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A shadow toll is a contractual payment made by a government per driver using a road to a private company that operates a
road A road is a linear way for the conveyance of traffic that mostly has an improved surface for use by vehicles (motorized and non-motorized) and pedestrians. Unlike streets, the main function of roads is transportation. There are many types o ...
built or maintained using
private finance initiative The private finance initiative (PFI) was a United Kingdom government procurement policy aimed at creating "public–private partnerships" (PPPs) where private firms are contracted to complete and manage public projects. Initially launched in 19 ...
funding. Payments are based, at least in part, on the number of vehicles using a section of road, often over a 20- to 30-year period. The shadow tolls or per vehicle fees are paid directly to the company without intervention or direct payment from the users. On more recent shadow toll schemes in the United Kingdom, payments reduce as the number of vehicles increase, to encourage availability of the road rather than the number of vehicles carried.


History

First proposed by the
UK Government ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd , image = HM Government logo.svg , image_size = 220px , image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg , image_size2 = 180px , caption = Royal Arms , date_est ...
in 1993, shadow tolls have been widely used in the UK and also to a more limited extent in other countries, including Belgium, Canada, Finland, Netherlands, Spain and the United States. Portugal introduced schemes in 1999 but replaced these with the public tolls in 2004. The use of shadow tolls in the UK has reduced over time with PFI funded project payments being made based primarily on the availability of the road, and not on the number of vehicles using it. Beyond a certain number of vehicles, the 'toll' paid by the government in more recent schemes is zero.


Criticism

The
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
observes that
transaction costs In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. Oliver E. Williamson defines transaction costs as the costs of running an economic system of companies, and unlike pro ...
'can be very high' due to the difficulties surrounding legal arrangements and the need for continuous vehicle counts and that use of shadow tolls has led to significant criticism in The Netherlands. The Portuguese government removed shadow tolls in 2004 after finding that "payment obligations in connection with the shadow toll system were not compatible with the need to spend on improving and maintaining the other national motorways".


List of shadow toll roads


Europe

;United Kingdom * M1 Lofthouse to Bramham link road * M40 Denham to Warwick * M80 Stepps to Haggs * A1 Darrington to Dishforth *
A1(M) A1(M) is the designation given to a series of four separate motorway sections in England. Each section is an upgrade to a section of the A1, a major north–south road which connects London, the capital of England, with Edinburgh, the cap ...
Alconbury to Peterborough * A13 Limehouse to Wennington (Greater London) * A19 Dishforth to Tyne Tunnel *
A249 The A249 is a road in Kent, England, running from Maidstone to Sheerness on the Isle of Sheppey. It mainly functions as a link between the M2 and M20 motorways, and for goods vehicle traffic to the port at Sheerness. In 2006 an upgraded d ...
Stockbury (M2) to Sheerness * A30 Exeter to Bere Regis *
A417 The A417 is a main road in England running from Streatley, Berkshire to Hope under Dinmore, Herefordshire. It is best known for its section between Cirencester and Gloucester where it has primary status and forms part of the link between the m ...
Gloucester to Cirencester * A419 Swindon to Cirencester * A50 Stoke to Derby link * A55 Llanfairpwll to Holyhead * A69 Carlisle to Newcastle ;Belgium *A605 / E25 Cointe Tunnel ;Finland *VT4 / E75 Järvenpää-Lahti ;Netherlands *A9 Wijkertunnel ;Spain * Madrid M-45 Road *
Rande Bridge The Rande Bridge ( gl, Ponte de Rande, es, Puente de Rande) is a cable-stayed bridge 9 kilometres from the city of Vigo and 18 kilometres from the city of Pontevedra, in the Province of Pontevedra, Spain. It spans Vigo bay across the Rande Strait, ...


Oceania

;Australia *
Peninsula Link Peninsula Link (Frankston Bypass) is a freeway that completes the missing sections of the Mornington Peninsula Freeway, running from the EastLink interchange at Seaford, Melbourne, running along the eastern fringe of Frankston. It runs via ...
: Victoria, Australia


Middle East

;Israel * Highway 431


North America

;Canada *
New Brunswick Highway 2 Route 2 is a major provincial highway in the Canadian province of New Brunswick, carrying the main route of the Trans-Canada Highway in the province. The highway connects with Autoroute 85 at the border with Quebec and Highway 104 at the border ...
Fredericton to Moncton


See also

*
Toll road A toll road, also known as a turnpike or tollway, is a public or private road (almost always a controlled-access highway in the present day) for which a fee (or ''Toll (fee), toll'') is assessed for passage. It is a form of road pricing typically ...
*
Highways Agency National Highways, formerly the Highways Agency and later Highways England, is a State-owned enterprise, government-owned company charged with operating, maintaining and improving Roads in England, motorways and major A roads in England. It al ...


References

{{reflist


External links


About DBFO
UK Highways Agency
DBFO
UK Highways Agency
Summary of UK Parliamentary questions relating to DBFO roads
UK Highways Agency

Federal Highways Administration
All that money growing on trees
FT.com blog March 2012

Toll (fee) Roads in the United Kingdom Public–private partnership


External websites in relation to North American shadow tolls


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