Benchmarking in roads and tolled highways

There is a long history of benchmarking the efficiency of public authorities in the provision of roads and highways. However, the benchmarking studies using formal statistical and econometric methods are relatively few. This chapter reviews such studies worldwide, with a special focus on tolled roads. Although there are many sources of data on roads, data availability is still a significant problem. There is a strong evidence of economies of density in roads, whereas the level at which economies of scale are exhausted is less clear. All studies have found considerable levels of inefficiency. From a policy perspective this suggests a role for benchmarking when other forms of competition are not feasible. The experience of the Italian Transport Authority in the regulation of tolled highways shows how benchmarking methodologies can be used both in the design of tenders and in the design of contracts.