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Inoxive s.r.o.
Mezibranská 1579/4
110 00 Praha 1 – Nové město
Czech Republic
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average number of incidents
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1
Acknowledgements
Authors would like to thank the Road and Motorway Directorate of the Czech Republic for granting of
the permission for use of the data from the nationwide truck tolling system. This analysis could not have
been created without this data.
Five Years of Electronic Toll
Collection in the Czech Republic
Ondřej Zaoral
Tereza Mlynářová
Zdeněk Lokaj
3
Content
Czech Tolling System at the Age of Five 5
1 | System Concept and Procurement Model 11
2 | Operational Model 17
3 | Economics of the System 23
4 | Importance of Toll Collection for Infrastructure Financing 29
5 | Telematic Features of the Tolling System 39
6 | Development of Toll Collection Systems
in Central Europe and European Union 49
7 | Outlook for the Close Future of Toll Collection 57
4
5
Czech Tolling System
at the Age of Five
The Czech nationwide truck tolling system celebrated its ffth birthday at the end of December 2011. Dur-
ing the frst fve year period of operation, the system collected EUR 1.28 bn (CZK 31.3 bn) tolling revenue
for the Czech republic and the number of trucks & buses registered in the system rose to 595 thousand.
The length of the tolled road network has progressively risen as well, reaching 1358 km of highways, mo-
torways and national roads by the end of 2011. Czech tolled roads are every day used by 40 to 60 thou-
sand tolled vehicles, lower number of 14 to 19 thousand unique vehicles is registered in the system on
weekends.
The costs of the tolling system‘s technical provider (consortium Kapsch) reached EUR 0.43 bn (CZK 10.5 bn)
without VAT, in other words 33 % of tolling revenues. The cost/income percentage value does not, how-
ever, represent an useful and comparable basis for cost evaluation, as it is heavily infuenced not only
by the actual amount of costs, but by the tolling rates and other factors as well. The cost/income ration
of 29.3 % in 2009 would decrease with an additional tolling revenue of EUR 41 m (CZK 1 bn) by approxi-
mately 3 percentage points.
Te system coverage was extended from highways and motorways to national
roads during the frst fve years. New telematic features were implemented, as well
as an interface for satellite on board units.
History of the distance based electronic tolling system starts a few years before launching the system
on January 1
st
, 2007. Completion of feasibility studies was followed by the public tendering process that
started in 2005. Bids were submitted for establishment and fve years operation of the tolling system,
including an option for another fve years extension of the service provisioning contract. Contract with
the winning bidder – consortium Kapsch – was signed in March 2006. The system was implemented
during the same year and the actual toll collection from trucks and buses with gross weight exceeding
12 t on highways and motorways started on January 1
st
, 2007. The system was subsequently extended
to selected national roads (2008) and the toll has been collected from light trucks and buses with gross
weight more than 3.5 t since 2010. The new open interface for telematic applications has been available
since 2008 and the system has also been prepared for the “hybrid” operation collecting data from DSRC
as well as GNSS on board units.
The Czech system uses the microwave DSRC technology that is one of the two technologies permitted
for use in electronic tolling system in the European Union. Every vehicle that is subject to the tolling duty
must be equipped with an on board unit (OBU) that provides an unique identifcation of the vehicle in
the system. Drivers can pick up the units at distribution points located in a close vicinity of tolled roads
or at contact points in major Czech cities. Call center and self-service web portal for registered users are
available at all times.
6
The tolling system is fully owned by the Czech state. While the supply and operations of the system is
governed by two separate contracts, the project can be characterized as a public private partnership
mainly due to the extent of the risk transfer to the private supplier.
Procurement of the system and its operation was fully funded by tolling cash fow generated by the
system. Payback on the investment into the Phase 1 (highways and motorways, vehicles 12 t+) was just
6 months. The system remains fully in the ownership of the Czech republic when the service contract with
consortium Kapsch expires at the end of 2016. The build-up cost invested into the system can, therefore,
generate revenue for an even longer period of time than during the initial 10 years contracting period.
Importance of the tolling income for the infrastructure fnancing has been grow-
ing, reaching 18 % of the budgeted income of the State fund for transport infra-
structure in 2012.
The yearly tolling revenue has grown from EUR 227 m (CZK 5.56 bn) in 2007 to EUR 332 m (CZK 8.13 bn) in
2011. Even faster grows the share on tolling income on the overall revenues of the State fund for trans-
port infrastructure – from 9 % to 18 %. Yearly revenue is infuenced mainly by the tolling rates and traf-
fc intensity on tolled roads. The average toll collection per one kilometer of the tolled road is important
mainly for infrastructure fnancing considerations. Average yield is the highest on the Prague ring road
(almost EUR 0.51 m per kilometer in 2011) and on the highway D5 (Prague to München / Nürnberg). How-
ever, the differences in the average revenue are sizable. Yearly income of the least proftable segment
of the national road I/47 (close to city of Hulín) accounts only for 2 % of yearly income generated by the
most proftable segment in the Czech republic, found on the highway D1 close to Modletice.
Average revenue on one kilometer of tolled national road reaches due to lower rates and traffc intensi-
ties only 21 % of average revenue generated by one kilometer of highway.
Electronic toll collection that is dependent on wear and tear of the road allows for an effective taxa-
tion of foreign road users. Foreign transport companies accounted for 78 % of vehicles registered in the
Czech tolling system at the end of 2011 and paid 42% of the toll revenue. Share of revenue from foreign
users over the fve year period 2006 – 2011 is 41 %. Share of Czech users is decreasing. While the Czech
drivers paid 61.3 % toll in 2007, their share slipped to 57.8 % in 2011.
Electronic tolling is the largest telematic system in the Czech republic with a pri-
mary role in fee collection. Tolling systems may, however, increasingly take on the
regulatory and environmental functions.
Intelligent transportation systems (telematics) can contribute to higher safety, travel comfort, more ef-
fcient use of the infrastructure as well as to lower environmental impact of road transportation. The
tolling system generates valuable data describing in detail the intensity and composition of the traffc
stream including its speed characteristics. Collected data can be used either for immediate actions or for
analysis of long term trends and set-up of traffc models. The ability of the tolling systems to alter eco-
nomic motivations of road users through variable tolling rates opens new possibilities for use of tolling
systems for traffc regulatory purposes. Differentiated pricing can motivate the use of environmentally
friendly vehicles, prefer public transport and displace unnecessary journeys to off-peak times.
7
Czech Tolling System at the Age of Five
Preference of environmentally friendly vehicles has become a standard measure across Europe. Higher
toll rates for Euro 0–2 vehicles (and progressively Euro 3–4 as well) motivate the transport companies to
replace old vehicles and improves payback on investment into new Euro 5 (or higher) vehicles. Share of
environmentally friendly Euro 5 vehicles rose in the Czech system from 11 % in 2007 to 30 % in 2011. The
Czech system has been regulating Friday’s afternoon traffc since 2010, using 50% increase in toll rate
during the weekend peak time. Decrease of truck traffc by only 15 % (measured by travelled distance
on tolled roads) shows, however, a very low price sensitivity of demand.
Use of the existing tolling systems for regulatory interventions apart from their original fnancial func-
tions creates new strategic challenges. The fnancial and regulatory functions are in confict and op-
timization of the system for maximization of only one of these functions must prevail. An example is
the preference of bus traffc in the Czech republic since September 2011. Lower rates resulted in direct
fnancial loss of more than EUR 1.63 m (CZK 40 m) in the last four months of 2011 only. Search for balance
between the regulatory and fnancial goals will always enforce compromises.
Electronic toll collection is an European topic. Close future will bring standardiza-
tion of systems and focus on telematic, environmental and regulatory functions of
systems.
Tolling systems are being established all over Europe in order to secure at least part of the necessary
funds for infrastructure investment and maintenance. Tolling is a source for fnancing PPP projects in
majority of the western European countries. The role of tolling income is indispensable not only in pro-
jects with demand risk transferred to the private operator, but also in projects with the availability based
payment scheme. Private operators do not build proprietary systems in countries with nationwide toll-
ing systems (such as Austria or Germany), they rather join the nationwide system as one of the revenue
recipients.
Czech tolling rates were raised twice by 25 % in January 2011 and 2012. The rates were the lowest in Cen-
tral Europe before these two sizable hikes. Rates valid in 2012 are comparable to Germany and Slovakia.
The most expensive country for trucks is still Austria where the rate for a 12 t+ truck with 4 axles is 32 %
higher than in the Czech republic.
European tolling directives allow use of the microwave or satellite technology. Currently the microwave
technology, which is suitable especially for highways with high traffc intensities, prevails in Europe. In-
teroperability of nowadays isolated national systems has become a priority of the European Union. The
vision of one universal on board unit for Europe shall become reality in the coming years.
Environmental impact and the internalization of negative externalities caused by the trucks is another
focus area. The new directive 2011/76/EC therefore introduces an option to include valuation of the nega-
tive externalities into the tolling rates. Consequently, trucks may pay for pollution up to 16 Eurocents per
kilometer and 2 Eurocents for noise.
8
Strategic discussion on future of the tolling systems is focused on extension of the
distance based model to non-highway roads and passenger cars. Should the Czech
republic keep its current level of tolling revenues, the rate structure will have to be
overhauled.
European directives currently require fee collection on highways and allow for extension of the tolling
duty to non-highway roads in case the road network in the country is underdeveloped and motorways or
national roads replace highways in certain sections. The decisive parameter for economics of any toll ex-
tension to national roads is the average income from one kilometer of such a road. Average revenues on
the national roads are signifcantly lower than on highways. Average revenue per kilometer of national
road in 2011 amounted only for EUR 68 thousand (CZK 1.66 m), while the average kilometer of highway
and motorway generated EUR 324 thousand (CZK 7.94 m) revenue. We expect the French Ecotaxe project
to show the direction for future introduction of distance based tolling on lower class roads. The pilot
operation shall start in Alsace in July 2013.
The second possible extension of the tolling duty is the use of the existing infrastructure for passenger
car fee collection. Replacement of the existing system of paper highway stickers through electronic OBUs
has already been discussed in the Czech republic, however, the system has not been implemented. Plans
for electronic fee collection from drivers of passenger cars have emerged even in Germany where pas-
senger cars are not subject to any kind of toll (neither time nor distance based).
The current structure of tolling rates with an extensive preference of Euro 5 vehicles through low rates
creates a risk for future tolling income of the Czech republic. The Euro 5 rate is just half of the rate paid
by Euro 2 vehicles, even without any refection of the new environmental EU directive. The effective av-
erage tolling rate is, therefore, decreasing as the share of Euro 5 vehicles in the system is increasing (the
share of newly registered Euro 5 vehicles was 41 % in 2011 while their share on registered vehicles in the
system reached 30 %). The transparent solution is a new structure of the rate, comprising the actual fee
for use of the infrastructure (refecting the wear and tear without environmental considerations) and
environmental surcharge derived from the emission class of the vehicle.
9
Czech Tolling System at the Age of Five
D1
D1
D1
D2
D3
D5
D5
D8
D8
D11
R 1
R 1
R 4
R 6
R 6
R 7
R 10
R 35
R 35
R 35
R 46
R 48
R 52
R 56
R 63
11
30
55
(výkonové zpoplatnění)
Úseky bez mýta
Mýto - Dálnice a rychlostní silnice
R
Úseky bez poplatku
Mýto - silnice I. třídy
Mýto - dálnice a rychlostní silnice
Mýto (výkonové zpoplatnění)
Tolled roads in 2007
Tolled roads in 2011
10
Operational
Model >
< Czech Tolling System
at the Age of Five
1 | System Concept and
Procurement Model
Te public tendering process for establishment of the tolling system and related service provision was
started in 2005. Contract with the winning bidder – consortium Kapsch – was concluded in March
2006. Toll has been collected since January 1
st
, 2007 from heavy trucks on highways and motorways.
Te system was subsequently extended to national roads and toll duty was imposed on light trucks with
gross weight of more than 3.5 t.
One general contractor – consortium Kapsch – is responsible for system delivery and operations to-
wards the customer (Ministry of Transportation) and system operator (Road and Highway Directorate
of the Czech Republic). Te tolling system is now fully owned by the Czech state. While the supply and
operations of the system is governed by two separate contracts, the project can be characterized as a pub-
lic private partnership mainly due to the extent of the risk transfer to the private supplier.
New open interface for telematic applications has been available since 2008 and the system has also been
prepared for the “hybrid” operation, collecting data from DSRC as well as GNSS on board units.
12
The European Directive 1999/62/ES on the charging of heavy goods vehicles for the use of certain infra-
structures stipulates introduction of a tolling system on motorways for vehicles with gross weight more
than 12 tons. The 1999 Directive clearly set rules for tolling systems and harmonization of “user charges”
that allow the use of the infrastructure for a given time. The Directive set a minimum toll rates and maxi-
mum user charges, limiting e.g. the price of yearly vignettes for heavy trucks. National electronic tolling
systems started to emerge even in countries without any historical tradition of toll collection that relied
solely on tax income for fnancing of their infrastructure.
The frst Central European country preparing for launch of a tolling system already following the new
European rules was Germany. Problems with the launch of the satellite based GPS/GSM system led to
a delay and the German government has been demanding a compensation of the damage resulting
from loss of toll income from a consortium of suppliers*.
The frst neighbour of the Czech Republic starting electronic toll
collection was due to the German delay Austria in January 2004.
Launch of the German system followed in 2005 and the Czech
government called the tolling tender in the same year, prepara-
tory works started already in 2004. The motivations for introduc-
tion of such a system were apart from the requirements of Euro-
pean Directives mainly economical. With the maximum price of
vignettes for HGVs limited by the Directives and toll collection
planned or launched in Austria and Germany, the risk of becom-
ing a cheap transit alternative was high for the Czech Republic.
Therefore, the government of the Czech Republic approved the time schedule for introduction of the
nationwide electronic truck tolling in the Czech Republic on January 12
th
, 2005.
The tender itself was called on June 11
th
, 2005. The tender documentation required delivery of the tolling
system in two phases on 968 km of highways and motorways (Phase 1) and 2,580 km of selected national
roads (Phase 2). Bidders were allowed to use either the microwave DSRC technology or satellite GPS/GSM
technology. Launch of Phase 1 was set for January 1
st
, 2007 and Phase 2 should have followed on January
1
st
, 2008.
Four bids were submitted on September 16
th
, 2005. Three bidders were later disqualifed due to non-
compliance with the tender specifcation. After the tender results were confrmed by the Czech Offce
for Protection of Competition, contract was signed with the winning Consortium Kapsch on March 29
th
,
2006. The actual time for implementation of the system was, therefore, three months shorter than the
one year period planned by the tender specifcation.
Procurement of the system was fnanced through a structure of deferred payments that allowed full
funding of the system delivery and its operation by tolling cash fow generated by the system. While the
supply and operations of the system is governed by two separate contracts, the project can be character-
ized as a public private partnership mainly due to the extent of the risk transfer to the private supplier.
Project can be characterized as the “Design – Build – Transfer – Operate” when the supplier designs and
supplies the asset (in this case the tolling system) to the client and provides operations services for a pe-
riod of time defned by the contract. Majority of the operational risks is transferred to the supplier that
has to provide performance guarantees. Ownership rights to the system were transferred to the Czech
state at the end of the system delivery. Contract for provision of services (operation of the system) was
*) German government demands a sum of compensation payments and contractual penalties of EUR 5.1 bn & interest incurred since the launch of
the system. As of March 2012, the legal dispute has not been settled yet. German federal minister of transportation Peter Ramsauer announced in
February 2012 that the tender for new toll collection services will be called without any requirement to re-use the TollCollect system.
Preparation for
introduction of the
nationwide electronic
tolling system in the
Czech Republic started
already in 2004.
13
System Concept and Procurement Model
concluded for fve years with an option for additional fve years. This option called by the customer and
the service contract with Consortium Kapsch runs out on December 31
st
, 2016.
Concept and design philosophy of the system
The system delivered by Kapsch is built upon the microwave DSRC technology, using gantries for detec-
tion of vehicles. All vehicles that are subject to toll duty must be equipped by an On Board Unit (OBU)
that identifes the vehicle in communication with the gan-
try. The OBU is provided for free, but a deposit of EUR
63 (CZK 1,550) must be paid by the driver and will not be
returned in case the OBU was damaged.
Each gantry represents an autonomous subsystem capable
of transaction generation, i.e. billing based on the vehicle
category (truck/bus), emission class, day in a week, time
and number of axles. The main goal of the system is the
collection of fees for use of the infrastructure. Therefore,
tolling system is one of the largest payment systems in the country. Drivers can choose the payment
modes (pre-pay, post-pay) and one of 24 means of payment, including all major credit cards and feet
cards.
The pre-pay mode is the easiest way to use the Czech tolled roads. Constant ¾ of all registered drivers
have been using pre-pay since the system was launched. The driver has just to stop on one of the distri-
bution points (which are usually petrol stations), pick up
an OBU and pre-pay credit similarly to pay-as-you-go mo-
bile phone. Toll payments are then charged when passing
the gantries and deducted from the pre-paid balance of
the unit. As soon as the balance decreases below EUR 24.5
(CZK 600) the driver is warned by the unit and can re-
charge it at any distribution point.
The post-pay mode, which requires a more complicated
initial registration of vehicles in the system on contact
points (located in major cities) or via feet card issuers, is
more effcient and convenient. As soon as the post-pay contract is concluded, the transport company
receives units that do not have to be recharged with pre-paid credit. Spent toll is invoiced directly to the
transport company and can be paid by credit card, feet card, by standard interbank credit transfer or
direct debit. The payment fow is fully electronic. Payment by feet card or direct debit prevents mistakes
caused by human error that can occur for example when retyping the payment data or handling cash.
Te Czech system uses
microwave DSRC technology
with a compulsory On Board
Unit. Both pre-pay and post-
pay mode is available.
Te system was extended
from the original 968 km of
highways and motorways
to 1358 km of highways,
motorways and national roads.
14
Major milestones of the construction phase and the frst fve years of operation
The system was continuously extended to the newly built highways and the distribution network was
adjusted to the actual needs.
January 1
st
, 2011: Increase of toll rates by
25 % for all vehicle categories except for
environmentally friendly Euro 5 vehicles.
<
October 12
th
,2011: Government passes the
proposal for toll discounts that may be
awarded to frequent users. Actual rules
and discount rates remain yet to be set.
<
January 1
st
, 2010: Toll duty extension to
light trucks with gross weight above 3.5t.
Vignettes for trucks and buses cease to
exist in the Czech republic and are further
used only for passenger cars. Toll rates for
heavy trucks, light trucks and buses are
identical.
<
January 1
st
, 2007: Phase 1 commercial launch
and start of toll collection on 968 km of
highways and motorways. Pre-registration
of vehicles in December 2006 contributed
to trouble free launch with minimum de-
lays for drivers on distribution points.
<
January 1
st
, 2012: Czech tolling system has
been in operation for exactly fve years.
Rates are once again increased by 25 % for
all vehicles except for those compliant with
Euro 5 regulation.
>>
September 1
st
, 2011: Introduction of spe-
cial rates for buses that are identical for
all buses independently of emission class,
weight and number of axles. Rates are dif-
ferentiated only by the type of road (high-
way + motorway / national road).
>
February 1
st
, 2010: Tolling system is used
for traffc regulation on Fridays. Rates are
doubled in the afternoon peak between
3pm and 9pm. Rates on other days in the
week are slightly lowered as an compensa-
tion.
>
January 1
st
, 2008: Extension of the tolled
road network to selected national roads.
The extent of the Phase 2 was signifcantly
reduced. Only sections that replace high-
ways to important border crossings or pre-
vent highway bypassing were tolled. Toll
rates are lower than on highways and mo-
torways.
>
April 5
th
, 2006: Commencement of works
following the contract conclusion on
March 29
th
, 2006.
>
15
System Concept and Procurement Model
New open interface for telematic applications
A new open telematic interface was implemented to the system in 2008. The interface allows external
users to draw data on traffc fow generated by the tolling system.
New interface for collection of data from satellite on board units
While the Czech system was originally designed as a fully DSRC system, additional features allowing for
use of satellite based OBU positioning were implemented in 2008 and subsequently tested. The result-
ing “hybrid” central system is now able to receive transaction data from microwave gantries as well as
from satellite GPS/GSM units that position the vehicle using satellite navigation and use cellular data to
communicate the positioning and transactional information to the central system. The hybrid system is
currently not used in commercial operation and may be used for distance toll extension on a wider net-
work of national roads.
Basic block diagram of the hybrid tolling system that leverages one core central system for processing of data
from two sources – satellite OBUs and microwave tolling gantries
Economics
of the System >
< System Concept and
Procurement Model
2 | Operational Model
Te truck tolling system is operated by the Road and Motorway Directorate of the Czech Republic.
Technical operations of the system are contracted from the consortium Kapsch. However, the Czech
state is responsible for the strategy and long-term development of the system. Mobile Enforcement is the
responsibility of the Czech Customs Administration.
Every vehicle that is subject to the toll duty must be equipped with an electronic on board unit. Te
number of registered vehicles grew from 70 thousand at the system launch to almost 600 thousand in
December 2011. Czech tolled roads are every day used by 40 to 60 thousand tolled vehicles, lower num-
ber of 14 to 19 thousand unique vehicles is registered by the system on weekends.
Drivers can pick up the units at distribution points located in a close vicinity of tolled roads or at contact
points in major Czech cities. Contact points ofer a comprehensive range of services, including conclu-
sion of post-pay contracts, while the main focus of distribution points is serving the pre-paid users. Call
center and self-service web portal for registered users are available at all times.
18
The Czech tolling system witnessed in its short fve year history a signifcant growth that surpassed
expectations as well as assumptions made in the tender documentation. The forecasted number of
70 thousand On Board Units was almost reached during the pre-sales phase by the end of 2006. The
overall number of units has been growing ever since.
Every registered vehicle does not use the Czech roads every day. Mainly foreign vehicles visit the Czech
Republic only several days a month or irregularly. An average of 56 thousand vehicles a day was oper-
ated on tolled roads in 2011. Weekends see a large
drop to 17 thousand unique vehicles. The average
number of vehicles operated on workdays makes up
to around 10 % of all vehicles registered in the sys-
tem.
The number of daily unique vehicles is one of the
seasonal indicators of the tolling system activity.
The development is similar to the overall toll collec-
tion with peaks in the spring and autumn.
A total of 595 thousand vehicles
were registered in the system by
the end of 2011. An average of
56 thousand of them uses Czech
tolled roads every working day.
Number of registered vehicles in the system (by the end of the year) between 2006 and 2011. Category “bus”
was reported in one group with truck until 2010. Exempt vehicles are not included. Source: ESVZ ČR
393
2011
313
67
13
2010
327
470
37
2009
436
426
10
2008
371
2007
267
2006
62
12L+
3,3L - 12L
8us
19
Operational Model
Average number of unique vehicles that use tolled roads in the Czech Republic on weekdays. Source: ESVZ ČR
Average number of unique vehicles that use tolled roads in the Czech Republic on weekends. Source: ESVZ ČR
60,000
30,000
40,000
30,000
20,000
10,000
0
C 36,302
2
0
1
1

