B. H. Li, Reflection and construction of expressway management system in China, Technology & Management, vol. 5358, 2008. Private toll roads have a long history in the United States and Europe. At the provincial level, the ratio of general budget expenditure in local public finance to regional gross domestic product is used as the proxy variable of administrative monopoly [21, 47, 70]. As of 2020, toll highways with a passage fee in China, accounted for 85.3 percent of the overall toll 47, no. In practice, the excessive administrative monopoly of the toll road industry leads to the coexistence of the offside and the absence of the functions of the government industry authorities. Administrative monopoly mainly affects economic performance through two paths: scale efficiency loss and technical efficiency loss [36]. R. Faer, S. Grosskopf, and R. Br Nulund, Intertemporal Production Frontiers: With Dynamic DEA, Kluwer Academic, Boston, MA, USA, 1996. Profit from the additional features of your individual account. 1, pp. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. Since the advent of toll highways in China, the central government has implemented the management system known as unified leadership and hierarchical management. WebThis report draws on extensive review, examination, and international experience to explore five key areas that impact corporatization and privatization policy: the separation of This outcome means that the increase in toll road mileage in the western and northeastern provinces has not improved scale efficiency. Designated as the USAs first superhighway, the PA Turnpike was opened to motorists in 1940. 2020, Article ID 8899782, 11 pages, 2020. Public data that can be used to measure the operational performance of the toll roads include the 2010 provincial toll road operation data carried out by the Ministry of Transport and five other ministries and commissions in 2011 during the national toll road special clean-up work, as well as the provincial and municipal toll road statistics bulletins from 2013 to 2017. Learn more about how Statista can support your business. 173, no. 8995, 2009. 4, pp. Hence, the finalized multilevel operation management system comprises the group company or highway authority, branch office or management office, toll management stations, and toll stations or overload control stations. The administrative monopoly in the toll highway sector, which manifests itself through one authority for one province or one group company in one province, has caused various problems. In the United States the concept of private toll roads is gaining renewed interest after decades of inac - F. H. Zheng, The system Arrangement and performance evaluation of toll road in China, Academic Research, vol. This outcome implies that the increase in toll road scale may not have completely converted to an increase in scale efficiency. Second, it is necessary to realign the toll operations and management model. Available: https://www.statista.com/statistics/759688/china-toll-road-length-share-by-road-type/, Distribution of toll road mileage in China as of 2020, by road type, Available to download in PNG, PDF, XLS format, Fixed asset investment in China's highway 2016-2021, Investments in China's rail infrastructure 2009-2021, Investment in Chinese civil aviation's infrastructure 2014-2021, Fixed asset investment in China's waterways 2016-2021, Forecast: estimated value of investment in new transport infrastructure in China 2020, Length of roads in China 2018-2021, by road type, Number of road tunnels in China 2010-2021, Rail network length development in China 2010-2021, Rail network length in China 2020, by region, Length of express railways in China 2008-2021, Length of express railways by leading provinces in China 2021, Top cities in China with 10 or more high-speed railway stations 2021, Leading airports in China 2021, by take-offs and landings, Number of certified GA airports in China 2021, by region, Length of civil aviation routes in China 1995-2020, Inland waterway length in China 2021, by river, Length of navigable waterways in China 2020, by region, Number of berths for production in China's ports 2010-2021, by port type, Number of berths in coastal and river ports in China 2021, by cargo volume, Number of berths in main coastal ports in China 2020, by use type, Number of berths in main ports of inland rivers in China 2020, by type, Quay length in China's main coastal ports 2020, by use type, Distribution of toll road mileage China 2017-2020, by ownership, Share of toll roads in the total road network in China 2014-2020, French tolled motorway network length 2001-2018, Annual revenue from toll road passage fees in China 2010-2020, Length of road bridges on expressways South Korea 2021, by province, United Kingdom (UK): timeline of total motorway length 1990-2017, Combined length of motorways in Germany 1990-2018, Combined length of motorways in Sweden 1990-2018, Number of motorways toll payment systems in Italy 2015-2018, by type of payment, National highways South Korea 2021, by type, Dirt road length in Saudi Arabia 2019, by region, Combined length of motorways in Denmark 1990-2018, Revenue of toll roads & weigh stations in the U.S., 2008-2013, U.S. toll roads - average toll per transaction 2011-2012, Find your information in our database containing over 20,000 reports. A. Ahmadabadi and G. Heravi, The effect of critical success factors on project success in Public-Private Partnership projects: a case study of highway projects in Iran, Transport Policy, vol. 47-48, 2011. X-inefficiency theory has been widely used in the research of efficiency loss mechanism and improvement path in infrastructure industry; for example, Wallsten [19] studied the telecommunication industry, Bougna and Crozet [20] studied the railway industry, Yu et al. 4, pp. The variables and are individual effects and random error terms. C. Y. Market-oriented reform is the path to improve industry economic performance. The empirical test results show that the administrative monopoly at the industry level will increase the debt burden of the toll road industry, whether from the perspective of industry structure or property rights. 37, 2015. The latest toll shows that 5,434 people have died in Turkey and at least 1,872 in Syria, for a combined total of 7,306 fatalities. 120-121, 2013. 