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02 07 24 LA HDMI004 Elasticity Report
02 07 24 LA HDMI004 Elasticity Report
Table of Contents
Contents
1 Introduction ................................................................................................................................ 1-1
1.1. Scope and Objectives ........................................................................................................... 1-1
1.2. Methodology ........................................................................................................................ 1-2
1.3. Report Structure:.................................................................................................................. 1-2
1.4. Disclaimer ............................................................................................................................. 1-2
2 Survey Analysis ........................................................................................................................... 2-1
2.1. Traffic Counts ....................................................................................................................... 2-1
2.2. Stated preference surveys .................................................................................................... 2-3
2.3. Elasticity Analysis ................................................................................................................. 2-4
3 Traffic and revenue forecasts ..................................................................................................... 3-1
4 Conclusions and Recommendations ........................................................................................... 4-1
4.1. Disclaimer ............................................................................................................................. 4-1
APPENDIX - A. LAGOS - ABEOKUTA survey data spreadsheet............................................................II
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme i|Page
Escher Silverman Global in Association with PDC
LIST OF TABLES
Table 2-1: Traffic counts Lagos to Abeokuta ....................................................................................... 2-1
Table 2-3: Stated preference estimated coefficients for Lagos Abeokuta data .................................. 2-4
Table 3-1: Abeokuta to Lagos 2023 daily traffic and revenue for each toll plaza by vehicle type ....... 3-2
Table 3-2: Lagos to Abeokuta 2023 daily traffic and revenue for each toll plaza by vehicle type ....... 3-3
List of Abbreviations
APP Africa Plus Partners
ATC Automatic traffic counts
ESG Escher Silverman Global Ltd
FGN Federal Government of Nigeria
GPS Global positioning system hand-held device
GV Goods vehicle
HGV Heavy goods vehicle
HI Highway Inventory which also measures traffic speeds
JTS Journey time survey
LGV Light goods vehicle
MCC Manual classified counts
MGV Medium goods vehicle
PDC Peter Davidson Consultancy Ltd
SP Stated preference a technique to measure travellers VoT and WTP
RSI Roadside Interview survey of drivers’ origin-destination trips
TAG Transport Analysis Guidance
The concession Awarded by FGN to APP to design, build & operate the scheme
The concessionaires APP
The scheme Upgrading the Lagos-Abeokuta highway
The project Traffic & revenue forecasts for the scheme
VDM Variable demand model which models people’s choices between the new toll
highway and the next best alternative and other behavioural choices.
VoT Value of time
WTP Willingness-to-pay
VHr Vehicle hours
VKm Vehicle kilometers
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme ii | P a g e
Escher Silverman Global in Association with PDC
1 INTRODUCTION
Africa Plus Partners (APP) have won the concession from the Federal Government of Nigeria (FGN) to upgrade
two major highways in Nigeria one between Lagos and Abeokuta. The concessionaires (APP) require certain
consultancy services and have commissioned Escher Silverman Global Ltd (ESG) to provide them. These
upgraded highways are to be tolled with the revenue raised, to be used to help pay for the upgrading engineering
works. This requires forecasts of traffic and revenue for which ESG have commissioned us Peter Davidson
Consultancy Ltd (PDC). These traffic and revenue forecasts entail PDC building a computer model of the highway
system for which surveys are needed. These surveys have been undertaken by ESG to PDC’s specification and
this is the report describing these surveys and giving the basic survey results.
The Lagos-Ota-Abeokuta Highway serves as a critical artery, connecting the bustling metropolis of Lagos with
the historic city of Abeokuta and fostering social and economic exchange within Nigeria. However, this vital route
grapples with persistent traffic congestion, hindering economic activity, extending travel times, and impacting
the overall quality of life for those who rely on it. To address these challenges and inform strategic interventions,
a comprehensive Elasticity Traffic survey was conducted between September and November 2023, focusing
specifically on the Lagos-Ota-Abeokuta Highway.
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 1-1 | P a g e
Escher Silverman Global in Association with PDC
1.2. Methodology
The survey employed a rigorous and multifaceted approach, incorporating:
• Data collection: Gathering data from diverse sources, including travel surveys, advanced highway
monitoring systems, government records, and comprehensive socioeconomic datasets.
• Statistical analysis: Applying advanced econometric models to quantify the relationships between traffic
volume and influencing factors with precision.
• Spatial analysis: Utilizing Geographic Information Systems (GIS) to visualize traffic patterns and analyze
the influence of spatial factors with clarity.
• Stakeholder engagement: Conducting interviews and focus group discussions with key stakeholders,
including transport operators, policymakers, and local communities, to ensure a holistic understanding
of the situation.
This technical note sets out the results of the traffic and revenue forecasts for the proposed upgrade of the
Lagos-Abeokuta tolled highway based on the phase 2 survey counts and overall elasticities which it uses to
provide interim forecasts for the roads when they are tolled. The overall elasticities were obtained from a
preliminary analysis of the phase 2 stated preference survey.
These forecasts make assumptions which may not turn out to be true which would make the forecasts wrong.