-

1
2

2
0
1
1

-

0
1

2
0
1
1

-

0
6

2
0
1
0

-

0
6

2
0
1
0

-

1
2

2
0
1
0

-

0
1

3,000
13,000
23,000
33,000
43,000
33,000
63,000
12L +
3,3L - 12L
bus
13,000
20,000
10,000
3,000
0
C 17,378
2
0
1
1

-

1
2

2
0
1
1

-

0
6

2
0
1
1

-

0
1

2
0
1
0

-

1
2

2
0
1
0

-

0
6

2
0
1
0

-

0
1

bus
3,3L - 12L
12L +
20
While the size of the system can be indicated by the number of OBUs and length of the road network,
the seamless operation of the system is a result of many interconnected operational activities. Selected
key activities constitute the value chain of the tolling system.
All activities of the value chain are executed by entities of the Czech state, their private subcontractors,
by the General supplier and Sub-suppliers.
Roles of the various entities in delivery and operation of the tolling system
Ministry of Transport (MD ČR)
Ministry of Transport is the ordering party and the client. Its main role is defnition of the strategy and
preparation of the necessary legislation. The Ministry also proposes the actual toll rates which are then
set by the Government. The Ministry is also responsible for the EU relations, an agenda that gains its
importance with the recent interoperability efforts.
Road and Highway Directorate of the Czech Republic (ŘSD ČR)
Road and Highway Directorate of the Czech Republic is subordinated to the Ministry of Transport. The
Directorate is the operator of the system. The main task of the operator is the management of the sys-
tem operation (which is outsourced to the General Supplier). As the system has been in ownership of the
state since its delivery, the Directorate is also responsible for the asset administration and accounting.
The Directorate is also the contractual partner of the toll payers – drivers or transport companies*.
State Fund for Transport Infrastructure (SFDI)
The fnal recipient of the collected toll is the State Fund for Transport Infrastructure. The collected toll
amounts are transferred to accounts of the Fund without any allowed deductions. The Fund reimburses
the operational costs of the system to the Road and Highway Directorate of the Czech Republic.
General Supplier (consortium Kapsch)
The Kapsch consortium is responsible for the delivery of the system (in phases since 2006) and technical
operations of the system until 2016. The consortium has delivered to the client the infrastructure and
software of the central system, toll gantries and their equipment, enforcement infrastructure including
the mobile enforcement vehicles and infrastructure of the distribution network. Consortium is respon-
sible for operation and maintenance of the infrastructure, system monitoring, provision of services to
road users (e.g. OBU distribution) and operation of the payment scheme related to various kinds of toll
related payments.
kec|amanons
(hnanc|a| and
non-hnanc|a|)
Lnforcement
1o|| co||ecnon
and payments

