The SA National Roads Agency (Sanral) says the e-tolling system in Gauteng will not lead to an increase in food prices, despite this consequence being predicted by a number of parties.
The Congress of SA Trade Unions, the Road Freight Association and the Democratic Alliance (DA) have all previously said the increased cost of transport due to the tolls will result in the prices of food and other necessities also rising.
However, Sanral say this view is short-sighted. In a statement responding to the recent launch of the DA's anti-tolling campaign, TollFreeGP, Sanral says the association between tolling and increases in food prices will only be plausible if the Gauteng Freeway Improvement Project (GFIP) had absolutely no positive impact on the operators' business and efficiency.
Congestion confusion
“But the GFIP has a positive impact on the business of trucking. For one, the main objective of the project was to help ease congestion on Gauteng's busiest highways. Any road user knows that a congested highway can drastically escalate vehicle running costs in the form of wasted fuel and increased vehicle maintenance costs.
“The same is true for trucks. So as congestion is relieved on Gauteng's highways and truck operators spend less on fuel and vehicle maintenance costs due to the GFIP, should we not be seeing a drop in food prices, as the savings in transport cost gets transferred to the consumer?”
However, during the transport budget vote debate in June, deputy minister Jeremy Cronin pointed out several flaws in the GFIP process, one of them being that the problem of congestion will not be solved.
“Very often, and this was certainly the prime argument with GFIP, it is said that we need to expand our freeways, because of growing congestion on the existing network. But does the ever increasing widening and building of freeways solve congestion? International experience suggests that, very often, this is not the case.”
Cronin said more freeway lanes alleviate congestion for a few years, but simultaneously encourage more dispersed shopping malls, golf estates and townhouse property developments, so sooner rather than later congestion recurs.
The agency also says when tolling commences in February 2012, logistics companies will be able to claim back from SA Revenue Services the toll tariffs, as well as the associated VAT, and so the cost of tolling should not add to freight company operations and consumer prices.
Optimal management
A major theme in the DA's campaign is that the toll tariffs for GFIP are unjustifiably high, according to Sanral.
“What is not mentioned by the DA is the fact that the finance model for the project was independently reviewed by two independent audit firms and was certified to be completely non-profit based. The finance model adopted for the GFIP is instead completely cost recovery-based.”
The agency also says the DA refuses to note the benefits that the project brings to Gauteng. It explains that the benefits of this project include median lighting and intelligent transport systems (ITS).
“ITS, comprising variable message signs (VMS), CCTV cameras and incident management services, allow Sanral to manage the national road network in Gauteng for optimal use of the road capacity available.”
Through the VMS, Sanral says it is able to warn road users of incidents and assist them with en-route information. The CCTV cameras ensure that incidents are noticed and emergency services dispatched immediately. Improved incident management will also reduce the impact on congestion and associated delays, as well as provide medical assistance to those involved in an accident.
“To lessen the impact of tolling on road users, the toll tariffs were reviewed and reduced for all vehicle classes.”
Job creation
With regards to the possibility of greater congestion on secondary roads when tolling commences, traffic modelling studies done on the project show that although there will initially be an increase in traffic volumes on secondary roads, traffic will revert to the highway as people begin to realise the time-saving benefit of travelling on the highway, according to Sanral.
“The DA also makes claims that the GFIP project will lead to job losses in Gauteng. What they neglect to mention is that the project has already created over 20 000 jobs.”
The agency adds that economic studies show the number of jobs created as businesses operate more efficiently is expected to increase to 7 851 by 2030, in line with the increased savings as the traffic numbers increase.
Public mobilisation
The DA's campaign was launched at the Gauteng Legislature last week and involves an interactive Web site, a TollfreeGP Facebook page, and a Twitter account (@TollFreeGP).
Fees initially gazetted for the e-toll system in February were suspended due to public pressure.
Cabinet in August approved reduced tariffs for e-tolling in Gauteng, which dictate motorcycles (Class A1) with e-tags will pay 24c/km; light vehicles (Class A2) will pay 40c/km; medium vehicles (Class B) 100c/km; and “longer” vehicles (Class C) 200c/km.
Qualifying commuter taxis (Class A2) and commuter buses (Class B) are completely exempt from the e-toll system.
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 system is expected to be implemented in February.
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