You Need to Know How a Fleet System Will Assist with ERP System and Toll Charges

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The Electronic Road Pricing (ERP) system is a toll charge system adopted in Singapore to manage congestion, reduce pollution and ensure vehicles travel at optimised speeds on the expressway. 

You’ve probably already experienced frustrating fleet delays due to congestion, but have you considered how this ERP system will affect your fleet's performance and overall operational cost in 2024? 

Discover how our fleet management system’s built-in software can assist you with ERP and make everything toll-related a breeze.

In this article, you will:

  • Understand how the new ERP system in Singapore works
  • Discover the technology behind the ERP system
  • Get clarity on how toll charges are levied on motorists
  • Learn about Cartrack Singapore’s fleet management software
  • Uncover how Cartrack’s fleet system helps you manage toll expenses
  • Debunk the myths about the ERP. 2.0 system in Singapore

All you need to know about Singapore’s Electronic Road Pricing (ERP) System

According to the Land Transport Authority (LTA), the ERP system helps manage congestion on expressways through toll charges/levies on vehicles based on the peak time and the congestion levels on these expressways. 

The ERP system was introduced in 1998 to replace manual road pricing schemes, such as the Area License System (ALS), which was implemented in 1975. Unlike the previous scheme, the ERP system ensures efficiency for the toll charging system using advanced technology. 

Since its successful implementation, the ERP system has been reported to reduce traffic volume into the CBD via expressways by about 10 to 15 per cent during peak times from 2005 to 2010. 

Despite motorists' reservations about the ERP system and businesses' criticisms of it in Singapore in 2023, the Land Transport Authority announced a second version of the ERP system. Unfortunately, this means that the ERP system is here to stay. 

Here’s a simple breakdown of how the new updated version of the ERP system will work:

How the new ERP system will work

As the ERP 2.0. implementation in Singapore is a gradual process, it’s important to know how it will work.

How the ERP tech works:

  1. Firstly, Singapore motorists will need to replace their in-vehicle unit (IU) with a new onboard unit (OBU). The new OBU for vehicles is equipped with:

    - A processing unit
    - An antenna
    - A touchscreen display (optional)

    Each of these three components is also integrated into a single OBU for motorcycles.

    But what does ‘out with old and in with new’ mean for your fleet? Well, you will have to replace the IU in your fleet vehicles and motorcycles with the new OBU. The good news is that the installation is free for two months from when you receive a letter, email and/or SMS from LTA informing you to book your installation appointment.

    The process of installing the new OBU systems began in November 2023 for businesses and organisations with fleet vehicles like transport buses, taxis, goods vehicles, and motorcycle fleets.

    Have you installed the new OBU for your fleet vehicle? Luckily, it’s easy to check whether your vehicle is eligible for an installation online.

    Channel News Asia reported that from the first quarter of 2024, all new vehicles will be fitted with the OBU. So, when you purchase a new vehicle for your fleet, it will already have the OBU fitment completed. Installation for vehicles already in use will be scheduled based on the vehicle's age over the next two to three years.
  2. Precision using satellite positioning

    The ERP 2.0 is satellite-based, using Global Navigation Satellite Systems (GNSS) technology. The GNSS enables it to detect whether your vehicle is in a congested area, while real-time alerts to motorists on traffic information and charging locations help improve traffic management.

    Motorists can also access real-time road traffic updates and information about ERP charging locations and going rates. Eventually, the GNSS technology of the ERP 2.0. will slowly replace the ERP gantries motorists have become familiar with over the years.

How the ERP charges motorists:

The ERP system generates revenue to fund nationwide public transport infrastructure and other transportation-related initiatives. However, they are not operational on Sundays as well as public holidays. In addition, the operating hours for ERP gantries, close early on the eve of major public holidays such as the Chinese New Year, Hari Raya Puasa, Deepavali, Christmas, and New Year's Day.

Currently, the ERP system charges motorists based on the time of day and location. This means the charges are determined at the time the vehicle passes through ERP gantries. The rates are adjusted to maintain peak-hour speeds of 45km/h - 65km/h on expressways, and 20km/h - 30km/h on other roads. 

Motorists can be charged in two ways when using expressways:

  1. At peak congestion times: They are charged a full amount (ranging anywhere from $0.50 to $6 for cars and $0.25 to $1.75 for motorcycles per gantry) for using ERP gantries during peak congestion times.
  2. At off-peak times: Motorists are charged less when using ERP gantries during off-peak congestion times.

The peak times and off-peak times vary for different expressways. However, all motorists can avoid charges altogether by using different routes/non-priced roads which are typically longer routes for getting around. 

In October 2023, it was announced that there are no immediate plans to introduce distance-based charging on motorists based on the distance they travel on specific expressways and roads. Implementing distance-based charging will have a significant policy change that could affect fleet-based industries. But this is not something you have to worry about in the near future, according to Roads Singapore.

