Government announces details for end of e-tolls in Gauteng

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MEDIA RELEASE

Government announces details for end of e-tolls in Gauteng

Centurion, 10 April 2024 – The South African government has announced final details of the scrapping of e-tolls in Gauteng, paving the way for long-term maintenance and development of freeways in the country’s economic capital. The e-toll gantries will be switched off at midnight tomorrow (Thursday), meaning that road-users will no longer be charged for using the freeways in Gauteng.

Transport Minister Sindisiwe Chikunga and Gauteng Premier Panyaza Lesufi, as well as the leadership of the South African National Roads Agency Limited (SANRAL), hosted a media briefing this (Wednesday) morning at SANRAL’s Central Operations Centre in Centurion to provide the public with details of the scrapping of e-tolls.

Minister Chikunga said the notice she had published in the Government Gazette at the end of March to withdraw the toll declaration for the Gauteng Freeway Improvement Project laid the ground for the gantries to be switched off.

“This declaration will be effective on 11 April 2024 at 23h59, which means that from 12 April 2024, road users will no longer be charged for the use of the e-toll network.  This means that after midnight tomorrow (Thursday), e-tolls will no longer exist,” said Minister Chikunga.”

“The roads that form part of the Gauteng Freeway Improvement Project (GFIP) will remain national roads and will continue to assist in facilitating economic growth in Gauteng, in turn stimulating the South African economy.”

Minister Chikunga said the announcement made by the Minister of Finance, Enoch Godongwana, in his 2022 Medium-Term Budget Policy Statement that e-tolls would be scrapped had set in motion a lengthy process towards the point at which government was finally switching off the gantries at midnight tomorrow.

“Between myself, as Minister of Transport, the Minister of Finance, Mr Enoch Godongwana, and the Premier of Gauteng, Mr Panyaza Lesufi, we finally reached agreement towards the end of March on how to conclusively deal with the debt resulting from e-tolls and, as a result, we were able to sign a Memorandum of Agreement (MOA) to formalise alternative funding solutions for the GFIP debt repayment and deal with the backlog of maintenance and rehabilitation costs.”

Minister Chikunga said government was still in discussion regarding the historical debt owed by motorists.

Gauteng Premier Panyaza Lesufi said the provincial government and residents of Gauteng were extremely happy with the agreement to end e-tolls and had committed R4.1 billion as the Gauteng Government’s contribution towards the maintenance backlog of GFIP roads, adding that the provincial government had a deep interest in Phases 2 and 3 of GFIP.

“We are more than excited with the agreement that has been reached because it means that Gauteng will benefit from the entire GFIP project over the longer term. We have a keen interest in the gantries and the cameras which go with them. Those cameras are crucial in the fight against crime. We want them connected to our Provincial Integrated Command Centre,” said Premier Lesufi.

SANRAL CEO Reginald Demana said the national roads agency was pleased that the Memorandum of Agreement to end e-tolls had unlocked borrowing limits in the bond market. “The dispute over e-tolls prevented us from accessing private funding because we didn’t have the requisite borrowing limits. Treasury has now approved the borrowing limits and investment in our freeways will unlock further investment as can be seen with the Waterfall development in Midrand and many other road infrastructure projects which will spur economic development in and around Gauteng and indeed across the country.”

Minister Chikunga said the process of scrapping e-tolls had not been easy and thanked South Africans for their role in assisting government to reach the point at which the gantries will be switched off tomorrow.

**A detailed FAQ document below.

INFORMATION PACK

ACCOUNT HOLDERS WITH UP-TO DATE ACCOUNTS

  1. When will e-toll collection stop?

The collection of e-toll fees will stop at 23:59:59 on 11 April 2024.

  1. Do motorists still need to pay e-toll fees?

Yes, motorists still need to pay their e-toll fees until I23:59:59 on 11 April 2024. t is a legal obligation to pay tolls when using toll roads.

  1. What do motorists need to do once e-tolling has been cancelled?

Motorists do not need to do anything when e-tolling is cancelled. All processes are automated.

  1. Will the e-toll tag still work at conventional toll plazas or must motorists open a new account?

The SANRAL account will still be valid, and motorists can use their tags as a toll payment method at all conventional toll plazas. Accounts will remain active and working as long as the Mobility/Tag Account has sufficient funds and is topped-up.

  1. Will the tag still work at the mall to pay for parking, or must a new account be opened?

The SANRAL account is still valid and has sufficient balance and motorists can use their SANRAL account, if it is linked to an e-tag, as a parking payment method at the participating malls. A list of the malls is available on the SANRAL App.

  1. Will motorists be refunded e-toll fees that they have paid? If so, how? If not, why not?

As the implementing authority, SANRAL has not received any information regarding the re-funding and/or prosecution of outstanding e-toll fees. Once an instruction has been received in this regard from its political principle, SANRAL will inform its customers accordingly.

  1. Why are motorists still receiving e-toll invoices even though e-tolls are cancelled?

The e-toll invoices will be rolled up until the last day being 11 April 2024, 23:59:59 and road users are obligated to pay toll until this period and t invoices will be issued containing all transactions up until that date and time. Due to potential delays with the postal system, invoices till the closure will be received some time after the 12th of April 2024.

Account holders that make use of a e-tags at conventional toll plazas will still receive their statements for those transactions via email or online After 11th April 2024, 23:59:59 there will be no e-toll transactions that appear on your invoice or statement.

  1. Now that e-toll is cancelled, can motorists still pay their outstanding e-toll fees?

Yes. E-toll fees incurred up to the day of cancellation can still be paid at any customer service touch point.

