Takeaways from the 2024 Global Tolling Summit

Takeaways from the 2024 Global Tolling Summit

On September 16th and 17th I had the opportunity to attend the 2024 Global Summit of the International Toll Road Association ( IBTTA ) in Sevilla. As a first-time attendee, I am very glad with my decision to attend and definitely plan to do so next year. I recommend this annual gathering (the host country changes each year) to anyone involved in the policy-making, planning, financing or operation of high-capacity roads. My congratulations to the organisers, sponsors and hosts. IBTTA and SEOPAN, Construcción, Agua y Concesiones de Infraestructuras did a fantastic job in setting the right environment for networking and debating.

With a significant focus on road safety, road user charges (RUC), and the evolution of public-private partnerships (PPPs) in tolling operations, the summit provided a platform to analyze the future of toll roads. This was particularly relevant to my role as the Director of Infrastructure Advisory Services at TYPSA, where we are constantly seeking to integrate our technical excellence into sustainable infrastructure solutions for our clients and stakeholders.

In this article I want to share with you the key ideas that were presented and discussed during the two days at the Summit. I also want to add my own analysis and reflections, from the perspective of a PPP practicioner, on a highly strategic and complex problem: road management models that deliver safety, affordability, resilience and sustainability -both environmental and financial. Do contact me or provide your opinion below to engage in the debate.


Key topics discussed

The 2024 global summit of the International Toll Road Association (IBTTA) presented a range of key topics focused on the future of tolling, road user charging (RUC), and sustainable mobility. Here are the main themes discussed:

  1. Road safety: Attendees and organisers systematically highlighted road satefy as a critical issue, particularly focusing on integrating advanced technology and data-driven solutions into toll road operations to enhance safety.
  2. Smart Tolling and Multi-Lane Free Flow (MLFF) Systems: Countries around the world, including Indonesia and Europe, are advancing towards fully automated toll systems using technologies like MLFF and satellite-based GNSS systems. This shift aims to replace traditional toll booths, enhancing efficiency and reducing congestion.
  3. Sustainability and Road User Charging (RUC): The summit highlighted a growing trend toward using RUC to address climate and sustainability challenges. This included emissions-based tolling systems that charge users based on vehicle emissions (e.g., CO2) under the "polluter pays" principle. Several presentations discussed the implementation of Eurovignette, a system designed to apply tolls based on vehicle emissions and distance travelled in the EU road network.
  4. Technological Innovations and AI: Digitalization of traffic management through the integration of artificial intelligence (AI), big data, and advanced sensor technologies were emphasized as essential tools to manage traffic, reduce accidents, and improve environmental outcomes. These technologies are becoming integral to addressing congestion and pollution issues, especially in urban areas. It is worth mentioning that the IBTTA AI and Machine Learning Subcommittee presented their 2023 integrated report with in-depth analyses on the relevance of these technologies to different aspects of road management: financing, infrastructure management, traffic, cybersecurity and customer satisfaction.
  5. The Future of Road Concessions and PPPs: There was a significant focus on the evolving role of Public-Private Partnerships (PPPs) in road management, particularly as governments explore new concession models post-expiration of many of the existing high-capacity road PPPs that were contracted between the 80's and the global financial crisis. The discussions included scenarios for renewing toll road contracts, the introduction of free-flow tolling, and the role of private entities in long-term maintenance and modernization.
  6. Challenges of Harmonizing RUC in Europe: The discussions acknowledged the fragmented nature of tolling systems across Europe, with varying technologies and frameworks for light and heavy vehicles. There is an increasing push for harmonization, particularly through the European Electronic Toll Service (EETS), aiming to streamline tolling processes across member states.

Overall, the summit emphasized the future of tolling as one driven by digital transformation, sustainability goals, and the need for more efficient and equitable road user charging systems.

Road Safety

Road safety deserves special attention: it was a major theme at the IBTTA Summit, with a clear emphasis on how smart infrastructure and real-time data could significantly enhance road safety outcomes. Discussions highlighted the role of connected vehicles, artificial intelligence, and predictive analytics in preventing accidents and mitigating risks on toll roads. For instance, the use of multi-lane free flow (MLFF) systems allows for safer, smoother traffic, reducing the risk of rear-end collisions common in traditional toll booths.

Smart Infrastructure: The role of connected and autonomous vehicles (CAVs) in reducing accidents by using sensor technologies and data analytics to monitor road conditions and driver behavior. This includes advancements in AI-powered systems to predict and prevent accidents by analyzing traffic patterns.

Real-time Data and Predictive Safety: Presentations highlighted the use of big data and IoT for real-time traffic monitoring, enabling road operators to respond quickly to incidents and prevent secondary accidents. This also includes predictive models to anticipate high-risk areas.