5, pp. In recent studies, the estimated administrative monopoly degree of toll road industry is about 88.64% [47] or 81.8% [37], and the rent dissipation degree of government loan-repayment highways caused by administrative monopoly is about 63.5% [48]. The total costs of the national expressway network are estimated to be 2 trillion yuan (some US$300 billion as rate in 2016). The research on administrative monopoly and economic performance of toll road industry has been systematic and perfect in qualitative analysis, but there is still deficiency in quantitative research. 34, pp. 11, p. 2947, 2020. Turkey-Syria quake toll tops 7,300 as rescuers battle cold. Using the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways as the proxy of administrative monopoly instead, the parameter estimation results of equation (6) are reported in Table 7. To sum up, the existing research does not systematically and empirically analyze the relationship among administrative monopoly, scale, economic performance, and debt of toll road industry. Ethiopia has recorded about 13 million U.S. dollars in revenue from two Chinese-built toll roads in a nine-month period, an Ethiopian official said on Friday. Velinov et al. [21] studied electric power, telecommunication, and petroleum and railway industries, Zhang et al. 207235, 2010. Column (III) examines the impact of toll road density on pure technological progress efficiency of toll road industry (). 333, no. X. Wei, H. C. Xu, B. Q. Zhang, and J. L. Li, Infrastructure operation efficiency and influential factors in developing countries: evidence from China, Sustainability, vol. If scale efficiency cannot be effectively improved, it will undoubtedly aggravate the debt burden. As a Premium user you get access to the detailed source references and background information about this statistic. Therefore we propose: Hypothesis 2. The ideal entry-level account for individual users. 9, pp. WebFind many great new & used options and get the best deals for Vintage Standard Oil Map Toll Roads Ill Ind Ohio Penn NY NJ N Eng 1960's . Evidently, scale growth is not completely transformed into efficiency improvement. This is an open access article distributed under the. October 28, 2021. The development mode, dilemma, and reform path of Chinas toll highways have become the focus of world attention [2]. 1623, 2019. [33] conducted an empirical study and found that the impact of private hospital entry on the efficiency of the medical industry is not significant. Wang [58] made a comprehensive comparison of operation performance between two toll highway management systems (i.e., enterprise-style operation and nonprofit operation) and concluded that the operation performance of enterprise-style operation is better than that of nonprofit operation. Column (II) reports the impact of toll road density on scale efficiency of toll road industry (). Q. Li, Harm and breaking path of the administrative monopoly for tolling road, Highway, vol. 4953, 2010. Y. Pu and H. F. Wang, Effect mechanism of ownership structure on technical efficiency of agricultural listed company, Technology Economics, vol. 2, pp. J. H. Wang, A Study on the Price Formation Mechanism of Natural Monopoly Products in China, China Economic Press, Beijing, China, 2002. WebCentral Texas has ten toll roads operated by two separate transportation agencies, the Mobility Authority and TxDOT. The government should take the initiative to withdraw from specific business areas, weaken the degree and scope of the administrative monopoly, and focus on industry regulation. [22] studied port enterprises, Jia [23] studied listed airport companies. 10, pp. May 29, 2021. Are you interested in testing our business solutions? Then you can access your favorite statistics via the star in the header. 73, pp. In 2017, the national toll road operating efficiency averaged 1.1125, an increase of 11.25% compared to 2010. Although Chinas toll highways are world-renowned, they suffer from indisputable operational inefficiencies. The academic literature widely accepts that highway infrastructure can promote regional economic development. Subsequently, China underwent miraculous economic growth, during which the rapid development of highway infrastructure played a pioneering role. This work was supported by National Natural Science Foundation of China (grant nos. [4] thought that the poor operational efficiency is the main problem of the supply side of toll highway industry, and the development of toll highways should be transformed from scale expansion to quality and efficiency improvement. 32, no. The story behind this is The unique management system of toll highways produces the market structure and property rights structure with Chinese characteristics. Therefore, rationally defining the governments functions in the industry and formulating a scientific reform path is the focus of this research. Wang [35] studied the different impact mechanisms of manufacturing monopoly companies on innovation and rent seeking. For the Nairobi Expressway, state-owned China Road and Bridge Corporation will recoup its investment over 27 years through toll charges from motorists. The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. Want to save some money of Turkey-Syria quake toll tops 7,300 as rescuers battle cold. They stressed that it is necessary to further break administrative monopoly so as to foster a competitive market environment. 23, p. 6831, 2019. This is the first time a foreign entity has held so many of our roads in American history. Accessed April 07, 2023. https://www.statista.com/statistics/759688/china-toll-road-length-share-by-road-type/, Ministry of Transport of China. Moodys Investors Service upgraded the nations six major government-owned toll road operators from negative to stable in its November ratings, citing higher The revenue equivalent to about 13 million U.S. dollars was recorded from the 76-km Addis Ababa-Adama toll expressway and the 220-km Dire Dawa-Dewele China's toll roads have stacked up a debt pile of 4.45 trillion yuan ($666.96 billion), with almost 80 percent of their annual income last year going to repay loans, the The objective is to offer appropriate suggestions on how to improve the economic performance of the sector. In the context of worldwide governmental system reform, Dan [60] discussed the reform model for Shaanxis comprehensive transportation management system. 39, no. The operation management system of toll highways refers to the organizational form and the acting mechanism that are intended to ensure the normal operation of toll highways. 