Using Technology to Drive Toll Collection in Nigeria
- By Lawson Ovih
- Published September 13th, 2010
- ITWorld
- Unrated
The use of technology in all facets of life has yielded positive results and also served as catalyst to growth and development. Its usage in toll collection in Nigeria has been described as the right step in the right direction. LAWSON OVIH reports.
TECHNOLOGY is often regarded as a game changer and key driver of socio-economic development, particularly in today’s rapidly globalising world. Apart from speed and convenience which it offers, technology has cost benefits as well. That is, perhaps, why businesses and indeed countries constantly strive to keep abreast of the latest technology and adapt it to enhance the standard of living of their citizens.
One of the areas where technology is adding value to people, especially road users, is toll plaza management. Basically, there are three systems of toll road management and collection, which are all driven one way or the other by modern technology. They include open (with barrier toll plazas); closed (with entry/exit tolls); and all-electronic toll collection (with no toll booths, only electronic toll collection gantries at entrances and exits, or at strategic locations on the road). Modern toll roads often have a combination of all three.
Electronic toll collection (ETC) system is increasingly becoming a popular means of payment for motorists who use toll roads due to the convenience that it affords them, among other benefits. Essentially, electronic toll collection works with the basic principle of eliminating delay on roads.
Its popularity stems from the fact that drivers need not to carry cash with them while they pass through toll plazas. Electronic toll collection also removes the necessity of officials having to sit in toll booths to collect toll charges, thus saving a lot of time since payment is automatically done from the account of the vehicle.
There are a number of other benefits of electronic toll collection system. They include reduction of harmful vehicular emissions, increase in the capacity of the toll lane and accident reduction. It also saves fuel, enhances cash handing, offers flexibility of payment (cash or card) and facilitates data collection. Toll rates vary depending on factors such as the type of vehicle, distance travelled and the building and maintenance costs of the expressway.
Global Significance
Many advanced countries have used electronic toll collection to boost their infrastructural development. For instance, in Singapore, which has one of the best road networks in the world, movement of cars are restricted with the introduction of an Electronic Road Pricing (ERP) system that charges car owners certain toll fees during peak hours. The technology has drastically reduced traffic snarls, which are a predominant feature of other major cities, on Singaporean expressways.
In Dubai, which is one of the fastest growing cities in the world, a novel electronic toll collection system that operates without toll booths or toll collectors, was launched in July 2007 to facilitate movement on the busy highways. Many modern European roads were also originally constructed as toll roads to enable investors to recoup the costs of construction.
The Nigerian Case
In Lagos State, the ongoing reconstruction and upgrading of the 49.4 km Lekki-Epe Expressway, a private public partnership (PPP) project between the government and the concessionaire of the project, the Lekki Concession Company (LCC), is also driven by modern technology.
The state government decided to concession the road to LCC in 2006, when it realised that it could not bear the massive cost of the upgrade project alone. By concessioning the high-traffic road to LCC, which sourced funds from both local and offshore financiers to execute the project, the government is able to channel its resources into other vital areas that demand attention. This is the beauty of PPP, which creates a win-win situation for both parties.
According to the concession agreement, three toll plazas will be erected on the expressway as follows: the first is at Admiralty Plaza (Km 3), in the vicinity of the Palms Shopping Mall; the second, which is the Conservation Plaza (Km 13), at Chevron headquarters; and the third, Campus Plaza (Km 23), at the Pan African University.
The first toll plaza is already functional and ready for use, following the certification of section one of the road by an independent engineer. The company has also successfully done a test run on the newly opened lanes of the toll plaza, signalling the imminent commencement of tolling on the Lekki-Epe Expressway.
The Offer
LCC offers road users a range of affordable and convenient methods of toll payment including manual and electronic payment. Manual payment involves the use of cash at the toll plazas; while electronic payment involves the use of a tag device known as ‘eTag’, or the ‘SwiftPass’ contactless card.
To make cash payments, a car owner approaches the toll plazas and looks out for the ‘ Open Lane ‘ signs signified by an illuminated green cross. He checks the information display in the toll lane, which shows the vehicle classification and the corresponding toll fee that he is required to pay. Automatic Vehicle Classification technology installed in the lanes helps quickly identify what class of vehicle it is. Once the transaction is successfully completed, the boom barrier will open and the red ‘stop’ light in the lane will change to a green ‘go light’, which will be the driver’s prompt to proceed.
