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TOLLED BRIDGES REVIEW: PHASE ONE REPORT - 29 OCTOBER 2004:

3. Current Arrangements

There are four tolled road bridges in Scotland: Erskine, Forth, Skye and Tay. All are operated and managed by different bodies, each with a different set of responsibilities and powers. While the four tolling regimes share some original common purposes - that is, to meet construction costs and/or the costs of operating, maintaining and repairing the facility - there are significant differences in tolling tariffs, the legal framework for tolling, and financial performance.

This section outlines the current position at each bridge.

3.1 Erskine Bridge

3.1.1 Operation and Management

The Erskine Bridge crosses the River Clyde some nine miles west of the centre of Glasgow and was opened on 2 July 1971, having cost 10.7m to build. As a trunk road, the Erskine Bridge is the responsibility of the Scottish Executive and is the only tolled bridge in Scotland run directly by the Executive. Bridge operation and maintenance is presently contracted out to AMEY plc. Toll collection is presently contracted to APCOA Parking (UK) Ltd, though this contract is due to end in early 2005; re-tendering has been postponed pending the outcome of the Tolled Bridges Review. The Executive has the option of extending the contract in the short term until decisions about future tolling at Erskine Bridge have been made.

3.1.2 Tolling Tariff

Tolls at Erskine Bridge are levied at a single rate for all chargeable vehicles and are payable in both directions. The toll for cars has been as follows:

The original 15p toll, if recalculated using the RPI, gives a 2003 value of approximately 1.34.

Tolls were originally levied at differential rates by class of vehicle; the earlier tolling orders were not published but full details of the previous rates can be found on request. There are no changes planned to the tolling regime although the current tolling order will expire on 1 July 2006.

Erskine Bridge's flat-rate toll for all vehicles fails to reflect the relative cost of damage to the fabric of the Bridge caused by heavy vehicles.

Exemptions

Exemptions from tolls extend to Blue Badge holders, vehicles exempt from Vehicle Excise Duty, emergency services vehicles, and vehicles used for the maintenance or operation of the Bridge. In addition, the Scottish Executive may authorise exemption for up to five vehicles at any one time belonging to the Princess Louise Scottish Hospital for Limbless Sailors and Soldiers, Erskine.

Exempt and zero-rated (motorcycle) crossings made up 4.3% of all vehicle crossings in the year to 31 March 2003. ^c

Discounts

A discount of 10% (equivalent to 6p per trip) is available to any driver purchasing a book of 50 vouchers in advance at a cost of 27 (full price 30). There is no restriction on when the vouchers may be presented at the toll plaza.

1,095,894 vouchers were presented at Erskine Bridge in the year to 31 March 2003, equivalent to 12.1% of all paying vehicle crossings.

3.1.3 Legal Framework for Continued Tolling

Erskine Bridge was built in response to local demand. In terms of wider transport priorities at the time, a new crossing at Erskine was seen by the Scottish Office as being of relatively low priority and the local authorities supporting the calls to build the bridge agreed at that time that tolls should be charged to guarantee funding.

Section 1 of the Erskine Bridge Tolls Act 1968 gives the Scottish Ministers powers to levy tolls. Section 2 provides that the Scottish Ministers may make an Order as to "the classes of vehicles", "the scales of tolls" and other provisions in accordance with which tolls are to be levied. Section 4 of The Erskine Bridge Tolls Act 1968 set an initial twenty year period for the collection of tolls from the date the Bridge opened, extendable by one or more periods of five years. Schedule 2 to the Act requires that total tolls collected should not exceed the total sum of the capital costs (with interest) of the bridge, the ongoing costs of operating, maintaining and renewing the bridge both during the tolling period and afterwards, and interest on annual shortfalls.

Tolling policy at Erskine has been to recover a reasonable contribution to the Schedule 2 costs while taking account of the economy of the area, the levels of traffic flow, and the close proximity of alternative, non-tolled routes, notably the Clyde Tunnel. Schedule 2 provides a mechanism for setting tolls against a notional debt figure. Economic changes since the Order was made means that that notional debt figure does not serve as an effective cap on tolling (see section 3.1.4 below).

