Congestion pricing, from London to Milan

Posted on January 3, 2008 by Matthieu Desiderio

London has it since February 2003, the main goal was to reduce congestion, one of the biggest issue in the United Kingdom capital city. Milan in Italy just got something alike (January 2, 2008): first implemented as an experiment, it is supposed to last a full year, in order to evaluate how it reduces pollution and as a consequence, diseases caused by pollution and how it would be possible to avoid cars in the historical city center. Also, some German cities (Berlin, Cologne, and Hanover) prohibited access to polluting vehicles in city centers starting January 1, 2008 and will all develop it in 2008.

London Congestion Charging Logo

However, New York City failed to implement it and Paris did not think much about such a solution…

What happens (happened) in London?

“Congestion charging is a way of ensuring that those using valuable and congested road space make a financial contribution. It encourages the use of other modes of transport and is also intended to ensure that, for those who have to use the roads, journey times are quicker and more reliable.” (source: Transport for London website)

A couple fast facts about London congestion charging zone that are important to know: it is operating Monday through Friday, from 7:00AM till 6:00PM except Holidays; the zone is clearly defined by signs and/or road markings at entrance and exit points (see London Congestion Pricing Zone map: here); and users are charged £8 daily (prices may vary if toll is paid the next day or if people are residents of the area, see Transport for London website for more details) to enter, stop in or cross the area. Once paid for the day, you can go in and out anytime you want but no matter what, you have to pay and do not worry it is enforced by high-tech systems.

“Cameras read your vehicle registration mark as you enter, drive within or exit the Congestion Charging Zone and check it against the database. Once your vehicle registration mark has been matched, showing that you have paid or do not have to pay the charge (because your vehicle is exempt or 100% discounted), the photographic image of your vehicle is automatically wiped from the database.” (source Transport for London website).

One last fact that could be interesting: before February 2003, around 334,000 vehicles entered the zone each day and the report published by Transport for London in July 2007 (see below: Central London Congestion Charging: Impacts monitoring, Fifth Annual Report) stated that during the year 2006, an average of 70,000 fewer vehicles entered the area each day: a 21% decrease.

After four years, the implementation of the congestion charging in London reduced traffic in the area, raised £123 million during FY06/07 and allowed the city to invest in its transport system and improve the transit network to accommodate extra passengers. Since February 2007, the original area has even been extended on its west side. Add this to environmental benefits (less traffic means less emissions) and road safety improvements (less traffic means less accidents), among other advantages, and London becomes an example for cities across the world!

What was just implemented in Milan?

Starting January 2, 2008, a urban tolling system called “Eco-Pass” is operated in Milan city center. Vehicles that were sold after 2000 (Euro 3 standard) and 2005 (Euro 4 standard) are exempted from paying the toll. Also, motorbikes, and transit, public services, paratransit and electric or natural gas propelled vehicles are exempted from paying the toll. All other vehicles, build before the year 2000 and Euro 3 standard implementation, and all commercial trucks will have to pay between 2 and 10 euros depending on how much the vehicles affect the environment.

As in London, enforcement is (one of) the key: all 43 access points to the area are monitored by high-tech cameras and fines will be issued, from 74 to 285 euros. The money raised will be used to improve the transit systems, which apparently, is really needed in Milan.

Milan Mayor expects his citizens to let their cars out of the historical center of the city and that they will either walk or use buses and subways. However, some are worried about the efficiency of the transit networks and say that it will not address the increasing demand. Many questions that logically come in mind when a city start such a revolution… Let’s just wait for the experiment to go on and get a feedback to see if urban tolling can be a worldwide reality.

And what about New York and Paris?

This part will be treated in a second article “Congestion pricing: Why New York failed and why Paris is not really thinking about it?” to be published later this month.

References

Transport for London website: here
Report: Laura Blow, Andrew Leicester, and Zoë Smith – London’s congestion charge, Oct. 2003: here
Report: Central London Congestion Charging: Impacts monitoring, Fourth Annual Report, June 2006: here
Report: Central London Congestion Charging: Impacts monitoring, Fifth Annual Report, July 2007: here
Wikipedia article: London congestion charge: here
Article: Congestion Charging four years on – traffic still down across central London, July 11, 2007: here
Article: A Milan, un péage urbain pour combattre la pollution, January 2, 2008: here