Tariff differentiation simulation in the Multi-Lane Free Flow system

a case study based on the Litoral-Sul road concession tender

Abstract

This article presents an analysis of tariff differentiation in the context of multi-lane free flow (MLFF) toll systems. The research addresses the importance of discounts for TAG (Electronic Toll Collection) users and Frequent User Discount (FUD) as a complement to Free Flow and highlights their advantages. The studies conducted are based on data and guidelines provided in the Technical and Economic Feasibility Study (TEFS) and the International Competitive Bidding Document related to the highway concession in the São Paulo Coast. By simply considering default as an inherent risk factor and maintaining TAG user discounts at minimal levels (5%), the model ends up restricting the contracting authority's ability to effectively employ TAG-related discounts as a strategy to mitigate default impacts. This study emphasizes the possibility of reducing the consideration required by the concessionaire by exploring different tariff structures. The research reveals that discounts between 11% and 17% are effective in minimizing the final consideration (representing optimal points), surpassing the initial forecast of 5%. The importance of maintaining the contracting authority's decision on tariff discounts, considering the associated risk, is highlighted.