The recent news that Austrian company Kapsch TrafficCom (KTC), which has a majority share in the Gauteng e-tolling consortium, already made R1.2 billion in SA in one year has made the Congress of SA Trade Unions (Cosatu) more determined than ever to oppose the tolling system.
The federation has repeatedly called for abandonment of the controversial project and says it will continue to resist the implementation of the tolls.
It adds that the amount involved proves beyond all reasonable doubt that the money motorists pay will not be used to maintain and improve the roads, “but to bank-roll the mega-profits of this Austrian company”.
SA boost
Kapsch TrafficCom reported a boost in its 2010/11 financial year, partially thanks to its involvement in Gauteng's e-toll project.
In its latest available annual report, for the year to March 2011, the company says its business was boosted by its annuity-based services, system extensions and component sales unit and its road solutions projects (RSP) segment.
RSP handles large-scale projects and is the entity under which the South African Road Agency's (Sanral's) e-tolling project falls. Revenue in the unit grew 247% year-on-year, to EUR158.9 million.
“This positive development resulted largely from electronic toll collection system implementations in SA and Poland,” states the annual report.
Sanral awarded the contract for e-tolling implementation to ETC, which is 56.81% owned by Kapsch, and 35% held by SA-based Traffic Management Technologies. It tendered R6.22 billion for design and construction of the toll system.
In total, the company reported turnover 80% higher year-on-year, to a record EUR388.6 million, while earnings before interest and tax almost doubled, also an all-time high, it says.
Outrageous project
Cosatu says it is outraged at these figures. “And this was before the tolls have been implemented. How many more millions will they make if and when motorists start paying the tolls?
“This revelation illustrates perfectly why Cosatu is so opposed to the e-tolls and to the privatisation and commodification of our public roads, which enables companies like KTC to amass vast profits from the pockets of Gauteng motorists.”
The federation points out that KTC won the tender to operate the Gauteng e-toll in a consortium with Cape Town company, TMT Services and Supplies, to operate the tolls for eight years, but a few months after being awarded the toll tender, Kapsch bought up the majority shares in TMT for R75 million.
“Roads are there to provide a public service to the people, not for a private company like Kapsch to make millions at the expense of the people of Gauteng. Cosatu calls with even more justification and conviction for motorists not to buy e-tags, not to pay the tolls and for the government to scrap this outrageous project once and for all.”
'Hugely arrogant'
The e-tolling system will kick off at the end of next month; however, Democratic Alliance Gauteng transport spokesperson Neil Campbell says large sections of the “upgraded” roads to be tolled are shoddy and incomplete.
“The N12 is incomplete and motorists making use of this road have had to endure years of travelling on dangerously uneven roads, inadequately marked concrete medians suddenly looming before them and poor signage. As there is a tar shortage, it will be a race against time to complete this road by the end of April.”
He adds that on the N1, the road “shovelling” persists with lane markings becoming more warped by the day. “This is apparently due to poor bonding between the underlying concrete and new tarmac. Sanral stated that this problem was minor and would be corrected by the responsible contractor, but this has not happened.
“The safety of the whole upgrade over concrete is thus in doubt, and yet we are required to pay for roads which may be hazardous.”
The spokesperson says upgraded lanes which had been open to traffic are closed down continuously, while workers engage in remedial activities such as drainage correction, verge collapse and inadequate safety barriers.
“It is hugely arrogant to initiate toll collection while such problems persist. This is another reason why the public resists these unjust tolls, which are certainly an unjust tax on Gauteng motorists following the announcement that all other urban tolls around the country have been cancelled.”
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