Sustainable and Safe Mobility: Several sessions linked safety with environmental sustainability, such as emissions-based road charging and the design of safer road environments as part of broader sustainability initiatives.

Global Best Practices: Lessons from international toll road operations, particularly in Europe and Asia, where multi-lane free flow (MLFF) tolling systems contribute to safer, smoother traffic by eliminating the need for vehicles to stop at toll booths, thus reducing rear-end collisions.

Road User Charging (RUC)

As governments face decreasing fuel tax revenues, road user charging (RUC) is becoming essential for funding infrastructure. Charging by kilometers traveled, RUC faces challenges like public acceptance, political sensitivity, and complex technology. Effective implementation will require balancing privacy concerns with economic efficiency to ensure sustainable road funding. Specific notes on this topics:

  • Transition to RUC Systems: Governments are under pressure to replace the declining fuel tax revenues with kilometer-based RUC systems. This shift is being driven by the rise of electric vehicles and increasing fuel efficiency.
  • Political Sensitivity and Public Acceptance: RUC is seen as a controversial topic, particularly for light vehicles, due to public perception that it is used as a "cash cow" instead of being earmarked for road infrastructure improvements. A recurring topic is the need for governments to earmark part of RUC revenue for infrastructure maintenance to gain public acceptance and address the maintenance deficit.
  • Technology and Efficiency: Advanced technologies like GNSS (Global Navigation Satellite Systems) are being promoted as the leading solution for RUC. This is especially applicable to heavy goods vehicles (HGVs), with trials underway in several regions.
  • Implementation Challenges: Key challenges include ensuring economic efficiency and privacy compliance. A well-designed system must prevent significant administrative costs from eating into the revenue collected. Furthermore, a mix of different tolling systems (manual, DSRC, ANPR, GNSS) across regions complicates implementation.

The Future of Concessions

Many traditional toll road concessions are due to expire in the next 10 years, but the policies of the different governments regarding by whom or how those roads will be operated and maintained are largely unclear. Ensuring smooth transitions requires innovative contractual and financial strategies and careful long-term planning.

  • End of Traditional Concessions: Many toll road concessions are nearing the end of their contractual periods, creating uncertainty about their renewal. Governments may choose not to renew some concessions, potentially leading to a lack of maintenance and operation (O&M) due to limited availability of public budget.
  • PPP Models and Concession Evolution: Concession models are evolving, with private-public partnerships (PPPs) being adapted to primarily focus on O&M and rehabilitation, rather than the broader development tasks traditionally included. The modular combination of tasks allows for more flexibility in financing.
  • Risks of Transition: As governments explore the generalization of RUC, they face a risk of political resistance. Additionally, if concessions end without proper renewal plans, there may be a decline in the quality of road maintenance.


The AP6 toll road in Madrid, operated by Abertis. The concession contrat is due to expire in 2029. Photo by Xemendura on Wikicommons

Reflections on the future of road management and financing

Here are some reflections and considerations concerning road user charges (RUC) and private operation models like concessions and Public-Private Partnerships (PPPs), from the stimulating exchange of information and discussions at the 2024 IBTTA Global Summit, and my own experience as an infrastructure advisor.

Balancing Commitment and Flexibility in Concession Models

One of the issues that generates more expectations, debate and controversy in the infrastructure arena is Concessions and PPPs. I have written extensively about the need for better private participation models that address past mistakes, the fiscal illusion trap or the fascinating matter of operational risk in the age of climate and technosocial complex.

The history of private participation in infrastructure since the development of railways in the US in the 19th century reveals that a primary challenge in infrastructure regulation, especially in PPPs and concession models, is the balance between commitment and flexibility. Governments need to provide sufficient certainty to private operators regarding tariff structures and operational parameters (such as toll rates), which enables long-term investment. However, the concession contracts must also have built-in flexibility to adjust to unexpected economic, technological, or political changes, protecting the parties -and, ultimately, users and taxpayers- from opportunistic behaviours. By the way, if you have not read Prof. Gómez Ibánez masterpiece on Infrastructure Regulation, you should.

In the context of sustainability and emissions-based tolling, this is critical. As countries adopt dynamic pricing models that account for environmental impact (like CO2 emissions), contracts will need mechanisms to adapt to new regulations and technologies. For instance, toll rates might need to be recalibrated periodically to reflect changes in vehicle technology, emissions standards, or traffic patterns. Contracts lacking flexibility could face renegotiations or disputes, which have historically undermined infrastructure partnerships.

The Importance of Regulatory Stability

Historically, one of the risks in long-term PPPs has been the potential for regulatory opportunism, where governments revise toll or tariff structures unilaterally or introduce unanticipated requirements, especially under political pressure from users (i.e., motorists) or in response to public outcry over rising tolls or technological progress.

