Singapore's Land Transport Authority is piloting a new satellite-based road charging system with about 1,000 participating motorists [1].
The trial represents a shift toward location-based charging, which allows the government to track vehicle movement and apply fees without the need for physical gantries. This transition aims to modernize urban traffic management and create more flexible charging zones across the city-state.
Known as ERP 2, the system utilizes an on-board unit (OBU) to record charges based on the vehicle's precise location [1], [2]. During the current trial, the LTA is testing features such as electronic parking payments and driver alerts [3]. To mark the boundaries of these digital tolls, some sections of the road are painted blue to indicate the charging zone [1].
The LTA selected five new trial sites to test the system under various traffic and road conditions [5]. These sites help officials gather driver feedback on how the location-based charging functions in real-world scenarios [1], [3].
This current phase of testing is scheduled to lead into a larger pilot in August 2026 [4]. The LTA is using these iterative tests to refine the technology and ensure driver readiness before the full system implementation. According to the agency, the full rollout of ERP 2 is planned for Jan. 1, 2027 [3].
The move will eventually lead to the removal of the physical gantries that have long defined Singapore's electronic road pricing landscape [3]. By moving the infrastructure into the vehicle via the OBU, the city can implement more granular pricing based on specific road segments rather than fixed checkpoints [2], [4].
“The trial represents a shift toward location-based charging, which allows the government to track vehicle movement and apply fees without the need for physical gantries.”
The transition to a satellite-based system marks a significant evolution in urban planning, moving from a 'checkpoint' model to a 'zone' model. By eliminating physical gantries, Singapore can dynamically adjust congestion pricing based on real-time traffic data and specific road usage, potentially providing a blueprint for other high-density cities seeking to reduce carbon emissions and traffic gridlock through technology.
