TIL/T&P Masterclass by PhD student Erik-Sander Smits about his research project on innovative transport pricing and on life after graduation.

1. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Life after graduation
Innovative Transport Pricing
Erik-Sander Smits
November 22, 2012

2. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Before graduation
Utrecht University
• BSc. Computing Science
• BSc. + MSc. Mathematics
Graduation internship @ Omnitrans International
O-D matrix estimation
A Priori O-D matrix
⇒ New O-D Matrix
Traffic counts
Matrix estimation
O-D matrix Route proportions
Assignment

3. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Before graduation
After internship @ Omnitrans
• Writing Thesis
• Searching for a job: What do I want?
• Consultancy (Engineering)?
• Consultancy (Strategy)?
• Private Equity?
• Trader (Finance)?
• Science?

4. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Before graduation
After internship @ Omnitrans
• Writing Thesis
• Searching for a job: What do I want?
• Consultancy (Engineering)?
• Consultancy (Strategy)?
• Private Equity?
• Trader (Finance)?
• Science?
• What do I find important?
• → Challenge! I want to apply my analytical skills.

5. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
PhD Research @ T & P
Your own project
4-year long challenge!
Gather knowledge ... execute the research ... publish your results
The finale is the thesis defense.

6. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
PhD Research @ TU Delft
Courses
Teaching
• Soft skills (e.g. Scientific Writing)
• Hard skills (e.g. Discrete Choice • Give lectures
Analysis) • Supervise MSc students
Conferences Exchange
• Transportation Research Board • One to three months
• TRAIL Congress • All around the world
• ...

7. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
PhD Research @ TU Delft

8. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Introduction
• Transport Pricing:
• How do users pay for mobility?
• Traditionally: Car purchase tax, Road tax, Public transport ticket

9. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Introduction
• Transport Pricing:
• How do users pay for mobility?
• Traditionally: Car purchase tax, Road tax, Public transport ticket
• Initiatives for different measures are proposed since 1977 in
The Netherlands
• Toll roads
• Peak hour sticker
• Kilometre charge

10. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Introduction
• Transport Pricing:
• How do users pay for mobility?
• Traditionally: Car purchase tax, Road tax, Public transport ticket
• Initiatives for different measures are proposed since 1977 in
The Netherlands
• Toll roads
• Peak hour sticker
• Kilometre charge
• All proposals failed to be implemented.

11. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Research Project
• Deliverable: Decision support system for the design and
evaluation of innovative pricing schemes.
• Underlying goal: Sustainable mobility and accessibility in the
Randstad area.

12. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Research Project
• Deliverable: Decision support system for the design and
evaluation of innovative pricing schemes.
• Underlying goal: Sustainable mobility and accessibility in the
Randstad area.
• Model studies on transport pricing are numerous, but lack a
complete solution.
• Task: Combine state-of-the-art models and fill in the gaps.

13. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Schematic overview
Mo lders
Groningen
Friesland
del
eho
Drenthe
Noord-
Holland
Flevo-
land
Overijssel
Utrecht Gelderland
Zuid-
Holland
Stak
Noord-Brabant
Zeeland
Limburg

14. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Schematic overview
Insurance fee
Toll
Mo lders
Parking fee Pricing Fuel price
Scheme
Groningen
Friesland
del
Ticket price
eho
Drenthe
Noord-
Holland
Flevo-
land
Kilometre charge
Overijssel
Utrecht Gelderland
Zuid-
Holland
Stak
Noord-Brabant
Zeeland
Limburg

15. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Schematic overview
Insurance fee
Toll
Mo lders
Parking fee Pricing Fuel price
Scheme
Groningen
Friesland
del
Ticket price
eho
Drenthe
Noord-
Holland
Flevo-
land
Kilometre charge
Overijssel
Utrecht Gelderland
Zuid-
Holland
Stak
Noord-Brabant
Zeeland
Limburg
Tra ic Mo
Tra
+
nsp
ff
ort el
&
d

16. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Innovative Transport Pricing
Schematic overview
Insurance fee
Toll
Mo lders
Parking fee Pricing Fuel price
Scheme
Groningen
Friesland
del
Ticket price
eho
Drenthe
Noord-
Holland
Flevo-
land
Kilometre charge
Overijssel
Utrecht Gelderland
Zuid-
Holland
Stak
Noord-Brabant
Zeeland
Limburg
Tra ic Mo
Tra
+
Safety
nsp
ff
dB
Accessibility Effects
ort el
PM10 Congestion
CO2
&
d
User Equity NOX

17. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Introduction
• Input
• Pricing Scheme
• Multimodal Network
• Potential OD demand

18. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Introduction
• Input
• Pricing Scheme
• Multimodal Network
• Potential OD demand
• Output
• Travel Times
• Emissions
• Other quantified effects
Results are obtained by calculating the user equilibrium.

19. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Schematic Overview
Assignment model
Dynamic
Choice set generator multimodal
route set
Route choice
Demand model
Flow propagation
model
Trip choice
Dynamic
Potential
Multimodal
demand
Multiple user
classes
Destination
Spillback
choice
Shockwaves

20. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Choice set generator

21. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Choice set generator

22. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Multimodal choice model
• Simultaneous mode, route and departure time choice.
• Discrete choice model for a multimodal route set.
• Model takes into account
• Travel times in several modes
• Waiting and transfer time
• Fuel costs, parking costs, public transport price and road
pricing costs
• Compensation of costs
• Different income groups
• Penalties for early/late departure/arrival
• Stay home alternative

23. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Dynamic Network Loading with the LTM
Fundamentals of the Link Transmission Model (LTM)
• Consistent with first order kinematic wave theory (shockwaves
& spillback).
• Based on cumulative flows.
• Time discretized.
• No space discretization (other than the network
representation).
• Triangular fundamental diagram.

24. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Transport Model
Dynamic Network Loading with the LTM
Fundamentals of the Link Transmission Model (LTM)
• Consistent with first order kinematic wave theory (shockwaves
& spillback).
• Based on cumulative flows.
• Time discretized.
• No space discretization (other than the network
representation).
• Triangular fundamental diagram.
The LTM can only be applied on road networks and should be
combined with a public transport network loading model.

25. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Introduction
• Input
• Stakeholders’ preferences on effects
• Stakeholders’ hierarchy and interaction
• Stakeholders’ executive control

26. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Introduction
• Input
• Stakeholders’ preferences on effects
• Stakeholders’ hierarchy and interaction
• Stakeholders’ executive control
• Output
• Unique pricing scheme
Results are obtained by iterating over the underlying transport
model.

27. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Mathematical formulation
• Price vector p = (p1 , . . . , pn )

28. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Mathematical formulation
• Price vector p = (p1 , . . . , pn )
• Effects vector e = (e1 , . . . , em )

29. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Mathematical formulation
• Price vector p = (p1 , . . . , pn )
• Effects vector e = (e1 , . . . , em )
• DTA(p) : Rn → Rm is the operator mapping the prices to effects
under user equilibrium in the transport model.

30. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Mathematical formulation
• Price vector p = (p1 , . . . , pn )
• Effects vector e = (e1 , . . . , em )
• DTA(p) : Rn → Rm is the operator mapping the prices to effects
under user equilibrium in the transport model.
The classical approach is:
min f (e)
p
such that e = DTA(p)
where f : Rm → R is the preference of the stakeholder.

31. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Multiple stakeholders
• S is the set of stakeholders.
• Every stakeholder s ∈ S has objective function:
fs (e) : Rm → R (1)

32. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Multiple stakeholders
• S is the set of stakeholders.
• Every stakeholder s ∈ S has objective function:
fs (e) : Rm → R (1)
• Every stakeholder minimizes its objective by setting p.

33. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Multiple stakeholders
• S is the set of stakeholders.
• Every stakeholder s ∈ S has objective function:
fs (e) : Rm → R (1)
• Every stakeholder minimizes its objective by setting p.
• Because of the multiple objective functions a formulation as a
simple mathematical problem is not feasible.

34. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Stakeholders Model
Game Theoretical Approach
• Game theoretical solution algorithms are used.
• The stakeholders can either cooperate or act selfishly.
• Under cooperation coalitions between stakeholders can be
formed and monetary transactions are allowed.
• Without cooperation each stakeholder will make independent
decisions based on self-interest.

35. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Example
City A
City B
City C

36. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Wrap-up
After graduation:
• Find out what you find important in your career!
• Doing PhD research is challenging and offers a lot more than
just desktop work
Innovative Transport Pricing
• A comprehensive model framework is required to evaluate and
design pricing measures
• Cooperation between stakeholders can improve the transport
system
• The method provides insight for stakeholders in the benefit of
forming a coalition (and can be used as decision support
system)

37. Before graduation PhD Research Innovative Transport Pricing Transport Model Stakeholders Model Wrap-up
Questions?
e.smits@tudelft.nl
Room: 4.14