1o|| ranng
and b||||ng
1echn|ca| &
commerc|a|
operanon,
|nfrastructure
ma|ntenance
Imp|ementanon of
both centra| and
d|str|buted system
|nfrastructure
*) The vehicle is registered using a registration form for the pre-pay mode. The post-pay mode requires conclusion of a written contract between
ŘSD and the vehicle operator.
21
Operational Model
Sub-suppliers of the General Supplier
Sub-suppliers to the consortium deliver specialized components and services. The subcontracted services
were frequently required by the tender documentation to be provided as a service, not as delivery (e.g.
call center) or require special licenses (e.g. payments and banking services). The general supplier remains
fully responsible for integration and the quality of the service.
The largest Sub-suppliers outside the Kapsch Group are Asseco Central Europe, a.s., AŽD Praha, s.r.o.,
Cross Zlín, a.s., Československá obchodní banka, a.s. and Telefónica O2 Czech Republic, a.s.
The Czech Customs Administration
The Czech Customs Administration is responsible for the mobile enforcement of the toll duty. The Ad-
ministration operates a feet of control vehicles and is allowed to stop vehicles and infict fnes. The
Administration is also responsible for collection of fnes that were not paid immediately by the drivers.
Project Manager
Main task of the Project Manager was provision of consultancy services to the client during the procure-
ment phase, followed by management and coordination of the delivery phase, including management
of testing and acceptance. Consortium of Deloitte and Bovis Lend&Lease acted as the project manager
during the delivery phase.
Independent auditor
Auditor performs regular independent measurements of the toll system effectiveness, which is one of
the key performance parameters defned by the operations contract. Independent auditor validates the
number of vehicles registered by the tolling system in a given section with the real number of vehicles.
The independent auditor is Logica CEE.
Services for road users and distribution
The most visible part of the tolling system are undoubtedly the tolling gantries. The second element is
– at least for the drivers who pay toll – the distribution infrastructure that facilitates their contact with
the system. Drivers and transport companies can use distribution and contact points, get information
from non-stop call centre and on the web portal that facilitates payment of the unpaid due toll amounts
as well. Registration to the system through issuers of feet cards is important mainly for foreign users.
Contact points provide complex services, mainly the administratively demanding post-pay contracts. Fif-
teen contact points are located in major cities in the Czech Republic as these are visited mainly by man-
agers of transport companies. On the other hand, the distribution points are located usually at petrol
stations, always in a close vicinity of the tolled roads. Each of 250 distribution points is no farther away
than 12 km from the nearest highway exit. Services are limited to the operative activities, conclusion of
post-pay contract is not possible on the distribution point. Distribution points are predominantly used by
users with pre-paid units for recharging. Drivers with faulty units (pre-pay and post-pay) can exchange
the OBU for a new one.
22
Enforcement
Enforcement is an integral and indispensable part of the toll collection system. Automated enforcement
gantries check whether vehicles are equipped with OBUs and all parameters are set correctly (e.g. num-
ber of axles). When the system identifes a vehicle that violates the toll duty, the information is forward-
ed to the mobile enforcement units of the Czech Customs Administration. The automated enforcement
highly increases effectiveness of the enforcement by concentrating the costly resources (mobile units) to
vehicles identifed as suspicious, instead of checking random vehicles on the road.
The mobile control unit can scan parked trucks and check for violations registered in the system, monitor
vehicles directly on the road or stop vehicles based on leads from the automated enforcement.
Number of vehicles that are subject to toll duty, but not equipped with an OBU has been steadily de-
creasing since the launch of the system. The most common violation is incorrect settings of the unit
(wrongly set number of axles). The Czech Customs Administration processed almost 190 thousand viola-
tions and collected more than EUR 6.12 m (CZK 150 m) fnes from 2007 till the end of 2011.
34.60
C 37.33
42.98
39.01

40.73
30.32
C 1.24
1.33
1.30
0.94
1.21
1.39
AmounL of lnßlcLed
ñnes ln Lu8 mllllons
number of lncldenLs
(Lhousands)
Amount of fnes imposed by the Czech Customs Administration and number of incidents
Source: The Czech Customs Administration
Importance of
Toll Collection for
Infrastructure Financing > < Operational Model
3 | Economics
of the System
Procurement of the system and its operation have been fully funded by tolling cash fow generated by
the system. Payback on the investment into the Phase 1 (highways and motorways, vehicles 12 t+) was
just 6 months.
Te costs of the tolling system‘s technical provider (consortium Kapsch) reached EUR 0.43 bn
(CZK 10.5 bn) without VAT, or 33 % of tolling revenues. Te cost/income percentage value does not
represent an useful and comparable basis for cost evaluation as it is heavily infuenced not only by the
actual amount of costs, but by the tolling rates and other factors as well. Te cost/income ratio of 29.3 %
in 2009 would decrease with an additional tolling revenue of EUR 41 m (CZK 1 bn) by approximately
3 percentage points.
Te system remains in the ownership of the Czech republic when the service contract with consortium
Kapsch expires at the end of 2016. Te build-up cost invested into the system can generate revenue for
an even longer period of time than during the initial 10 years contracting period.
24
The tolling system – as any fee collection system or tax collection process – generates apart from its
revenues also costs. Costs of the Czech system can be split to (i) delivery of the system and (ii) provision
of services necessary for the system operation. The distinction of delivery and operations is refected in
the procurement model as well – the system property rights were transferred to the Czech state after its
completion and the General supplier provides operational services.
Delivery and operations of the system are broken down into four phases:
Phase 1 – delivery and operation of the system on highways and motorways
Phase 2 – delivery and operation of the system on selected national roads
Phase 3 – extension of the system to newly built sections of highways (for which the building permit
will be issued on December 31
st
, 2017 at the latest)
Phase 4 – extension of the system with additional 250,000 OBUs and introduction of the tolling for
light trucks (3.5 t+)
Next two phases extended the system with technologies and services that do not generate any tolling
revenue, which sets them apart from Phases 1 to 4:
Phase 5a – implementation of an open interface for telematic applications
Phase 5b – implementation of the traffc management solution on the D1 highway
Phase 6 – implementation of the interface for satellite based OBUs (the “hybrid” system)
The General supplier receives bonuses for system effectiveness exceeding 95 % and reimbursement of
fees paid to the issuers of credit cards and feet cards as well. The effectiveness bonus equals to one half
of the toll collection above the 95 % threshold.
Should the effectiveness decrease below 95 %, the
General supplier is obliged to pay to the whole
loss to the Czech state.
The delivery of the system was fnanced through
a scheme of deferred payments. This PPP style of
payment scheme conditioned by performance in-
dicators of the system did not require any state
funds exceeding the toll revenue at any time and
allowed for use of toll revenue for system delivery
payments. Payback on the delivery of the system for highways and motorways (total cost of EUR 0.11 bn/
CZK 2.67 bn) was just six months. Total costs of system delivery and operation payable to the General
supplier until December 31
st
, 2011 reached EUR 0.43 bn (CZK 10.5 bn) without VAT.*
*) We are quoting costs without VAT (as the VAT rate changed three times in the Czech Republic between 2007 and 2011 & toll revenue is not
a subject to VAT) and assign costs to years based on due date of invoices. We believe that this approach refects the structure of the contractual
relationship based on deferred payments.
Total costs of the General supplier
for delivery and operation of
Phase 1–4 reached in the frst fve
years of system operation a total
of EUR 0.43 bn (CZK 10.5 bn).
25
Economics of the System
2011
63.07
80.98
1.38
61.07
16.46
16.33
102.09
2009
8.03
8S.S6
2010
48.33
43.79
7.97
2008
9S.61
46.11
43.13
4.38
2007
6S.37
29.07
33.97
0.33
uellvery Þhase 1-4
Servlces Þhase 1-4
8onus for eñecuveness
2011
63.07
80.98
1.38
61.07
16.46
16.33
102.09
2009
8.03
8S.S6
2010
48.33
43.79
7.97
2008
9S.61
46.11
43.13
4.38
2007
6S.37
29.07
33.97
0.33
uellvery Þhase 1-4
Servlces Þhase 1-4
8onus for eñecuveness
16.33
2010
8S.S6
6.10
1.93
33.97
7.43
3.39
14.29
16.46
2009
102.09
39.14
3.69
2.20
1.30 3.39
7.43
2.39
7.97
2008
9S.61
40.70
4.07
1.34
33.97
7.43
1.73
1.38
2007
6S.37
29.07
33.97
0.33
33.97
2011
80.98
33.97
7.43
14.29
4.38
Þhase 1 - dellvery
Þhase 2 - servlces
Þhase 2 - dellvery
Þhase 3 - dellvery
Þhase 4 - dellvery
Þhase 1 - servlces
Þhase 3 - servlces
Þhase 4 - servlces
Lñecuveness bonus
16.33
2010
8S.S6
6.10
1.93
33.97
7.43
3.39
14.29
16.46
2009
102.09
39.14
3.69
2.20
1.30 3.39
7.43
2.39
7.97
2008
9S.61
40.70
4.07
1.34
33.97
7.43
1.73
1.38
2007
6S.37
29.07
33.97
0.33
33.97
2011
80.98
33.97
7.43
14.29
4.38
Þhase 1 - dellvery
Þhase 2 - servlces
Þhase 2 - dellvery
Þhase 3 - dellvery
Þhase 4 - dellvery
Þhase 1 - servlces
Þhase 3 - servlces
Þhase 4 - servlces
Lñecuveness bonus
16.33
2010
8S.S6
6.10
1.93
33.97
7.43
3.39
14.29
16.46
2009
102.09
39.14
3.69
2.20
1.30 3.39
7.43
2.39
7.97
2008
9S.61
40.70
4.07
1.34
33.97
7.43
1.73
1.38
2007
6S.37
29.07
33.97
0.33
33.97
2011
80.98
33.97
7.43
14.29
4.38
Þhase 1 - dellvery
Þhase 2 - servlces
Þhase 2 - dellvery
Þhase 3 - dellvery
Þhase 4 - dellvery
Þhase 1 - servlces
Þhase 3 - servlces
Þhase 4 - servlces
Lñecuveness bonus
Payments for delivery and operation of the system to the General supplier for Phases 1 to 4 between 2007 and
2011. (EUR millions w/o VAT, CZK/EUR = 24.5). Source: Kapsch Telematic Services s.r.o.
Cost breakdown by Phases 1–4 and construction / operation between 2007 and 2011. (EUR millions w/o VAT, CZK/
EUR = 24.5). Source: Kapsch Telematic Services s.r.o.
26
Costs of implementation and pilot testing of the hybrid system and telematic interface are not calculated
to the above quoted costs as these do not generate any tolling revenues.
Economic efectiveness of the system: Cost / Income ratio
Average cost / income ratio of the system in the frst fve years reached 33 %. However, this indicator is
biased and not suitable e.g. for international comparisons due to the following reasons:
1. Cost / Income ratio is by defnition infuenced by the costs to the same extent as by the income. Toll
rates were in the Czech Republic signifcantly lower than in other Central European countries dur-
ing the 2007–2011 period. With prevailing fxed nature of the system costs, the lower revenue due to
cheap rates pushes the cost / income ratio higher.
2. Unbiased evaluation of cost effectiveness is not possible in a system that fulflls not only revenue de-
fned goals, but strives for traffc regulation as well. Czech preference of buses in the system by lower
rates (as introduced in September 2011) will result in a revenue gap of EUR 5–6 m (CZK 120–150 m) only
in 2012. Cost effectiveness of the system decreases with each such revenue gap created by regulatory
changes in rate cuts or discounts.
3. Cost effectiveness calculated in terms of payable costs of the General supplier does not refect the
nature of the system as an asset owned by the state. The lifespan of some system components (such
as gantries or the central system) is longer than the fve years of operation we analyzed. Distributing
the delivery costs over the 10 year contracting period cuts the cost/income ratio down from 33 % to
29.5 %.
4. Cost effectiveness of the system decreases with introduction of tolling to roads with low yield – typi-
cally national roads. While the costs are comparable or higher than on high yielding highways, the
toll collection is signifcantly lower. Average collection per one kilometer of national road in the
Czech Republic is only 21 % of average highway revenue.
Every tolling system must be optimized for revenue maximization or follow traffc regulation goals. Ad-
ditional EUR 41 m (one billion CZK) collected by the system currently results in improvement of the cost
C 33°
2011
24.42°
2010
31.89°
2009
43.12°
2008
38.13°
2007
28.78°
CosL / lncome rauo of Lhe sysLem
Changing cost/income characteristics of the system, refecting 2008–2009 peak in deferred payments for system
delivery. Source: costs Kapsch Telematic Services s.r.o., toll revenues ESVZ ČR
27
Economics of the system
effectiveness by three percentage points. On the other hand, implementation of any measures that jeop-
ardize revenues or increase costs without contribution to revenue generation push the cost/income ratio
higher and make the system less cost effcient.
We have intentionally chosen not to compare
the effectiveness of the Czech system with any
other foreign countries. Different procurement
models in various countries and their refection
into the fnancial and asset ownership relation-
ships between the suppliers and operators make
any international comparison a very delicate
task. A trustworthy comparison would have to adjust data by infuence of road network length, price
level of rates, traffc intensity as well as the already mentioned procurement model and accounting
principles.
Total proft characteristics of the system
Total gross income (toll collection – costs of the General supplier) of the tolling system between 2007 and
2011 amounted for EUR 0.92 bn (CZK 22.5 bn). The model of deferred payments and the fnancial crisis
caused decrease of the gross income in 2008 and the record low of EUR 124 ths (CZK 3.04 bn) in 2009,
when the payments for delivery of Phases 1 to 4 peaked. The combination of higher rates, economic
recovery and very low payments for delivery (i.e. vast majority of the costs is created by the operational
services) contributed to the highest yearly gross income of EUR 0.25 bn (CZK 6.14 bn).
Part of the costs is not directly linked to the toll collection
Phases 5a, 5b and 6 implemented the open telematic interface, traffc management solution on the
highway D1 and interface for collection of satellite positioning data from GPS/GNSS units. Cost of im-
plementation (delivery), pilot testing and operation reached EUR 103.6 m (CZK 2.54 bn) without VAT
between 2007 and 2011.
Cost / income of the system in 2011
was 24.4 % and another collected
EUR 41 m (CZK 1 bn) would decrease
the ratio by 3 percentage points.
2013

