New toll roads, including the Gauteng Freeway Improvement Project (GFIP), will be used to ease a R149 billion backlog for strengthening and re-gravelling roads.
This figure only applies to roads already in a poor to very poor condition, and it excludes backlogs related to periodic resurfacing of the network, upgrade of gravel roads to surfaced standard, additional lanes to alleviate congestion, and construction of new roads, according to transport minister Sibusiso Ndebele.
In response to a Parliamentary question, the minister said in addition to the GFIP, for which e-tolling was established, the department is working on six new toll projects.
These are: a 171km toll highway on the N1-N2 Winelands, in the Western Cape; a 560km toll highway on the N2 Wild Coast, in KwaZulu-Natal and the Eastern Cape; a 105km tolled ring road on the R300, in Cape Town; a 160km toll road on the R30, from Bloemfontein to Welkom; a 90km toll road on the N3 from Marianhill to Cedara, in KwaZulu-Natal; and a 35km tolled bypass on the N2, in Knysna.
It has not yet been decided if these new toll projects would be established as e-toll roads. Department of Transport (DOT) spokesperson Logan Maistry said that is a decision that can not be taken solely by the DOT, but must involve several parties like National Treasury and provincial governments.
Imperative tolls
Ndebele said the feasibility of and the implementation strategy for new national toll roads are periodically assessed and evaluated as part of the strategic planning of the South African National Roads Agency (Sanral).
“Prior to the implementation of a toll road, extensive investigation and evaluation is undertaken.”
Ndebele said the need for using alternative sources of funding is imperative, if the disparate demands of the country are to be met.
“The 'user-pay' (toll) principle is government policy, but is used selectively and only where feasible; and when used, the benefits outweigh the cost to the road user. Furthermore, the introduction of toll roads is related to the backlogs that exist with regard to the South African Road Network and the associated funding constraints experienced by the fiscus.”
Ndebele said the current budgets available from the fiscus are insufficient to address the R149 billion backlog and sustain the network, and as a result, Sanral utilises the 'user-pay' principle through toll funding, without compromising the integrity of the fiscus.
“When a national road is declared a toll road, it is no longer dependent on the fiscus, thus reducing the burden on the fiscus, and enabling the available fiscus funding to be spent on a shorter network, resulting in the improved overall long-term national road network condition.”
SA's road network comprises approximately 606 000km, of which approximately 135 000km are surfaced. The entire road network is directly funded from the fiscus, except for the 3 120km of toll roads. “This is indeed a very small portion (2.4%) of the surfaced networks,” said the minister.
“The toll road network is funded through the private sector and all the revenues are ring-fenced to be spent exclusively on the toll roads.”
Motorway bonus
Comprehensive economic impact studies, including environmental impact and social impact studies are carried out on all toll road projects to establish the viability of each project, added Ndebele.
These studies inform the decision on whether a road should be declared as a toll road or not. Each project has its own economic impact study carried out prior to embarking on the physical implementation of the project.
“Toll tariffs are typically derived from the benefit that a user of a particular class of vehicle will experience when it uses the tolled facility in comparison to either the status quo (do-nothing alternative) and/or the alternative routes.”
The minister explained that the benefit is calculated using the time and fuel costs only. In most cases this benefit is multiplied by a “motorway bonus”, which quantifies the benefits that a typical user will attach to comfort, safety and ease of use. The tariff will also take into account, inter alia, future maintenance costs and the repayment of the loans.
Undisclosed costs
The e-tolling project is an open road, multilane toll infrastructure that allows tolls to be charged without drivers having to stop. There are no physical booths.
The toll tariffs were initially gazetted at 66c/km for standard light motor vehicles, and R3.96/km for heavy vehicles. However, large-scale public outrage resulted in the fees being suspended and consultation processes were started by the DOT.
The estimated monthly revenue from e-tolling, based on current traffic flow and the proposed fee of 66c/km, is R300 million per month.
The GFIP was funded via bonds and the open road tolling system was created to pay those bonds. Sanral says the GFIP cost R20 billion and the e-tolling system took up R1.16 billion of this.
Media reports today said the cost of operating Gauteng's toll roads may be as high as R14 billion, when Sanral said the cost would be R6.22 billion over eight years.
Sanral denied these claims; however, it previously indicated in a report that the R6.22 billion did not include VAT and that there were additional costs that it would not disclose.
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