Toll Rd Admin Charges Up

 

The new scale of administration charges for different types of payments on the Northern Gateway Toll Road from August 1 have been announced.

NZTA Regional Director for Auckland and Northland Stephen Town said while the base tolls of $2.00 per trip for light vehicles and $4.00 per trip for heavy vehicles were not increasing, the NZTA was introducing new administration charges for some payment methods as part of a broader effort to reduce the overall administration costs for processing toll payments.

The administration charges will be levied per transaction, not for each individual toll road trip. The new charges will apply to casual telephone and kiosk payments, with no charge applying to casual web payments or pre-paid accounts.

Mr Town said the high administration costs for the 0800 telephone service were primarily due to the costs of processing payments through the toll road’s call centre, currently used by 15% of customers. From 1 August 2011, the administration charges for toll payments will be:

Pre-pay account payments: No charge

Web payments: No charge

Kiosk payments: $0.40 charge per transaction

Phone payments: $3.70 charge per transaction

The charges will only apply to single payment transactions, with a single payment able to cover several toll road trips. For example, the total cost of purchasing two $2.00 toll trips through the kiosks from 1 August will be $4.40, and the total cost of purchasing ten trips will be $20.40. The average number of trips currently purchased with each casual payment is 2.4.

The new charges will be widely advertised throughout the region in the weeks ahead to ensure toll road users are aware of the changes.

Mr Town urged drivers to take full advantage of the toll road’s electronic free-flow technology by paying on-line or setting up a pre-paid account, avoiding the need to stop or pay administration charges.

Mr Town said in order to further reduce operating costs, from 1 August the toll payment call centre’s operating hours will change from 8:30am to 5pm seven days a week to 8am to 6pm Monday to Friday – a reduction from 59.5 hours per week to 50 hours per week. Casual toll road users can pay for trips in advance or at any time within five days after using the toll road.

Administration charges for toll payment notices (issued for tolls which remain unpaid five days after using the road) will also increase from $2.20 to $4.90 from 1 August to reflect the actual cost of administering toll payment notices.

Adminstration cost per transaction for the toll road is currently $0.74, but there is a wide range in the costs incurred for administering different types of payments – from just $0.13 per transaction for web payments to $0.54 per transaction for kiosk payments, and $3.85 per transaction for telephone payments.

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5 Comments

 
  1. joust says:

    price increase by stealth - the admin costs were thoroughly publicised when the scheme started. Trying to shift payments onto their cheaper online option is all about cutting costs and growing the toll revenue.

    Though stopping to pay at kiosks when a perfectly good free route is available always seemed pointless to me.

  2. Matt L says:

    Joust why is it a problem to charge those that use the more expensive collection options more? If the phone based option costs more than the toll itself then it either needs to be dropped or that cost recovered.

  3. Steve says:

    Good move by NZTA. Clearly toll roads are going to feature in the big projects and if they can minimise collection costs and/or charge appropriate fees depending on the method chosen for pay it encourages a ‘best’ behaviour. Much like doubling cash fares on PT to encourage HOP usage really…

  4. Richard says:

    Once they have hop fully rolled out, that would be a great way to pay for the toll road too, a drive past reader or something that you just swipe, it IDs you and then you are on your way. none of this getting out to pay at the kiosk crap.

  5. KarlHansen says:

    Richard, why not use HOP online too? Either by individual choice (i.e. after your trip you go online and pay via the HOP card), or by straightaway choosing to link your HOP account with your number plate.

    Doing a drive-by is so 1980s :-)

 

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