The 2024 Summit discussed the growing reliance on road user charging (RUC) and technologically-driven tolling systems (such as MLFF and GNSS-based systems). In this context, maintaining regulatory stability becomes even more critical to ensure private investors, suppliers and contractors can recover their investments without facing undue political risk.

Governments should design regulatory frameworks that insulate private operators from drastic political changes, while still allowing for adjustments in line with sustainability goals (such as reducing carbon emissions).

This is no minor issue: it is a fact seen in many countries that over-regulation or sudden policy shifts can lead to aversion among investors, driving them away from public infrastructure projects.

Incentivising Efficient and Sustainable Operations

The success of contract models in infrastructure often depends on properly aligning incentives between the public and private sectors. The private operator must be incentivized not only to operate the toll roads efficiently but also to meet broader public goals such as reducing traffic congestion, enhancing safety, and promoting sustainability.

At the 2024 Summit, the emphasis on emissions-based tolling and road safety technology illustrates this principle. For these initiatives to succeed within a PPP framework, performance-based contracts are essential. These contracts could offer rewards or penalties based on achieving specific environmental or safety outcomes (e.g., lower emissions, reduced accident rates). This approach encourages private operators to invest in new technologies, such as AI-powered safety systems or electric vehicle incentives, which not only meet their financial goals but also align with public policy objectives.

Use Government Guarantees with Caution

Government guarantees in PPPs can lead to inefficient outcomes if they are too generous, not only in terms of unfairly high returns for the private partner but also worse performance, from a reduction of the operator's incentive to perform efficiently, knowing that losses will be covered by the government.

The 2024 Summit’s discussions on expanding road user charges and private sector involvement in a climate of mistrust about the benefits of PPP models highlight the need for carefully structured risk-sharing agreements.

New (or renewed) concessions should ensure that risks (e.g., fluctuating traffic volumes or changes in tolling technology) are fairly distributed between the public and private sectors. Over-reliance on minimum revenue guarantees can undermine the financial sustainability of the public sector, especially if traffic projections fail to materialize due to shifts towards greener transportation alternatives or teleworking, as was noted in post-pandemic traffic trends.

Unbundling, Coordination and Competition

As I have argued in previous articles, it is about time that we stop thinking of an infrastructure service as a monolythic thing. A major infrastructure includes many different types of assets, functions and services, some of which can potentially benefit from private sector competition, and some that will probably not. In the toll road sector, this could apply to differentiating between infrastructure maintenance (potentially monopolistic) and value-added services (such as smart tolling or safety technology), where competition could enhance efficiency and innovation.

The IBTTA Summit has highlighted that digital tolling and smart infrastructure require integration of various service providers, from tech companies to traditional road maintenance operators. A regulatory framework that encourages competition in these ancillary services, while ensuring proper coordination with the monopolistic infrastructure operator, can lead to more innovative and cost-effective solutions.


I believe these principles should guide future PPPs and concession models, ensuring that both public and private stakeholders benefit while advancing the broader goals of equity, sustainability and road safety.


Jose Cordovilla is Director of Infrastructure Advisory Services at TYPSA , a Madrid-based engineering consulting firm with six decades of experience helping clients around the world develop and manage infrastructure through excellence.

Visit our website for examples of successful PPP/concession projects where we have been advisors.

JOSE ANTONIO TIMANA MARCHENA

SENIOR GEOTECHNICAL AND GEOMECHANICAL ENGINEER

3mo

Gracias por compartir

Juan Carlos Bravo Recio

Founder at Foraim Management

3mo

It´s been a surprise not to read anything of the German public concession model and their structural reform of the Trunk Roads Administration in 2018. An example to follow up and learning.

Tim McGuckin

Transport Technology & Policy, Program & Association Management, Client Support & Business Development

3mo

Jose, thank you for this post. I did not have the opportunity to attend this IBTTA event. While I missed the networking, the facility tours and the warm camaraderie one experiences at IBTTA venues, at least I got a great taste of the excellent content. I could comment on several aspects of your excellent post, but I will limit it to one question about the relationship between RUC and PPPs: What are your thoughts about the potential of national RUC programs posing significant threats to the viability of PPPs (which operate facilities and exact fees). This potential conflict arises from: 1) the potential redundancy in charging when both RUC and toll roads exist, 2) direct competition for revenue between national RUC and PPP toll roads, 3) the ability of RUC technology to replicate flexible pricing models used by PPPs, and 4) the reduced competitive advantage of PPP toll roads if RUC improves all roads. Again, thank you for your report! Regards, Tim

Bill M. Halkias, PE, F.ASCE, F.ITE

President - International Bridge Tunnel & Turnpike Association (IBTTA) and Immediate Past President & BoD Member at International Road Federation (IRF),

3mo

Jose Cordovilla, many thanks for your kind words.

To view or add a comment, sign in

Insights from the community

Others also viewed

Explore topics