SwiftPass, one of the two electronic payment options, on the other hand, is a more convenient and cheaper option of payment than cash. To use SwiftPass, all a motorist simply does is point his SwiftPass card at the reader installed near the toll booth and wait for the barrier to open and then drive through. To use SwiftPass, the card is first recharged at any toll plaza, LCC authorised outlets, automated teller machines (ATMs) or via a secure website. There are three variants of SwiftPass: SwiftPass Plus, SwiftPass Commercial and SwiftPass Anonymous. SwiftPass Plus and SwiftPass Commercial are issued with the eTag device, while SwiftPass Anonymous is used alone.
The eTag, which is an electronic device that is capable of receiving signals from electronic sensors installed at the toll plazas, is issued with an associated SwiftPass card and provides the cheapest and most convenient form of payment. When a subscriber is passing through the toll plaza, the eTag is read by overhead radio frequency identification (RFID) equipment and the toll amount, net of any price incentives or discounts that apply to that particular user, is automatically deducted from his account. The barrier opens automatically to give him passage without his having to stop. “We are encouraging people to make toll payments via electronic means because of the price incentives and discounts available on this platform and the added convenience it offers, also bigger discounts will also be given to commercial bus operators to avoid increase in transport fares said Mr. Opuiyo Oforiokuma, managing director and chief executive officer, LCC. “
Oforiokuma added that subscribers for eTag would have exclusive access to the dedicated eTag express lanes, while also being able to use any other lanes at the toll plazas. Also, eTag subscribers do not have to stop at all at the toll plazas as they drive through. The device has security features as well; if it is removed, it will be deactivated, thus discouraging theft.
Another added benefit for subscribers of the electronic devices, Oforiokuma pointed out, is that eTag and SwiftPass will not expire and as such, can be used as long as the Lekki Toll Road exists. However, a key difference between the two is that the SwiftPass card is an anonymous card, which can be used to access the toll plazas without registering of vehicle with LCC, while eTag users are required to register their vehicles with LCC.
A subscriber will need an associated SwiftPass card to gain passage through the plaza in the event that his eTag fails to work. This is an emergency backup measure for the convenience of eTag users, although evidence from other countries where the systems are already in use demonstrates a high level of system reliability. However, he said the SwiftPass card issued with the eTag need only be used when the eTag is faulty or is not responding.
Subscribers to the eTag or SwiftPass can top up their account through the following channels: payment at the toll plaza lanes using cash or a debit card; payment at the LCC customer service centre, payment over the counter or via direct debit at the designated banks, payment via ATM, and payment via secure website. However, only users of eTag will be notified when the minimum value threshold on the account has been reached, so that they can top up their accounts. Another benefit subscribers of eTag will enjoy is the fact that their device will be replaced free of charge, if found to be defective due to improper installation. In the case of loss or theft also, all a subscriber has to do is report it immediately to the customer service centre and the eTag will be deactivated. In such circumstances, he said LCC will replace the eTag at no cost to the subscriber, who is however liable for toll charges incurred prior to notification.
Currently, there are five vehicle types identified for tolling purposes. The classification is as follows: Class M (motorcycles); Class I (cars and tricycles); Class II & IIA (sports utility vehicles (SUV), minibuses and pick-ups); Class III (light trucks and two axle buses) and Class IV & IVA (heavy trucks and buses with two or more heavy axles). Road users who pass through the toll plaza or plazas more often than the average user threshold that LCC will announce will enjoy special price incentives in recognition of their above average toll use. However, road users who do not wish to pass through any of the toll plazas and pay the tolls will be able to bypass a toll plaza using the alternative routes, although they will still be able to return onto the new Lekki-Epe Expressway and use it and the convenience services that LCC provides, until they get to the next toll plaza and decide whether or not to take the next alternative route.
Improved journey times, round-the-clock maintenance and support for road users who experience vehicular breakdown as well as rescue assistance for victims of road accidents are also some other key benefits of how technology can help drive toll collection.
Samsung Warns of Market Saturation
SAMSUNG Electronics, memory chipmaker, warned of an oversupply in the computer memory chip market from next quarter as a sputtering global economy may further weaken PC sales.
The downbeat comment from the South Korean firm raises concerns the boom in the dynamic random access memory (DRAM) sector may be nearing an end. “We all know the PC market is not in a good shape now and if demand can’t pick up, inventories will go higher,” John Chiu, a fund manager at Taiwan’s Fuh Hwa Securities Investment Trust, said.