1.4. Disclaimer
This project involves forecasting travel, all our forecasts will contain an element of uncertainty. This uncertainty
depends upon the basis upon which the forecasts are made, the forecasting methodology, our allotted budget
and timescale and the events which happen between making the forecasts and the outturn travel volumes. For
the first two, we use the most appropriate tools and techniques in accordance with generally accepted
professional standards and practices for the region, which may lead to forecasts which turn out to be wrong.
The allotted budget and timescale, constrains the methodology which can be used. The final forecast involves a
continuation of past trends which we no way of knowing will turn out as forecast. The outturn may therefore be
quite different to that forecast. The contents of this report are given as-is and the reader should verify the
veracity of its contents for themselves. No warrantee is given as to the veracity of the contents of this report.
This disclaimer should go on all reports, deliverables and material derived from them that contain our forecasts,
our company name or the name of any of our staff.
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 1-2 | P a g e
Escher Silverman Global in Association with PDC
2 SURVEY ANALYSIS
2.1. Traffic Counts
The Phase 2 survey is documented in the survey report. The manual classified counts and the automatic traffic
counter data were combined to produce a set of traffic volumes for the average 24-hour day (see tables 2.1 to
2.2).
Direction - South Mo to r c
Thr e e Sma l l Pi ck up s/J
Mi ni bus/sm
La r ge bus/ Two A x l e
MGV (3 - La r ge HGV
Whe e l e Ca r s/Ta eeps & Lux ur y ve hi cl e s To ta l
West to North East y cl e a l l bus 4 a x l e s) (5+ A x l e s)
Start End r xi SU V B use s (Va n/LGV)
LAGOS to ABEOKUTA
RSI062 (12hrs) 10/07/2023 2,436 1,034 1,175 902 3,318 210 612 96 155 9,938
RSI062 (ADT) 901 383 1,534 1,178 4,332 270 787 123 199 9,708
RSI062 (7days) 10/07/2023 13/07/2023 6,310 2,679 10,739 8,244 30,326 1,890 5,507 864 1,395 67,953
RSI072 (12hours) 10/08/2023 846 1,205 1,163 469 931 6 142 150 239 5,151
RSI072 (ADT) 408 697 1,492 602 1,194 9 221 233 372 5,228
RSI072 (7days) 10/07/2023 13/07/2023 2,855 4,879 10,442 4,211 8,359 65 1,546 1,634 2,603 36,594
RSI312 (12hours) 10/09/2023 1,101 51 1,616 470 460 6 196 184 101 4,185
RSI312 (ADT) 1,020 47 1,730 503 492 8 247 232 127 4,405
RSI312 (7days) 10/07/2023 13/07/2023 7,138 331 12,108 3,521 3,447 53 1,728 1,622 890 30,837
RSI082 (12hours) 10/10/2023 2,354 134 4,490 825 324 11 293 138 79 8,648
RSI082 (ADT) 1,883 53 5,765 1,059 416 15 400 188 108 9,887
RSI082 (7days) 10/07/2023 13/07/2023 13,182 371 40,355 7,415 2,912 105 2,797 1,317 754 69,209
RSI052 (12hours) 10/07/2023 2,596 194 5,437 4,967 5,956 992 446 126 80 20,794
RSI052 (ADT) 3,802 284 5,434 4,964 5,953 3,271 1,471 415 264 25,858
RSI052 (7days) 10/07/2023 13/07/2023 26,614 1,989 38,038 34,750 41,669 22,896 10,294 2,908 1,846 181,005
RSI322 (12hours) 10/08/2023 1,811 287 4,385 5,979 4,868 335 858 1,225 886 20,634
RSI322 (ADT) 1,625 257 6,484 8,841 7,198 411 1,054 1,504 1,088 28,461
RSI322 (7days) 10/07/2023 13/07/2023 11,372 1,802 45,386 61,885 50,386 2,879 7,375 10,529 7,615 199,229
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 2-1 | P a g e
Escher Silverman Global in Association with PDC
ABEOKUTA to LAGOS
RSI061 (12hrs) 10/07/2023 3,742 1,364 1,430 1,815 4,123 193 428 90 94 13,279
RSI061 (ADT) 3,466 1,263 2,569 3,260 7,406 557 1,235 260 271 20,286
RSI061 (7days) 10/07/2023 13/07/2023 24,259 8,843 17,981 22,822 51,842 3,897 8,642 1,817 1,898 142,002
RSI071 (12hours) 10/08/2023 877 1,441 973 608 909 2 124 66 126 5,126
RSI071 (ADT) 812 1,335 1,532 957 1,431 5 301 160 306 6,838
RSI071 (7days) 10/07/2023 13/07/2023 5,262 8,646 10,724 6,701 10,019 34 2,105 1,120 2,139 46,750
RSI311 (12hours) 10/09/2023 2,098 139 1,774 744 627 14 320 190 95 6,001
RSI311 (ADT) 1,943 129 1,899 796 671 18 403 239 120 6,217
RSI311 (7days) 10/07/2023 13/07/2023 13,601 901 13,292 5,574 4,698 123 2,821 1,675 837 43,522
RSI081 (12hours) 10/10/2023 1,147 25 2,942 983 335 23 350 148 101 6,054
RSI081 (ADT) 1,062 23 5,027 1,680 572 31 467 198 135 9,195
RSI081 (7days) 10/07/2023 13/07/2023 7,436 162 35,191 11,758 4,007 215 3,271 1,383 944 64,368
