NCS and MHI Engine System have clinched a deal to build Singapore's next generation electronic road-pricing (ERP) system, one which will have islandwide coverage and the ability to charge for distance travelled.

The new system replaces the current gantry-based ERP system, and will be rolled out from 2020.

For a start, there will be an 18-month transition period between the old and new system, when motorists will swop their current in-vehicle unit for a sophisticated, smartphone-sized onboard unit. The first onboard unit will be free of charge.

Among other things, this unit will be able to alert drivers of priced roads well in advance (before turn-offs to alternatives), inform them of charges, and provide real-time traffic information. Armed with this information, the LTA said drivers can better decide when to drive, which route to take, or leave the car at home and take public transport instead.

During the transition period, motorists can expect no change to the current charging regimen. After the transition phase, the LTA will look into phasing in distance-charging. This could mean significantly higher ERP charges for road-users who clock high mileages, such as taxi-drivers, deliverymen and bus operators. No timeline for the implementation of distance-charging has been set. 

However, other functions of the new system will be available from day one. These include real-time traffic information for every road user, coupon-less streetside parking, and automatic payment for offpeak car owners who drive during peak periods. This means the system, which uses satellite navigation technology, has islandwide coverage. In places where satellite coverage may be weak - such as in tunnels or under viaducts - signal beacons will be in place.