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New Expressway Triggers New Toll Management

With great investment in transport infrastructure, the total length of expressways in China is now over 16,000 km, ranking third in the world. The growing number of first class expressways has helped relieve traffic congestion, improve the investment environment and speed up urbanization. According to current Ministry of Communications plans, there will eventually be a 25,000-km network, theoretically saving 10% in gasoline usage by vehicles and generating direct economic benefits amounting to 40-50 billion yuan.

But, despite the rapid development of expressways, the ministry has not yet formulated a complete and unified toll structure. The tolls charged by the various expressway management companies are ratified jointly by individual provincial transportation and price bureaus based on the investment scale, total capital amount, loan repayment period and refund requirements, traffic flow and users' return, the endurable payment level, etc.

The 1,262-km Beijing-Shanghai expressway -- mainly four lanes but with six on some stretches - opened to traffic on December 19. It connects Beijing, Tianjin and Shanghai and the provinces of Hebei, Shandong and Jiangsu.

There are 11 tollgates on its trunk line, one inside the Beijing region, two each in Hebei, Tianjin and Shandong, three in Jiangsu and one in Shanghai. But the toll rate varies in each section.

For example, the toll rate per km inside the Beijing region is 0.34 yuan for passenger cars, 0.47 yuan for minibus, 0.61 yuan for medium-sized truck and 0.81 for heavy trucks. Meanwhile, in Tianjin the rates are 0.71, 1.00, 1.16, and 1.43 yuan respectively. The average toll rate per km among the 11 tollgates on this new expressway is 0.42 yuan for passenger cars, 0.64 yuan for a minibus, 0.84 yuan for a medium -sized truck and 1.00 yuan for a heavy truck.

This means that it will cost 535 yuan to drive the entire distance in a passenger car. When one adds the other costs of the journey, the price is too high for the average driver.

No Threat to Railway: Railway Official

Mr. Hong, a businessman, is a regular rail passenger between Beijing and Shanghai. But he says, "if they can make it more comfortable and solve the inconvenience of meals and toilet breaks, I would be willing to go by bus.

According to a senior official from the railway department, the new expressway will not bring much pressure on rail transport between the two cities.

First, speed.

Theoretically, it can take just 10 hours if a car keeps cruising at top speed. But it is impossible in reality because of the need for meal and toilet breaks. The current running time of the trains is just 12 hours, including a midway stop and locomotive replacement. A train could run the full course without a stop at top speed in 10 hours.

A reduction of two hours in journey time, without meal and toilet breaks, by road, therefore, will not be a big attraction to passengers.

Second, safety.

Unless there are extreme problems like floods, trains can run on their rails under almost every weather condition without interruption. But the weather can seriously affect expressway operations. For safety reasons, expressways may have to suspend operation if there is heavy rain, fog, snow or gales. Even in fine weather, trains are still comparatively safer than autos.

Third, comfort.

In a car, passengers have to remain in the same seat for over 10 hours, and there are few distractions except to talk to each other. Meanwhile, on the train, one can take a walk, or chat or engage in some amusement with fellow passengers. Moreover, there are comfortable sleepers for rest, readily available meals and other professional services.

In view of time, safety, comfort and cost (tolls, gasoline and auto's depreciation cost), the official argued that rail transportation is still the primary choice for trips.

A Boost to Regional Economy: Economist

"The operation of Beijing-Shanghai expressway will inject new vigor into regional economic development", said an economist Deng Hongbo.

Deng said one couldn't assess the expressway just based on simple revenue figures. In a macro view, transportation and communication infrastructure construction are the basis of national economic development and an important part of state's pro-active fiscal policies.

The four major expressways of Beijing-Shenyang, Shenyang-Changchun-Jilin (City), Beijing-Shanghai and Shanghai-Hangzhou-Ningbo, with a total length exceeding 2,500 km, have united China's main economic zones, including the Beijing-Tianjin region, the Bohai Bay region and the Yangtze Delta.

The Beijing-Shanghai expressway will supply a gap in middle distance transportation and enhance smooth exchanges of material, information, talents, technology and capital between the two cities. It traverses three of the country's most important cities and provinces, at various development phases, and brings business opportunities that will help to narrow the regional development imbalance.

New Toll Regulation Underway

A unified toll management is under consideration in a bid to combat the problem of different charges by individual tollgates, said Hu Xijie, vice-minister of communications.

Officials are now working overtime to formulate a new and comprehensive pricing mechanism standard. Cars running on expressways will be classified, and the pricing mechanism standardized to bring new highways into full play to boost regional economic development. Some tollgates along expressways will become obsolete when the one-stop E-toll card is introduced, according to Hu.

The Ministry of Communications will do a pilot survey on computerized network E-toll cards soon along the Beijing-Shenyang Expressway.

(CIIC 12/26/2000)


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