SINGAPORE: Transport analysts have proposed implementing a more equitable system to manage road congestion and vehicle ownership, suggesting a shift towards usage- or distance-based charging.
Channel News Asia reports that transport analysts believe this system would address the limitations of the current Electronic Road Pricing (ERP) and Certificate of Entitlement (COE) schemes.
Under the current ERP system, motorists are only charged when entering congested areas during specific times, while the COE operates as an ownership-based quota license.
However, Transport Minister Chee Hong Tat expressed openness to gradually reviewing the idea of increasing the total vehicle population while implementing higher usage-based charges to alleviate traffic congestion.
This proposed system would include location and time-based charges similar to ERP and potentially incorporate distance-based charging in the future.
The suggestion came in response to Member of Parliament Saktiandi Supaat’s proposal to increase the vehicle population while maintaining a car-lite vision.
Economist Walter Theseira highlighted the need to optimise the trade-off between vehicle benefits and societal harms such as congestion.
He said the COE quota system is a “fairly crude way” of addressing usage, suggesting that usage-based controls could encourage more rational vehicle use.
“It controls the overall population, but doesn’t do anything for actual usage. So a small vehicle population where the owners all decide to drive to the same areas frequently ends up having as many problems as that of a larger vehicle population with more distributed or infrequent use,” he said.
“That is where usage-based controls come in. By pricing more for usage, we could have that larger vehicle population and encourage more rational or distributed use of vehicles,” he added.
He also noted that private vehicles are still the most convenient way of travel, noting, “But if everyone has access to vehicles, our tendency to use them at the same time and same place means that we aren’t able to actually enjoy that convenience at all due to congestion.”
Associate Professor Raymond Ong pointed out equity issues with the current ERP system, which charges without considering the distance travelled or the resulting congestion.
This has led to concerns about fairness, especially for those driving short distances during peak hours. “In this case, is it fair?” Mr Ong asked.
Assistant Professor Terence Fan noted the changing commuting patterns post-pandemic. With more Singaporeans relocating away from the central business district, commuting needs increased.
While the proposal for distance- or usage-based charging offers potential solutions to congestion, analysts remain sceptical about its feasibility and acceptance.
Technical challenges, such as adapting existing ERP systems, and political challenges, including public acceptance and stakeholder impact, must be addressed.
Minister Chee emphasised the need for careful study and consideration of trade-offs before implementing any changes. He acknowledged the potential impact on stakeholders, such as taxi and private-hire car drivers, who may face higher charges for longer distances.
He said, “We will need to examine the impact on these groups, though usage-based charging is, in principle, a fair approach.”
Ultimately, a balanced approach that combines usage-based charges with ownership controls and other measures, such as parking charges, is essential for achieving sustainable traffic management goals.
Minister Chee stressed the importance of maintaining smooth traffic flow while ensuring fairness for all stakeholders. /TISG
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