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KPMG Toll Study 2015

KPMG Toll Benchmarking Study 2015

KPMG International’s Road Tolling Survey 2015 aims to bridge that gap.

KPMG International’s Road Tolling Survey 2015 aims to bridge that gap. Based on...

Demand for new capacity isrising – often times faster than resources – and governments are struggling tofind the right balance between managing their growing maintenance backlogs and delivering system expansion to address the needs of the public. Not surprisingly, therefore, the focus has shifted towards optimizing the use of existing assets.

Improved operating efficiency can lead not only to direct cost savings but also to increased usage, extended asset life, and enhanced customer satisfaction. More importantly, perhaps, improved asset efficiency can also lead to improved revenues for asset owners. And for governments, this means more money to invest into existing and new infrastructure.

Our experience suggests that one of the first places governments tend to look for improved efficiency is in their roads. Recognizing that the public is often willing to pay more for improved service, we have seen a dramatic increase in the number of toll roads world-wide. Some are government owned and operated. Others have been transferred to the private sector under public-private partnership (P3) arrangements.

At the same time, technology has enabled a gradual – but profound and sustainable – shift in the way that toll roads are operated. And as a result, every element of the value chain has been affected, from the users’ driving experience to the core operations of the back office. Open road tolling, electronic toll collection, Global Positioning System (GPS) and new back office systems and technologies are revolutionizing the industry and streamlining operational efficiency.

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Measuring operating margins and cost efficiency

There is a lack of consistency in the way operators account for and calculate their cost to collect tolls.