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This paper reports an analysis of potential costs and revenues to apply road pricing in Melbourne. Objectives of road pricing are assumed to be reduced peak period congestion and raising of funds for transport infrastructure. The analysis provides a broad understanding of opportunities for Intelligent Vehicle Highway Systems (IVHS) to be applied to road pricing; using Melbourne as a test case. Road pricing can take many forms from simple flat annual charges with fuel consumption based variable charges through to systems which charge vehicle owners according to actual road use. IVHS developments will be the key to the implementation of socially acceptable systems which charge according to actual use - or a form of charging which partially meets this objective. As pressure on road funds increases over the next decade, there is likely to be greater emphasis on the use of IVHS technologies to change the way in which road infrastructure is managed.

This paper briefly describes some IVHS initiatives in Australia and assesses the prospects for further developments. Two major activities in the IVHS area are reviewed: a technology agreement between the state road authority (VicRoads) and the national telecommunications (Telecom) provider to develop vehicle location monitoring technologies for road management in Melbourne called TRansport Information and Management System (TRIMS); and the application of a low cost technology, which is complementary to ATC systems, to capture data about the performance of public buses on arterial roads in Sydney. The technology is called the Arterial Network Travel Time System (ANTTS).