Redflex Describes Transition Away From Red Light Cameras To Tolling

Red light cameras and speed cameras continue to fall out of favor in the US market, and the industry is responding. Redflex Traffic Systems on Monday revealed to investors detailed plans for transitioning existing company assets into systems than can profit from traffic congestion.

Redflex, which has failed to turn a profit in the past five years, will lose an additional $12 million annually following the decision of Texas lawmakers to outlaw automated ticketing machines. The Australian camera operator told investors that it would shift from red light and speed cameras into “intelligent motorways and urban traffic management,” entering the much larger $21 billion tolling market.

The primary revenue drivers in this new market are electronic toll collection and parking management. Redflex, however, does not intend to entirely give up ticketing in European markets. The company recently sold camera systems to the UK government for use on “smart motorways” with lanes of travel that appear and disappear as well as speed limits that can be remotely lowered. Redflex will send tickets in the mail to motorists confused by the changes in available lanes and allowed speeds. The UK also continues to use average speed cameras and bus lane cameras.