Land Transport Infrastructure Pricing: An Introduction

The BTRE projects that the total freight task will continue to grow strongly. Such growth will increase the infrastructure maintenance needs and possibly hasten the need for capacity expansion. Setting prices for infrastructure use that reflect costs provides important signals as to the appropriate level of transport activity, choice of transport mode, and the level of infrastructure spending. At the Australian Logistics Council (ALC) meeting on 7 November 2002, the Council asked BTRE to provide a comparative analysis of current land transport pricing regimes and their objectives and to present the findings at the next Council meeting, held on 27 February 2003. This working paper comprises the paper prepared for the ALC and already released by the ALC as a discussion paper.