Effects of the Austrian road toll system on companies

Abstract

Purpose

The purpose of this paper is to discuss the consequences of the newly introduced Austrian road pricing system on companies.

Design/methodology/approach

As road pricing offers a good opportunity for infrastructure owners to generate revenues, the system was introduced in January 2004. Trucks and buses are now charged per kilometre driving on Austrian motorways with the amount depending on the number of axles. Therefore, enterprises whose trucks and buses use motorways are confronted with higher transport costs. These costs can be generally divided into direct and indirect ones. The main cost categories concerning indirect costs are costs for pre‐financing, for bad debts losses and for toll‐control. The paper assesses these kinds of costs and evaluates the cost effects in different branches. Further, empirical evidence based on a survey conducted in autumn 2003 is included, where enterprises were asked about their expectations concerning consequences of road pricing on their company. A major part of the paper discusses the changes in the planning system of enterprises. There exist a lot of strategies and measures reducing the total systems costs after introducing such a road pricing. Some of these strategies are presented more in detail. Besides description and evaluation, the strategies are faced with results generated by the survey.

Findings

This road toll systems leads to different effects on enterprises in Austria. At first accounting is confronted with a new cost type. Toll costs can be separated into direct and indirect toll costs. Both result in an increase of transport costs depending on the industry and partly the region. Higher transport costs can have an influence on the competitive ability in Austria and in foreign countries compared to inland and foreign companies. It is a general goal to reduce the toll‐based rise of logistics system costs that cannot be equated with minimising toll costs. Enterprises can pursue strategies in the field of procurement and distribution, changing the logistics network or in the scope of transportation and packing.

Originality/value

The paper points to an interesting implication of the system, which is an intensified use of logistics service providers to improve efficiency in transportation and logistics.

Citation

Einbock, M. (2006), "Effects of the Austrian road toll system on companies", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 2, pp. 153-169. https://doi.org/10.1108/09600030610656468