Proven Solutions for Growing Cities André MartinsLorenzo TrittoniAlessandro TricamoÁngel Mayoral 100Upto hours a year: time major-cityresidents lose totraffic Traffic congestion is one of the most pressing challenges of urban life. It drains time, reducesproductivity, and negatively impacts the well-being of millions of city dwellersworldwide. The economic burden of congestion is staggering. Commuters in major cities waste as muchas 100 hours a year stuck in traffic jams, and the annual cost to the global economy exceeds As urban populations grow and more vehicles crowd city roads, congestion is gettingworse. It’s increasing driver frustration, compounding accident risk, and pushing up Governments are responding with a mix of planning and policy reforms. Cities areredesigning urban spaces to prioritize pedestrians and expanding the capacity of buses,trams, and metros. Ride-hailing, car-sharing, and micromobility options are gaining traction.Infrastructure policies are being revised to reduce private car use and shift travel behavior Cities like London have shown that effective congestion management schemes canmitigate the effects of overloaded urban traffic networks. Since launching its congestioncharge scheme in 2003, traffic volumes have decreased, emissions have declined, and Oliver Wyman has developed a proprietary framework to help cities design and implementeffective congestion strategies. Our approach emphasizes comprehensive planning,stakeholder alignment, rigorous policy analysis, and sustained investment in infrastructure. SECTION ONE THE $500 BILLION CHALLENGE:UNDERSTANDING TRAFFIC CONGESTION’S Traffic congestion occurs when the number of vehicles traveling on a road exceeds the capacity for which it was designed,1causing bottlenecks and delays. In technical terms,congestion is measured using the road’s “level of service” — a scale from A(free-flowing) Congestion erodes the quality of life of city inhabitants, impairs productivity, and weakenslocal economies. The global cost of traffic congestion is estimated to exceed US$500 billionper year.2Residents of some major cities lose as much as 100 hours a year stuck in traffic. Time wasted in traffic increases driver frustration, degrades driving behavior, andcompromises road safety. Fuel waste, vehicle wear, and higher emissions compound CONGESTION IN THE MIDDLE EAST Congestion affects every major city in the Middle East. According to the 2024 INRIX andTomTom Traffic indexes, all capital cities in the region experience high levels of congestion. Even in cities not formally ranked, field evidence shows congestion is widespread. Key routesin Baghdad and Amman, for instance, often operate below standard service levels during Source: OpenStreetMap, Oliver Wymananalysis Source: OpenStreetMap, Oliver Wymananalysis WHY CONGESTION IS HERE TO STAY Governments in the Middle East are investing heavily in public transport to ease pressure on In Saudi Arabia, Riyadh’s new metro line carried more than 100 million passengers in its firstnine months.5The Iraqi Government also plans to launch a metro rail service in the country’scapital, Baghdad. With seven lines and 64 stations, it will add approximately 150 km to thecountry’s rail network at a cost of around US$18 billion.6In the UAE’s capital, Abu Dhabi, Beyond capital investment, a range of soft measures — including remote work pilots,staggered work and school hours, and incentives to encourage school proximity — have However, congestion appears to be on the rise. Rapid population growth and the increasein private vehicles risk overwhelming recent efforts to curtail congestion. Put simply, traffic CONGESTION MANAGEMENT SCHEMES DRIVE ROADUSER BEHAVIOR Governments around the world are embarking on a wide range of initiatives to mitigatethe effects of congestion. Urban planning efforts to promote “green cities” include theintroduction of pedestrian zones, cycle lanes, and green spaces, as well as limiting parking Infrastructure policies are increasingly focusing on raising the cost of car ownership todissuade inner-city traffic. Additional costs include congestion charges, tolls, and parking The goal of such measures is to deter the use of private cars in cities and encourage To succeed, policymakers must consider more than traffic flows. The broader impact ofcongestion initiatives on transport affordability, driver and pedestrian safety, and mobility People tend to choose their mode of transport by estimating the total cost of the trip. Carowners, for example, will consider fuel, maintenance, insurance and license costs. Users ofpublic transport, by contrast, are likely to weigh the cost of fares, the value of the time spent One of the most effective levers to reduce the use of private vehicles in inner cities is toincrease the total transport costs that owners must bear by introducing targeted fees CONGESTION MANAGEMENT IS ALREADYYIELDING BENEFITS Congestion management initiatives