Mark F. Muriello Assistant Director Tunnels, Bridges

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Mark F. MurielloAssistant DirectorTunnels,
Bridges Terminals
Value Toll Pricing at The Port Authority of NY
NJ
Value Pricing Regional Workshop
Washington, D.C. June 4, 2003
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The Port Authority of NY NJ
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Congestion A Sense of Urgency

• Annual Cost 10 Billion
• Peak Volumes at Key Links Exceed Capacity
• By 2020 Expect Hours of Delay Up by 60
• Heightened Region-wide Air Quality Concerns
• Overburdened Freight Routes Hurt Competitiveness

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Regions Prosperity at Stake
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Investing in Interstate Mobility

• TBT - Preserve and Stretch Vehicular Capacity
• Intelligent Transportation Systems Technology
• Staten Island Bridges Modernization
• Asset Replacement and State-of-Good-Repair
• PATH - Enhance Reliability and Efficiency
• New, State-of-the-Art Passenger Cars
• Updated Signal System and Automatic Train
  Control
• Continued Station and Service Improvements

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Investing in Gateway Mobility

• Aviation - Airport System Revitalization
• Rail Access Projects - AirTrain, EWR Monorail,
  NEC
• Approach and Terminal Roadway Improvements
• Parking Lot Expansion and E-ZPass Fee Collection
• Port - Deep Water (Hub) Port Capability
• Intermodal Terminal Redevelopment and Expansion
• Access Roadway Improvements
• ExpressRail Expansion

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The Overall Goal
Ensure financial self-sufficiency for the
Interstate Transportation Network.
Interstate Network Net Income ( millions)
Actuals
Projections
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Pricing Policy Objectives

• Encourage shifts to off-peak travel to address
  peak-period congestion.

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Pricing Policy Objectives

• Increase the E-ZPass market share at Port
  Authority crossings.

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Port Authority Passenger Car Toll History
1970 1.00 1975 1.50 1984
2.00 1987 3.00 1991 4.00
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Prior Toll Pricing Structure
TRUCK CASH per axle
TRUCK per axle
AUTO CASH
AUTO
BUS CASH
BUS
HT/LT 3.60 4.00 3.60
4.00 2.70 3.00 GWB 3.60 4.00
3.60 4.00 2.70 3.00 SIB 3.60
4.00 3.60 4.00 2.70 3.00

• Carpool Program 0.50 per trip with E-ZPass and
  3 or more people verified in the vehicle.
• All Bridges Program 3.00 per trip with E-ZPass
  at PA bridges for 20 trips in a 35-day period.
• SI Bridges Program 2.00 per trip with E-ZPass
  at PA bridges for 20 trips in a 35-day period.

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New Pricing Approach

• High cash toll for all crossings.

• Deep E-ZPass discount for autos in off-peak
  periods.

• Reduced E-ZPass discount for autos during peak
  periods.
• Weekdays 6 - 9 a.m. and 4 - 7 p.m.
• Weekends 12 Noon - 8 p.m.

• Deep discounts for truck trips in weekday
  overnight period (Midnt. - 6 a.m.)

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Auto Toll Rates
CASH All Hours
Peak Hours
Off-Peak Hours
New Rate 4.00 5.00 6.00 Old
Rate 3.60 3.60 4.00
Discount Programs (available all hours with
special registration through E-ZPass account)
Carpool Program 1.00 per trip for vehicles with
E-ZPass and 3 or more people verified in
vehicle. SI Bridge Program 50 for 20 Trips in
a 35-day period at the Goethals and Bayonne
Bridges and Outerbridge Crossing with E-ZPass.
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Commercial Toll Rates
Truck Tolls
Peak Hours
Off-Peak Hours
Overnight Hours
CASH All Hours
New Rate 5.00 6.00 3.50 6.00
(per axle) Old Rate 3.60 3.60
3.60 4.00 (per axle)
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Stakeholder Outreach
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Public Communication Plan
Wide-ranging customer communications program and
materials.

• Web Site
• Toll-free Telephone Information
• Direct Mail
• Advertisements
• In-Lane Materials
• Toll Plaza Handouts

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The Importance of the Media
The importance of using the media effectively
cannot be overstated.
Newspapers, radio, and television stories and
interviews

• Ensuring the facts are presented accurately.
• Keeping the program in the public eye.
• Informing the public about the needs and
  objectives.