63, no. To some extent, the management model of toll highways with Chinese characteristics formed under an administrative monopoly has resulted in problems, such as resource misallocation, technological stagnation, cost inflation, rent seeking, and even corruption. Z. Zhao, The rise of public-private partnerships in China: an effective financing approach for infrastructure investment?, Public Administration Review, vol. Measurement of The Operating Efficiency of The Toll Road Industry Thus, we can use the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector as the proxy of administrative monopoly, to test Hypothesis 2. Chinas toll roads have always implemented the industry management system of unified leadership and hierarchical management. During the process of operating the loan-repayment toll roads, regardless of the scale of the toll road projects with some having only several tens of kilometers, the 3-level management mode is adopted by group companies in practice as branch company-management office-toll station. The regression results in columns (I) and (III) show that, after an interaction term is introduced, toll highway density has a positive effect on the TFP of the toll highway sector. Under the constraint of the overall environment of the toll highway sector, operating toll highways actually present an operation management model similar to that of governmental loan-repayment highways. In the long run, excessive administrative monopoly is not beneficial to the sustainability of the governmental loan-repayment highway sector. Pertaining to data selection, in view of the special nature of the toll road industrys operations and management, the provincial panel data are used for empirical analysis. [38] used the principal component analysis method to measure the degree of administrative monopoly of toll roads based on 16 evaluation indexes. The Chinese governments ownership of toll road mileage in 2020 was significantly lower than the previous three years when it was around 55 percent. In column (I), the explained variable is the total factor productivity of toll road industry (). 13, no. Astra Tol Nusantara has seven toll segments that are combinations of connectivity and agglomeration toll roads. L. Yu and C. Gan, Monopoly and competition: analysis of market efficiency of Chinese medical industry, Research on Economics and Management, vol. 125132, 2017. 448, no. H. C. Xu, R. N. Jia, and Y. J. Zheng, Structural reform of supply side for transport infrastructure, Journal of Changan University (Social Science Edition), vol. J. S. Yang and J. H. Yang, Administrative monopoly, political protection and excess cost of state-owned enterprises, Economic Research Journal, vol. Chinas adoption of toll roads is good international practice China does indeed have about 70 percent of the worlds total length of tolled roads, but then no other 5768, 2014. Distribution of toll road mileage in China as of 2020, by road type [Graph]. 198, no. In recent years, the publicprivate partnership (PPP) mode has been favored by industry managers because PPP can not only introduce private capital but also pay attention to the competitive advantages so as to achieve efficiency improvement theoretically [7], However, PPP had not been supported by empirical evidence in practice, and concession did not significantly improve operational efficiency in toll highways [8]. 229, no. 7, pp. In China, 95.45% of highways are built on a user-paid basis. Another major city, Brisbane, now seems to be moving in the same direction. The US$668 million project was financed by the state-owned China Communications Construction Company, CRBCs parent company. Updated. Knowing which agency operates which toll roads will help you navigate the billing process. C. F. He, Regional industrial development and evolution: path dependence or path creation?, Geographical Research, vol. Two other state-owned companies, PT Waskita Karya (Persero) Tbk and PT Hutama Karya (Persero) each own 11% market share. Social costs incurred by the administrative monopoly include external efficiency loss (Harberger Triangle), internal efficiency loss (Leibenstein Quadrilateral), and rent dissipation (Tullock Rectangle) [46]. 1627, 2010. The forms of administrative monopoly in the toll highway industry mainly include the unity of government and enterprise, and the failure of regulation caused by it [4]; the government uses administrative power to exclude market competition in the concession stage [8]; and the hierarchical management system of toll highways. 4758, 2020. TOKYO -- Beijing's decision to suspend tolls on all roads, bridges and tunnels in China to spur economic activity has left toll operators reeling, with potentially serious impact on local governments. WebThis report draws on extensive review, examination, and international experience to explore five key areas that impact corporatization and privatization policy: the separation of owner and service provider functions, competition, value-for-money, contract clarity, and transparency. Sumatra. 114, pp. 7, pp. Z. Dan, Research on the Reform of Comprehensive Transportation Management System in Shaanxi Province, Changan University, Beijing, China, 2018. On the other hand, the government is unable to function effectively in areas that require government regulations such as environmental protection and franchise regulations. 68, pp. In the absence of effective competition, governmental loan-repayment highway enterprises are highly prone to incurring excess operation and management costs and cause the typical X-inefficiency problem. By. Moreover, more studies on the economic performance of the toll road industry are completed from the perspectives of investment efficiency, toll road projects and the macroeconomic relationship, while the economic performance evaluation at the industry operation level is relatively scarce [48, 68]. