Skip to main content

Decongestion zone

Urban areas unblocked with new traffic scheme

Decongestion zone

With ever-increasing traffic problems, the Swedish Road Administration needed a solution that would cut congestion in the city of Stockholm. In January 2006 a trial scheme was introduced that uses infra-red cameras to record car number plates and bills owners automatically.



The challenge

For many urban areas, traffic is much more than an annoyance. It's a threat to commerce, growth and health. In response to this, many governments around the world are trying various approaches to trim the number of vehicles in certain sections or on certain routes. True to their progressive outlook, the Swedish government is one of those.


The capital takes about half a million cars each day, including around 300,000 during peak hours.


From January to July 2006, the Swedish Road Administration is testing a new congestion charging system that aims to combat congestion in the city of Stockholm. The scheme is part of a wider transport policy with environmental benefits - such as free parking for 'clean' vehicles (those running on electricity or ethanol for example). The aim is to reduce traffic by 10 to 15 percent, cut pollution, and improve the environment in the city area. According to city officials the capital takes about half a million cars each day, including around 300,000 during peak hours.

In September, the City plans a referendum to test acceptance for the permanent application of the new system.

Keeping an eye on payments

The Swedish authorities called on the experience of IBM Business Consulting Services to build, implement and run the trial system. With its experience of instituting the first electronic road pricing system in the world in 1998 in Singapore, IBM was seen as the perfect partner to work with. Moreover, continued and sustained investment in on demand solutions for the international road charging market meant IBM was fully geared up to meet the opportunity.

The Stockholm City system sees a congestion charge applied to the inner city. The toll system uses infra-red cameras to identify the number plates of vehicles passing in and out of the centre. Vehicles travelling in certain areas (inside so-called "cordons") automatically pay tolls electronically using Dedicated Short Range Communications (DSRC) tags. An estimated 60 percent of payments is made through use of an in-car tag.

The solution is designed to be extended and scalable as all components such as servers, software and applications are built to meet a highest expected traffic volume. In addition, building the system on open standards ensures that potential extensions will easily be integrated to other compatible systems - an important aspect of the scheme.

Skills and expertise

IBM Business Consulting Services brought a variety of expertise to the project: blending skills and innovation in road charging business operations, on-board and roadside equipment, wireless communications, multiple payment channels and other value added services. The ability to provide total solutions, from the technical implementation and management of the system to the operations of business processes - in addition to access to the best partners and competencies - allowed for the stability, flexibility and innovation required for the scheme's successful implementation.


"a unique transformation solution that enables the City to meet its congestion challenges." Per Larsson, IBM


"With this initiative, IBM will provide the City of Stockholm and the Swedish Road Administration with industry-leading transformational consulting experience, combined expertise in scalable, open-standard technology infrastructure," says Per Larsson, general manager, IBM Business Consulting Services, Nordic region. "In doing so, IBM is able to assemble a unique transformation solution that enables the City to meet its congestion challenges."

Results so far

Although the project is still ongoing, early results are impressive. After the first full week, rush hour traffic has been slashed by over 25 percent. And in some places by as much as 35 percent when the tolls are most expensive.

"This is beyond our expectations and the system is also working well technically," reports Erik Bromander of the Swedish Finance Ministry.