Impact of Reinstated Orchard ERP Charge on Essential Workers, Caregivers and Point-to-point Drivers, and Rational for Flat Rate Versus Dynamic Pricing

Mr Yip Hon Weng asked the Minister for Transport regarding the reinstatement of the ERP charge in the Orchard cordon on weekdays from 11 am to 7 pm (a) whether the Ministry has assessed the impact on essential workers, caregivers and point-to-point drivers with limited flexibility to retime journeys; and (b) why a flat-rate charge across an eight-hour window is implemented instead of hourly dynamic pricing based on traffic fluctuations.

Mr Jeffrey Siow: Traffic speeds for roads in the Orchard area have generally remained below optimal levels for some time. The current road speeds across the time intervals between 11 am to 7 pm, which range between 15 km/h to 20 km/h are too low for a meaningful differentiation in Electronic Road Pricing (ERP) rates. ERP operations for roads in the Orchard are also structured as a cordon to avoid diverting motorists to smaller roads, which would then become congested.

Reducing road congestion will benefit those who are unable to adjust their travel time, route, or mode of travel, as travel times will be shorter and more predictable. Commuters can also consider using public transport as the Orchard area is well served by multiple bus and train options.