2012
-81
332
2014

226
-96
-86
268
2013

-102

231
2011

-63
227
C 173
ÞaymenLs for dellvery and servlces
8evenue
Revenues (toll collection), costs of the General supplier (for delivery and operations) and gross income of the toll
system in its frst fve years (CZK billions). Source: costs Kapsch Telematic Services s.r.o., toll collection ESVZ ČR
28
While the investment in Phases 1–4 were targeted at toll collection (i.e. direct revenue generation), the
main objective of the Phase 5 is management of the traffc on the overloaded highway D1. According
to the European Commission, congestions cost Europeans about 1 % of GDP. Aim of the traffc manage-
ment system on D1 is to reduce these socio-economic costs. Investments into hybrid system may pay off in
the future in case the hybrid (satellite) technology is used for introduction of tolling on national roads.
2.24
2011
11.14
26.S7
4.33
7.47
1.43
2010
14.29
6.33
1.43
2009
21.63
4.33
12.69
2.98
1.43
2008
44.24
20.49
16.49
6.12
0.43
0.69
2007
Þhase 6 - dellvery
Þhase 3b - dellvery
Þhase 3a - dellvery
Þhase 3b -servlces
Þhase 3a - servlces
2.24
2011
11.14
26.S7
4.33
7.47
1.43
2010
14.29
6.33
1.43
2009
21.63
4.33
12.69
2.98
1.43
2008
44.24
20.49
16.49
6.12
0.43
0.69
2007
Þhase 6 - dellvery
Þhase 3b - dellvery
Þhase 3a - dellvery
Þhase 3b -servlces
Þhase 3a - servlces
2.24
2011
11.14
26.S7
4.33
7.47
1.43
2010
14.29
6.33
1.43
2009
21.63
4.33
12.69
2.98
1.43
2008
44.24
20.49
16.49
6.12
0.43
0.69
2007
Þhase 6 - dellvery
Þhase 3b - dellvery
Þhase 3a - dellvery
Þhase 3b -servlces
Þhase 3a - servlces
Costs of Phase 5 and 6 measured as amounts payable to the General supplier in respective years (CZK millions)
Source: Kapsch Telematic Services s.r.o.
Telematic Features
of the Tolling
System > < Economics of the system
4 | Importance of Toll Collection
for Infrastructure Financing
Importance of the tolling income for the infrastructure fnancing has been growing, reaching 18 % of the
budgeted income of the State fund for transport infrastructure in 2012.
Average yield is the highest on the Prague ring road (almost EUR 0.51 m / CZK 12.5 m in 2011) and on
the highway D5 (Prague to München / Nürnberg). Average revenue of the national roads is only 21 % of
the toll collected on highways and motorways.
Electronic toll collection that is dependent on wear and tear of the road allows for an efective taxation
of foreign road users. Foreign transport companies paid 41 % of toll collected in the 2007–2011 period.
30
As for a majority of tolling systems in Europe, the main goal of the Czech system is to collect payments
from road users for the use of the infrastructure. The frst fve years‘ revenue amounted for a total of
EUR 1.3 bn (CZK 31.9 bn). The revenue has been steadily growing on the year on year basis while gain-
ing more importance in the revenue mix of the State Fund for Transport Infrastructure. The percentage
share of the toll on the Fund‘s revenues has been growing even faster, mainly due to the fact that the
historically main source for the Fund, the privatization revenue, has signifcantly decreased and has not
been substituted yet. Therefore the main source of infrastructure fnancing in the Czech Republic are
European funds drawn from the Operational Programme Transport 2007–2013. National co-fnancing is
either provided from the state budget, or fnanced by European Investment Bank loans.
Toll revenue and vignetes generate a direct revenue for the infrastructure
Only two revenue sources of the State Fund for
Transport Infrastructure come directly from the
road users, are closely linked to the use of the in-
frastructure and are not re-distributed by the state
budget: toll collected from trucks and busses & vi-
gnette purchases by drivers of passenger cars.
Vignettes were introduced in 1995 and their impor-
tance started to decline in 2007 with the replace-
ment of vignettes for heavy trucks and buses by

32°

14°

12°

2010
3.09

33°
10°


10°

2009
3.12
10°
34°
10°




2008 2014
ootlook
1.90
16°
21°
26°

11°
201J
ootlook
2.4S

30°
20°

13°

2012
budgeL
2.38

23°
18°

13°

2011
2.44

3.S8

23°
39°



2007
2.27
38°


13°
11°
2006
1.89
49°

13°
12°
Ll8 loans
Lu funds
SLaLe budgeL funds
Þrlvauzauon revenues
e1oll
vlgneue
Lxclse Lax on fuel
8oad Lax
l 4

32°

14°

12°

2010
3.09

33°
10°


10°

2009
3.12
10°
34°
10°




2008 2014
ootlook
1.90
16°
21°
26°

11°
201J
ootlook
2.4S

30°
20°

13°

2012
budgeL
2.38

23°
18°

13°

2011
2.44

3.S8

23°
39°



2007
2.27
38°


13°
11°
2006
1.89
49°

13°
12°
Ll8 loans
Lu funds
SLaLe budgeL funds
Þrlvauzauon revenues
e1oll
vlgneue
Lxclse Lax on fuel
8oad Lax
l 4

32°

14°

12°

2010
3.09

33°
10°


10°

2009
3.12
10°
34°
10°




2008 2014
ootlook
1.90
16°
21°
26°

11°
201J
ootlook
2.4S

30°
20°

13°

2012
budgeL
2.38

23°
18°

13°

2011
2.44

3.S8

23°
39°



2007
2.27
38°


13°
11°
2006
1.89
49°

13°
12°
Ll8 loans
Lu funds
SLaLe budgeL funds
Þrlvauzauon revenues
e1oll
vlgneue
Lxclse Lax on fuel
8oad Lax
l 4

32°

14°

12°

2010
3.09

33°
10°


10°

2009
3.12
10°
34°
10°




2008 2014
ootlook
1.90
16°
21°
26°

11°
201J
ootlook
2.4S

30°
20°

13°

2012
budgeL
2.38

23°
18°

13°

2011
2.44

3.S8

23°
39°



2007
2.27
38°


13°
11°
2006
1.89
49°

13°
12°
Ll8 loans
Lu funds
SLaLe budgeL funds
Þrlvauzauon revenues
e1oll
vlgneue
Lxclse Lax on fuel
8oad Lax
l 4

32°

14°

12°

2010
3.09

33°
10°


10°

2009
3.12
10°
34°
10°




2008 2014
ootlook
1.90
16°
21°
26°

11°
201J
ootlook
2.4S

30°
20°

13°

2012
budgeL
2.38

23°
18°

13°

2011
2.44

3.S8

23°
39°



2007
2.27
38°


13°
11°
2006
1.89
49°

13°
12°
Ll8 loans
Lu funds
SLaLe budgeL funds
Þrlvauzauon revenues
e1oll
vlgneue
Lxclse Lax on fuel
8oad Lax
l 4
Changing shares of revenue sources in the fnancing mix of the State Fund for Transport Infrastructure (SFDI)
between 2006–2014 and total budget volume in EUR bn (CZK/EUR = 24.5). Source: SFDI Annual repors, SFDI 2012
budget and mid-term outlook 2013–2014
Tolling income is directly correlated
with economic activity in the
country and in the region. It is not
redistributed as other tax incomes
and spent only on infrastructure
maintenance & development.
31
Importance of Toll Collection for Infrastructure Financing
electronic toll collection. With the growing prices and numbers of passenger cars on Czech highways,
vignettes remain an important fnancial source. Mainly the price growth drives the revenue that in 2011
(only from passenger cars) almost reached the 2006 level when vignettes were obligatory for heavy and
light trucks as well.
The most important turning point in the history of the Czech infrastructure fnancing remains year 2007
when the direct income of the State Fund for Transport Infrastructure grew by 143% thanks to the switch
from vignettes to toll for heavy trucks. The direct payments for use of infrastructure than surpassed
EUR 0.4 bn (CZK 10 bn) for the frst time in 2011.
Tolling systems efectively collect fees from non-residents
The inability to effciently tax non-residents who use infrastructure of the respective country has become
a signifcant weakness of not only the Czech tax system. While the ownership of the vehicle can not be
taxed outside the country of residence at all, the relation between the amount of the excise tax on fuel
paid in the country and use of its infrastructure has
become loose. Europe without borders has eliminat-
ed the historically reliable assumption of using the
roads in the country where fuel is bought.
The tolling system collects fees from Czech and for-
eign road users equally on a strictly non-discrimina-
tory basis as stipulated by the applicable European
directives. Foreign transport companies paid a total of EUR 0.53 bn (CZK 13 bn) toll between 2007 and
2011, representing 41 % of the overall toll collection. The share of Czech users has been decreasing to
only 57.8 % in 2011 compared with 61.3 % in 2007. The share of registered Czech vehicles in the system
remains stable between 22 % and 23 %.
1
0.46

2011
0.34
0.13 0.13
0.33
2010
0.40
0.27
2009
0.12
0.23
2008
0.36
0.11
0.23
2007
0.33
0.10
0.23
2006
0.13
2003
0.12
2004
0.11
2003
0.08
2002
0.08
2001
0.07
vlgneue e1oll
Comparison of revenues from vignettes and toll between 2001 and 2011 (CZK billions). Source: SFDI Annual
reports, ESVZ ČR
Foreign vehicles that represent
78 % registered vehicles generated
42 % revenues in 2011.
32
The largest foreign share take traditionally vehicles registered in the Central European countries: in
Slovakia, Poland and in Hungary. The tolling system mirrors development of the transport market with
Polish and Romanian trucks gaining market share mainly from Slovak and German companies.
2011
8.11
42°
38°
2010
6.S7
41°
39°
2009
S.S4
42°
38°
2008
6.13
40°
60°
2007
S.S6
39°
61°
2010 2011
S9S
2009
78°
22°
S27
76°
24°
436
78°
22°
2008
371
77°
23°
2007
267
72°
28°
Czech lorelgn




