UPDATE
Last July, we posted about the plans for congestion charging in New York City (below). Although this is a proven strategy to effectively manage congestion, it is quite difficult to implement it. It was not different in NYC.
From 30th of June, drivers entering Manhattan were supposed to pay up to $15 for cars and up to $36 for large vehicles (buses and large trucks). However, yesterday the New York Governor Kathy Hochul, announced that the program would be paused indefinitely.
With cameras already in place, it is surprising that this decision was made so close to launch date. The official reasons for the shutdown include NYC slow economic recovery post-pandemic.
This was set to be USA’s first congestion pricing scheme and could have had a significant impact on other cities. The adoption of such strategy by a representative city like New York would send a strong message to politicians on topics of transportation and car reliance.
July 11, 2023
New York City is soon to join London, Stockholm and Singapore on the list of cities that apply congestion pricing to manage traffic volumes. Last month, the plan to charge drivers entering Manhattan was approved by the US federal government.
The Metropolitan Transportation Authority (M.T.A.), responsible for rolling out the program, advises that charging could begin in the first semester of 2024.
The rates have not been released yet, but a proposal under review suggests prices between $17 to $23, depending on the time of day, with the revenue being directed to fund improvements to public transport network and infrastructure. On top of that, the program will assist in achieving climate goals and improving air quality.
Controversies immediately followed the announcement. Main concerns revolved around topics such as traffic increase in neighbouring areas, taxi and share ride drivers who would pay several times a day to enter the area and the impact on commuters from New Jersey.
Previous studies have shown that congestion charging is a long term solution to traffic congestion with reductions ranging from 10% to 30%. The main challenge in implementing such schemes is political and general public support.
In Australia, the introduction of congestion charging in Sydney and Melbourne has been discussed over the years.
The NSW Government announced recently that it has categorically ruled out congestion pricing in Sydney. Instead, the Government is evaluating tolls around Sydney to create a pricing system based on access and distance, with consideration given to making it fairer for commuters living in areas with poor public transport service.