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InTrans Year 2009/ 2010 - Number 4– June, 2010

Visiting address: Erasmus University Rotterdam

Postal address: Room H12-07

Room H12-05

P.O. box 1738

Burgemeester Oudlaan 50

3000 DR Rotterdam

Mobility Leasing

From the president What have we done? Tunnel vision

Mobility Leasing

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How are you doing ?

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Fuel tourism– the case of Luxembourg

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Mobility Leasing as a solution to traffic jams? page 11

Pagina 2

InTrans, June 2010

From the president‌. Challenges

By: Paul Blijs

We have reached a point in this study year which is marked by challenges for everyone. We have finished our courses, or are about to finish the last ones by taking exams and are focussing on our theses. These last steps seem to be minor steps but include major challenges. Getting ready and being prepared for those last exams seems easier than done of course, searching for that last grasp of motivation this year. Besides these exams, many of us face their main challenge of this year, working on their theses. It is a challenge to come up with a decent subject, completing it into a degree is even tougher for us all. Especially this time of the year when there is the opportunity to be distracted by the World Cup for a whole month and by the Tour de France which will start off in Rotterdam. The challenge is to plan everything in order that secures a Master’s degree without missing too much of other events that are going on in the world. Hopefully you all get some time to enjoy your upcoming vacations as well. The next half year will probably evolve around a new phase in life. When finished with our masters it is time to find a job and to set our first footsteps in our professional careers. Some of you might decide to go travelling first or even pick up another study, change is on your path. We are all at the verge of a challenging experience. It will not be the same anymore, as it was the last couple of years. Looking at the upcoming period with all challenges included I can only conclude that this period must be very exiting for us all. In times where looking ahead is crucial we should also not forget to look back at the past year. As president of Transito I really enjoyed the past year because of our Master and all the activities and drinks we have arranged for. I hope all of you enjoyed it as well, and if not, let us know, we might learn something from it in order to improve for next year. Our challenge these upcoming months is to prepare Transito for the upcoming study year. If you are interested in joining the board do not hesitate to approach one of us with your questions. If you have any other comments or remarks we are open for those as well. This leaves me with only one last remark; I wish you all the best and good luck in the upcoming challenging times!

InTrans, March 2010

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What have we done? In this topic we would like to tell you what we, as Transito, have done.

By: Paul Blijs

On Monday the 25th of April study association Transito and its members were invited by the OBR (Ontwikkelingsbedrijf Rotterdam) to visit the Rotterdam-The Hague airport. The day started off with an interesting presentation by Desiree Breedveld, marketing manager at the Rotterdam-The Hague airport. Ms Breedveld enlightened us about the importance of a regional airport for a regional economy. The Rotterdam-The Hague airport emphasizes its business character and with its changed name it is able to attract more international visitors destined for either The Hague or Rotterdam and its regions. Ms Breedveld also mentioned a nice comparison between the national airports as a division between supermarkets in a shopping street. Amsterdam Schiphol airport can be seen as a large retailer, Eindhoven airport as a discounter and Rotterdam-The Hague airport as the deli specialist of that shopping street of airports. Karsten Schipperheijn provided us with a presentation about the area development of the airport. Of course growth encompasses a large part of the development of the airport, especially with the Randstad rail connection to the airport. What might sound strange is that nature also plays a large role in the area development of the airport. Bike and walking lanes are constructed to provide green zones surrounding the airport. These green zones are connected to each other. During the second presentation we were provided with an very nice lunch, which also prepared us for the second part of the day. In the afternoon we started off with a guided tour through the terminal. Ms Anita Wadman took us behind customs where we were driven around by a bus showing us another side of the airport. We got to see the hangar with the private aircrafts, the bus driver took the bus to its maximum by driving over the landing strip and the firemen showed us how to spill 1200 liters of water in one minute. After this guided tour we were given a presentation by Broer Duursma about the Rotterdam Climate Initiative. The Rotterdam Climate Initiative is an unique collaboration between the municipality of Rotterdam, the Port Authority, the Environmental Service Rijnmond and Deltalinqs aimed at reducing CO2 emissions with 50% in 2025 compared to the levels of 1990. The presentation of the Rotterdam Climate Initiative was the ending of our visit to the Rotterdam-The Hague airport. As a board we had a great day and we hope that the students who participated had a great day as well. We would like to thank Bianca Dumay of OBR Rotterdam for arranging this day for us. Also we would like to thank Ms Breedveld, Mr Schipperheijn, Ms Wadman and Mr Duursma for their interesting presentations. This day showed us some of the different aspects the OBR is working on, providing us students with an interesting experience.

