Tan Kin Lian - Perspectives TKL's views on ERP 2.0
The Land Transport Authority will start installing the new panel for ERP 2.0 from November. They announced that there is "no immediate plans for distance based charging".

The tender for ERP 2.0 was given out about 10 years ago, and the budget was $550 million. It was intended to replace the ERP gantry points to charge for passing through busy roads. The new system was supposed to be implemented in 2019. It was delayed due to the covid pandemic. 

Several years ago, I made the following observation:

1. ERP 2.0 was an unnecessary and wasteful project. It would be better to continue to use the existing ERP system using the gantries. 

2. ERP 2.0 would encounter technical challenges in its implementation. It is a complex system using new and untested technology. 

I still hold these views. I am aware that my views could be proven wrong. If ERP 2.0 work well, I would gladly admit that I am wrong. 

One reason advanced for ERP 2.0 was that it allowed the government to charge for the actual usage of the road. I find this reason to be incredible. The vehicle needs to consume fuel (i.e. petrol or diesel) in proportion to its mileage. There is already a big petrol tax. Why is there the need to use ERP 2.0 to impose another layer of tax on usage?

Of course, it could be argued that the ERP 2.0 charge could be differentiated according to the time of day and the roads that are being used, and these differences are not identified by the consumption of fuel.  It is nice to make these kind of argument in theory, but it would be extremely difficult to implement in practice. 

Anyway, I will not belabor this point further. I will wait to see if ERP 2.0 is able to meet its stated goal of creating a more efficient road transport system and that the benefits justify the huge expenditure of money and resources that were put into this project. 

Tan Kin Lian

 

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