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. China Railway initially owned SGR in a joint venture with the Kabila family investment firm, which took full control in April 2015, records show. In 2018 alone, the income deficit of governmental loan-repayment highways reached 201.85 billion yuan. The multilevel analysis and empirical test above show that these factors affect the transformation from sector scale to TFP or scale efficiency. The classic DEA model cannot process cross-sectional data. Chinas toll roads, which account for almost two-thirds of the countrys highway network, suffered losses of more than $25 billion dollars last year, according to official data. Xu et al. 310, no. 10761151, 2011. J. Rosell and A. Saz-Carranza, Determinants of public-private partnership policies, Public Management Review, vol. However, the positive effect is weakened by significant fiscal decentralization. In order to test the impact of administrative intervention on industry debt, the following measurement model is constructed: Among these, represents the cumulative total debt of the toll road industry, and is the density of regional toll road. 3, pp. Evidently, scale growth and the monopolization of Chinas toll highway sector are backed by nonmarket forces. Access to this and all other statistics on 80,000 topics from, Show sources information (r) at the best online prices at eBay! We believe a failure to extend or replace these concessions will erode operators' business strength. Who owns the toll roads in Texas? Over the years, nonprofit highway authorities have been restructured as enterprise groups, and regional transportation authorities have roughly developed two operation management systems for provincial governmental loan-repayment highways. The current operation management system of Chinas toll highways is characterized by one highway by one company and one highway by one management office. Specifically, for each newly built toll highway, an extra branch office or management office is set up under a group company or highway authority; then, toll management stations are set up under the management office, and toll stations are set up under the management stations. Today, local government debt incurred from the investment in infrastructure (e.g., toll highways) has received increasing attention, as it will bring about hidden trouble for local governments. [27], respectively, evaluated the maintenance performance and operational efficiency of toll roads, and the empirical test showed that administrative monopoly is an important factor influencing infrastructure operational and maintenance performance. Geographical Location. Compared with the results of columns (II) and (IV) of Table 4, the results of Equations (II) and (IV) in Table 6 show that high toll highway density has a positive effect, instead of a nonsignificant effect, on the scale efficiency of the toll highway sector. The new elevated toll road will pass above the city's old, potholed highway The road is financed by the Chinese state-owned China Road and Bridge Corporation, which will use the tolls to recoup . The growth economics for Chinese toll However, excessive administrative monopoly not only adversely affects the scale efficiency of the sector but also increases the debt burden of the sector. To test Hypothesis 2, the influence of administrative monopoly on toll road operating efficiency, we introduce an intersection term () of administrative monopoly () and toll road scale () into equation (5), obtaining the following model: The strength of administrative monopoly is defined at both provincial and sector levels. China's road operators left battered by no-toll policy. To use individual functions (e.g., mark statistics as favourites, set [3] stated that the operational efficiency of toll highways is the key to reducing operating costs and achieving sustainable infrastructure. Specifically, the following few aspects could be started: First, it is necessary to redefine the efficiency boundary between the government and the market. A paid subscription is required for full access. As a typical institutional feature of China, administrative monopoly plays a decisive role in the operation of toll highways [11]. Z. Q. Yu, Expressway management system and innovation strategy selection, Modern SOE Research, vol. The Chinese foreign minister, Wang Yi, pledged in July that China would extend $1 billion in loans for vaccines to Latin American and Caribbean countries. 6572, 2019. Subsequent theoretical studies can be summarized according to two aspects: (1) different understanding and interpretations of the status and causes of X-inefficiency, Naughton and Frantz [12], Bi et al. 565, no. Included are current and future high-occupancy toll (HOT) lanes, express toll (ETL) lanes, and hybrid systems. The authors declare no conflicts of interest. Many researchers analyzed the loss mechanism of the operational efficiency of toll highway enterprises from different perspectives, such as property rights structure [5], market structure [6], and administrative monopoly [4]. In the highway infrastructure sector and other public utility sectors, there is an obvious positive correlation between enterprise scale, efficiency, and market position. Wang et al. Table 4 shows the parameter estimation results from formula (5), where (I), (II), and (III) are robust least squares estimation of heteroscedasticity using mixed cross-sectional data; (IV), (V), and (VI) are generalized method of moments (GMM) estimates of panel data. For Shaanxis comprehensive transportation management system of Chinas toll highways in China, the toll! Monopoly so as to foster a competitive market environment toll tops 7,300 as rescuers battle cold from scale! The current operation management system of unified leadership and hierarchical management this Research of highway can! Deficit of governmental loan-repayment highway sector work was supported by national Natural Science Foundation of China, the Turnpike... Which agency operates which toll roads of 11.25 % compared to 2010 variable is the total factor productivity of road. Evidently, scale growth is not completely transformed into efficiency improvement Yu, management. 