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Favorable Newspaper Editorials
Outreach to the editorial boards of the major
regional newspapers paid tremendous benefits.
November 18, 2000 The Cost of Crossing the
Hudson Price hikes are inherently painful, but
these are worth applauding, if not demanding, as
a matter of fairness and as a means to fight
congestion.
Most effective means of educating the public and
shaping opinion.
January 18, 2001 The Case for Hikes (The Port
Authority) has devised a rate change designed to
prevent a web of traffic jams from strangling
bistate commerce.
January 29, 2001 As good as could be The
increases across the board are manageable, and
its reasonable that after a 10-year hiatus, a
toll increase was due.
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Public Communication Plan
The importance of using the media effectively
cannot be overstated.
November 18, 2000 The Cost of Crossing the
Hudson Price hikes are inherently painful, but
these are worth applauding, if not demanding, as
a matter of fairness and as a means to fight
congestion.
Wide-ranging customer communications

• Public Hearings
• Web Site
• Direct Mail
• Advertisements
• In-Lane Materials
• Plaza Handouts
• Using Employees as Ambassadors

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The Value Pricing Era

Toll Revenue
The Static Pricing Years
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Incremental Revenue Projections
Incremental Annual Revenue Projection 150
million.

• Model based on price elasticities derived from
  mid-1990s research.
• E-ZPass participation estimated through price
  trade-offs.

E-ZPass market share projected was approximately
4 greater than actual experience.

• Growth in E-ZPass transactions realized more
  slowly.
• Revenue generation greater than expected.

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Toll Revenue Comparisons
Toll Revenue (in millions)
Actual
Actual
Plan
Plan
Plan
Actual
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Value Pricing
Future Revenue Enhancement

• Current toll structure provides authority to
  change peak and off-peak hours.

• Future strategies to adjust pricing in smaller
  increments.

• Time of Day
• Travel Corridor
• Vehicle Type
• Managed Roadway

• Potentially less complicated to advance.
• Opportunity for smoother revenue infusion to
  sustain interstate transportation network.

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Value Pricing
Regional Coordination
Regional coordination of pricing in the future
will ensure optimal traffic management benefits.

• Coordinated hours for maximum impact.
• Jointly targeted market segments (auto, trucks)
  to manage demand.
• Coordinated E-ZPass Customer Service statements
  to encourage behavioral change.

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Roadway Pricing and
Corridor Management
Relationships exist and benefits will be realized.
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Mark F. MurielloAssistant DirectorTunnels,
Bridges Terminals
Value Toll Pricing at The Port Authority of NY
NJ
Value Pricing Regional Workshop
Washington, D.C. June 4, 2003
27
Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
2nd Qtr
5-10 AM Pctg. Traffic Distribution
Does Not Include Holland Tunnel
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Value Pricing
The Early Experience
Encourage shifts to less congested periods.
5-10 AM Pctg. Traffic Distribution

5-6 AM Total Traffic
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
5-10 AM Pctg. Traffic Distribution

6-7 AM Total Traffic
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
5-10 AM Pctg. Traffic Distribution
6-7 AM Total Traffic
5-6 AM Total Traffic
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.

5-10 AM Pctg. Traffic Distribution
5-6 AM Holland Tunnel
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
5-10 AM Pctg. Traffic Distribution

6-7 AM Holland Tunnel
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
5-10 AM Pctg. Traffic Distribution
6-7 AM Holland Tunnel
5-6 AM Holland Tunnel
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
2nd Qtr
3-8 PM Pctg. Traffic Distribution
Includes Holland Tunnel
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Value Pricing
The Initial Experience
Create commercial vehicle incentives.
2nd Quarter
Midnight - 6 a.m. Pctg. Truck Traffic Distribution
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Value Pricing
The Early Experience
Encourage shifts to less congested periods.
Weekends 24 Hour Pctg. Traffic Distribution
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Value Pricing
The Early Experience
Encourage shifts to less congested periods.
Weekends 10 a.m. 10 p.m. Traffic Distribution
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
3-8 PM Pctg. Traffic Distribution
6-7 PM Total Traffic
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
3-8 PM Pctg. Traffic Distribution
7-8 PM Total Traffic
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Value Pricing
The Initial Experience
Encourage shifts to less congested periods.
3-8 PM Pctg. Traffic Distribution
7-8 PM Total Traffic
6-7 PM Total Traffic
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Value Pricing
The Initial Experience
Increase E-ZPass market share at PA crossings.
Autos
Weekday E-ZPass Market Share
Trucks
2001
2002
2003