2011
100° of forelgn users
13°

11°
2009
29°
23°
13°
10°

14°
2010
30°
23°
14°
13°


16°
21°
29°
2008
13°


13°
18°
33°
2007
13°


13°
16°
39°
Þoland
CLhers
8ulgarla
Cermany
8umanla
Pungary
Slovakla
Toll revenue collected from foreign users broken down by country of origin. Source: ESVZ ČR
Shares of Czech and foreign users on OBU registrations (left) and toll revenue (right). Source: ESVZ ČR
33
Importance of Toll Collection for Infrastructure Financing
Tolled road network and tolling income in the regions of the Czech Republic
The overall toll collection in regions of the Czech Republic varies mainly due to the uneven coverage of
the Czech Republic with highways and motorways. Differences are caused not only by different length
of the tolled network and traffc intensity. The composition of the tolled network plays an important
role as the rates for national roads are much lower than rates paid on highways and motorways. An ex-
ample is the striking difference between the Vysočina region and the Moriavian-Silesian region. A mas-
sive revenue is generated by the most important Czech highway D1 that passes through the Vysočina
region, while almost no national roads are tolled in the region. The result is a 13.6 % share of the overall
Czech toll income on just 7 % of the tolled network. On the other hand, the Moriavian-Silesian region
generates only 5 % of revenue on 11 % of the tolled network due to the extensive national roads tolling
(roads I/47, I/48 a I/58) and low traffc intensities on the only highway in the region that still misses a full
collection to the Polish highway network.
The structure of the tolled network and varying traffc intensities are refected in the average toll col-
lected on one kilometer of the tolled road in the region. Prague (A) and Vysočina region (J) are the clear
outliers thanks to the high yielding Prague ring road and D1 highway. High traffc intensities on these
two busy roads put them well above the national average of EUR 0.243 m (CZK 5.96 m) per kilometer.
Well below the average are, on the other hand, regions where national roads prevail (Pardubice region,
Hradec Králové region and others).
Zllnsky 0.71°
úsLecky 3.11°
Moravskoslezsky 4.92°
SLiedocesky 30.07°
Þlzensky 10.67°
Clomoucky 8.92°
Llberecky 0.94°
karlovarsky 0.77°
vysoclna 13.61°
královehradecky 1.43°
Þardublcky 0.09°
!lhocesky 0.37°
!lhomoravsky 16.14°
Þraha 6.22°
Share on revenues
2.86°
26.29°
6.03°
2.60°
10.89°
0.30°
7.83°
12.30°
2.16°
7.16°
3.64°
1.03°
13.70°
3.17°
Share on lengLh of Lolled neLwork
Shares of regions on the toll revenues and total length of the tolled road network in 2011 Source: ESVZ ČR
34
Tolling revenues are closely correlated with economic situation of the Czech Re-
public and the region
The Czech tolling system has already witnessed a rapid economic growth, the fnancial crisis as well as
the slow return to the modest growth after crisis. Situation in the transportation sector is a traditional
indicator of economic cycles and data from the system allow for analysis of time series comprising of very
accurate data available almost in real time every day in the year.
While the sample of twelve quarters from 2008 till 2011 is rather short, we can illustrate the correlation
of the GDP and traffc performance measured by the tolling system. The following chart shows this cor-
relation by comparing quarterly year-on-year GDP changes and number of kilometers travelled by trucks
and buses on the tolled network*.
*) We have chosen the performance measurement in kilometers instead of the revenue due to the changing rates and structure of vehicles registered
in the system, which impacts the average rate through the environmental “Euro” classifcation. However, the basis remains biased by introduction of
tolling for light trucks in 2009 and growing lengths of the tolled network.


-3°
4C/11
0.6°
3C/11
7.0°
2C/11
7.8°
1C/11
17.0°
4C/10
37.0°
3C/10
27.1°
2C/10
31.3°
1C/10
23.6°
4C/09
-0.3°
3C/09
-6.8°
2C/09
-12.7°
1C/09
-14.0°
4C/08
4.8°
3C/08
18.8°
2C/08
23.1°
1C/08
22.0°
10°
CuÞ Czech 8epubllc 1oll
Comparison of quarterly year-on-year changes in toll revenue and Czech GDP (activity in the tolling system
measured as kilometers traveled on the paid network, GDP fgures are in real prices, not seasonally adjusted)
Source: tolling data ESVZ ČR, GDP fgures Czech statistical offce as of March 9
th
, 2012
Z
60
110
u
206
1 M S
279
Þ
332
177
L k
87
!
464
P
96
L
76
C
87
8
287
A
479
C 243
88
Average revenue from one kilometer of the tolled road in regions of the Czech Republic in 2012 (EUR thou-
sands, CZK/EUR 24.5). Source: ESVZ ČR
35
Importance of Toll Collection for Infrastructure Financing
Average toll revenue was impacted by the fnancial crisis as well as extension of the
system to national roads
The Czech oldest and longest highway D1 generates 36 % of toll revenues. The second place takes the D5
(connecting Prague and southern Germany) with 16.23 %. No other road surpasses share of 10 % on the
overall toll revenues.
The leading positions of D1 and D5 come as no surprise as these roads are the two longest highways in
the Czech Republic. Therefore, we will use the proportion of toll collected per one kilometer of the re-
spective road for further comparison.
Average revenue of highways is
almost three times higher than col-
lection on national roads
Average revenue per kilometer in the Czech
Republic was decreasing between 2007 and
2010. The 2011 average surpassed 2007 by just
a very small margin. This development can be attributed to the fnancial crisis in Europe and changing
structure of the Czech tolled road network. While the whole tolled network comprised only of high-
Shares of road sections on the total amount of toll collected in 2011. Source: ESVZ ČR
Just two highways (D1 and D5) combined
collect more than a half of the toll. Te
oldest Czech highway D1 itself generated
36 % of the national revenue in 2011.
36
ways and motorways in 2007, the numbers for 2008 onward are infuenced by introduction of tolling
on national roads. Combination of lower rates on national roads and generally lower traffc intensities
contributes to the decrease of the average collection on the whole network.
Prague ring road and highway D5 take the clear lead in average kilometer yield. D5 collects even more
than the D1 due to the missing sections of D1 between Brno and Ostrava (the intensity on the eastern
part of the highway is, therefore, very low). If we take into account D1 only between Prague and Brno
(where the highway faces the highest traffc load), the average revenue per kilometer would surpass the
D5 and, consequently, take the second place in the national comparison.
C 217.04
243.30
2011
199.22
2010 2008 2009
182.89
213.93
2007
243.68
Historical development of average revenue per one kilometer of the tolled road (EUR thousands, CZK/EUR = 24.5,
all highways, motorways and national roads combined). Source: ESVZ ČR
l/38
l/38 20.48
l/46
38.23
33.26
l/33 36.12
l/47
863 69.38
49.88
l/32 39.87
l/33 39.94
l/33 74.31
84 83.61
86 83.63
u3 87.19
l/48 91.23
l/11 94.34
833 96.37
l/30 112.01
87 123.19
836 128.04
832 136.67
810 137.92
848 181.96
833 212.98
u11 231.94
846 243.06
u8 307.91
u2 323.49
u1 346.63
u3 336.04
81 307.70
l/38
l/38 20.48
l/46
38.23
33.26
l/33 36.12
l/47
863 69.38
49.88
l/32 39.87
l/33 39.94
l/33 74.31
84 83.61
86 83.63
u3 87.19
l/48 91.23
l/11 94.34
833 96.37
l/30 112.01
87 123.19
836 128.04
832 136.67
810 137.92
848 181.96
833 212.98
u11 231.94
846 243.06
u8 307.91
u2 323.49
u1 346.63
u3 336.04
81 307.70
Average revenue of tolled roads in 2011 on road sections (EUR
thousands per one kilometer, CZK/EUR 24.5). Source: ESVZ ČR
37
Importance of Toll Collection for Infrastructure Financing
Revenue differences between individual tolling segments are even higher than those of whole road
sections. Yearly income of the least proftable segment of the national road I/47 (close to city of Hulín)
accounts only for 2 % of yearly income generated by the most proftable segment in the Czech republic,
found on the highway D1 close to Modletice. Among the TOP10 yielding tolling sections are only sections
of the highway D1 and Prague ring road R1. On the other hand, the 10 lowest yielding sections are all on
national roads I/47 and I/58.
38
Development of Toll
Collection Cystems in Central
Europe and European Union >
< Importance of
Toll Collection for
Infrastructure Financing
5 | Telematic Features
of the Tolling System
Intelligent trafc systems (telematics) can contribute to higher safety, travel comfort, more efcient use
of the infrastructure as well as to lower environmental impact of road transportation.
Te tolling system generates valuable data describing in detail the intensity and composition of the traf-
fc stream including its speed characteristics. Collected data can be used either for immediate actions or
for analysis of long term trends and set-up of trafc models.
Te ability of the tolling systems to alter economic motivations of road users through variable tolling
rates opens new possibilities for use of tolling systems for trafc regulatory purposes. Diferentiated pric-
ing can promote use of environmentally friendly vehicles, prefer public transport and displace unneces-
sary journeys to of-peak times.
40
Transport telematics is the key to the more efcient use of infrastructure
Tolling system is an important element of the transport telematics ecosystem. Intelligent transport
systems (ITS) combine information and communication technologies in order to increase capacity of
existing infrastructure, improve security and lower
environmental impact of the transport industry. ITS
is mainly focused on traffc management and regu-
lation, development of intelligent vehicles, electronic
fee collection, management of public transport and
seamless door to door route planning.
Importance of ITS will be growing for Europe as well
as for the Czech Republic. Lack of investment funds
for capacity increases will inevitably lead to search for
ITS solutions that allow for more effcient utilization
of the existing infrastructure. One of the key strategic
development streams of ITS is data collection and sub-
sequent distribution of the data to drivers as well as
usage of the data for immediate actions leading to traffc fow optimization. Future widespread cheap
telecommunication networks can make the vision of vehicles communicating with infrastructure and
among themselves a reality.
European Union strives for coordinated development of ITS across Europe. The Directive 2010/40/EU on
the framework for the deployment of Intelligent Transport Systems in the feld of road transport and for
interfaces with other modes of transport sets out four priority areas:
• Optimal use of road, traffc and travel data,
• Continuity of traffc and freight management ITS services,
• ITS road safety and security applications,
• Linking the vehicle with the transport infrastructure.
Many key highways, city bypasses and ring roads in Europe are equipped with traffc management so-
lutions. Electronic tolling however remains the most frequently used ITS technology. Tolling systems,
originally conceived for the sole purpose of effcient automated fee collection, are being more closely
integrated into national ITS platforms and their importance in the intelligent traffc landscape is grow-
ing. Tolling systems generate valuable traffc data without any further investments or modifcations.
Secondly, the rate structure can be used as a regulatory tool as the price paid for the use of the infra-
structure acts as one of the transport companies‘ economic motivators.
Trafc data
The Czech tolling system supplies data to the National transport information center that monitors traffc
in the Czech Republic by collecting data from various resources. A dedicated interface was implemented
for commercial distribution of the traffc data from the tolling system. Designed by the Faculty of Trans-
portation Sciences at the Czech Technical University, the interface provides detailed data on composition
of the traffc fow, average speed etc. Currently this interface serves only for research purposes and the
expectations put on the commercial use have not been met yet.
Importance of ITS for Europe is
increasing. Te most commonly
used telematic systems are the
complex national toll collection
systems. Te original fee
collection function is extended
by new telematic features.
41
Telematic Features of the Tolling System
Using data for monitoring and immediate interventions
Data generated as toll transactions at the individual gantries can be in real time analysed to calculate
intensity and average speed on the roads. Enforcement gantries are not only limited to monitoring of
vehicles equipped with On Board Units. The video detection system used for enforcement purposes can
monitor all vehicle types and provide basic anonymous statistical data.
This kind of data can be used for traffc management purposes as the input for models that evaluate
situation on the road and subsequently try to infuence behavior of drivers through distribution of in-
formation or changes of the variable traffc signs.
The key parameter for success of this application is the latency between the detection of the traffc
anomaly (e.g. growing intensity and decreasing speed indicating congestion). Decisive technical param-
eters are, therefore, the speed of communication link between the gantry and the central system as
well as time necessary for analysis of the gathered data and distribution of the information to drivers or
regulatory systems on the road (such as electronic traffc signs).
Data can be used for statistical purposes, monitoring of regulatory interventions
and long term trend analysis
Data generated by the tolling system is valu-
able for long term traffc statistics as well.
Very detailed data of exact activity of vehi-
cles identifed by the parameters registered
by the system (type of vehicle, weight, emis-
sion class, number of axles) is available on all
tolled road segments. More complex traffc
Possible use of traffc data generated by tolling gantries. Source: illustration based on ESVZ ČR
Trafc data generated in the tolling
system as a “by-product” of toll
collection can be used for monitoring of
the real time situation on the road as well
as for compilation of various time series.
42
models can create a full model analysing routes of vehicles on the tolled network, identify export as well
as import trips and other characteristics of movement of goods around the country.
The following few examples show basic types of analysis that can be performed with use of just very
basic tools using the data from the system.
Trafc intensity at border crossings
Toll is due to the central position of the Czech Republic in Europe collected on all major roads connecting
Czech inland with the neighbouring countries. Data from the system can be, therefore, used to charac-
terize traffc on majority of the border crossings. This analysis of the tolled roads is somewhat limited
mainly in the relationship of the Czech Republic and Austria as toll is collected only on one road (I/52 in
Mikulov) and the other important border crossing at the I/38 in Znojmo is not tolled.
Trafc intensity of the D1 highway
D1 highway is the oldest and longest Czech highway. Whole 36% of the overall toll collection was gen-
erated on this single highway in 2011. Analysis of other non-fnancial data reveals insights into the load
factors that vary as the highway leaves Prague and steers eastward to Brno and Ostrava. The highest
traffc intensity around Prague and Ostrava contrast with extremely low utilization of new sections near
Kroměříž. As one of the key sections between Hulín and Lipník nad Bečvou is still to be built, drivers
choose the route from Brno via Olomouc on the I/46 and I/35, connecting back to D1 in Lipník nad Bečvou
where the intensity increases. Further increase of traffc is expected after the full connection of the D1
to the Polish highway network is fnished (from Bohumín to the direction of Gliwice and A1 highway).
The D1 witnessed on March 20
th
, 2008 the largest chain collision in the Czech Republic when more than
100 vehicles collided. Data from the tolling system revealed that the average speed of trucks just before
the accident was despite the fog and bad weather between 86 and 89 km/h.
Number of tolled vehicles crossing border of the Czech Republic and neighbouring countries. Source: ESVZ ČR
43
Telematic Features of the Tolling System
Prague ring road
The southern sections of the Prague ring road is one of the most recent additions to the Czech high-
way network. Opening in Autumn 2010 signifcantly reduced the transit load on the inner city ring
and the Barrandov bridge famous for causing severe delays for trucks transiting the Czech Republic
in the east-west direction. The ring road generates the highest average revenue per kilometer (over
EUR 0.49 m / CZK 12 m in 2011). More than 14 thousand trucks and buses use the ring road every working
day. This center point of the Czech highway network reveals one key characteristics of the traffc fows
in Central Europe, that has been observed since the launch of the tolling system in January 2007: trucks
travel more eastward in the frst days of the week, while the westward direction prevails on Thursday
and Friday.
3,00
4,30
4,00
C 2,04
2,30
3,30
2,00
1,30
1,00
0,30
0,00
Secuon Modleuce - vsechromy
4,08 mllllon Lrucks per year
Þraha CsLrava 8rno
Traffc intensity of the tolled vehicles (trucks, buses) in millions of vehicles per year on D1 highway between
Praha and Ostrava (in both directions, column width represents the length of the toll section). Source: ESVZ ČR
6,380
7,194 Wednesday
7,333 1uesday
1hursday
3,489 lrlday
1,923 SaLurday
1,781 Sunday
Monday 8,413