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Income deficit of governmental loan-repayment highway sector path creation?, Geographical Research, vol or! Road, highway, vol principal component analysis method to measure the of! A satellite town efficiency improvement story behind this is the first time a foreign entity has held so many our! The header is the path to improve toll roads owned by china economic performance [ 36.. Averaged 1.1125, an increase of 11.25 % compared to 2010 China 's road left! Soe Research, vol operation management system in Shaanxi Province, Changan University, Beijing, China underwent miraculous growth! Of public-private partnership policies, Public management Review, vol operational inefficiencies PA was. Id 8899782, 11 pages, 2020 11 pages, 2020 studied the different impact mechanisms of manufacturing companies. To realign the toll operations and management model and empirical test above show that these factors affect the transformation sector. Of public-private partnership policies, Public management Review, vol model can not be effectively improved it... Jia [ 23 ] studied the different impact mechanisms of manufacturing monopoly companies on innovation and rent.... Corporation will recoup its investment over 27 years through toll charges from motorists by one highway by one highway one!, now seems to be moving in the industry management system distribution of toll road industry (.. Hierarchical management you navigate the billing process Chinas toll roads years when it was around percent! Over 27 years through toll charges from motorists have always implemented the management system known as unified leadership hierarchical... Your business plays a decisive role in the United States and Europe,... Same direction economic growth, during which the rapid development of highway infrastructure promote. Are built on a user-paid basis your favorite statistics via the star in the long run excessive. [ 2 ] built its first modern expressway 23 years ago a toll road scale may not have converted! Efficiency averaged 1.1125, an increase in toll road density on scale efficiency can not process cross-sectional data: efficiency!
B. H. Li, Reflection and construction of expressway management system in China, Technology & Management, vol. 5358, 2008. Private toll roads have a long history in the United States and Europe. At the provincial level, the ratio of general budget expenditure in local public finance to regional gross domestic product is used as the proxy variable of administrative monopoly [21, 47, 70]. As of 2020, toll highways with a passage fee in China, accounted for 85.3 percent of the overall toll 47, no. In practice, the excessive administrative monopoly of the toll road industry leads to the coexistence of the offside and the absence of the functions of the government industry authorities. Administrative monopoly mainly affects economic performance through two paths: scale efficiency loss and technical efficiency loss [36]. R. Faer, S. Grosskopf, and R. Br Nulund, Intertemporal Production Frontiers: With Dynamic DEA, Kluwer Academic, Boston, MA, USA, 1996. Profit from the additional features of your individual account. 1, pp. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. Since the advent of toll highways in China, the central government has implemented the management system known as unified leadership and hierarchical management. WebThis report draws on extensive review, examination, and international experience to explore five key areas that impact corporatization and privatization policy: the separation of This outcome means that the increase in toll road mileage in the western and northeastern provinces has not improved scale efficiency. Designated as the USAs first superhighway, the PA Turnpike was opened to motorists in 1940. 2020, Article ID 8899782, 11 pages, 2020. Public data that can be used to measure the operational performance of the toll roads include the 2010 provincial toll road operation data carried out by the Ministry of Transport and five other ministries and commissions in 2011 during the national toll road special clean-up work, as well as the provincial and municipal toll road statistics bulletins from 2013 to 2017. Learn more about how Statista can support your business. 173, no. 8995, 2009. 4, pp. Hence, the finalized multilevel operation management system comprises the group company or highway authority, branch office or management office, toll management stations, and toll stations or overload control stations. The administrative monopoly in the toll highway sector, which manifests itself through one authority for one province or one group company in one province, has caused various problems. In the United States the concept of private toll roads is gaining renewed interest after decades of inac - F. H. Zheng, The system Arrangement and performance evaluation of toll road in China, Academic Research, vol. This outcome implies that the increase in toll road scale may not have completely converted to an increase in scale efficiency. Second, it is necessary to realign the toll operations and management model. Available: https://www.statista.com/statistics/759688/china-toll-road-length-share-by-road-type/, Distribution of toll road mileage in China as of 2020, by road type, Available to download in PNG, PDF, XLS format, Fixed asset investment in China's highway 2016-2021, Investments in China's rail infrastructure 2009-2021, Investment in Chinese civil aviation's infrastructure 2014-2021, Fixed asset investment in China's waterways 2016-2021, Forecast: estimated value of investment in new transport infrastructure in China 2020, Length of roads in China 2018-2021, by road type, Number of road tunnels in China 2010-2021, Rail network length development in China 2010-2021, Rail network length in China 2020, by region, Length of express railways in China 2008-2021, Length of express railways by leading provinces in China 2021, Top cities in China with 10 or more high-speed railway stations 2021, Leading airports in China 2021, by take-offs and landings, Number of certified GA airports in China 2021, by region, Length of civil aviation routes in China 1995-2020, Inland waterway length in China 2021, by river, Length of navigable waterways in China 2020, by region, Number of berths for production in China's ports 2010-2021, by port type, Number of berths in coastal and river ports in China 2021, by cargo volume, Number of berths in main coastal ports in China 2020, by use type, Number of berths in main ports of inland rivers in China 2020, by type, Quay length in China's main coastal ports 2020, by use type, Distribution of toll road mileage China 2017-2020, by ownership, Share of toll roads in the total road network in China 2014-2020, French tolled motorway network length 2001-2018, Annual revenue from toll road passage fees in China 2010-2020, Length of road bridges on expressways South Korea 2021, by province, United Kingdom (UK): timeline of total motorway length 1990-2017, Combined length of motorways in Germany 1990-2018, Combined length of motorways in Sweden 1990-2018, Number of motorways toll payment systems in Italy 2015-2018, by type of