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InTrans, June 2010

What have we done, part two By: Noortje van de Burgt

On the 30th of March we were invited at Rijkswaterstaat in the Maas in Rotterdam. Rijkswaterstaat presented us several cases by which we had to finish our seminar advanced Port and Transport economics. That day we brainstormed together with Rijkswaterstaat about solving the cases, received additional information and data. At the end of the day each of us presented their initial ideas and plans to tackle Rijkswaterstaat’s cases. After two weeks of hard work we had to go back to Rijkswaterstaat to present them our end-reports. This time, we were invited at their office in Dordrecht. Six groups were asked to present their case that day. Many employees from Rijkswaterstaat joined these presentations. We heard they were very pleased with the ideas we came up with in such a short period of time. Some of which were very innovative and will be researched further in the future, other ideas could be implemented the next day. The presentations and cases can thus be summarized as interesting for us and for Rijkswaterstaat. The group that gave the best presentation that day received a special price. They were invited to take a trip with the fastest boat of Rijkswaterstaat. The rest of us were able to watch the traffic control centre of Rijkswaterstaat and see what is happening over there. The traffic control centre has direct contact with the shippers and oversees the whole area. They are a coordinating centre for accidents, water pollution and de-icing. After this, Rijkswaterstaat together with Transito arranged a diner at Humphreys in Dordrecht. Since, this was the last day we as group were together it became a very special evening. After the dinner some of us partied on in Rotterdam. We would like to thank Rijkswaterstaat and especially Marianne Bos for presenting us the nice cases we were able to work on and arranging the diner for us in Dordrecht.

InTrans, June 2010

Tunnel Vision This morning I went to work by bike, and as I was waiting for a red traffic light, a scooter pulled up next to me. The guy stood there next to me, hengheng-heng, you know how it goes.

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By: Maarten van der Westen the trucking industry has made, from Euro1 in 1992 to Euro6 in 2013: why is there still so much focus on the trucking industry, when trucks are about as environmentally friendly as mopeds?

When the light turned green, the guy drove away, Better even: why is there nobody complaining about and he was barely faster than me. But still he the stinky scooters and mopeds, that are just as polmanaged to produce a big cloud of blue smoke. It luting as a big truck? smelled terrible too. So much for biking is healthy! It’s a classic case of tunnel vision. Politicians and enIt is strange. These scooters and mopeds carry only vironmental groups look at the most obvious of vicone person, sometimes two. There are quite a lot tims: the large, dangerous, stinky trucks. Everybody of them around. They make a lot of noise, are nor- is hammering down at them to do the impossible – mally not that fast and leave a trail of bluish-white even when the trucking industry is actually making smoke wherever they go. Yet, you don't hear Groen the impossible into a reality. And there is absolutely - Links complaining about them. Or Greenpeace. Or nobody out there that looks at the bigger picture. anybody. Trucks nowadays are incredibly efficient with energy Dr. Jan-Anne Annema of the Technical University and they produce hardly any waste, in the form of (TU) Delft has calculated that a modernday truck, fine dust and gasses. This is amazing, especially with the Euro5 standard, has about the same emis- given the fact that they carry huge loads and have a sion of dangerous gasses as a moped or scooter. In long lifespan. What little progress can there be made 2013, when the standard will be Euro6, the truck from here? Euro7? Euro8? Euro9 when trucks only will even have the advantage. produce live butterflies as waste? Yes, a 40-ton truck with the same amount as a moped! Today! That puts the entire focus on trucks a strange perspective, doesn't it? Trucks are still seen as giant polluters, when actually such a huge truck has the same emission as a tiny moped.

And at the same time, thousands of little mopeds and scooters are driving around in their big clouds of smoke. There is so much to be won in this group. The environment would gain a lot more when somebody would actually stop picking on trucks and look what else is out there.