How ERP affects fleet operations

So, how does the ERP system generally affect businesses that rely on their fleet operation? Fleet-based businesses may experience increased operational costs from ERP charges. In addition, they may experience issues with ERP system regulatory compliance, higher vehicle acquisition costs in Singapore and increased administrative demand to keep up with toll payments and fines on their fleet. 

Fleet management software can assist your business with ERP compliance; next, we’re looking at how it can help you reduce operational costs and keep up with toll payments.


How Cartrack Singapore helps businesses with ERP Compliance and Toll Costs

Headquartered in Singapore, Cartrack is a leading global Software-as-a-Service “SaaS” provider for businesses of all sizes needing software solutions for their fleet operations. We have assisted over 110,000 different businesses across the globe with improving productivity, efficiency, driver safety, and fuel management among other aspects. 

The fleet system for the Singapore market is equipped to help businesses with fleet operations such as delivery, transportation, logistics, field service businesses and even rental and leasing businesses improve their compliance with the ERP system, and tackle some of the cost challenges.

Avoiding toll payment card fraud using MiFleet

Cartrack Singapore’s fleet management system can work hand-in-hand with the OBU to help you avoid fines and ensure accurate charges.

You can validate the toll charges against your actual vehicle usage using Cartrack’s MiFleet — our powerful software simplifies the administrative and vehicle cost-accounting components of your fleet operations. 

Imagine this: You receive a toll charge fine because there was not enough money on your payment card but your vehicle wasn't even in the area of the toll charge. 

On MiFleet you can view the vehicle, tolls, the status of toll payment and the location of the toll charge. If the location of the toll charge does not match your vehicle's location or the time your vehicle was used, this can raise legitimate suspicions of payment card fraud. Our fleet management software helps prevent such situations by:

  • Tracking your vehicles in real-time: See exactly where your vehicles are and eliminate any inconsistencies in toll charges.
  • Providing detailed toll reports: Monitor all toll payments, their location, and corresponding vehicle usage.
  • Pinpointing potential fraud: Instantly flag suspicious charges that don't match your vehicles' movements.

Keeping up with toll costs using Cartrack’s MiFleet system

You can ensure timely and automatic toll payments on all your vehicles by setting up traffic fine alerts to remind your fleet manager to check that there are no overdue toll payments on your vehicles. This can help you manage the progress of pending payments and avoid manual intervention and potential traffic offence fines for missing the two-week grace payment period.

Avoid payment disruptions and fines on your toll charges on your vehicles with our fleet system, which can easily help you manage toll payments for all your vehicles, whether you have a fleet of two vehicles or 10,000 vehicles. 

The fleet management system also generates detailed toll charge reports for your vehicles. Simplify your ERP system compliance with record-keeping of toll charges and payments on your fleet. The detailed reports generated on toll costs for each vehicle and route can help with accurate cost analysis and budgeting for your fleet expenses.

Our fleet management system will help you manage your ERP cost/toll charges through:

  • Automatic traffic fine alerts: Notifying your fleet manager of overdue payments for settlement before the two-week grace period ends.
  • Detailed reports: Simplify compliance and gain insights with comprehensive reports on toll charges per vehicle and route.
  • Accurate cost analysis: Gain valuable insights into toll expenses for each vehicle and route, enabling accurate budgeting.

Keeping up with payments on your toll charges from the ERP system is the smartest way to ensure your business practices contribute positively to the growing economy.

Five debunked Myths about Singapore’s ERP system

You now know how ERP systems work, and how a fleet system can make administrative work much easier. We would also like to clarify some common misconceptions surrounding ERP and toll charges.

Myth 1: ERP is a tax

ERP is not a tax, but a road pricing scheme. This means you pay based on when and where you use specific roads, incentivising traffic management and efficient travel.

Myth 2: ERP is just about revenue

While ERP generates revenue, its main goal is managing traffic congestion and improving the air quality in Singapore by reducing carbon emissions. Adjusting charges based on real-time traffic flow encourages smoother journeys for everyone

Myth 3: ERP charges are too expensive

Charges are dynamically adjusted to maintain optimal traffic speeds. Smoother traffic means shorter travel times and potentially lower fuel costs for your fleet.

Myth 4: ERP unfairly burdens motorists

Everyone using designated roads at specific times contributes to traffic levels. ERP charges are fair and consistent, applied equally based on time and location, regardless of the vehicle.

Myth 5: ERP doesn't reduce congestion

Impressive results speak for themselves: A UN Environment Programme report reveals a significant impact of the ERP system, with a 25,000 vehicle reduction in peak-hour traffic and a 20% increase in average road speeds. Imagine the time saved and fuel conserved - that's a win for everyone!


Keep up with your fleet ERP toll charges and payments with Cartrack Singapore’s Simple Solutions

Cartrack Singapore’s fleet management system can help you keep up with ERP regulations and toll payments, and by using simple built-in solutions like MiFleet for your fleet toll expenses and validation management, you can stay compliant and up to date.

Ready to easily manage your toll expenses on your fleet? Get a demo from us today!

Easily manage toll expenses with Cartrack Singapore's advanced fleet management software integrated with ERP system.