trucks on the road for the same freight task, resulting in lower freight rates, better safety and fewer transport emissions.

“Iit could also help target infrastructure investment to fix ‘last mile’ bottlenecks, which strangle productivity,” she said.

According to Ms Naidu, the results of an NTC-commissioned survey showed reasonably strong support from industry to carry additional mass and a willingness to pay for this option.

Broad interest was shown across all industry sectors, truck types and routes, particularly with machinery, cars and trucks, petroleum and grocery carriers.

Key issues addressed in the feasibility study include:

• ensuring the safety of the vehicle (e.g. linking with relevant Performance Based Standards);

• assessing existing infrastructure capacity;

• setting the price;

• choosing an appropriate monitoring system; and

• directing revenue back into the roads used.

The study also builds on the work done by Queensland, New South Wales, Victorian and South Australian state governments in progressing incremental pricing trials.

Incremental pricing is a major component of the Council of Australian Governments’ (COAG) road pricing reform agenda to deliver increased productivity with better links between road use and funding.

“NTC is committed to developing a practical scheme that works for industry as well as government,” she added.

Public comment on the feasibility study is sought until 27 February 2009.

You can download the report HERE

Further information about incremental pricing can be found in thisfactsheet

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