Okay, to be honest, they are not exactly the same of course. A truck produces more CO2-gas obvi- It is sad really, that nobody REALLY seems to care. ously, because of its size. But the main focus of the discussion about the environment is on NOx and fine dust and for these two, A Euro5 trucks has the same emission as a moped. It is a strange situation. You can wonder: why is there so much push to get the trucking industry to produce environmentally friendly trucks? Well, this is obvious: we need cleaner trucks. But given the progress

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Mobility Leasing

InTrans, June 2010

By: Robert Prins

Mobility leasing is a new concept that aims to solve a part of the congestion problems and is developed by Dhr. R. Galjaard from Ecorys. Mobility leasing targets the users of lease cars and tries to give them incentives to use alternatives, such as public transport, park and ride facilities, working at home, or flexible working hours. The users of lease cars get a mobility budget and they can choose themselves how they use it. A trip with the car will use more of the budget than a trip by train or by bike. The surplus that is left at the end is for the employee. The negative side of the concept is that there are no consequences when the car is always used. The concept of mobility leasing is to change the arrangements for car leasing. The current arrangements give users the opportunity to drive as much kilometers as possible. The companies do not limit this to keep the employees satisfied or the employer does not have an incentive to limit this because he is paying a fixed amount. Most companies also discourage employees who want to make use of Traffic jams are still a big problem other modes of transportation as for example a train. The cost of the train tickets has to be paid by the employees themselves or it takes a lot of time and paperwork to get the reimbursement. Therefore this project aims at an increase in usage of alternative modes of transportation of 10—20% [Ecorys]. Mobility leasing is a regional concept. Where there is problem with accessibility, different parties can choose to work together to try to solve this problem with mobility leasing. Lease cars have been chosen because Rijkswaterstaat estimated that in the rush hours 35 to 50 % of all the cars on the highways are leased. This is a very high percentage. The total share of lease cars in the Netherlands is 8% [Ecorys]. The conclusion is that the drivers of lease cars can be seen as a target group. They can be identified via the leasing companies and a package of incentives can be offered to them. There is also another reason to choose this group of car users. The lease car drivers are often employed in the service sector, which means that most of them have the ability to be flexible in their working hours. The car users who do not have such flexibility will probably never leave the car during rush hour. A pilot project is currently prepared in Maastricht. In this pilot project the car lease companies, the municipality and the employers in the Maastricht region are going to work together to reduce the accessibility problems in this region. These accessibility problems are caused by the construction of a tunnel under the A12. When the pilot project will continue, the employers of 1000 employees will exchange the classic lease contract for the mobility lease contract. All involved parties will benefit from better accessibility of the region. For the car lease companies this concept also means a new product which they can bring onto the market and the lease car drivers will get options for their travel pattern. The companies will be cost neutral and benefit from the better accessibility. Most important is that 200 cars will structurally be taken out of the congestion every day in this region. This is 10% of the total cars that need to be taken out of the congestion to let the traffic flow during the construction of the tunnel. Mobility leasing is a very interesting alternative for road pricing. With the pilot project, the effect of mobility leasing can be measured. If the pilot project is a success, the concept can be introduced on a larger scale and in more regions which can solve a part of the congestion problems all over the country.

InTrans, June 2010

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Some insight from the professionals: By: Giuliano Mingardo We asked a professional in transport economics, Giuliano Mingardo from the Erasmus University, to give some insight information. What is your opinion about Mobility Leasing? It is difficult to say whether the Mobility Leasing will be successful in reducing traffic congestion. The pilot has to prove if the concept is successful in practice and when the pilot is finished there will be more to tell about it. However, Mobility Leasing seems to be an innovative mobility management tool. Is the choice for company-car drivers a good one? One of the most difficult target groups, when it comes to reducing single-car use, is the company-car drivers. This mobility management tool is particularly addressed to this target group. This makes the concept very interesting, because mobility leasing tries to achieve a change in the mobility pattern of this difficult target group. Therefore it will be interesting to see if the pilot of mobility leasing in Maastricht will be able to change the mobility pattern of this target group and how the concept will develop over time.