6,607
3,174
7,329
3,921
7,436
7,178
wesLward easLward
Traffc intensity on the Prague ring road (section Chrášťany–Ořech in the week starting October 11
th
, 2011 ve-
hicles eastward and westward). Source: ESVZ ČR
44
The south-eastern section of the ring road is yet to be built. Trucks travelling from highways D5 and
D1 to highway D11 (direction Poland) and motorway R10 (direction Mladá Boleslav where the Škoda as-
sembly plants are located) have to cross the Prague Spořilov residential area to use the inner city ring
to connect to D11 and R10 at the eastern edge of Prague. In order to reduce the heavy traffc passing
through the Spořilov residential area, trucks were allowed to use the entire inner city ring (which was
closed for trucks immediately after completion the ring road) at night. Although the inner city ring is
shorter and trucks do not pay any toll for using it, drivers use it rarely. On the last day of the full closure,
August 31
st
, 2011, a total of 9.5 % of trucks and buses travelling in the west – east direction turned off
from the ring road to the inner city ring (buses and trucks with special permissions to enter inner city,
e.g. groceries distributors). The week after, on September 7
th
, 2011, when the night use of the inner city
ring was allowed for all vehicles, only three percentage points of tolled vehicles more turned off from
the ring road. The low attractiveness of the inner city ring probably stems from speed limits in the city,
many crossings and frequent stops and accelerations that increase fuel consumption. The ring road of-
fers, on the other hand, a smooth journey with
no stops and higher speeds. The share of ve-
hicles coming from the inner city ring to the
ring road in the east – west direction has not
changed at all in the two observed weeks.
Further elaboration of analytical exercises simi-
lar to those presented here is of course possi-
ble, taking into account comparison of longer
time periods and working on a lower level of
detail, e.g. distinguishing heavy trucks, light
trucks and buses. Analysis of individual journeys (trip reconstruction based on sequences of toll transac-
tions) would even allow for creation a model of truck trips in Prague area and prediction of future toll
income on the yet to be built sections of the ring road (mainly in northern part of the city).
2.4
18
2.9
17
3.2
16
3.7
13
4.1
14
4.4
13
4.6
12
4.9
11
4.9
10
3.2
9
3.1
8
4.6
4.0
3.0
2.0
23
1.0
0.0
1.6
22
3.0
2.1
21
1.9
20
1.7
19 7
4.3
6
4.0
3
3.1
4
2.3
3
1.8
2
1.3
1
1.4
0
1.3
0.3
1.3
2.3
3.3
4.3
3.3
Monday - lrlday
SaLurday - Sunday
Distribution of traffc intensity within 24 hours (in thousands of vehicles as sum of all days in the week starting
October 11
th
, 2010 on the ring road section with the highest intensity Chrášťany–Ořech). Source: ESVZ ČR
Tolling system provides fve years long
time series describing trafc in the
Czech Republic. Various characteristics
of trafc fow and vehicles can be
analysed apart from the fnancial data.
45
Telematic Features of the Tolling System
Regulatory function of the Czech tolling system
The second telematic function of the Czech tolling system is the use of rate differentiation for traffc
regulation. Toll is one of the components of the total costs of the trip. If there is a possibility to travel
cheaper in a certain time of a day or week, part of the drivers may be willing to postpone the journey.
The real impact will be dependent on the price elasticity of demand for travelling at the given time (we
may talk about price elasticity of demand for infrastructure capacity in case of the tolling system to be
more precise). Toll rate – as each and every price in the economy – can infuence motivations of individu-
als as well as companies.
Variable rates are widespread in urban tolling systems and in the United States. An unique example of
traffc regulation on a highway through toll rate change is the Friday afternoon regulation in the Czech
Republic. The clear goal of the regulatory intervention was to limit truck traffc in the Friday afternoon
peak when people leave cities for the weekend.
The impact is depicted on the following chart, showing distribution of the distance (measured in kilom-
eters) travelled on Friday before and after the regulatory intervention*. The graph clearly shows that
part of the Friday afternoon journeys was moved from afternoon to morning hours. Drivers stop already
before 3 pm when the higher rate zone starts and is valid until 9 pm. The number of kilometers travelled
in the regulated time zone decreased by 15 % in the comparison of the two analysed days. 50 % increase
of rate and only 15 % decrease in traffc show a low price elasticity of demand in the given context of
time, day of the week and the length of the increased peak time rate from 3 pm to 9 pm.
To keep the weighted average toll rate on the
same level as before the introduction of the
regulation, rates valid on Monday – Thursday
and during the unregulated times of Friday
were slightly lowered. Regulatory functions of
highway tolling systems in Europe are not fre-
quently used as the fnancial revenue maximiza-
tion remains the primary goal of the highway
tolling systems. Comparable to the Czech Fri-
day regulation is the night rate on the Brenner
highway in Austria.
Preference of ecologically friendly vehicles
One much simpler regulatory measure is applied in European tolling systems. Higher rates for Euro 0–2
vehicles and increasingly even for Euro 3–4 vehicles motivates the transport companies to replace the
older vehicles with new ones that are more environmentally friendly. Toll savings reduce the payback on
investments into new vehicles. The data from the Czech system shows that new Euro 5 vehicles displace
mainly Euro 3 vehicles while the share of very old Euro 0–2 vehicles remains permanently very low.
*) This hi-level analysis is illustrative, full impact analysis would require comparison of more than two Fridays, i.e. work with a longer time series.
1 °
6 °
3 °
4 °
3 °
2 °
18 16 13 23 22 21 20 19 17 14 13 12 11 10 9 8 7 6 3 4 3 2 1 0
regulaLed
unregulaLed
lncreased Loll raLes
beLween 3 p.m.
and 9 p.m.
Impact of the higher rates on the distribution of the intensity within day: comparison of Friday May 18
th
, 2007
(without regulation) and May 14
th
, 2010 (regulated by higher tarrifs). Source: ESVZ ČR and own calculation
46
Regulatory functions of the system are in a direct confict with revenue maximiza-
tion
Tolling systems not only in the Czech Republic but in all neighbouring countries were conceived to gen-
erate revenue and provide source of fnancing. A practical impact of such an optimization is a concept of
“no other choice”. Drivers have no other (cheaper) way to bypass the tolled road and the system collects
the maximum available revenue (given the traffc intensity and rates). As soon as the same system starts
to carry out a regulatory function, the fnancial and regulatory functions inevitably end up in confict.
Optimization of the tolling system for certain regulatory goals is more complicated than the rather
straightforward fnancial optimization. Drivers must have a choice and an attainable alternative option
must be available. For example to travel at another time, park the car and use public transport, avoid
journey through the city centre etc. The confict between the regulatory and fnancial functions can be
traced back to the single tool that is available for the optimization of the system – the rate. While the
fnancially optimized system strives to collect as much money to pay for the total cost of the infrastruc-
ture, the main goal of the regulatory driven optimization is the change in people‘s behavior. Covering
the costs of system operation and some additional proft are secondary. The rate must be, therefore, set
on a level that alters behavior of suffcient number of people to reach the goals of the regulation (limit
number of cars in the city centre etc.)
One real example of this confict is the preference of the bus public transport in the Czech Republic,
introduced on September 1
st
, 2011. Buses initially paid the same rates as trucks, however, the newly intro-
duced rates in September 2011 are 50 % to 85 % lower than the respective rates for trucks (depending
on number of axles and emission class). The direct fnancial loss from this rate cut between September
and December 2011 (4 months) was more than EUR 1.63 m (CZK 40 m)*.
While lower rates for buses are no exception in Europe, this example clearly shows the fnancial impact
of regulatory interventions through lower rates. Preference of certain vehicles, travel in off-peak times
or via preferred routes may have a similar impact. Designers of telematic regulatory measures should,