The Toll Order in force for Erskine is the Erskine Bridge Tolls Order 1992 ^d. This Order continues in force by virtue of the Erskine Bridge Tolls Act 2001. Section 1(6) enables the Toll Order to be varied or revoked in accordance with the procedures outlined in the 1968 Act. If the Toll Order is revoked it would not be possible to make any further Toll Order in the future without further primary legislation. This is because section 4(3) of the 1968 Act provides that Toll Orders can only extend a period of tolling. They cannot be used when there is no Toll Order in existence.

The tolls at Erskine can be increased or decreased by a further Toll Order following the procedures set out in section 3 of the 1968 Act. Before the Order can be made the Scottish Ministers have to prepare a draft of the Order and publish it in at least one local newspaper stating the general effect of the Order and outlining where a draft of the Order can be inspected and a date by which any objection to the Order has to be made. Section 3(3) provides that if there is any objection which is not withdrawn and that objection is from the Local Authority or any of the bodies which are referred to in Schedule 1 of the 1968 Act then an inquiry has to be held. The bodies referred to are generally those with some relevant and substantial interest in the bridge such as commercial undertakings and frequent users of the bridge. In those circumstances the Scottish Ministers have to hold an inquiry. If any other objection is received and not withdrawn then the Scottish Ministers may hold a local inquiry if they think fit.

After holding the inquiry the Scottish Ministers may make the Order either with or without modification. Section 3 of the 1968 Act then makes further provision for publishing the Order after it has been made.

By virtue of the Erskine Bridge Tolls Act 2001, the Erskine Bridge Tolls Order 1992 continues in force. If a further Toll Order is made then section 4(3) of the 1968 Act will apply which means that any future Toll Order will expire after 5 years. The 1968 Act at section 2(2) is however flexible enough to allow for different rates of tolls to be applied in different circumstances including time of day, class of vehicle and probably also the number of occupants of the car.

3.1.4 Financial Performance

Schedule 2 to the Act requires that total tolls collected should not exceed the total sum of the capital costs (with interest) of the bridge, the ongoing costs of operating, maintaining and renewing the bridge both during the tolling period and afterwards, and interest on annual shortfalls. Erskine Bridge annual accounts include a calculation in accordance with Schedule 2 to ensure that tolls collected have not exceeded cap provided by Schedule 2. The Schedule 2 calculation for the year to 31 March 2003 shows that tolls collected since the Bridge opened have fallen some 260m short of exceeding the cap. An annual record of tolls collected and maintenance costs since the Bridge opened in 1971 is provided at Section 9 - Appendices. While surpluses have been registered in most years, it is currently the Scottish Executive's position that expenditure relative to tolls should be spread over the lifetime of the Bridge and contribute to future renewal of the bridge, and that this expenditure will increase as the bridge gets older.

The figures at section 9 - Appendices do not take account of operating costs. Tolls are collected on behalf of the Scottish Executive by APCOA Parking (UK) Ltd, which is paid a monthly management fee for collecting tolls, dealing with accidents and breakdowns on the Bridge and for maintaining Bridge tolling property and equipment. These fees amounted to 0.58m in the year to 31 March 2003.

The income from the tolls is credited to the Executive's transport programme for Scotland. From that same programme, maintenance and operational costs for the Erskine Bridge itself are met.

While the Erskine bridge has consistently generated a surplus ( as shown at section 9 - Appendices), it has recorded a loss in years when substantial maintenance or renovation was required. While Erskine may be expected to continue to generate similar levels of revenue, there is no long-term structural maintenance programme in place and so future maintenance costs are unquantifiable. This means that there is no guarantee that the expected future levels of revenue will generate surpluses. The projected expenditure on maintenance for the Erskine Bridge to 2018 is 30.7m.

The value of discounts obtained by Erskine Bridge users in the year to 31 March 2003 through the pre-purchase of tolling vouchers was 65,753.

3.2 Forth Road Bridge

3.2.1 Operation and Management

The Forth Road Bridge was opened on 4 September 1964 and forms an important link for commuters between Fife and Edinburgh, as well as providing a major connection linking routes on the road network in Scotland. Since 1 April 2002 its management, maintenance and operation has been the responsibility of the Forth Estuary Transport Authority (FETA). FETA is a joint board comprising the constituent local authorities of Fife, City of Edinburgh, West Lothian and Perth and Kinross Councils. In addition to the management, maintenance and operation of the bridge, FETA has a wider remit to develop, support and fund schemes and measures which it considers appropriate to reduce traffic congestion on the bridge and local transport infrastructure or to encourage an increase in the use of public transport. FETA replaced the former Forth Road Bridge Joint Board which did not have responsibility for measures to improve cross-Forth travel.

