Skip to main content

Easing congestion in Latin America

According to transport planning consultancy Steer Davies Gleave (SDG), the experiences of European cities like London, Milan and Stockholm show that implementing a congestion charging scheme has a positive effect on road user behaviour leading to a better quality of life for residents. However, it also poses challenges for decision makers, technicians, the private sector and users. In Latin America, where congestion levels are high and continuing to rise in its major cities, there is an opportunity to le
January 28, 2015 Read time: 3 mins
According to transport planning consultancy 801 Steer Davies Gleave (SDG), the experiences of European cities like London, Milan and Stockholm show that implementing a congestion charging scheme has a positive effect on road user behaviour leading to a better quality of life for residents. However, it also poses challenges for decision makers, technicians, the private sector and users.

In Latin America, where congestion levels are high and continuing to rise in its major cities, there is an opportunity to learn from European methods to help reduce and manage the problem.

Members of SDG’s Latin American division recently took part in a fact finding mission in London to see what lessons could be learned.

While London was not the first city in the world to introduce road pricing in urban areas, it was certainly one of the first to apply it across a large area. Deliberately conceived as a simple scheme, it now delivers a 20 per cent reduction in traffic levels inside the charging zone.

Report author Alejandro Obregon says some key lessons can be drawn from the London scheme:

The London Congestion Charge (CC) is part of a package of measures - not a stand-alone policy. Other measures need to be considered and implemented in parallel.

The CC was not primarily developed as a new source of revenue. The aim of the scheme was to reduce congestion, and all the potential revenue needs to be reinvested to support this goal. Communicating and handling this well is crucial to gain support for the project.

The CC, at least in its first phase, had broad public support. Public acceptance is very important. The introduction of CC will always be controversial and will have some strong opposition.  

It is important to remember that London had a number of advantages which might not be available in other cities. Crucially, the zone which was later covered by the charge already had a very extensive highly used public transport.  At the same time, the developers of the scheme in London were pragmatic. Knowing that the scheme had to be popular and easy to use, they introduced a single flat charge levied across the working day – to be paid without discount by the great majority of users. While they knew that varying the charge by time of day and day of the week to reflect real congestion conditions might be more effective at reducing the number of road users, they rejected it for the advantages of simplicity.

Implementing a congestion charging scheme was relatively easy, but other cities might face a more challenging environment which could lead to higher costs.

“The London example certainly does set a precedent but, since its introduction, travel behaviour and technology have evolved, bringing new opportunities and challenges for transport planners and policy makers,” says Obregon. “While some of the principles are still valid, fresh thinking is required to take the London experience forward for implementation in Latin American cities.”

For more information on companies in this article

Related Content

  • Road pricing is inevitable – because the ‘user pays’ principle is fair
    June 14, 2018
    We pay for roads through our taxes: the poor pay proportionately more, and effectively subsidise the rich. It would be fairer to accept the ‘user pays’ principle, says Dr John Walker. Road pricing is already used worldwide to combat congestion and pollution, to compensate for falling revenues from fuel duty (‘gas tax’), to provide an alternative (and fairer) means of charging motorists than the 80-year old fuel tax and to improve the efficiency of and expand transport infrastructure. However, it could and s
  • Smart phones offer smarter way to pay for travel
    December 16, 2013
    David Crawford reviews developments in near field communications for mass transit payments. ‘A carefully-designed and well-implemented mobile near field communications (NFC) solutions can give passengers a compelling experience that will encourage them to make greater use of public transport.’ That was the confident conclusion of a recent joint White Paper drawn up by the International Association of Public Transport and the global mobile operators’ representative group GSMA.
  • The challenging European road to carbon neutrality and the need for distance-based charging
    November 1, 2023
    Fuel taxes are falling and EVs have the potential to create social equity issues. The answer may lie in expanding the use of technology which has successfully been used for two decades with trucks
  • Covid-19 cleared the air: ITS can keep it clean
    July 31, 2020
    Covid-19 has created cleaner air: ITS can help keep it that way – but it’s not going to be straightforward, as Graham Anderson discovers