“But we might pin some hopes on the upcoming long holiday in China in October and the Chinese New Year holiday early next year, if demand picks up then, some inventories might can be absorbed.”
The caution by Samsung added to a series of previous warnings by Samsung and its local rival Hynix Semiconductor, among others, that prices would fall in the second half due to the uncertain economic outlook.
“If the PC market continues to slow, we may see a kind of oversupply in fourth quarter or first quarter,” Kwon Oh-hyun, head of Samsung’s chip business, said at a media conference at its annual mobile solutions forum in Taipei.
“Because of mobile phones and servers, the DRAM market will be stable, while PC is the weakest sector and it depends on demand from the US Thanksgiving” in late November, which typically marks the beginning of the heavy pre-Christmas sales season.
Rise of Social Media to Change Lives, Business
BUSINESSES should embrace social networking because it will change the way they interact with consumers, Gartner has said.
The international research company says people live, work and play in a digital world, which opens up opportunities for companies to listen to and learn from consumers.
Stephen Prentice, vice president and Gartner Fellow, said because of social networking, people are no longer a single voice, but can join forces and become an entire pressure group.
Prentice expects the rise of social media to change lives and the way business is conducted, the same way the first PC and the Internet did within 10 years of launch. He sees social media as a tool through which companies can build trust with consumers.
Prentice said companies need to make best use of the information at their disposal, and keep lines of communication open, because good ideas can come from outside of the firm.
However, switching off social media interactions, in order to attempt to stop people from commenting on an organisation’s web site, for example, does not mean consumers will not complain, but that companies may not know what customers are saying, he said.
Prentice cited the rise of Google and Facebook as examples of changes that have been made in the past two decades. “This is not advanced technology, it’s better use of an existing technology.”
Use of social media will proliferate even further in the next few years. Prentice says there are currently a billion PCs, four billion mobile phones, and 15 petabytes of new information created daily.
Already, a third of the world communicates online, and another third will join in within 10 years, Prentice said. Internet protocol-based traffic is expected to increase 300 times in the next 10 years, he said.
By 2013, access to the Internet will be dominated by mobile devices, Prentice said. In addition, by the same year, three billion adults will transact online, he added. To understand what technological advances will impact business in the next year or two, Prentice said companies need to look back at what was launched a decade ago. He pointed to the rapid influence of both the PC and the Internet within a 10-year timeframe.
TECHNOLOGY is often regarded as a game changer and key driver of socio-economic development, particularly in today’s rapidly globalising world. Apart from speed and convenience which it offers, technology has cost benefits as well. That is, perhaps, why businesses and indeed countries constantly strive to keep abreast of the latest technology and adapt it to enhance the standard of living of their citizens.
One of the areas where technology is adding value to people, especially road users, is toll plaza management. Basically, there are three systems of toll road management and collection, which are all driven one way or the other by modern technology. They include open (with barrier toll plazas); closed (with entry/exit tolls); and all-electronic toll collection (with no toll booths, only electronic toll collection gantries at entrances and exits, or at strategic locations on the road). Modern toll roads often have a combination of all three.
Electronic toll collection (ETC) system is increasingly becoming a popular means of payment for motorists who use toll roads due to the convenience that it affords them, among other benefits. Essentially, electronic toll collection works with the basic principle of eliminating delay on roads.
Its popularity stems from the fact that drivers need not to carry cash with them while they pass through toll plazas. Electronic toll collection also removes the necessity of officials having to sit in toll booths to collect toll charges, thus saving a lot of time since payment is automatically done from the account of the vehicle.
There are a number of other benefits of electronic toll collection system. They include reduction of harmful vehicular emissions, increase in the capacity of the toll lane and accident reduction. It also saves fuel, enhances cash handing, offers flexibility of payment (cash or card) and facilitates data collection. Toll rates vary depending on factors such as the type of vehicle, distance travelled and the building and maintenance costs of the expressway.
Global Significance
Many advanced countries have used electronic toll collection to boost their infrastructural development. For instance, in Singapore, which has one of the best road networks in the world, movement of cars are restricted with the introduction of an Electronic Road Pricing (ERP) system that charges car owners certain toll fees during peak hours. The technology has drastically reduced traffic snarls, which are a predominant feature of other major cities, on Singaporean expressways.
In Dubai, which is one of the fastest growing cities in the world, a novel electronic toll collection system that operates without toll booths or toll collectors, was launched in July 2007 to facilitate movement on the busy highways. Many modern European roads were also originally constructed as toll roads to enable investors to recoup the costs of construction.