Did you know that... Rotterdam is currently testing its stresslevel

By: Noortje van de Burgt

The Rotterdam Climate Initiative has the ambition to reduce CO2 emission, prepare for climate change and at the same time strengthen the economy of Rotterdam. The Rotterdam Climate Initiative is currently preparing for climate change, because quality of life is at risk for all of us living in the city. Cities are at risk for ‘heat stress’.[1] In cities, many buildings are present that absorb the ray of sun that hold on to the heat. At the same time traffic and asphalt cause more heat, which is also very much present in cities. Open space, water and trees can reduce the stress level of a city or downtown, but is often not present. Therefore climate change, and higher temperatures in accordance with this, can result in the socalled: ‘Urban Heat Island effect’ or simply ‘Heat Stress’. Eventually, this can mean it is six degrees Celsius hotter in a downtown than in a rural area, because of an ‘Urban Heat Island’. In the situation of an ‘Urban Heat Island’ people are really bothered by the heat and the chance to get health problems increases. Lucky for everyone currently living in Rotterdam, the city is testing the existence of ‘Urban Heat Islands’.



Pagina 8

InTrans, June 2010

How are you doing? In this part of the InTrans, we ask Transito members to tell us something about their job. In this issue: Nancy AddoDaaku Meet Nancy Addo- Daaku: I am Nancy Addo-Daaku. I studied the Master in Urban Port and Transport economics with a focus on urban en regional economics. From 2004 till 2005 I was secretary of the board of Transito. I graduated in fall of 2006.

Where did you start working after graduation? What are the main projects you are currently working on? A week after graduation I started working at OntwikkelingsBedrijf Rotterdam (OBR), which is part of the There are several major urban redevelopment promunicipality of Rotterdam. I had written my master jects in Hoogvliet and Feijenoord. My role in these thesis in combination with an internship at the same developments is to provide all sorts of relevant incompany. formation and give advice about the local economy, commercial real estate market and business comDuring my internship I researched the economic pomunity etc. tential of the Rotterdam Healthcare sector. Apparently, the people at the OBR were very pleased with In Hoogvliet we are currently working on the extenmy and the work I had done. I was asked to assist in sion of the two shopping centers. We hired a con“translating” my research and the result from my sulting company to analyze the retail sector in thesis into actual policy. In fact several of my recom- Hoogvliet and the surrounding areas. Through exmendations can be found in the policy program. I’m pansions, adding new functions and contracting not working on this subject any more. But just the interesting retail shops, we hope to strengthen the other day the new project manager asked me for a attractiveness of these centers and draw more cuscopy of my thesis. I’m glade that my thesis is still tomers from the region to Hoogvliet. relevant after all these years. What do you like about working at RotterWhere do you work now and what is your dam Development Corporation? function? It is a great company with lots of interesting and I’m still working at the development corporation. I challenging jobs opportunities. Furthermore Rotterswitched to the Sector Economy which aims to dam is a city which is constant in development. I stimulate the economy of Rotterdam. We are housed am proud that I am part of such a company and in the Word Trade Centre at the heart of the city. It’s that I can make a a very inspiring location. contribution to these developI am the account manager for the sub-municipalities ments. of Hoogvliet and a part of Feijenoord. Within these areas I am sort of the representative for the munici- In addition I get pality. I try to inform entrepreneurs about relevant to visit different policy programs and subsidies arrangements. I have kinds of places a lot of contact with representatives of the local y o u normally business associations. wouldn’t go to in Rotterdam and I In addition I work with a lot of stakeholders, retaillearn new thing ers, business associations, real-estate and property everyday about development companies and together we try to crethe city I live in. ate the right economic conditions and business environment to stimulate the local economy.

InTrans, March 2010

Pagina 9

How does a typical work day at OBR look like? Do you have a good advice for the Transitomembers who want to work in the urban secI like the fact that I don’t have a typical 9- 5 desk tor? job As an account manager I have a lot of meetings and I participate in different kinds of projects, vary- An internship is a very good opportunity to get to ing from solving problems in a local business asso- know a company, especially for a large organization ciation, meeting with the real estate owners of a such as a municipality which has a lot of different shopping centre and giving advice about large urban disciplines. Nowadays many municipalities have highly recommend traineeship programs. I would development projects. advice anybody try one of these options. It’s also an During the day, I have one of two meetings with easy way to get a permanent job. colleagues form different departments and business partners to discuss the progress of a project. At least once a week there is a meeting with a local business association. These meetings usually take place in the evening. I go to these meeting to meet new entrepreneurs, catch up with old contacts and broaden my network. Now and then I give a presentation about the plans of the municipality for a specific area.

