EROAD joins Eruc trial in Sweden

New Zealand technology company EROAD is to deploy its eHubo product in a government sponsored field trial to develop an electronic Road User Charge (Eruc) system for Heavy Vehicles (HVs) in Sweden.  Participation in the Swedish Eruc trials will demonstrate the EROAD technology to a global audience with the potential for substantial export sales, says EROAD CEO Steven Newman.  New Zealand is ideally placed to develop a local high technology sector based on road pricing and related services.  An Eruc industry would create highly skilled jobs, generate significant export revenues, and contribute to productivity growth, he said. 

 The Swedish trial will give EROAD an opportunity to demonstrate its RUC Management System which encompasses its eHubo, and a bank grade web-based payment gateway for online RUC purchase.  In addition EROAD will get the opportunity to present its technology solution at the Intelligent Transport Systems (ITS) World Congress, to be held in Stockholm in September 2009. 

Sweden has initiated a major project to develop an electronic kilometre based Eruc system for HVs within a three year time horizon to replace fuel excise and registration taxes.  Known as ARENA, the project has been initiated to improve environmental and economic outcomes, and support an extended development of the railways by 50% to 2020. 

To overcome problems and costs stemming from a single monopoly toll provider, the ARENA project is proposing a multiple toll provider model and does not prescribe any technical solutions.  Heavy vehicle users will have a contract with a toll service provider and can choose the one that best fits their needs.  System requirements will be flexible to meet the dynamics of technical innovation and provide strong incentives for innovation, and lower development and operating costs.

 As a participant in this field test EROAD will get the chance not only to get an early and detailed understanding for how the Swedish kilometre tax will be implemented, but also an opportunity to give feedback and influence its design.   The Swedish trial is part of a worldwide movement towards electronic HV charges and road pricing to finance infrastructure, control congestion, and improve community and environmental outcomes. 

Increasing vehicle fuel efficiency and the rapid growth of alternative fuels and hybrid vehicles, have also contributed to a developing consensus that a major shift in transport funding is required away from fuel excise and registration taxes towards distance, time, location, and emission based charges. Looking to the future some commentators have suggested that the intelligent road charging industry will form the vanguard of the next industrial revolution.