The Nigerian Case
In Lagos State, the ongoing reconstruction and upgrading of the 49.4 km Lekki-Epe Expressway, a private public partnership (PPP) project between the government and the concessionaire of the project, the Lekki Concession Company (LCC), is also driven by modern technology.
The state government decided to concession the road to LCC in 2006, when it realised that it could not bear the massive cost of the upgrade project alone. By concessioning the high-traffic road to LCC, which sourced funds from both local and offshore financiers to execute the project, the government is able to channel its resources into other vital areas that demand attention. This is the beauty of PPP, which creates a win-win situation for both parties.
According to the concession agreement, three toll plazas will be erected on the expressway as follows: the first is at Admiralty Plaza (Km 3), in the vicinity of the Palms Shopping Mall; the second, which is the Conservation Plaza (Km 13), at Chevron headquarters; and the third, Campus Plaza (Km 23), at the Pan African University.
The first toll plaza is already functional and ready for use, following the certification of section one of the road by an independent engineer. The company has also successfully done a test run on the newly opened lanes of the toll plaza, signalling the imminent commencement of tolling on the Lekki-Epe Expressway.
The Offer
LCC offers road users a range of affordable and convenient methods of toll payment including manual and electronic payment. Manual payment involves the use of cash at the toll plazas; while electronic payment involves the use of a tag device known as ‘eTag’, or the ‘SwiftPass’ contactless card.
To make cash payments, a car owner approaches the toll plazas and looks out for the ‘ Open Lane ‘ signs signified by an illuminated green cross. He checks the information display in the toll lane, which shows the vehicle classification and the corresponding toll fee that he is required to pay. Automatic Vehicle Classification technology installed in the lanes helps quickly identify what class of vehicle it is. Once the transaction is successfully completed, the boom barrier will open and the red ‘stop’ light in the lane will change to a green ‘go light’, which will be the driver’s prompt to proceed.
SwiftPass, one of the two electronic payment options, on the other hand, is a more convenient and cheaper option of payment than cash. To use SwiftPass, all a motorist simply does is point his SwiftPass card at the reader installed near the toll booth and wait for the barrier to open and then drive through. To use SwiftPass, the card is first recharged at any toll plaza, LCC authorised outlets, automated teller machines (ATMs) or via a secure website. There are three variants of SwiftPass: SwiftPass Plus, SwiftPass Commercial and SwiftPass Anonymous. SwiftPass Plus and SwiftPass Commercial are issued with the eTag device, while SwiftPass Anonymous is used alone.
The eTag, which is an electronic device that is capable of receiving signals from electronic sensors installed at the toll plazas, is issued with an associated SwiftPass card and provides the cheapest and most convenient form of payment. When a subscriber is passing through the toll plaza, the eTag is read by overhead radio frequency identification (RFID) equipment and the toll amount, net of any price incentives or discounts that apply to that particular user, is automatically deducted from his account. The barrier opens automatically to give him passage without his having to stop. “We are encouraging people to make toll payments via electronic means because of the price incentives and discounts available on this platform and the added convenience it offers, also bigger discounts will also be given to commercial bus operators to avoid increase in transport fares said Mr. Opuiyo Oforiokuma, managing director and chief executive officer, LCC. “
Oforiokuma added that subscribers for eTag would have exclusive access to the dedicated eTag express lanes, while also being able to use any other lanes at the toll plazas. Also, eTag subscribers do not have to stop at all at the toll plazas as they drive through. The device has security features as well; if it is removed, it will be deactivated, thus discouraging theft.
Another added benefit for subscribers of the electronic devices, Oforiokuma pointed out, is that eTag and SwiftPass will not expire and as such, can be used as long as the Lekki Toll Road exists. However, a key difference between the two is that the SwiftPass card is an anonymous card, which can be used to access the toll plazas without registering of vehicle with LCC, while eTag users are required to register their vehicles with LCC.
A subscriber will need an associated SwiftPass card to gain passage through the plaza in the event that his eTag fails to work. This is an emergency backup measure for the convenience of eTag users, although evidence from other countries where the systems are already in use demonstrates a high level of system reliability. However, he said the SwiftPass card issued with the eTag need only be used when the eTag is faulty or is not responding.