Fuel Tourism– the case of Luxembourg By: Noortje van de Burgt According to the ANWB (the biggest Dutch motoring organization), most Dutch residents will again go on holiday to France this year. Many of them will drive through Luxembourg to eventually reach their holiday destination. Most of them will not enjoy the beautiful nature in the country or anything else than getting cheap gasoline. Luxembourg is a very popular destination for fuel tourism. For such a country the advantages of lower gasoline prices are fiscal revenues and an increase in jobs in the gasoline distribution sector. This even sometimes resulted in unwanted fiscal competition between fuel tourism countries and its neighboring countries [1]. At the same time fuel taxes are a way to reduce the demand for vehicle transportation. Sterner concludes that if Europe did not have such a high fuel tax system their gasoline usage would be much higher [2]. He eventually calls it the most powerful climate policy instrument to date. As everyone knows one of the aims of the European climate policies is to reduce greenhouse gasses. Currently, CO2 emissions for transport are measured via the amount of fuel sold. The IPCC, the Intergovernmental Panel on Climate Change, recommends estimating emissions on the basis of fuel sales data [4]. According to this organization another approach is estimating the emission on the basis of the distance travelled. This is currently done when measuring the CH4 and N2O emissions.

Pagina 10

InTrans, June 2010

Fuel Tourism– the case of Luxembourg

This way of measurement of CO2 emissions, via the amount of fuel sold, results in problems in countries with fuel tourism. Namely, in countries such as Luxembourg the amount of fuel sold is not the same as the amount of fuel burnt there. The emissions are thus higher in figures about Luxemburg than they in reality are. Therefore the data about CO2 emissions based on fuel sold data often do not reflect real emission levels in these countries. This causes an issue on how to calculate greenhouse gas emissions. According to the EEA, the European Environment Agency, the relatively high levels of GHG emissions per capita in Luxemburg can be explained by the high levels of road fuel exports or fuel tourism from Luxembourg to its neighboring countries. The cross border commuting workforce is for example more than 25% of the resident population [5]. Furthermore Luxembourg estimates that fuel exports could be responsible for up to 40% of the countries total share of greenhouse gas emissions [5]. In March 2010, the OECD has impelled Luxemburg to increase fuel taxes. The OECD did this to discourage fuel tourism and decrease the amount of carbon dioxide emissions in Luxemburg. This due to the fact that Luxemburg has the highest carbon dioxide level in the EU, see figure 1. Figure 1: CO2 per capita, 2007

OECD (2010), Enivronmental performance reviews: Highlights, Luxembourg

Like all other European countries Luxembourg’s goal is to cut emissions. To achieve this goal the OECD environmental performance review thus recommends an increase in fuel prices, like France, Germany and Belgium [3]. With more equal gas prices the amount of fuel tourism is expected to decrease and the reflection of CO2 emissions might be more accurate indeed. [1] Rietveld P. et al (2001), Spatial graduation of fuel taxes; consequences for cross- border and domestic fuelling, Transportation Research Part A: Policy and practice, Vol. 35, no. 5, pp. 433- 457. [2] Sterner T. (2007), Fuel taxes: An important instrument for climate policy, Energy policy, Vol. 35, no. 6, pp. 3194- 3203. [3] OECD (2010), Environmental performance reviews: highlights, Luxembourg. [4] IPPC (2006), [5] European Environment Agency (2009), Greenhouse gas emission trends and projections in Europe 2009, Tracking progress towards Kyoto targets, report no. 9, Copenhagen.

