Thursday, December 08, 2022

Satellite based ERP system

In 2016, the Land Transport Authority awarded a contract to a consortium to install a new satellite based system to replace the gantry system for ERP (electronic road pricing).

One of the benefits of the new system was the ability to charge the motorist based on the distance traveled.
The project cost was $556 million (SGD) and was expected to be operational by 2020.
Due to the covid pandemic, the project has now been delayed to 2023. Furthermore, the implementation of the distance based system, which was the main justification for this new system, has been delayed and no new deadline has been announced.
Here is a recent update.

It appears to me that a lot of money, time and effort are being spent on the new system, without any tangible benefit - at least for the immediate future.
There is a further risk - that the new system will face teething trouble. It relies on location data sent out by the satellites. This new technology has not been tested to handle a volume of over 1 million vehicles. There are many possible points of failure, and unexpected trouble may occur.
On a personal note, I would not have approved this project (if I were in charge).
Anyway, I like to wish LTA all the best in their rollout of the new system. I hope to be proved wrong, and that the new system can be the model for other countries to adopt.

2 comments:

Anonymous said...

Penny wise pound foolish. When consumers are spending $60K for COES, what is $2 ERP here and there?

Anonymous said...

Perception is that people who own cars must be middle class and above, but there will always be exceptions.

Taxing the rich to help the poor.

Increase road taxes, carparks fees and petrol taxes for privately owned cars.

Public transport to be free.

Commercial vehicles remain the same.

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