RSI051 (12hours) 10/07/2023 3,458 15 7,604 4,793 5,205 709 716 87 104 22,691
RSI051 (ADT) 3,927 17 8,921 5,623 6,107 1,597 1,613 196 234 28,234
RSI051 (7days) 10/07/2023 13/07/2023 27,487 119 62,448 39,363 42,746 11,178 11,288 1,372 1,640 197,640
RSI321 (12hours) 10/08/2023 778 42 5,785 6,484 4,562 144 783 517 415 19,510
RSI321 (ADT) 789 43 5,870 6,579 4,629 146 795 525 421 19,797
RSI321 (7days) 10/07/2023 13/07/2023 5,526 298 41,091 46,056 32,404 1,023 5,562 3,672 2,948 138,580
Table 2-2: Traffic counts Abeokuta to Lagos
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 2-2 | P a g e
Escher Silverman Global in Association with PDC
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 2-3 | P a g e
Escher Silverman Global in Association with PDC
Obs 231
Null LL -681
Model LL -299
RhoBarSq 56%
Table 2-3: Stated preference estimated coefficients for Lagos Abeokuta data
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 2-4 | P a g e
Escher Silverman Global in Association with PDC
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 2-5 | P a g e
Escher Silverman Global in Association with PDC
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 3-1 | P a g e
Escher Silverman Global in Association with PDC
Toll NGN
Ile Zik (RSI051) 100 300 100 400 900 1100 1300
Old Lagos Ogun Toll Gate (RSI061) 300 600 300 800 1800 2200 2600
After Ilaro Junction (RSI071) 400 800 400 1000 2300 2800 3300
Obada Oko (RSI081) 200 500 200 600 1400 1700 2000
Change %
Ile Zik (RSI051) 141 129 141 123 93 81 69
Old Lagos Ogun Toll Gate (RSI061) 129 111 129 93 39 15 7
After Ilaro Junction (RSI071) 123 93 123 87 9 5 4
Obada Oko (RSI081) 135 117 135 111 63 45 27
New traffic
Ile Zik (RSI051) 12607 7268 8630 1967 1500 159 161 32291
Old Lagos Ogun Toll Gate (RSI061) 3320 3623 9572 518 478 38 19 17567
After Ilaro Junction (RSI071) 1888 891 1763 4 26 8 12 4591
Obada Oko (RSI081) 6801 1968 774 34 294 88 36 9995
TOTAL 24615 13749 20739 2524 2297 293 228 64445
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 3-2 | P a g e
Escher Silverman Global in Association with PDC
Toll NGN
Ile Zik (RSI052) 100 300 100 400 900 1100 1300
Old Lagos Ogun Toll Gate (RSI062) 300 600 300 800 1800 2200 2600
After Ilaro Junction (RSI072) 400 800 400 1000 2300 2800 3300
Obada Oko (RSI082) 200 500 200 600 1400 1700 2000
Change %
Ile Zik (RSI052) 141 129 141 123 93 81 69
Old Lagos Ogun Toll Gate (RSI062) 129 111 129 93 39 15 7
After Ilaro Junction (RSI072) 123 93 123 87 9 5 4
Obada Oko (RSI082) 135 117 135 111 63 45 27
New traffic
Ile Zik (RSI052) 7,679 6,416 8,412 4,030 1,368 336 182 28,423
Old Lagos Ogun Toll Gate (RSI062) 1,983 1,309 5,599 251 304 18 14 9,478
After Ilaro Junction (RSI072) 1,838 560 1,471 8 19 12 15 3,922
Obada Oko (RSI082) 7,799 1,241 563 17 251 84 29 9,983
TOTAL 19,298 9,525 16,045 4,306 1,942 450 239 51,806
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 3-3 | P a g e
Escher Silverman Global in Association with PDC
4.1. Disclaimer
This project involves forecasting travel, all our forecasts will contain an element of uncertainty. This uncertainty
depends upon the basis upon which the forecasts are made, the forecasting methodology, our allotted budget
and timescale and the events which happen between making the forecasts and the outturn travel volumes. For
the first two, we use the most appropriate tools and techniques in accordance with generally accepted
professional standards and practices for the region, which may lead to forecasts which turn out to be wrong.
The allotted budget and timescale, constrains the methodology which can be used. The final forecast involves a
continuation of past trends which we no way of knowing will turn out as forecast. The outturn may therefore be
quite different to that forecast. The contents of this report are given as-is and the reader should verify the
veracity of its contents for themselves. No warrantee is given as to the veracity of the contents of this report.
This disclaimer should go on all reports, deliverables and material derived from them that contain our forecasts,
our company name or the name of any of our staff.
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme 4-1 | P a g e
Escher Silverman Global in Association with PDC
Traffic and Revenue Forecast Studies on the Lagos Abeokuta Highway under the HDMI Scheme II | P a g e