As part of its wider remit, FETA has, amongst other things, agreed to fund an off-line dual carriageway upgrading of the M9 Spur/A8000 as its priority congestion reducing transport scheme, and to contribute 0.5m to extend the Ferrytoll Park and Ride site and 0.8m to replace a railway bridge deck at Ferrytoll on the Rosyth Link Road to encourage modal shift.

3.2.2 Tolling Tariff

The current Forth Road Bridge tolling regime was established on 1 September 1997 when two-way tolling was replaced with northbound only tolling. One-way tolling enabled the former Forth Road Bridge Joint Board to reduce delays on the bridge which were creating significant loading safety issues. The tolling cost of a return round trip journey, however, has not increased since 1986. Since the bridge opened, tolls have been set as follows:

Key to tolling classification:

The original 12.5p toll, if recalculated using the RPI, gives a 2003 value of approximately 1.60. As the tolls are now one-way, this figure could be doubled to give a 2003 comparative value of approximately 3.20, compared to the actual current toll of 80p.

Exemptions

Exemptions from tolls extend to motorcycles, Blue Badge holders, vehicles exempt from Vehicle Excise Duty, emergency services vehicles, and vehicles used for the maintenance or operation of the Bridge.

Exempt and zero-rated crossings made up 2.18% of all northbound vehicle crossings in the year to 31 March 2003 ^e.

Discounts

The Forth Road Bridge operates a discount scheme for drivers of vehicles in classes 2 (cars) and 4 (goods), but not for buses. Class 2 drivers can obtain a 10% discount (equivalent to 8p per trip) by purchasing in advance a book of 50 vouchers for 36.00 (full price 40). HGV drivers can obtain a much larger 35% discount (equivalent to 70p per trip), despite the greater cost of wear and tear from HGVs, by purchasing in advance a book of 50 vouchers for 65 (full price 100). There is no restriction on when the vouchers may be presented at the toll plaza. No discount is available for buses or other public service vehicles.

2,115,793 vouchers were presented at the Forth Road Bridge in the year to 31 March 2003, representing 15.6% of class 2 trips and 64.6% of class 4 trips.

Although the Forth Road Bridge tolling tariff reflects, to a limited extent, the relative cost of damage to the fabric of the Bridge caused by heavy vehicles, the availability of the class 4 35% discount significantly reduces the tolling differential for almost two-thirds of heavy vehicles. In its draft Local Transport Strategy ^f (LTS), FETA highlights that the level of toll levied on the heavy goods vehicles is not commensurate with the loading that they impose on the bridge and conclude that " the toll regime should more fairly reflect the impacts of different users in the fabric of the bridge and the consequential maintenance and strengthening programmes".

Comment has been made during the consultation process that the absence of a discount scheme for buses runs counter to the aims of modal shift and promotion of high occupancy vehicles. Comment suggests support for surplus revenue being used to improve or promote public transport over estuarial crossings.

Proposed Changes

The Forth Road Bridge is now 40 years old and requires repainting and major strengthening works. FETA's draft Local Transport Strategy reports that current toll levels are insufficient to meet the anticipated costs associated with the Bridge's maintenance and strengthening programme. Before the start of the Bridges Review, FETA set in motion the formal process to make an application to Scottish Ministers to increase the toll for class 2 vehicles from 80p to 1. Following an objection to this proposal from a single individual, a Public Inquiry beginning on 6 December 2004 will report to Scottish Ministers who will then decide whether to approve or reject the new Toll Order incorporating the proposed increase.

To enable it to undertake its statutory duties and deliver the aspirations of its Local Transport Strategy, FETA will pursue proposals to have an appropriate replacement charging regime in place by 1 April 2006. The policy set out in FETA's Local Transport Strategy is to promote and operate a charging regime which provides a stimulus for sustainable modes, particularly public transport, and more fairly reflects the impacts of different users on the fabric of the bridge and the consequential maintenance and strengthening programmes. To support this, and to accommodate the upgrade of the A8000, FETA has plans to construct a new 4.5m tolling plaza.

