New ERP GPS System 2020: charges based on distance traveled

In an effort to make the ERP system “fairer”, the next evolution in our ERP system is to charge motorist by the distance they travel in congested road.

It was recently announced in Straits Times of a new ERP system based on Distance to be rolled out in 2020. The GPS Technology ERP is built by NCS and MHI Engine System at a cost of $556 million.

This replaces the Gantry based ERP technology which has been around since 1998.

Motorist will be able to replace their Onboard units (OBUs) starting from next year and it will be Free of Charge for the first unit.

commercial Car insuranceIn addition, OBU is able to alert drivers of priced congested roads charges in advance and provide real time traffic information to the driver. with this information, drivers can then decide the most cost effective route to take.

 

Effect to the private hire driver industry

As what you can expect, Private hire drivers and Taxi are the heavy users on the road. ERP cost is expected to go up and most likely the cost will pass on to consumer. so it remains to be seen on the eventual impact in Prices.