100° of all reglsLered vehlcles
13°
393


2011
38°
12°
2010
327


16°
41°
12°
2009
436


16°
43°
11°
2008
371


17°
47°
10°
2007
267


20°
34°

Luro 0
Luro 1
Luro 2
Luro 3
Luro 4
Luro 3
Changing shares of vehicles classifed by emission classes between 2007 and 2011 (data by the end of December
of the respective year). Source: ESVZ ČR
47
Telematic Features of the Tolling System
therefore, always search for a balance between the regulatory and fnancial functions, or strive for neu-
tralization of the fnancial impact. The new Directive 2011/76/ES allows for higher rates in peak times. The
higher rate shall not exceed the weighted average of rates by more than 175 % and shall not be applied
for more than 5 hours a day if the regulatory goal is traffc management in peak time. Higher rates shall
not lead to increased income. Therefore the changes must only alter the structure of rates resulting in
the same weighted average.
*) Calculation does not refect higher rates on Fridays. Assuming that 15 % of the performance is subject to the increased rates, the lost revenue
increases to EUR 1.84 m (CZK 45 m).
48
Outlook for the
Close Future of Toll
Collection >
< Telematic Features of
the Tolling System
6 | Development of Toll
Collection Systems in Central
Europe and European Union
Tolling systems are being established all over Europe in order to secure at least part of the necessary
funds for infrastructure investment and maintenance. Tolling is a source for fnancing of PPP projects
in majority of the western European countries. Te role of tolling income is indispensable not only in
projects with demand risk transferred to the private operator, but also in projects with the availability
based payment scheme.
Te Czech tolling rates were raised twice by 25 % in January 2011 and 2012. Te rates were the lowest in
Central Europe before these two sizable hikes. Rates valid in 2012 are comparable to Germany and Slo-
vakia. Te most expensive country for trucks is still Austria where the rate for a 12 t+ truck with 4 axles
is 32 % higher than in the Czech republic.
European tolling directives allow for use of the microwave or satellite technology. Currently the micro-
wave technology, which is suitable especially for highways with high trafc intensities, prevails in Europe.
50
Electronic tolling systems in Europe are being established on a basis of two technological platforms de-
fned by the Directive 2004/52/ES that strives for standardization of the organically evolving electronic
tolling landscape in Europe. While the European Electronic Tolling Service shall become reality in the
coming years, the Directive 2004/52/ES defnes the technological basics mandatory for all EU countries
already now. All new systems launched after January 1
st
, 2007 shall use the two technological solutions:
• combination of satellite positioning GNSS (nowadays GPS, GALILEO in the future) and mobile com-
munication in GSM/GPRS networks,
• microwave DSRC communication in the 5.8 GHz band (according to CEN TC278).
Microwave technology currently prevails in Europe and is used mainly for toll collection on highways
that concentrate the highest traffc intensity in Austria, Poland, France and the Czech Republic. Satellite
based systems are operational only in Germany and in Slovakia, always in combination with optional
manual toll payments without need for on board unit.
0 300 km
0 300 mi
Evropa
DSRC
GPS / GSM
LSVA
Use of electronic technologies for tolling systems in Europe
51
Development of Toll Collection Systems in Central Europe and European Union
France
Development of the French highway network is closely tied to the concession model used since the
1950‘s. Private operators of highways used to collect toll in the traditional manual way on toll plazas,
essentially in the same way known to tourist driving through France in their passenger cars. Availability
of electronic technologies (mainly DSRC) paved way towards automation of toll collection. Local tolling
systems started to emerge and national interoperability connected the isolated systems into one net-
work that is available for use only with one universal on board unit. The interoperable system TIS-PL is
operated by the association of highway companies (Les sociétés d‘autoroutes).
Austria
Austria became on January 1
st
, 2004 the frst country in Europe to launch a nationwide electronic toll col-
lection system for all vehicles exceeding gross weight of 3.5 t. The microwave system is very similar to the
solution implemented later in the Czech Republic and requires a compulsory On Board Unit named Go-
Box. Toll rates are comparatively higher than in the Czech Republic. Special (higher) rates are collected
on fve selected roads crossing the Alps due to their higher investment and maintenance costs. Special
surcharge is collected on the Brenner highway during the nighttime as well.
The system generated more than EUR 1 bn revenue in 2011, collecting toll on 2,175 km of highways. The
operator of the system is the state owner infrastructure company Asfnag.
Germany
The frst nationwide satellite based tolling system was launched in the middle of 2005 in Germany. The
system combines GPS localisation of the vehicle with mobile data communication in GSM network to
transmit the location and billing data to the central system. Use of the satellite OBU (which is more
costly than the DSRC unit) is not compulsory, the drivers can pay
toll for a pre-selected route manually on self-service kiosks. Toll
is being collected on more than 13,000 km of highways and in
2011 the revenue reached stunning EUR 4.48 bn. The system is
operated in a PPP scheme by the private company Toll Collect.
The German public private partnership “A-Model” is closely
linked to the nationwide toll collection. Typically the private
entity takes over an existing section of the road that is to be re-
furbished and in some cases extended to 3+3 lanes. The private
entity operates the section for 20–30 years and toll on the sec-
tion is collected by the Toll Collect system (i.e. no new systems
are built on the PPP sections).
The toll collection does not make the privately operated sec-
tions self-suffcient. Consequently, the existing fnancing gap is
closed using other (tax) resources of the Government. As the A-Model projects usually transfer the de-
mand risk to the private sector, the decisive price element in the public procurement process is the extent
of the to the toll revenues.
Typical A-Model projects are A1 Buchholz Kreuz (A1/A261) – Bremer Kreuz (A1/A27), A4 Hörselberge
bypass, and A8 Bubesheim–Augsburg West. Other German PPP projects (A5 Baden-Baden–Offenburg,
A8 Ulm–Augsburg, A9 Hermsdorf–Schleiz) do not transfer the demand risk to the private operating
entity and are, therefore, procured and fnanced in the availability model of guaranteed payments inde-
pendent from the actual toll collection.
European Directives on
interoperability of tolling
systems allow for use of
only two technologies:
microwave DSRC and
combination of satellite
positioning and mobile
data communication
(e.g. GPS and GSM).
52
Slovakia
Slovakia launched the satellite based tolling system in January 2010. Currently the system collects toll
from all 3.5 t+ vehicles on 2387 km of highways, motorways and national roads, while the national roads
make up to 70 % of the tolled network. Vehicles must be equipped with an On Board Unit with excep-
tion of selected transit routes that can be paid manually (in a model similar to Germany). Number of
these “transit corridors” decreased from 18 at the launch of the system to 4 in March 2012.
Toll collection in 2011 amounted for EUR 154 m. System was delivered and is now being operated in
a 13 years operation agreement by a private company SkyToll.
Poland
Poland launched its tolling system in the middle of 2011 on 573 km of highways, motorways and national
roads. The microwave solution requires the vehicles to be equipped with an On Board Unit named
viaBOX. An exception on the Polish network is the A2 highway from Lodz where toll is still collected
manually, however, ETC lanes were established to allow for seamless passage of trucks equipped with
OBUs.
Operator of the system, private company viaToll, collected in the second half of 2011 a total of PLN 481 m
(EUR 113 m).
Switzerland
The overall design of the Swiss tolling system differs signifcantly from other European systems designed
to comply with the EU regulations. Every movement of a vehicle heavier than 3.5 t is in Switzerland subject
to toll payment. Independent from type of the road. Vehicles are equipped with LSVA (Die Leistungsab-
hängige Schwerverkehrsabgabe) unit that uses the digital tachograph to register distances travelled in
Switzerland to a chip card. Foreign vehicles declare
the distance travelled in Switzerland manually and
have to pay the toll when leaving the country.
Spain
Spanish road network has been built and operated
in a similar model as in France. Private concession-
aires have built roads, operate them and collect toll
from all vehicles using mainly the traditional manual
toll plaza model. Introduction of the interoperable
electronic system VIA-T allowed for automatic toll
payment. Use of the electronic payments provides discounts up to 55 % on some sections. Vehicles are
equipped with only one OBU valid for payment of toll to all members of the ASETA association.
Portugal
The highway network in Portugal has been built and operated in the PPP model as well. The largest
concessionaire Brisa is responsible for operation of almost half of all highways. Interoperable electronic
tolling system operated by Via Verde enables automatic payment on 2,209 km of highways all over Por-
tugal. System processes payments in selected parkings and on petrol stations as well.
Italy
Italian electronic system Telepass operated by the largest highway concessionaire Autostrade per
l’Italia S.p.A. automates the originally manual toll collection in Italy. One electronic unit is used for pay-
ment of toll on 3,132 km of highways to all concessionaires.
Toll collection is in a majority
of western European countries
closely tied to the procurement and
operation of infrastructure in the
public private partnership model.
53
Development of Toll Collection Systems in Central Europe and European Union
Norway
Highways in Norway are tolled for all vehicles that pay on toll plazas with special lanes for self-service
payments and ETC. Electronic tolling system AutoPASS combines microwave technology with licence
plate recognition. Microwave units are not compulsory and increase convenience of toll payment. Ve-
hicles equipped with the electronic units can pass through toll plazas freely. Other vehicles pay on toll
plazas in cash or by credit card. Internet based pre-payment is possible as well, with all payments associ-
ated to the license plate, which is then recognized on the road by the video detection technology.
Ireland
Toll is collected from all vehicles on highways in Ireland. Only collection on the M50 is automated with
fully electronic toll gantries while all other roads feature traditional toll plazas with ETC lanes for cars
equipped with OBUs. Toll plazas accept cash or card for manual payments. Eight toll companies oper-
ate in the country, some of them being highway concessionaires as well. All systems are, however, fully
interoperable and one unit can be used to pay toll on all roads, bridges and in tunnels in Ireland.
Country Network length Technology In operation Tolled roads Tolled vehicles
The Czech Republic 1,362 km DSRC 1. 1. 2007 H+M+N 3.5 t+
France 8,700 km DSRC H all vehicles
Germany 13,038 km GNSS/CN 1. 1. 2005 H 12 t+
Poland 1,573 km DSRC 1. 7. 2011 H+M+N 3.5 t+
Austria 2,175 km DSRC 1. 1. 2004 H 3.5 t+
Slovakia 2,387 km GNSS/CN 1. 1. 2010 H+M+N 3.5 t+
Switzerland the whole network LSVA 1. 1. 2001 all roads 3.5 t+
Spain 3,365 km* DSRC in phases since 2006 H all vehicles
Italy 3,132 km DSRC H all vehicles
Portugal 2,209 km DSRC H all vehicles
Norway N/A DSRC, ANPR H all vehicles
Ireland 300 km* DSRC D all vehicles
Small closed systems still exist in Europe apart from the national systems. Toll collections are usually as-
sociated with sections that were extremely costly to build, or are operated in a PPP scheme. A typical
example is the Øresund bridge between Copenhagen and Malmö.
Tolling systems in cities, built mainly with the intention to regulate traffc, are still not widespread in
Europe. London and Stockholm still remain pioneers of tolling in cities.
Source: operators of tolling systems, with exception to items marked *, where the source is www.asecap.com
54
Revenues are directly infuenced by the rates and trafc intensity
Toll revenues remain a marginal source of
infrastructure revenue in the Central Eu-
rope. Therefore, rates are not set to match
the life cycle costs of the road, but remain
largely a political decision. The Czech rates
are set by the Government in the limits set
by the Directive 1999/62/ES and 2006/38/ES.
The Czech rates were in comparison with
Austria, Germany and later even with Slo-
vakia very low since the launch in 2007 until
the end of 2010. The average Austrian rates
was 64% higher in 2010. Truck (12 t+, 4 or
more axles, Euro 4 emission class) paid 92 %
more in Austria than in the Czech Republic.
The frst rate rise by 25 % came only in 2011
after four years of system operation. The
second 25 % raise was effective on January
1
st
, 2012. The Czech rates are comparable
with Slovakia and Germany after this dou-
ble rise. Austria remains the most expensive
country in the region. Truck (12 t+ with 4 or
more axles and Euro 4 emission class) pays
per kilometer 32 % more than in the Czech
Republic. The average rate is 28 % higher
than in the Czech Republic.
Toll revenues are infuenced mainly by the
traffc intensity and the structure of the
tolled network. Toll collection on many na-
tional roads with lower rates and intensity
(70 % of the Slovak tolled network are na-
tional roads) refects in a low average yield.
1
0.194

Cermany
Slovakla
CZ*
0.200
AusLrla 0.237
CZ on lrlday 0.199
CZ ln Lhe week 0.133
0.144
Comparison of rates valid in Central Europe for 2010 (in CZK, CZK/EUR = 24.5, calculated as an average of rates
in all categories – such as weight and emission class – for trucks on highways. *) Average for the Czech Republic
calculated as weighted average of rates valid during the week and on Friday afternoon, assuming 15 % weight
for the traffc performance on Friday afternoon). Source: MYTOCZ, Asfnag, TollCollect, SkyToll
1
0.099

Þoland
Cermany
CZ ln Lhe week
0.194
Slovakla 0.200
AusLrla 0.242
CZ on lrlday 0.249
0.179
CZ* 0.189
Comparison of rates valid in Central Europe for 2012 (in CZK, CZK/EUR = 24.5, calculated as an average of rates
in all categories – such as weight and emission class – for trucks on highways. *) Average for the Czech Republic
calculated as weighted average of rates valid during the week and on Friday afternoon, assuming 15 % weight
for the traffc performance on Friday afternoon). Source: MYTOCZ, Asfnag, TollCollect, SkyToll
55
Development of Toll Collection Systems in Central Europe and European Union
The same effect can be shown in the Czech Re-
public even in a multi-year comparison. When
the national roads were tolled in 2008 (with
only highways and motorways being tolled in
2007), the average yield decreased by 12 %*.
An opposite effect was observed in 2011 when
part of traffc moved from national roads to
newly opened highway sections and so yield
increased by 22 %*.
The graph below depicts the toll revenues in the Czech Republic, Austria and Germany. We quote these
numbers just for completeness of the analysis as the total revenue is due to fundamental differences in
road network length and structure virtually incomparable.
*) The changes were undoubtedly accentuated by the onset of the fnancial crisis in 2008, recovery and change in rates in 2011 as well. Distinction of
the factors would require a more thorough analysis.
Te Czech rates are comparable with
neighboring countries only afer double
rise by 25 % in 2011 and 2012. Austria
remains the most expensive country in
the region with rates higher almost by
one third than in the Czech Republic.
1
343.27

