Sanral rejects rumours over Gauteng e-tolling revenue - CNBC Africa

Sanral rejects rumours over Gauteng e-tolling revenue

Southern Africa

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A toll gantry. PHOTO: Getty Images

According to a statement released by the South African National Roads Agency (Sanral), of every rand collected through e-tolling in Gauteng, only 17 cents will go towards the cost of managing the toll operation and collecting tolls.

“The 17 cents covers all the costs associated with collecting tolls including salaries, bank transaction costs, toll infrastructure maintenance [and other costs] incurred by ETC-the South African  firm appointed by Sanral to manage e-tolling,” Sanral’s general manager for communications Vusi Mona said in a statement.

“This reflects the payment that the toll operator receives in terms of tendered rates.”

ETC is a joint venture which consists 65 per cent of the traffic technology company Kapsch, and the South African Traffic Management Technologies (TMT) holds a further 35 per cent. ETC also employs 1300 people.

Mona added that the remaining 83 cents will go towards a variety of needs linked to roads, including servicing the loan incurred in order to complete the Gauteng Freeway Improvement Project (GFIP).

South African motorists have strongly opposed e-tolling since its proposal and implementation. The Opposition To Urban Tolling Alliance (OUTA) has since been formed to oppose the implementation of the system.

The rest of the e-tolling revenue will reportedly be used to repay the initial capital cost of the road upgrades, maintenance and interest payable on debt.

The revenue will also pay for other operational costs related to overhead lighting, Intelligent Transport Systems and Incident Management Services.

“All the money paid by road users will go into the Sanral account. Sanral has an ad-measure contract with ETC which designed, built and will now operate tolling on behalf of Sanral,” Mona explained.

“The contract stipulates that ETC will be paid for actual services rendered -  not a retainer or a fixed contract fee.”

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