Road User Charging for Urban Freight Vehicles: A Systems Approach

Road user charging (RUC) has a long history as a mechanism to recover infrastructure maintenance and capital costs. The present RUC systems are facing issues such as transparency, cross-subsidization, environmental concerns and reducing revenue due to the likes of lessening fuel tax as vehicles become more efficient. Therefore, this paper reviews the strengths and weaknesses of the present RUC mechanisms implemented in the world with respect to stakeholder problems and demands of the freight industry and to describe the need for a more appropriate, practical and sustainable approach that can be used in the future. Finally, a model is proposed that is transparent and considers usage-based charging addressing most of the weaknesses highlighted in the models reviewed. Further, it considers externalities produced by heavy vehicles into account. The model has the potential to provide answers to key stakeholder issues and will lead to a sustainable freight transport system in the future. Encouraging fuel-efficient modes, optimization of loading, routing and logistics systems, and long term land use planning are a few of them.