C8 uL A1
473.88
Sk
39.18
199.18
1
2010 2009 2003 2007 2004
1.1
1.0
0.9
0.8
2006
0.1
0.0
+0.76
(+284¼)
2008
0.2
Slovakla AusLrla Czech 8epubllc
Average revenue per one kilometer of the tolled road in the Czech Republic, Slovakia, Austria and Germany in
2010 (EUR thousands, CZK/EUR = 24.5). Source: MYTOCZ, Asfnag TollCollect, SkyToll and own calculation
Total toll collection in the Czech Republic, Austria and Slovakia since commissioning of the Austrian system in
2004. (CZK billions, CZK/EUR = 24.5). Source: MYTOCZ, Asfnag, SkyToll
56
< Development of Toll
Collection systems in Central
Europe and European Union
7 | Outlook for the Close Future
of Toll Collection
European Commission strives for introduction of technical and contractual interoperability, allowing
for toll payment using just one board unit. New directive also stresses environmental function of tolling
systems through internalization of negative externalities of road transportation.
Te Czech structure of toll rates poses a risk for revenue sustainability. Rates for Euro 5 vehicles are 50 %
lower than those for Euro 2 trucks. As the share of Euro 5 vehicles grows, the efective average toll rate
is decreasing.
Extension of the electronic fee collection systems to non-highways roads is being discussed in Europe as
well as in the Czech republic.
58
First concepts of national fully electronic tolling systems were created almost 10 years ago. Since than,
focus has shifted from 12 t+ HGVs and core highway network to signifcant national roads and tolling for
all vehicles with gross weight above 3.5 t. Toll fees are used to infuence economic motivations of trans-
port companies, mainly through lower rates for environmentally friendly vehicles. Tolling has simultane-
ously become an important revenue of the infrastructure and has found a role in fnancing structure of
Public Private Partnership projects.
Potential of the tolling systems is not by a long sight exhausted. Development in the coming years will be
defned mainly by the extension of the distance based tolling model, by the European interoperability
and the effort to internalize negative external costs of the road transportation.
Vision of just one on board unit for Europe
Introduction of the technical and contractual interoperability of individual national tolling systems in
Europe has been a clear priority of the European Commission for several years. The current model of
having one On Board Unit for each country is seen as a barrier on the internal market and source of inef-
fciencies. One universal unit for toll payments all over Europe would simplify operation of the national
systems and save costs in transport companies that have to maintain multiple contracts and equipment
for European operation.
Interoperability of tolling systems is stipulated by the Directive 2004/52/ES and the related Commission
Decision 2009/750/ES. Their main goal is to prevent deployment of incompatible tolling systems in Eu-
rope. The Directive defnes parameters of the European Electronic Tolling Service (EETS), allowing drivers
payment of toll using one device (unit), one contract and one single payment.
European Electronic Tolling Service defnes contractual rules for the ecosystem of EETS providers (OBU
issuers), toll chargers (national system operators, i.e. payees), and payers (drivers, transport companies).
Current situation without any interoperability: need for multiple on board units and individual contracts with
local toll operators for each country
59
Outlook for the Close Future of Toll Collection
The basic working principle of EETS is similar to a mobile phone roaming – use of mobile phone abroad
while having a contract only with the “home” operator and paying a single bill.
While the European interoperability based on EETS has not been fully implemented yet, some exam-
ples of bilateral interoperability are already in place. Technical interoperability between Austria and
Germany has been operational since
September 2011. Although the systems
are very different (Austria uses DSRC
microwave, Germany satellite system),
the universal unit Toll2Go is equipped
with both technologies. However, cus-
tomers still need to conclude two con-
tracts with both national toll opera-
tors.
Contractual and operational structure of EETS: one unit and one contract, allowing access to multiple national
tolling operators
Te vision of the European Electronic Tolling
Service is the ability to pay toll in Europe using
just one device, one contract and one single
payment for fees accrued in all countries.
60
A similar system is in place in Spain and France. Both systems use microwave DSRC technology and the
ViAxxes features contractual interoperability as well. Therefore, drivers use only one unit and are billed
on one single invoice that combines fees to be paid in Spain as well as in France. The ViAxxes unit can be
since December used in the road tunnel Liefkenshoek in Antwerpen, Belgium.
Using tolling systems for internalization of external costs of road transport
The latest addition to the family of European tolling directives – the Directive 2011/76/EU* – takes an-
other step towards internalization of negative external costs of road transportation. Toll rates may
therefore be in the future increased by an environmental surcharges.
The directive stipulates the methodology for calculation of negative externalities caused by noise and air
pollution. Both the sources of externalities shall be in the future internalized by increased toll fees. The
maximum fee for air pollution is set to 12 Euro Cents on interurban roads and 16 Euro Cents on suburban
roads. Noise surcharge shall not exceed 2 Euro Cents while distinguishing day and night.
Internalization of external costs into the costs explicitly born by transport companies increases motiva-
tion for modernization of vehicles and usage of interurban roads (where possible). The new directive
also opens a space for toll operators to increase rates above the currently valid cap defned by costs of
the infrastructure. Higher rates would then consist of two parts:
1. Fee covering the cost of the infrastructure limited by the Directive 1999/62/ES amended by the Direc-
tive 2006/38/ES: the same fee for all vehicles, differentiation only by the extent of the wear (weight,
number of axles)
Toll2Go interoperability between Austria and Germany: integration of two technologies into one unit, requi-
ring, however, individual contracts with Asfnag and TollCollect
*) Directive 2011/76/EU is after the Directive 2006/38/ES another change to the original Directive 1999/62/ES on the charging of heavy goods vehicles
for the use of certain infrastructures
61
Outlook for the Close Future of Toll Collection
2. Internalization of external costs pursuant to the Directive 2011/76/ES: by the level of air pollution (rate
based on the Euro classifcation) and noise, taking into account time of the day and location (interurban/
suburban)
This “two component structure” can solve the prob-
lem the Czech Republic has been facing since 2011. Rate
hike by twice 25 % (effective on January 1
st
, 2011 and
2012) was not applied to Euro 5 vehicles. As the share
of these modern vehicles is growing, the effective rate
rise is estimated only to 19 % in 2011 and 17 % in 2012.
The Czech Republic is now in an extreme situation of
100 % difference between the Euro 2 and Euro 5 rate,
even without introduction of any environmental sur-
charges based on the new directive 2011/76/ES.
The structural change is ongoing and toll rates should refect this change. Update of the rate structure
will be a necessity very soon (e.g. Austrian Asfnag works already with Euro 6). The second problem, al-
ready very specifc and tangible in the Czech Republic, is the decrease of the effective average toll rate.
As the share of Euro 5 vehicles grows, the average effective rate is decreasing. Number of Euro 5 vehicles
grew from 30 % to 36 % only in 2011. The dynamics of this increase can be illustrated also by share of
Euro 5 vehicles on new registration of the system depicted on the following chart.
New European Directive
allows for introduction of air
pollution and noise surcharge
on top of the toll rate. Czech
rate for Euro 2 vehicles is even
before introduction of the
surcharges twice as high as the
rate valid for Euro 5 vehicles.
+96¼
+86¼
+9¼
0.07
+13¼
Luro 2
+100¼
Luro 2
0.13
Luro 3 Luro 2
0.21
0.29
Luro 3
0.16
Luro 3
0.19
Luro 2
0.39
Luro 3
0.33
Luro 2
0.34
Luro 3
0.17
Czech kepub||c Austr|a S|ovak|a Germany Þo|and
Extent of the “ecological penalty” for Euro 2 vehicles shown through comparison with Euro 5 rates in Central
European countries (CZK, CZK/EUR = 24.5, rates valid as of January 1
st
, 2012 for trucks with 5 axles, 12 t+). Source:
MYTOCZ, Asfnag, SkyToll, TollCollect, ViaToll
62
A transparent solution is the above outlined construction of the toll rate consisting of a fee for use of
the infrastructure and air pollution & noise surcharge.
Extension of the distance based tolling to non-highway roads
European directives currently require tolling of non-highway roads in case the highway network of the
country has not been completed yet and national roads replace the highways. The Czech Republic, as
well as neighboring Slovakia and Poland used this possibility. The Czech Republic tolled almost 200 km
of national roads that replace (yet to be built) highways connecting important border crossings and the
existing highway network (e.g. I/33 from Hradec Králové to Poland, I/52 to Austria). The second reason
for national road tolling was prevention of tolled road bypassing (e.g. I/48 that could almost perfectly
replace highway D1 for drivers looking for an alternative to the tolled road).
The decisive parameter for economics of any toll extension to national roads is the average income from
one kilometer of such a road. Average revenues in the Czech republic are signifcantly lower than on
highways. Average revenue per kilometer of national road in 2011 amounted only for EUR 68 thousand
(CZK 1.66 m), while the average kilometer of highway and motorway generated EUR 324 thousand
(CZK 7.94 m) revenue. Plans for extension the distance based tolling model to non-highway roads shall,
therefore, calculate with real traffc intensities on the roads, not extrapolating current revenues. Rise of
toll rates and increasingly cheaper technology would be, on the other hand, the motivating factor for
distance based tolling. We expect the French Ecotaxe project to show the direction for future introduc-
tion of distance based tolling on lower class roads. The pilot operation shall start in Alsace in July 2013.

28°


21°

2011
17°
10°
2010

33°
12°
2009


14°
40°
13°
2008


13°
37°
14°
2007


20°
31°

Luro 0
Luro 1
Luro 2
Luro 3
Luro 4
Luro 3

2007

10°
20°
31°

2011



17°
28°
2010


21°
33°
12°
2009


14°
40°

13°
2008

13°
37°
14° Luro 4
Luro 3
Luro 0
Luro 3
Luro 1
Luro 2

2007

10°
20°
31°

2011



17°
28°
2010


21°
33°
12°
2009


14°
40°

13°
2008

13°
37°
14° Luro 4
Luro 3
Luro 0
Luro 3
Luro 1
Luro 2

2007

10°
20°
31°

2011



17°
28°
2010


21°
33°
12°
2009


14°
40°

13°
2008

13°
37°
14° Luro 4
Luro 3
Luro 0
Luro 3
Luro 1
Luro 2
Shares of vehicles characterized by the emission class on new registrations to the Czech tolling system.
Source: ESVZ ČR
63
Outlook for the Close Future of Toll Collection
Electronic fee collection from passenger cars
The second direction of possible extension of the distance based fee collection model is passenger car
tolling. Introduction of such a concept was discussed in the Czech Republic as one of the options how
to leverage the existing microwave DSRC infrastructure on highways. Discussion of a similar electronic
fee collection concept has emerged even in Germany, country with a strong tradition of free highways.
Electronic systems can collect time based (creating an “electronic vignette”) as well as distance based
fees. Both options bring better control of payments and less fraud. The distance based model is also fair
payment dependent on actual use of road by individual drivers.
Distance based fee collection from drivers of passenger cars would become necessity in case of structural
reform of infrastructure fnancing. Should the model based on tax redistribution be replaced by direct
fnancing model, all users would have to pay (not only trucks) and the rates would have to be set on
a signifcantly higher level, corresponding to the real lifecycle cost of the infrastructure.
64
Authors and contacts for further discussion on the topic
Ondřej Zaoral is the founder of the company Inoxive.
You can contact him on the e-mail address ondrej.zaoral@inoxive.com.
Tereza Mlynářová works as an analyst for Inoxive.
You can contact her on the e-mail address tereza.mlynarova@inoxive.com.
Zdeněk Lokaj is a Researcher at the Faculty of Transportation Sciences
of the Czech Technical University in Prague.
You can contact him on the e-mail address lokaj@fd.cvut.cz.
© Inoxive s.r.o., 2012. All rights reserved.
Inoxive s.r.o.
Mezibranská 1579/4
110 00 Praha 1 – Nové město
Czech Republic
For use of this analysis, parts of this analysis or if you seek a permission to create reprints of this
document, please contact publications@inoxive.com
F
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© Inoxive s.r.o., 2012. All rights reserved.
Inoxive s.r.o.
Mezibranská 1579/4
110 00 Praha 1 – Nové město
Czech Republic
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3380
average number of incidents
solved by the Czech Customs
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