During the Public Inquiry into the Edinburgh congestion charge, the relationship between that charge and Forth Road Bridge tolls was raised as an issue for people travelling from Fife into Edinburgh via the Bridge. Edinburgh City Council and Fife Council are considering the report from the Congestion Charging Public Inquiry before discussing the nature and scale of any discounts in relation to the Forth Road Bridge toll and the proposed Edinburgh congestion charge.

3.2.3 Legal Framework for Continued Tolling

The Forth Road Bridge Order Confirmation Act 1958 set an initial period for the levying of tolls until 28 May 1995 to service and repay loans, including those in respect of the capital costs of the bridge, and to pay for its operation, maintenance and repair. Within this initial tolling period, loans associated with the Bridge's construction were repaid. Tolling extensions have since been granted on three occasions to finance major structural upgrading and ongoing operation and maintenance costs. The current order extends tolling to 31 March 2006 ^g.

3.2.4 Financial Performance

The original cost of the project to build the Forth Road Bridge was 19.5m and was repaid in 1993. Since then, tolling income has been sufficient to meet the ongoing care and maintenance, capital improvement costs of the Bridge and to provide for improvements in cross-Forth crossings.

Tolling income is the sole source of revenue available to FETA to meet the care and maintenance costs of the Forth Road Bridge. Annual tolling surpluses are re-invested in maintaining the integrity of the Bridge and supporting schemes which reduce traffic congestion on the bridge or encourage an increase in the use of public transport. Tolling surpluses are therefore applied directly to benefit Forth Road Bridge toll-payers in terms of reduced journey times and alternative modes of estuarial crossings.

The Forth Road Bridge requires continuous maintenance and over the fourteen years from 2004 to 2018 a rolling programme of bridge maintenance schemes is scheduled with an estimated capital cost of around 112m. Major elements of this programme include suspended span painting, bridge strengthening and more regular resurfacing due to a significant increase in loading on the Bridge. A current inspection of other structural components may identify further areas requiring additional maintenance expenditure over and above the 112m referred to above.

It is expected that these costs, in addition to costs associated with FETA's wider remit, will be met through revenue reserves (16.5m at 31 March 2003) together with future tolls collected and borrowing.

Capital grants from the Executive of around 2m pa from 2006/07 are linked to the M9 Spur/A8000 scheme which will connect the Bridge to the central Scotland motorway network. There is no central funding of the Forth Road Bridge care and maintenance programme.

The value of discounts obtained by Forth Road Bridge users in the year to 31 March 2003 through the pre-purchase of tolling vouchers was 438,595.

3.3 Skye Bridge

3.3.1 Operation and Management

The Skye Bridge was opened on 16 October 1995 between Kyleakin and Kyle of Lochalsh. Following an initiative by the former Highland Regional Council, the Scottish Office (now the Scottish Executive) Development Department signed a contract in December 1991 for the design, build, finance and operation of the Skye Bridge with the developer Skye Bridge Tolls Limited (now Skye Bridge Limited). The bridge was subsequently built at the expense of the developer who now operates and maintains it and charges tolls to recover the costs incurred, including the financing costs. The Skye Bridge was one of the earliest completed PFI projects.

3.3.2 Tolling Tariff

As the tolls reflect the previous ferry fares, Skye operates the most complex of Scotland's bridge tolling regimes with eight separate vehicle classes and some seasonal differentials. Tolls are currently charged in each direction as follows:

In the above tables "high" means high season being 1 ^st May to 30 ^th September and "low" means low season being 1 ^st October to 30 ^th April.

The original tolling tariff was as follows:

Scottish Ministers gave a commitment in Making it Work Together - A Programme for Government ^h to freeze Skye tolls at 1999 cash levels for the remainder of the concession period. This took effect from 1 January 2000.

Exemptions

Emergency service vehicles and vehicles exempt from Vehicle Excise Duty are exempt from tolls. Exemption does not extend to Blue Badge holders.

Discounts

Discounts are available to Skye Bridge users on the purchase of 20 non-transferable tickets in the case of a motorcycle or car, and 10 non-transferable tickets in all other eligible cases. Although representing a saving to bridge users, the Skye Bridge discount scheme is underwritten by the Scottish Executive which makes good the value of discounts to the concessionaire so that the period of the concession is not prolonged.

