3.6 The M42 results proved to be positive with journey times improved by up to 24 per cent and journey time variability reduced by 22 per cent on average. In 2009, following further trials on the M42 at 60 miles an hour and a feasibility study, the Department published a strategy for applying Active Traffic Management to a number of motorways formerly considered for widening. The Agency had identified hard shoulder running as a possible solution if it was unable to close its widening deal during the credit crisis, although it continued to doubt whether Section One would be suitable for the new technique because of high traffic flows.
3.7 The Agency now expects to use hard shoulder running for the two other sections (Sections Two and Five) of the M25. This is part of a £3.7 billion programme of projects, which are under way or planned, to use the technique on ten major roads.
3.8 The Agency has been thorough in its testing of Active Traffic Management and had to overcome the resistance of certain stakeholders to the new technique. We consider, however, the progress was very slow given that the technique has been used in Europe, the first trials being in 1996, and that the Agency announced its intention to trial the technique in 2001. The Agency considers that its rate of progress was appropriate in order to complete rigorous trials.
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Figure 10 The Agency's estimates of the costs and savings from Active Traffic Management for Sections One and Four of the M25 in March 2008
| Saving/ | Notes |
Capital cost savings on Section One and Four | 330 | Assumes the Agency would still carry out other planned improvements, such as improved drainage and low noise surfacing across all running lanes. |
Additional costs |
|
|
Maintenance costs over 30 years | -193 | Assumes the Agency would procure maintenance for the whole motorway under five-year Managing Agent Contracts, leading to a 5 per cent increase in costs. |
Reimbursement of bid costs | -40 |
|
Revised engineering costs | -10 |
|
Net savings before further programme adjustments | 87 |
|
The Agency then made further assumptions on possible costs which could offset the £87 million savings | ||
Increase of 1.5 per cent on the capital cost of the Department's private finance programme | -90 | The Agency assumed that cancellation of the M25 widening contract would lead to market uncertainty and an assumed increase in financing costs on the Intercity Express Project, Thameslink rolling stock and the Local Authority private finance initiative programme. |
An assumed 0.5 per cent higher pricing for the Agency's private finance programme | -50 | The Agency assumed that the cost of its own programme would increase because bidders would increase their prices due to the risk of cancellation. |
Total cost on other projects | -140 |
|
Net additional cost of using Active Traffic Management | -53 |
|
Source: Highways Agency
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