Taiwan Today

Drivers on the nation's highways now have alternatives as to how to pay at eight toll stations along the southern stretch of the Central Second Highway, or the Second Freeway, which assigned certain lanes to run a 10-day test of the new Electronic Toll Collection (ETC) system from Jan. 16 through Jan. 25. Officials from the Taiwan Area National Freeway Bureau (TANFB) have promised stop-free toll collecting at 22 tollbooths on national highways No. 1 and No. 3 by Feb. 10. Temporary ETC service is already in operation at about 10 tollbooths in the south of the island, including Houlong station in Miaoli and Jhutian station in Kaohsiung. Toll station attendants will continue to collect tickets and cash in the regular toll lanes, according to TANFB Director-General Chen Chien-yu. As the head of the bureau, Chen is responsible for the smooth operation of the nation's highway network. A consortium made up of members of the TANFB and Far Eastern Electronic Toll Collection Co., the firm that won the nation's first ETC system contract in 2004, is running the toll system, which has finally been constructed three years after the project was launched in 2002. According to government sources, Far Eastern was given the build-operate-transfer contract that allows the company to operate and profit from the system for 20 years before handing it over to the government. The Ministry of Transportation and Communications (MOTC) plans to phase out the old method of collecting tolls on the nation's roads in favor of full automation by 2009. This undertaking is expected to affect five million drivers in Taiwan. Authorities have been promoting the ETC system as environmentally friendly, and as a way to improve efficiency for millions of drivers who, at present, waste time by physically paying money at tollbooths. It also results in traffic congestion on Taiwan's highways, argue proponents of the system. The computerized system was supposed to have commenced Jan. 1, but it was delayed by the MOTC because officials were trying to decide how much to charge users for each onboard unit (OBU), which is the electronic machinery that makes it possible for an automobile to register a toll payment as it drives past the booth. This delay provoked criticism from lawmakers and drivers alike. "The electronic toll collecting system will not hit the road unless the manufacturer agrees on a lower user rate for the onboard units," said Transportation Minister Lin Ling-san, explaining why the introduction of the system was delayed. Lin confirmed that no ETC lanes would go into operation on the nation's major highway network during Lunar New Year, a period during which tolls are traditionally not collected. Lin said his department has been negotiating with Far Eastern to bring down the cost of installing the OBU. The total expense of outfitting a car with the unit was originally set at US$70, including the installation fee, batteries and an integrated-circuit (IC) charge card. The company had also demanded a US$16 deposit on the IC card. In order to reduce the cash burden on drivers, the MOTC proposed cutting the retail price to US$48. "The manufacturer also agreed to a three-month promotional sale to 200,000 users who would get free installation and US$16 off the regular OBU price," said Chen. Chen claimed that the government had reached an agreement with Far Eastern on special payment plans. "We have the manufacturer's word [that it will] operate a two-month rental plan for non-frequent highway users," said Chen. He promised to come up with a proposal in six months that would allow users to pay for their onboard units on an installment plan. Far Eastern executives defended the company's pricing scheme, pointing out that their OBUs are selling at a lower retail price than similar units in the United States, Australia and Hong Kong. After conducting research into the costs of these units in other countries, several consumer and community groups expressed worries about the cost to Taiwanese users. Concerns have been raised by legislators and the Consumers' Foundation of Taiwan. People First Party legislator Lee Hong-chun said the wholesale implementation of an ETC system was an abrogation of the rights of drivers who prefer not to have to buy the units. Lee opposed putting the ETC system into formal operation before the popularity rate of the OBU reaches at least 10 percent among frequent highway users. "Two ETC lanes at each toll station would be dedicated for serving the 2,000 cars currently furnished with OBUs, which count less than one percent of total drivers," the lawmaker pointed out. Lee was referring to the 2,000 vehicles already equipped with the electronic units. "It's not about the retail price of the OBU in Taiwan, which might well be the cheapest," said a spokesman for the foundation. "It's about why people in this country should pay for the convenience of using a public highway."