In the year to 31 December 2003, 58.2% of all chargeable vehicles (including 57.2% of cars) travelled across the Skye Bridge at a discount.

Proposed Changes

The Partnership Agreement includes the following commitment: " We will improve access for our rural communities by reviewing existing bridge tolls in Scotland and entering into negotiations with a view to ending the discredited toll regime for the Skye Bridge ⁱ". Assuming no unforeseen problems arise in discussions with the bridge operator the Executive aims to achieve this by the end of this year.

3.3.3 Legal Framework for Continued Tolling

The tolls on the Skye Bridge are provided for under the general powers for toll roads in Part II of the New Roads and Street Works Act 1991. Using the powers in section 28 of this Act the rights to charge and to collect the tolls have been assigned to Skye Bridge Ltd, known as "the concessionaire". The Invergarry-Kyle of Lochalsh Trunk Road (A87) Extension (Skye Bridge Crossing) Toll Order 1992 (S.I. 1992/1501) ^j (as varied by S.I. 1997/2941 and S.S.I. 1999/196) specifies the maximum tolling tariff.

The concession to charge and collect tolls will end after 27 years, or when the concessionaire has recovered the agreed costs of 23.64m at 1991 prices in accordance with an agreed formula in the Concession Agreement, which is the basis of current negotiations in commercial confidence with Skye Bridge Ltd. Current traffic projections estimate that the bridge will have paid for itself and be free in 2012.

Comment was made in the consultation which questioned the legality of the tolling regime on Skye. Consideration of this question is outwith the terms of reference of the Tolled Bridges Review.

3.3.4 Financial Performance

The total cost of the Skye Bridge project was 39m (at 1991 prices) of which some 15 million was publicly funded. The remaining 23.64m is the agreed cost at 1991 prices to be recovered through tolling by the concessionaire.

The value of tolls collected (including the value of discounts made good by the Executive) is deducted from the concessionaire's agreed costs. Tolls collected between October 1995 and June 2003 amounted to 27.2m in cash terms but this is not directly comparable to the 1991 agreed costs, as it is necessary to take account of inflationary and other factors within the concession agreement contract. The detailed terms of that contract are now the subject of commercially confidential negotiations with Skye Bridge Limited and cannot be reported here. However, the agreed costs of 23.64m at December 1991 prices have not yet been recovered.

The Scottish Executive also makes annual payments to Skye Bridge Ltd to compensate for shortfalls in income arising from Ministerial decisions to increase discounts for frequent users (1997), freezing tolls at 1999 cash levels and the introduction of VAT on tolls from 2003 (currently c. 1.7m p.a.).

The expected maintenance costs for the bridge for the remainder of the base concession period are expected to be less than 1m.

3.4 Tay Road Bridge

3.4.1 Operation and Management

The Tay Road Bridge spans the estuary of the River Tay between Dundee City and Newport on Tay in Fife and its northern exit leads traffic directly into the centre of Dundee. It was opened to traffic on 18th August 1966. The administration, management, maintenance and operation of the Tay Road Bridge is the responsibility of the Tay Road Bridge Joint Board (TRBJB) as confirmed in the Tay Road Bridge Confirmation Act 1991. TRBJB comprises six Councillors from Dundee City Council, five from Fife Council and one from Angus Council. Unlike FETA, TRBJB does not presently have a wider remit for improving local transport or contributing to other schemes to reduce congestion across the Bridge, although there are enabling powers for doing so in the Transport (Scotland) Act 2001.

3.4.2 Tolling Tariff

The current Tay Road Bridge tolling regime was established on 1 June 1995 when the toll for Class 4 vehicles (buses constructed for the carriage of more than 16 passengers) was increased by 60p to 1.40 to bring it into line with that at the Forth Road Bridge. Class 3 and Class 5 tolls (which together applied to over 95% of southbound traffic in the year to 31 March 2003) have not increased since December 1991, when two-way tolling was replaced with southbound only tolling.

Since the bridge opened, tolls have been set as follows:

Key to tolling classification:

The original 12.5p toll for a single crossing is recalculated using the RPI to a 2003 value of approximately 1.47. As the tolls are now one-way, this figure could be doubled to give a 2003 comparative value of approximately 3, compared to the actual current toll of 80p.

Exemptions

Exemptions from tolls include motorcycles, Blue Badge holders, vehicles exempt from Vehicle Excise Duty, emergency services vehicles and vehicles used for the maintenance or operation of the Bridge.

