New York was about to start its own ERP system on June 30, then its governor nixes it and explains why
In Singapore, we call it Electronic Road Pricing (ERP).
It's a form of congestion pricing and Singapore was the first city in the world to implement it in 1975 when it was first known as the Area Licensing Scheme before ERP was introduced in 1998.
Since then, congestion pricing has been implemented in a few European cities such as London and Milan, but not in the US.
New York City was set to have its own congesting pricing starting from June 30, 2024, after years of preparation, even though the proposed charges were not well received by many.
Then on June 5, New York governor Kathy Hochul made the surprise announcement to "indefinitely pause the programme".
In her announcement, the governor first touched on the rising cost of living before segueing into the main topic.
"So, let's talk about congestion pricing, which would impose a $15 charge on cars entering Midtown and below, beginning in just a few weeks," she said.
"Now, it was enacted five years ago to achieve two essential goals: reduce traffic and emissions in New York City and provide a funding stream for much needed capital investments in public transit.
"It was also enacted in a pre-pandemic period where workers were in the office five days a week, crime was at record lows and tourism was at record highs.
"Circumstances have changed and we must respond to the facts on the ground - not from the rhetoric from five years ago.
"So, after careful consideration, I have come to the difficult decision that implementing the planned congestion pricing system risks too many unintended consequences for New Yorkers at this time."
The governor added that New York City was the first and hardest hit of all US cities by the Covid-19 pandemic.
"While our recovery has been stronger and swifter than anyone imagined, it is by no means complete. And we cannot afford to undercut this momentum, and I won't allow this delicate recovery to be jeopardised."
She said workers are commuting to work less frequently and Manhattan currently has a commercial vacancy rate of over 20 per cent.
"This reduction in foot traffic has an enormous ripple effect, with fewer people patronising restaurants, delis and dry cleaners. The idea behind congestion pricing is that it will encourage many current drivers to shift to public transit."
The governor said: "Drivers can now choose to stay home altogether, telling employers they need to work fully remote again. Or they might just change their patterns and skip the visits to the city on a Saturday with their family or going out to the theatre or a restaurant.
"At a time when inflation is still cutting into New Yorkers' hard earned wages, the concern is that many would do exactly that. Or that one more added cost would make residents rethink living or working here altogether, hurting our recovery even more."
While the governor cited economic reasons for nixing the congestion pricing, there are reports that the real concern was its unpopularity could jeopardise the governor's Democratic party's election in November.
In Singapore, the current ERP system is slated to be replaced by ERP 2.0, which will do away with the need for physical gantries and provides the option for distance-based charging.
Early adopters have complained about potential safety risks in reaching for the payment card from new on-board unit installed at the passenger's footwell. In response, Transport Minister Chee Hong Tat has offered a one-off opportunity to relocate the unit to the driver's footwell for free.