InTrans, March 2010

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Mobility leasing as solution to traffic jams? By: Redans InTrans In the Netherlands, a considerable part of the car-owning population actually drives a car owned by a leasecompany. These lease cars are subject to certain fiscal regulations taking away the formerly unlimited benefits of possessing a lease-car. Free private lease-car driving is no longer allowed unlimitedly, but only for 500 kilometres a year. Driving more than this amount of kilometres a year leads to a percentage of the value of the car being added to the yearly income before tax and subsequently to increased tax payment. At the time this was argued to provide enough incentive to make drivers more aware of their choices. However, it turns out that this package of measures provides an incentive to actually use the car more then strictly necessary. Since once the 500 kilometre-limit has been exceeded -which happens in the blink of an eye- free private driving starts. But in contrast to other transport modes one can use to go to work, work-related-driving is completely free all year long while this is of utmost importance in preventing traffic jams. This smells like unfair competition! Since rush hour traffic consists of lease-car-drivers for about 33% to 50%, this group of drivers, not having an incentive to analyse costs and benefits of various modes, can be targeted by mobility leasing (ML). ML is an upcoming subject and possible solution in thinking about and reducing traffic jams. A concept emphasizing the incentives lease-car users do and don't have or should and shouldn't have. Since ML will give lease-car drivers the ability to do cost-benefit analysis again, will they leave their car standing? And evenly important, will this positively influence rush-hours or traffic jams? While several arguments can be considered in this case, one of the most important -and systematically overseen- statistics in fighting traffic jams is their cause. The sign in the photo shown on the right tells us much about the greatest cause of traffic jams: accidents or other incidents. So, does ML decrease the risks of incidents? Possibly, but indirectly. And while indirect measures usually work less efficient then direct measures, I wouldn't bet on this effect to be too strong. Next to the cause of traffic jams is the fact that people use their car for a certain reason. True, there will be employees using their lease car to drive to their office, sit there all day, and drive back. But, Source: another part of the employees will actually need their car throughout the day to visit people on other locations than their office. Other companies that in the most ideal situation are all located near high-speed train stations, but in reality are sometimes located on the most remote locations in the country. So there will always be a certain demand for cars during a working day, making it impossible to leave all lease-cars standing. The effectiveness of mobility leasing seems to come from the fact that a budget can be spend on mobility and certain left-overs will be given to the employee. I like this idea and in fact I think it might work. However, don't we have this already? If we look at wage in relation to gasoline prices, can't it be stated that the fewer kilometres we drive, the more we save per month? But in fact we all still drive too much. So, maybe we like mobility and driving more than we like the money. Or we like paying to be able to be lazy. Isn't mobility a strange product?


Now, before anybody gets me wrong, creating a level playing field between various modes of transport seems only logical. However, since only 33-50% of all rush hour traffic are lease cars and only 10% of the traffic that needs to be vanished from the roads in order for traffic to flow smoothly will do so as a result of mobility leasing (ECORYS), does this justify the necessary investments (consisting of various registrative/administrative systems etc.)? And -assuming that various levels of governments will have to co-invest given the absence of market parties to do so- won't there be some better investment opportunities? We are still dealing with this humongous economic crisis, the size of which we still can't realize. And the market parties will be the ones benefiting the most, so at least make the investment within a PPP. Combining this with the seemingly limited effect the ML concept is expected to have on traffic volumes, my guess for mobility leasing in the near future is this: good concept, wrong timing!

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The editors of the InTrans are: Noortje van de Burgt Robert Prins Ewa Paluszkiewicz

InTrans, June 2010

The next InTrans is coming out in June 2010. Would you like to write something for the intrans? You are invited to send us your input?

The editors would like to thank for this issue: Paul Blijs Maarten van der Westen Redans InTrans Nancy Addo Daaku Giuliano Mingardo

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Transito is a study association for the students of Urban, Port and Transport Economics. Transito tries to bring the theory of the classes alive in practice. That can be by visiting companies and institutions ‘in the field’, but also via the articles in the Visitor address Mail address InTrans. If you would like to be a Room H12-5 Room H12-7 member, please visit us at H12-05. If Burgemeester Oudlaan 50 P.O. Box 1738 3000 DR Rotterdam you would like more information about 3062 PA Rotterdam T: 010 - 408 2070 us, you can contact us at our addresses that are stated on the right.

InTrans Juni 2010  

InTrans Juni 2010

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