Exempt crossings made up 3.79% of all southbound vehicle crossings in the year to 31 March 2003 ^k.

Discounts

Tay Road Bridge is the only one of Scotland's four tolled Bridges which does not offer a discount to users.

Proposed Changes

On 15 July 2004, the TRBJB applied to introduce a 10% discount voucher scheme for those users purchasing 50 vouchers in advance. The Executive has advised TRBJB that decisions on any future changes to tolls will be taken in the light of the Tolled Bridges Review.

TRBJB is presently reviewing the tolling arrangements on the bridge to renew the toll collection equipment and to reduce city centre traffic queues at peak periods. Options being considered include southbound tolling on a new and widened plaza at the Dundee end of the bridge or northbound tolling located at the Fife end of the bridge.

3.4.3 Legal Framework for Continued Tolling

The Tay Road Bridge Order Confirmation Act 1991 provides for the levying of tolls until all loan charges, and other specified payments, advanced by local councils and the Scottish Executive (and, formerly, the Secretary for State) have been repaid (with interest) ^l, provided that the Scottish Ministers are satisfied that adequate provision has been made for the continued administration, management, operation, maintenance and repair of the Bridge.

3.4.4 Financial Performance

The TRBJB's loan debt at 31st March 2004 amounted to approximately 16.6m representing sums owed to Angus Council (0.7m), Dundee City Council (7.8m), Fife Council (5.6m) and the Scottish Executive (2.5m) in connection with bridge construction and other capital works. The provisions of the Tay Road Bridge Order Confirmation Act 1991 require these debts to be fully repaid by the Bridge's fiftieth anniversary in 2016/17. An analysis of the maturity of the loans debts shows that approximately 6m matures between 2008 and 2013 and a further 3m thereafter. Break costs may act as a disincentive to paying off these debts earlier than scheduled.

In addition to financing loan repayments, the TRBJB's capital maintenance programme for the twenty-year period to 2024 amounts to 28.6m. A large proportion of these costs falls in the short term, with around 15m needed to meet the cost of bridge bearing repair/replacement and the replacement of the existing tolling equipment. Around 50% of tolling income is currently absorbed by finance charges, with a significant proportion of the remainder required for bridge operations. Short term maintenance costs are met from tolling income, while work that improves or enhances the bridge is funded by capital grants and the TRBJB's own general reserve.

3.5 Current Arrangements - Key Points

• Different tolling structures operate on each bridge. Erskine has a single year-round rate, charged in both directions. Skye Bridge has twelve different rates which apply according to vehicle type and season charged in both directions. Forth and Tay both have the same three basic year-round charges based on vehicle type, Forth tolling only northbound traffic and Tay only southbound.
• The current tolling cost of a round trip journey has been in place since:

• Tay is the only Scottish tolled bridge without a discount voucher scheme. Elsewhere the availability and value of discounts differ according to Bridge and vehicle type. Savings in operators' cash handling costs are offset by administrative costs and their true cost to operators may be greater than the savings enjoyed by users.
• Heavy vehicles cause the greatest damage to bridge surfaces. This suggests there should be a formal relationship between vehicle type and amount of toll. This relationship is absent at Erskine and diminished at Forth by the well-used class 4 discount scheme.
• None of the Bridges offer discounts or exemptions to buses or rescue and recovery vehicles, although during the consultation process a number of people and organisations suggested that this should be reconsidered on the grounds that such vehicles contribute to reductions in congestion which in turn bring environmental and economic benefits.
• Annual tolling income is applied in different ways at each Bridge: at Forth, tolling income pays for operational and bridge maintenance cost, and for local transport improvements; at Tay, tolling income pays for operational costs and additionally services outstanding loans; at Erskine, tolling income is credited to Scotland's transport programme, from which the Bridge's operational and maintenance costs are paid; and at Skye, tolling income pays for operational costs and repays the concessionaire's agreed costs of the design, financing, construction and operation of the crossing.
• The Tolled Bridges Review is being undertaken at a time when each Bridge is facing different issues. FETA has just finished consulting the public on its draft Local Transport Strategy. TRBJB is considering options for relocating the tolling plaza. The Scottish Ministers have committed to ending the discredited regime at the Skye Bridge by the end of 2004.

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