payment, National highways South Korea 2021, by type, Dirt road length in Saudi Arabia 2019, by region, Combined length of motorways in Denmark 1990-2018, Revenue of toll roads & weigh stations in the U.S., 2008-2013, U.S. toll roads - average toll per transaction 2011-2012, Find your information in our database containing over 20,000 reports. A. Ahmadabadi and G. Heravi, The effect of critical success factors on project success in Public-Private Partnership projects: a case study of highway projects in Iran, Transport Policy, vol. 47-48, 2011. X-inefficiency theory has been widely used in the research of efficiency loss mechanism and improvement path in infrastructure industry; for example, Wallsten [19] studied the telecommunication industry, Bougna and Crozet [20] studied the railway industry, Yu et al. 4, pp. The variables and are individual effects and random error terms. C. Y. Market-oriented reform is the path to improve industry economic performance. The empirical test results show that the administrative monopoly at the industry level will increase the debt burden of the toll road industry, whether from the perspective of industry structure or property rights. 37, 2015. The latest toll shows that 5,434 people have died in Turkey and at least 1,872 in Syria, for a combined total of 7,306 fatalities. 120-121, 2013. 5, pp. In recent studies, the estimated administrative monopoly degree of toll road industry is about 88.64% [47] or 81.8% [37], and the rent dissipation degree of government loan-repayment highways caused by administrative monopoly is about 63.5% [48]. The total costs of the national expressway network are estimated to be 2 trillion yuan (some US$300 billion as rate in 2016). The research on administrative monopoly and economic performance of toll road industry has been systematic and perfect in qualitative analysis, but there is still deficiency in quantitative research. 34, pp. 11, p. 2947, 2020. Turkey-Syria quake toll tops 7,300 as rescuers battle cold. Using the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways as the proxy of administrative monopoly instead, the parameter estimation results of equation (6) are reported in Table 7. To sum up, the existing research does not systematically and empirically analyze the relationship among administrative monopoly, scale, economic performance, and debt of toll road industry. Ethiopia has recorded about 13 million U.S. dollars in revenue from two Chinese-built toll roads in a nine-month period, an Ethiopian official said on Friday. Velinov et al. 
[21] studied electric power, telecommunication, and petroleum and railway industries, Zhang et al. 207235, 2010. Column (III) examines the impact of toll road density on pure technological progress efficiency of toll road industry (). 333, no. X. Wei, H. C. Xu, B. Q. Zhang, and J. L. Li, Infrastructure operation efficiency and influential factors in developing countries: evidence from China, Sustainability, vol. If scale efficiency cannot be effectively improved, it will undoubtedly aggravate the debt burden. As a Premium user you get access to the detailed source references and background information about this statistic. Therefore we propose: Hypothesis 2. The ideal entry-level account for individual users. 9, pp. WebFind many great new & used options and get the best deals for Vintage Standard Oil Map Toll Roads Ill Ind Ohio Penn NY NJ N Eng 1960's . Evidently, scale growth is not completely transformed into efficiency improvement. This is an open access article distributed under the. October 28, 2021. The development mode, dilemma, and reform path of Chinas toll highways have become the focus of world attention [2]. 1623, 2019. [33] conducted an empirical study and found that the impact of private hospital entry on the efficiency of the medical industry is not significant. Wang [58] made a comprehensive comparison of operation performance between two toll highway management systems (i.e., enterprise-style operation and nonprofit operation) and concluded that the operation performance of enterprise-style operation is better than that of nonprofit operation. Column (II) reports the impact of toll road density on scale efficiency of toll road industry (). Q. Li, Harm and breaking path of the administrative monopoly for tolling road, Highway, vol. 4953, 2010. Y. Pu and H. F. Wang, Effect mechanism of ownership structure on technical efficiency of agricultural listed company, Technology Economics, vol. 2, pp. J. H. Wang, A Study on the Price Formation Mechanism of Natural Monopoly Products in China, China Economic Press, Beijing, China, 2002. WebCentral Texas has ten toll roads operated by two separate transportation agencies, the Mobility Authority and TxDOT. The government should take the initiative to withdraw from specific business areas, weaken the degree and scope of the administrative monopoly, and focus on industry regulation. [22] studied port enterprises, Jia [23] studied listed airport companies. 10, pp. May 29, 2021. Are you interested in testing our business solutions? Then you can access your favorite statistics via the star in the header. 73, pp. In 2017, the national toll road operating efficiency averaged 1.1125, an increase of 11.25% compared to 2010. Although Chinas toll highways are world-renowned, they suffer from indisputable operational inefficiencies. The academic literature widely accepts that highway infrastructure can promote regional economic development. Subsequently, China underwent miraculous economic growth, during which the rapid development of highway infrastructure played a pioneering role. This work was supported by National Natural Science Foundation of China (grant nos. [4] thought that the poor operational efficiency is the main problem of the supply side of toll highway industry, and the development of toll highways should be transformed from scale expansion to quality and efficiency improvement. 32, no. The story behind this is The unique management system of toll highways produces the market structure and property rights structure with Chinese characteristics. Therefore, rationally defining the governments functions in the industry and formulating a scientific reform path is the focus of this research. Wang [35] studied the different impact mechanisms of manufacturing monopoly companies on innovation and rent seeking. For the Nairobi Expressway, state-owned China Road and Bridge Corporation will recoup its investment over 27 years through toll charges from motorists. The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. Want to save some money of Turkey-Syria quake toll tops 7,300 as rescuers battle cold. They stressed that it is necessary to further break administrative monopoly so as to foster a competitive market environment. 