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A Freight Plan for the NYMTC Region<br />

both of which use highway bridge and tunnel tolls to cross-subsidize public transportation<br />

and other activities. Tolls can also serve an important function in facility traffic<br />

management. Many innovations in toll policies have occurred in the region during the<br />

past decade including variable pricing by time of day, vehicle class, and use of<br />

E-ZPass transponders. These policies have resulted, for example, in shifting some<br />

truck traffic out of the peak periods. The creative adaptation of toll policy continues to<br />

hold promise as a major source of funding for all types of transportation investment in<br />

the region. A <strong>regional</strong> study should be initiated to consider a wide menu of tolling<br />

and financing options.<br />

The region already is unique in its reliance on vehicular toll revenues, not only to<br />

financing crossings and major highways, but to provide cross-subsidy to transit and<br />

other transportation facilities that balance demand and maintain mobility on the<br />

<strong>regional</strong> transportation network. Toll authorities in most instances rely on this source<br />

as the primary means of operating and maintaining the tolled facilities. Pooling of toll<br />

revenues with other resources provides a major source of support for existing<br />

PANYNJ and MTA capital programs. Additional use of this mechanism is a potential<br />

means to broaden the resources available for highway, rail, and other transportation<br />

improvements that would benefit <strong>regional</strong> goods movement. Toll structure refinements<br />

for different facilities and vehicle classes may also support other network management<br />

programs. Priorities for allocating this limited capital resource, and issues of<br />

equity among users and affected communities, would present a challenge in attempting<br />

to increase the region’s reliance on toll financing for transportation improvements.<br />

• Rail User Fees – Shippers using rail or the railroads themselves could be assessed a<br />

surcharge (which they may or may not chose to pass on to customers). The advantage<br />

of this approach is that the beneficiaries of the investments would help to pay for<br />

them. The disadvantages are that the railroads are relatively under capitalized corporations<br />

and are reluctant to pay for major infrastructure improvements; the use of privately<br />

operated facilities by competing carriers would need to be addressed; and<br />

increasing the cost of rail shipment would discourage the very effect it is trying to<br />

achieve – increasing rail mode share.<br />

• Private Development of Facilities – The greatest potential for private contributions<br />

probably lies in the development of yards and terminals that could be operated essentially<br />

as “shared asset facilities” for the benefit of all users, much on the model of the<br />

remaining Conrail facilities in the region. Anchor tenants (large shippers/receivers)<br />

who would be prime beneficiaries of a specific yard development could be contributors.<br />

Railroads or intermodal marketing companies also could be financial participants.<br />

• Special Purpose Needs – A variety of special purpose shippers in the region might<br />

benefit from enhanced <strong>freight</strong> transportation and could be potential contributors. One<br />

is the NYC Department of Sanitation (NYCDOS), which faces tremendous costs in<br />

shipping municipal solid waste out of the region.<br />

Cambridge Systematics, Inc. 7-7

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