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Congestion Charging
Overview
Congestion charges were first introduced for vehicles travelling in to the centre of London in February 2003. TNT lorries and vans are charged at the rate of £8-£10-a-day between the hours of 7am and 6.30pm Monday to Friday, excluding public holidays.
The costs of congestion charging outweigh its financial benefits. Congestion charging costs TNT Express Services an average of £15,000 a month but generates only limited savings in terms of enhanced performance.
From the 19 February 2007, the Congestion Charging zone was extended to the west to cover the areas of Bayswater, Notting Hill, North and South Kensington, High Street Kensington, Knightsbridge, Chelsea, Belgravia and Pimlico - increasing the congestion zone area by approximately 50%.
The western extension will cost TNT approximately 30% more a month - to almost £20,000. The number of TNT vehicles entering the extension is likely to increase by a further 30%.
In total, TNT will have to absorb £250,000 a year in charges for the extended congestion zone.
Once the extended scheme comes into operation, the charging hours within the zone will be shortened by 30 minutes from 7.00am - 6.30pm to 7.00am - 6.00pm.
Once extended to the west, the Congestion Charging zone will operate as one zone.
Figures (all approximations)
Number of vehicles operating in zone - 85 (with extension - 110)
Number of deliveries - average 60 per round
Number of delivery stops - 5,100 per day (with extension - 6,600)
TNT's opinion on the Zone - Four key messages
- TNT believes it is unfair to be charged. We are being penalised for carrying out our day-to-day business and providing a service to local businesses in a variety of industry sectors. Based on our experiences in London we would be opposed to the introduction of congestion charges in other town and city centres around Britain.
- TNT is committed to the environment and is currently trialling a 7.5-tonne zero emission vehicle in central London. If the trial proves successful, TNT will consider rolling out 200 similar vehicles in every urban location in the UK. A number of these vehicles would be put into operation in London.
- At present, electric vehicles are exempt from congestion charging. TNT would oppose any moves to charge our zero emission vehicles in the zone as we believe it would be penalising us for trying to creating a better environment for all in urban areas. In addition, these vehicles cost twice as much to buy as their diesel equivalents and it would be a further financial burden on the company.
- TNT believes the monies collected from the charging should be re-invested directly back into local road/traffic improvement schemes. If the money is reinvested wisely the results will successfully reduce levels of congestion and improve our already excellent levels of service.
ADDITIONAL QUESTIONS & ANSWERS
Q: Does TNT Express Services UK and Ireland support or oppose congestion charging?
A: TNT believes it is unfair to be charged. We are being penalised for carrying out our day-to-day business and providing a service to local businesses in a variety of industry sectors.
Every time we enter any city centre we are providing a delivery service, be it to hospitals, schools or local businesses, we believe it is unfair to penalise us for providing a service which keeps the 'wheels of commerce' turning. On an average day we will make 60 deliveries on a round operating at maximum capacity, if you compare this to a car holding just one passenger, you can appreciate that we ensure we make efficient use of our vehicles in urban areas.
Q: The congestion charge has been operational in London since early 2003. What impact has charging had on TNT and what have been the cost implications?
A: Operationally we are no better off as a result of congestion charging. Although there has been some reduction in traffic within the zone, this traffic seems to have been pushed out to the periphery, causing congestion there.
The costs of congestion charging outweigh its financial benefits. Congestion charging costs us £15,000 a month but generates only limited savings in terms of enhanced performance and these extra costs have to be absorbed into our overall pricing structure.
We have ensured that charging has not affected the service levels which make us an industry leader - we have continued to deliver before 9am and to have the latest possible collection times to suit our business customers.
Q: How has TNT dealt with the extra cost of congestion charging?
A: This charge has been absorbed into our overall pricing structure for our customers. This is because our customers pay a charge for our speed and reliability and this is reflected in our price.
Q: What are your views on proposals to introduce congestion charging in other towns and cities?
A: There urgently needs to be a co-ordinated, national approach to congestion charging before other towns and cities go down this route otherwise it could prove to be a recipe for chaos for carriers and their customers. In the course of a shift many of our drivers will visit a number of towns or cities, which potentially means negotiating a variety of charging schemes, with different costs and different methods of operation. This opens the door to a charging system which is slow, confusing and expensive.
Q: Have there been problems with the administration of the charging scheme?
A: There were some problems at first, however, these were ironed out after the first few months.
Further TNT Industry Issues:
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