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New ERP System Using GNSS Technology May Boost Demand For Off-Peak Cars: Analysts

Source: Channel NewsAsia

6 Oct 2013

New ERP system using GNSS technology may boost demand for off-peak cars: Analysts

The demand for off-peak cars may return, say analysts, if authorities use a new electronic road pricing system based on Global Navigation Satellite System technology.

The use of off-peak cars have been going down for four consecutive years, currently forming only 6.4 per cent of all vehicles in Singapore. But analysts say their popularity may return, if authorities use a new electronic road pricing system based on Global Navigation Satellite System technology, or GNSS.

The Land Transport Authority said only 97 new off-peak cars were registered in the first eight months of the year, a 10 per cent reduction compared to last year - but that trend may change. With the use of GNSS, LTA is also considering allowing off-peak cars (OPCs) to pay only for short periods of usage rather than the whole day.

Analysts say this could mean more off-peak cars on the roads during peak hours, meaning authorities would need to come up with an effective fee structure that can control the number of cars on the roads. If the new system is founded on the principle of "vehicle use" rather than quantity, there is also a possibility Certificate of Entitlement quotas may go up, causing COE prices to fall.

And if more people buy cars, an expert says the authorities would need to do more, to improve Singapore's infrastructure.

Dr Park Byung Joon, Head of the Urban Transport Management Programme at SIM University, said: "If let's say you're thinking about a 20-storey carpark building, then just imagine just one-fourth of the cars were to get down of the parking building at once, we are going to create what we call a localised jam. So it's not just about the infrastructure investment for the parking space, also the infrastructure on road."