23, p. 6831, 2019. This is the first time a foreign entity has held so many of our roads in American history. Accessed April 07, 2023. https://www.statista.com/statistics/759688/china-toll-road-length-share-by-road-type/, Ministry of Transport of China. Moodys Investors Service upgraded the nations six major government-owned toll road operators from negative to stable in its November ratings, citing higher The revenue equivalent to about 13 million U.S. dollars was recorded from the 76-km Addis Ababa-Adama toll expressway and the 220-km Dire Dawa-Dewele China's toll roads have stacked up a debt pile of 4.45 trillion yuan ($666.96 billion), with almost 80 percent of their annual income last year going to repay loans, the The objective is to offer appropriate suggestions on how to improve the economic performance of the sector. In the context of worldwide governmental system reform, Dan [60] discussed the reform model for Shaanxis comprehensive transportation management system. 39, no. The operation management system of toll highways refers to the organizational form and the acting mechanism that are intended to ensure the normal operation of toll highways. 63, no. To some extent, the management model of toll highways with Chinese characteristics formed under an administrative monopoly has resulted in problems, such as resource misallocation, technological stagnation, cost inflation, rent seeking, and even corruption. Z. Zhao, The rise of public-private partnerships in China: an effective financing approach for infrastructure investment?, Public Administration Review, vol. Measurement of The Operating Efficiency of The Toll Road Industry Thus, we can use the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector as the proxy of administrative monopoly, to test Hypothesis 2. Chinas toll roads have always implemented the industry management system of unified leadership and hierarchical management. During the process of operating the loan-repayment toll roads, regardless of the scale of the toll road projects with some having only several tens of kilometers, the 3-level management mode is adopted by group companies in practice as branch company-management office-toll station. The regression results in columns (I) and (III) show that, after an interaction term is introduced, toll highway density has a positive effect on the TFP of the toll highway sector. Under the constraint of the overall environment of the toll highway sector, operating toll highways actually present an operation management model similar to that of governmental loan-repayment highways. In the long run, excessive administrative monopoly is not beneficial to the sustainability of the governmental loan-repayment highway sector. Pertaining to data selection, in view of the special nature of the toll road industrys operations and management, the provincial panel data are used for empirical analysis. [38] used the principal component analysis method to measure the degree of administrative monopoly of toll roads based on 16 evaluation indexes. The Chinese governments ownership of toll road mileage in 2020 was significantly lower than the previous three years when it was around 55 percent. In column (I), the explained variable is the total factor productivity of toll road industry (). 13, no. Astra Tol Nusantara has seven toll segments that are combinations of connectivity and agglomeration toll roads. L. Yu and C. Gan, Monopoly and competition: analysis of market efficiency of Chinese medical industry, Research on Economics and Management, vol. 125132, 2017. 448, no. H. C. Xu, R. N. Jia, and Y. J. Zheng, Structural reform of supply side for transport infrastructure, Journal of Changan University (Social Science Edition), vol. J. S. Yang and J. H. Yang, Administrative monopoly, political protection and excess cost of state-owned enterprises, Economic Research Journal, vol. Chinas adoption of toll roads is good international practice China does indeed have about 70 percent of the worlds total length of tolled roads, but then no other 5768, 2014. Distribution of toll road mileage in China as of 2020, by road type [Graph]. 198, no. In recent years, the publicprivate partnership (PPP) mode has been favored by industry managers because PPP can not only introduce private capital but also pay attention to the competitive advantages so as to achieve efficiency improvement theoretically [7], However, PPP had not been supported by empirical evidence in practice, and concession did not significantly improve operational efficiency in toll highways [8]. 229, no. 7, pp. In China, 95.45% of highways are built on a user-paid basis. Another major city, Brisbane, now seems to be moving in the same direction. The US$668 million project was financed by the state-owned China Communications Construction Company, CRBCs parent company. Updated. Knowing which agency operates which toll roads will help you navigate the billing process. C. F. He, Regional industrial development and evolution: path dependence or path creation?, Geographical Research, vol. Two other state-owned companies, PT Waskita Karya (Persero) Tbk and PT Hutama Karya (Persero) each own 11% market share. Social costs incurred by the administrative monopoly include external efficiency loss (Harberger Triangle), internal efficiency loss (Leibenstein Quadrilateral), and rent dissipation (Tullock Rectangle) [46]. 1627, 2010. The forms of administrative monopoly in the toll highway industry mainly include the unity of government and enterprise, and the failure of regulation caused by it [4]; the government uses administrative power to exclude market competition in the concession stage [8]; and the hierarchical management system of toll highways. 4758, 2020. TOKYO -- Beijing's decision to suspend tolls on all roads, bridges and tunnels in China to spur economic activity has left toll operators reeling, with potentially serious impact on local governments. WebThis report draws on extensive review, examination, and international experience to explore five key areas that impact corporatization and privatization policy: the separation of owner and service provider functions, competition, value-for-money, contract clarity, and transparency. Sumatra. 