Lead Presenter:  Ning Zhang | Vice President, National Tolling Practice | WSP USA

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Presentation Description

In the dynamic landscape of managed lanes operation, adopting a universal pricing strategy remains an elusive goal. The market features a diverse array of players, including both public and private sectors, each with varying operational objectives. The primary aim of a managed lane solution is to optimize benefits and welfare for all stakeholders, yet the operational goals diverge among different operators. This divergence necessitates a nuanced approach to pricing, one that harmonizes the financial imperatives with the overarching strategic objectives of the agency.

This presentation proposes to explore six distinct pricing strategies designed to align with various strategic goals for the agencies: profit maximization, shareholder value maximization, revenue maximization, capacity maximization, cost minimization, and stakeholder maximization. These strategies emphasize the importance of setting the right price, a decision that hinges on a comprehensive understanding of agency objectives, travel demand dynamics, and operational costs.

Furthermore, the presentation will delve into advanced pricing algorithms as innovative tools to refine pricing strategies and achieve tailored operational objectives. These techniques represent the cutting edge in managed lanes pricing, offering the potential to dynamically adjust prices with machine learning and artificial intelligence in response to real-time conditions and demand, as well as predefined segmentation strategies to further maximize the value of the managed lanes.

The goal of this presentation is to furnish agencies with a robust framework for establishing effective pricing strategies that cater to their unique strategic purposes. By providing insights into both foundational pricing strategies and some advanced approaches, this presentation aims to equip decision-makers with the knowledge to ensure sustainable operation and maximal stakeholder welfare in managed lanes operations.

Speaker Biography

Ning is a national toll practice leader at WSP and a certified PMP professional with over 10 years of experience. He specializes in Managed Lane planning, funding strategy, traffic and revenue studies, system implementation, and operations. With an extensive industry background in both consulting and private development sectors, Ning currently supports various managed lane, tolling, and congestion pricing initiatives within WSP's transportation and infrastructure national service line. His practice areas include California, the Pacific Northwest, Central Texas, and the Midwest. 

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Co-presenter(s)

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