The Importance of Roads in Relation to the Socio-Economic Development - Essay Example

Managing the Roads Movements of goods or persons from one place to another forms part of society's everyday living. As such, it plays a significant role with respect to road usage and economy as well. This paper aims to discuss the merits of the different means of charging the motorists for road use as compared to public transport subsidy. Similarly, this paper will evaluate which among the two aforementioned approaches is more political. City planners together with the appropriate government agency provides road networks whether in existence or under construction which envision to spur progress, stability and self reliance in society, taking into consideration demography, socio-economic factors, infrastructure and utilities, local administration and land use among others. These planning methods will correspondingly allocate land as well as road usage for future development needs, maintenance of ecological balance and the promotion of an efficient system so as to address the road problems and management concerns. Roads as such create and generate jobs which consequently forms part of the transport industry. Table 1: The Transport Industry in the European Union1 Sector Workforce in millions % of EU workforce (220 million) Data source (own estimates) Road transport 6.3-6.8 2.9-3.1% International Road Transport Union (IRU) Own-account 3.0-3.5 Employed in haulage 2.1 Passenger transport 1.2 Motor trade, maintenance and services 2.1 1% European Council for Motor Trades & Repairs (CECRA) Automobile and Equipment manufacturing 1.9 0.9% European Automobile Manufacturers Association (ACEA) Road related civil works 1.5 0.7% European Construction Industry (FIEC) Motorcycle Industry 0.8 0.4% The Motorcycle Industry in Europe (ACEM) Refining & distribution 0.6 0.3% European Petroleum Industry Association (Europia) Insurance 0.3 0.1% Comit Europen des Assurances (CEA) TOTAL 13.5-14.0 6.3-6.5% Based from the foregoing, the transport industry, together with the other members of the workforce utilizes the roads in order to attain and sustain economic growth. Considering the importance of roads in relation to the socio-economic development, the government on its part under its inherent power exercises its right to plan and implement programs and legislation to address it. Correspondingly, since it is vested with public interest, the government regulates road usage and public transport. This is to protect the public's interest as well as to promote the health, comfort, safety and welfare of the people. Road user charging is defined as a mechanism through which motorists pay to use a defined area of road and key bridges. 2 Similarly, it can also form a larger scheme to charge for the use of road space and provide a means through which road space can be re-allocated in favour of public transport. 3 Road charging can be broadly classified in to four 4 namely: Tolls, Congestion Pricing, Value Pricing and Variable or Peak Period Pricing. Tolls are considered the long-standing and least controversial among the road charges. It has a universal acceptance as the legal and justifiable means for raising revenue for newly acquired transportation. In the same manner, it is the most perceptible way of road charging. In the European Union, tolled roads exist in eight member countries as well as to a growing number of Central European countries5 and in other parts of the world. Similarly, these tolls can take a number of varieties which may be concealed to the motorists; these hidden charges are often referred to as the shadow toll. 6 The other type called Congestion Pricing is also known as congestion charging. This type of road user charge levies fee precisely with regard to the quantity of the congestion bring about by a car's journey. It is likewise aimed at putting a ceiling cap on the use of automobiles in crowded places. Its fundamental scheme is for the allocation of meagre road spaces. These congestion pricing addresses the consequences which link up congestion to pollution and improved journey times amongst others. It can be deduced that many finds the congestion charges as castigatory in nature and stimulated by the need to restrict freedom of movement. Consequently, this end result in urban areas is that a congestion charge is being imposed mainly because of the traffic conditions. This manner of road user charge should most importantly provide for the unambiguous set of definition of what congestion is all about. Another form of road user charge is the Value Pricing. This is regarded as the most recent use of road charges.7 This method of charging is to be paid for the first-class quality of service. The facility was advertised to the public as offering the travelling public with a faster, safer and more reliable trip in return for a fee.8 This form of road charging may be utilized in the years to come. This is for the reason that many of the current road networks are becoming congested and travel in the "old roads" are greater than ever slower and less dependable, and as such, many travellers will be willing to pay for the "privilege" of using these roads so as to reach their respective destination in the soonest possible time as compared to using the so called old road network. Lastly, the Variable of Peak Period Pricing provides for higher road charges during peak hours. It endeavoured to dissuade motor vehicle passage in specific places or at particular times which will offer a congestion free travel fee in exchange of travelling during the so called peak hours. Applying this kind of road charging is synonymous to activities that have higher charges during peak days like that of hotel rooms, travel and recreation among others. Aside from the aforementioned there are also other modes of road charging among them are the Area Licensing which will enable the users to enter certain defined area by giving them a license; there is also the Cordon/zone charging, which levies fees depending on how many journey in to the zones were made; there is also the Distance-based charging which imposes a fee in proportion to the distance travel; there is also the Time-based charging, where a fee is charged in relation to the time spent on the road. Public Transport on the other hand, comprises all the transport systems which the passengers avail the services of bus and rails among others. It is commonly regarded and regulated as common carrier which transports persons or property from place to place for compensation, offering his services to the public generally. These public transport systems in general rely on government subsidy to supplement fare collections, although there are few transport systems which are unsubsidized commercial establishments. There are diverse opinions on increasing the subsidy on public transport. One argument is that a public funding of public transit is excessively expensive and ineffective, they claim that the per mile construction and maintenance costs and expenses are often equal or exceeded that of a free way, on the contrary supporters of public transport call this into question with regards to urban areas. Another view is that public transport hardly ever covers its operating costs through fares. Table2: Marginal Returns to Subsidy (Best possible balance between fare and service subsidy and the over all subsidy levels)9 Area Net Benefit Per of Subsidy % Change to Equate Returns Marginal Net Benefit if Equated Fares Services Fares Services West Midlands 0.21 0.41 +5 +4 0.24 West Yorkshire 0.29 -0.19 -24 -13 0.18 Greater Manchester 0.33 -0.29 -23 -17 0.19 Merseyside 0.31 0.15 -6 -3 0.26 South Yorkshire 0.03 0.03 0 0 0.03 Aside from the foregoing, there are also social issues that go along with it, like it catches the attention of the so called undesirable elements and violence plundering the passengers. To the contrary, it has also been argued that in a number of locations worldwide, car accidents caused fatalities among the passengers and travellers as well. Based on the abovementioned arguments, I submit that road charging is the more political approach in managing the roads and infrastructure. This is because Road user charging is not an end in itself, but it is intended to reduce traffic by managing the road. Road charging will address congestion and traffic enlargement through out the years. Similarly, it facilitates reduction of environmental pollutants which are hazardous to the health and well being of the society as a whole. Aside from the foregoing, it can be deduced that the revenues earned from the road charging schemes can facilitate alternatives to private vehicle in the vein of a safe, useful, reliable and affordable public transport as well as enhanced facilities for health buffs like the cyclists and for the pedestrians as well. In that order road charges will likewise extend its benefits to the poorest households who do not have access to cars and other private vehicles, so in this light, they will benefit from the better-quality and advanced investment in facilities which are paid for by the road user charges and in the same light, poorer households with cars would likewise gain a much lower road user charges. Works Cited A new concept for paying for road use. November 10, 2006 November 10, 2006 Literature Review. November 10, 2006. Orski, Kenneth. Charging for the Use of Roads. November 10, 2006 Road User Charing. November 10, 2006 The European Commission's Infrastructure Pricing Effort (June 1, 2000) November 10, 2006. < http://www.erf.be/content/general/detail/2335> Read More