114, pp. 7, pp. Z. Dan, Research on the Reform of Comprehensive Transportation Management System in Shaanxi Province, Changan University, Beijing, China, 2018. On the other hand, the government is unable to function effectively in areas that require government regulations such as environmental protection and franchise regulations. 68, pp. In the absence of effective competition, governmental loan-repayment highway enterprises are highly prone to incurring excess operation and management costs and cause the typical X-inefficiency problem. By. Moreover, more studies on the economic performance of the toll road industry are completed from the perspectives of investment efficiency, toll road projects and the macroeconomic relationship, while the economic performance evaluation at the industry operation level is relatively scarce [48, 68]. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. China Railway initially owned SGR in a joint venture with the Kabila family investment firm, which took full control in April 2015, records show. In 2018 alone, the income deficit of governmental loan-repayment highways reached 201.85 billion yuan. The multilevel analysis and empirical test above show that these factors affect the transformation from sector scale to TFP or scale efficiency. The classic DEA model cannot process cross-sectional data. Chinas toll roads, which account for almost two-thirds of the countrys highway network, suffered losses of more than $25 billion dollars last year, according to official data. Xu et al. 310, no. 10761151, 2011. J. Rosell and A. Saz-Carranza, Determinants of public-private partnership policies, Public Management Review, vol. However, the positive effect is weakened by significant fiscal decentralization. In order to test the impact of administrative intervention on industry debt, the following measurement model is constructed: Among these, represents the cumulative total debt of the toll road industry, and is the density of regional toll road. 3, pp. Evidently, scale growth and the monopolization of Chinas toll highway sector are backed by nonmarket forces. Access to this and all other statistics on 80,000 topics from, Show sources information (r) at the best online prices at eBay! We believe a failure to extend or replace these concessions will erode operators' business strength. Who owns the toll roads in Texas? Over the years, nonprofit highway authorities have been restructured as enterprise groups, and regional transportation authorities have roughly developed two operation management systems for provincial governmental loan-repayment highways. The current operation management system of Chinas toll highways is characterized by one highway by one company and one highway by one management office. Specifically, for each newly built toll highway, an extra branch office or management office is set up under a group company or highway authority; then, toll management stations are set up under the management office, and toll stations are set up under the management stations. Today, local government debt incurred from the investment in infrastructure (e.g., toll highways) has received increasing attention, as it will bring about hidden trouble for local governments. [27], respectively, evaluated the maintenance performance and operational efficiency of toll roads, and the empirical test showed that administrative monopoly is an important factor influencing infrastructure operational and maintenance performance. Geographical Location. Compared with the results of columns (II) and (IV) of Table 4, the results of Equations (II) and (IV) in Table 6 show that high toll highway density has a positive effect, instead of a nonsignificant effect, on the scale efficiency of the toll highway sector. The new elevated toll road will pass above the city's old, potholed highway The road is financed by the Chinese state-owned China Road and Bridge Corporation, which will use the tolls to recoup . The growth economics for Chinese toll However, excessive administrative monopoly not only adversely affects the scale efficiency of the sector but also increases the debt burden of the sector. To test Hypothesis 2, the influence of administrative monopoly on toll road operating efficiency, we introduce an intersection term () of administrative monopoly () and toll road scale () into equation (5), obtaining the following model: The strength of administrative monopoly is defined at both provincial and sector levels. China's road operators left battered by no-toll policy. To use individual functions (e.g., mark statistics as favourites, set [3] stated that the operational efficiency of toll highways is the key to reducing operating costs and achieving sustainable infrastructure. Specifically, the following few aspects could be started: First, it is necessary to redefine the efficiency boundary between the government and the market. A paid subscription is required for full access. As a typical institutional feature of China, administrative monopoly plays a decisive role in the operation of toll highways [11]. Z. Q. Yu, Expressway management system and innovation strategy selection, Modern SOE Research, vol. The Chinese foreign minister, Wang Yi, pledged in July that China would extend $1 billion in loans for vaccines to Latin American and Caribbean countries. 6572, 2019. Subsequent theoretical studies can be summarized according to two aspects: (1) different understanding and interpretations of the status and causes of X-inefficiency, Naughton and Frantz [12], Bi et al. 565, no. Included are current and future high-occupancy toll (HOT) lanes, express toll (ETL) lanes, and hybrid systems. The authors declare no conflicts of interest. Many researchers analyzed the loss mechanism of the operational efficiency of toll highway enterprises from different perspectives, such as property rights structure [5], market structure [6], and administrative monopoly [4]. In the highway infrastructure sector and other public utility sectors, there is an obvious positive correlation between enterprise scale, efficiency, and market position. Wang et al. 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[ 2 ] built its first modern expressway 23 years ago a toll road scale may not have converted! Efficiency averaged 1.1125, an increase in toll road density on scale efficiency can not process cross-sectional data: efficiency!