Subscribers to the eTag or SwiftPass can top up their account through the following channels: payment at the toll plaza lanes using cash or a debit card; payment at the LCC customer service centre, payment over the counter or via direct debit at the designated banks, payment via ATM, and payment via secure website. However, only users of eTag will be notified when the minimum value threshold on the account has been reached, so that they can top up their accounts. Another benefit subscribers of eTag will enjoy is the fact that their device will be replaced free of charge, if found to be defective due to improper installation. In the case of loss or theft also, all a subscriber has to do is report it immediately to the customer service centre and the eTag will be deactivated. In such circumstances, he said LCC will replace the eTag at no cost to the subscriber, who is however liable for toll charges incurred prior to notification.
Currently, there are five vehicle types identified for tolling purposes. The classification is as follows: Class M (motorcycles); Class I (cars and tricycles); Class II & IIA (sports utility vehicles (SUV), minibuses and pick-ups); Class III (light trucks and two axle buses) and Class IV & IVA (heavy trucks and buses with two or more heavy axles). Road users who pass through the toll plaza or plazas more often than the average user threshold that LCC will announce will enjoy special price incentives in recognition of their above average toll use. However, road users who do not wish to pass through any of the toll plazas and pay the tolls will be able to bypass a toll plaza using the alternative routes, although they will still be able to return onto the new Lekki-Epe Expressway and use it and the convenience services that LCC provides, until they get to the next toll plaza and decide whether or not to take the next alternative route.
Improved journey times, round-the-clock maintenance and support for road users who experience vehicular breakdown as well as rescue assistance for victims of road accidents are also some other key benefits of how technology can help drive toll collection.
Samsung Warns of Market Saturation
SAMSUNG Electronics, memory chipmaker, warned of an oversupply in the computer memory chip market from next quarter as a sputtering global economy may further weaken PC sales.
The downbeat comment from the South Korean firm raises concerns the boom in the dynamic random access memory (DRAM) sector may be nearing an end. “We all know the PC market is not in a good shape now and if demand can’t pick up, inventories will go higher,” John Chiu, a fund manager at Taiwan’s Fuh Hwa Securities Investment Trust, said.
“But we might pin some hopes on the upcoming long holiday in China in October and the Chinese New Year holiday early next year, if demand picks up then, some inventories might can be absorbed.”
The caution by Samsung added to a series of previous warnings by Samsung and its local rival Hynix Semiconductor, among others, that prices would fall in the second half due to the uncertain economic outlook.
“If the PC market continues to slow, we may see a kind of oversupply in fourth quarter or first quarter,” Kwon Oh-hyun, head of Samsung’s chip business, said at a media conference at its annual mobile solutions forum in Taipei.
“Because of mobile phones and servers, the DRAM market will be stable, while PC is the weakest sector and it depends on demand from the US Thanksgiving” in late November, which typically marks the beginning of the heavy pre-Christmas sales season.
Rise of Social Media to Change Lives, Business
BUSINESSES should embrace social networking because it will change the way they interact with consumers, Gartner has said.
The international research company says people live, work and play in a digital world, which opens up opportunities for companies to listen to and learn from consumers.
Stephen Prentice, vice president and Gartner Fellow, said because of social networking, people are no longer a single voice, but can join forces and become an entire pressure group.
Prentice expects the rise of social media to change lives and the way business is conducted, the same way the first PC and the Internet did within 10 years of launch. He sees social media as a tool through which companies can build trust with consumers.
Prentice said companies need to make best use of the information at their disposal, and keep lines of communication open, because good ideas can come from outside of the firm.
However, switching off social media interactions, in order to attempt to stop people from commenting on an organisation’s web site, for example, does not mean consumers will not complain, but that companies may not know what customers are saying, he said.
Prentice cited the rise of Google and Facebook as examples of changes that have been made in the past two decades. “This is not advanced technology, it’s better use of an existing technology.”
Use of social media will proliferate even further in the next few years. Prentice says there are currently a billion PCs, four billion mobile phones, and 15 petabytes of new information created daily.
Already, a third of the world communicates online, and another third will join in within 10 years, Prentice said. Internet protocol-based traffic is expected to increase 300 times in the next 10 years, he said.
By 2013, access to the Internet will be dominated by mobile devices, Prentice said. In addition, by the same year, three billion adults will transact online, he added. To understand what technological advances will impact business in the next year or two, Prentice said companies need to look back at what was launched a decade ago. He pointed to the rapid influence of both the PC and the Internet within a 10-year timeframe.