 

NON-ACCOUNT HOLDERS and ROAD USERS WITH ACCOUNT IN ARREARS / THAT STOPPED PAYING

  1. Will motorists still need to pay their outstanding e-toll fees even though e-toll is cancelled?

As the implementing authority and in terms of Treasury Regulations SANRAL has an obligation to take effective and appropriate steps to collect all money due to it. Until advised otherwise, this remains the SANRAL position.

  1. Will those who have outstanding e-toll fees be prosecuted?

In March 2019, the SANRAL Board took a decision that the entity was no longer going to pursue criminal action against motorists with outstanding toll debt. That decision still stands.

  1. Why are motorists still receiving e-toll invoices even though e-tolls are cancelled?

The e-toll invoices will be rolled up until the last day being 11 April 2024, 23:59:59 and road users are obligated to pay toll until this period and t invoices will be issued containing all transactions up until that date and time. Due to potential delays with the postal system, invoices till the closure will be received some time after the 12th of April 2024.

  1. Motorists have received a letter of demand for e-toll fees some time ago. What must they do now?

A letter of demand serves as notification of outstanding e-tolls obligations as at date of being sent and should be acted upon accordingly.

  1. Now that e-toll is cancelled, can motorists still pay their outstanding e-toll fees?

Yes. E-toll fees incurred up to the day of cancellation can still be paid at any customer service touch point.

  1. How and where can I register for a new account, and will I be charged for my outstanding e-toll transactions?

New accounts can be registered on the web, Self-service terminals, mobile app, SANRAL call centre and Customer Service Centres. It is important to note that all accounts registered after the 20th of April 2024 will not incur historical e-toll transactions.

 

CUSTOMER SERVICES

  1. How do I contact customer services for my mobility account/ tag account?

All customer service points remain open for Mobility/ Tag Account holders.

  • Phone the Call Centre on 0800 726 725 (6am – 10pm, 7 days a week)
  • Visit our Customer Service Centres located in selected malls in Gauteng and along the Gauteng Freeway, as well as at most Toll Plaza Offices across the country.
  • Via SANRAL Mobile App (This can be downloaded from your Android, IOS or Huawei Gallery).
  • Online, at http://www.sanral.co.za/e-toll.
  • E-mail info@sa-etoll.co.za.
  1. Now that e-toll is cancelled I would like to open an account, how can i do that?
  • On the SANRAL Mobile App (downloaded from your Android, IOS or Huawei Gallery),
  • Online, through our e-toll website,
  • At selected Mainline Toll Plaza’s across South Africa,
  • At Self-Service Terminal (SST) devices at the following toll routes:

-Total Energies Petroport Panorama West, N1, Doornpoort.

-Total Energies Petroport Magalies, N4, Modderspruit.

-Shell Ultra City Kroondal East, N4, Kroondal.

  • Total Energies Petroport N4 Alzu.

 

GAUTENG OPEN ROAD TOLLING SYSTEM and OPERATIONS

  1. What will happen to the e-toll system?

The Transaction Clearing House, the core of the e-toll system, is already being used for more than the collection of e-tolls and additional functionalities are being investigated.

The current applications are:

  • Electronic toll fee transaction clearing and SANRAL account management for road users that make use of a tag as a payment method, at conventional toll plazas.
  • A parking payment solution where a SANRAL account holder can opt in on the SANRAL App to pay for parking by using their Vehicle Licence Plate Number. SANRAL has entered into partnerships with Service Providers (such as Admyt) that have infrastructure installed at parking facilities in Gauteng. It is envisaged that this will ultimately be expanded nationally.
  • Law enforcement endevours, e.g. Average Speed Over Distance (ASOD) notifications are available to SANRAL account holders that have opted in on the SANRAL App to receive notifications where they have exceeded the speed limited between two toll gantries on the Gauteng e-roads. Currently, the notifications are for information purposes only and not for infringements. Duplicate and cloned number plates can be identified when vehicles with the same vehicle licence plate number are at two different locations with the same vehicle licence plate number, etc.
  • Account Based Ticketing solution, where one fare card can be used as a payment method with different Public Transport Operators (PTOs). This solution is facilitated by SANRAL, in conjunction with the NDOT and in partnership with Public Transport Operators and Municipalities. The past year has seen the implementation of two Pilot projects, namely Rustenburg Municipality and Polokwane Municipality.
  1. What is going to happen to the e-toll gantries?

The gantry lights and cameras will remain on as they will continue to be operational for road safety purposes. Notifications are available to SANRAL account holders that have opted in on the SANRAL App to receive notifications where they have exceeded the speed limit between two toll gantries on the Gauteng e-roads. Currently, the notifications are for information purposes only and not for infringements.

  1. Why is the tag still beeping at the e-toll gantries even though e-toll is cancelled?

The beep will be phased out. Where such still occurs after the switch-off, motorists should not be concerned as they will not be charged post the official switch-off.

  1. Why is the e-toll website still active even though e-toll is cancelled?

The e-toll website will be updated with respect to the cancellation however the SANRAL Mobility/Tag Account functionality for services i.e. interoperability at other toll plazas and parking will still be available on the website.

  1. Why are the e-toll shops still open even though e-toll is cancelled?

The e-toll shops are still open as the e-tag can be used for toll payment at conventional toll plazas and the SANRAL/ Mobility/Tag account can be serviced at the shop where full customer services are available. The e-toll branding will be removed in phases.

  1. What is the status of the operations tender for the e-toll system?

The operation tender was cancelled, following the announcement by the Minister of Finance during his MTBPS in October 2022.

  1. Will KTC’s (operations contractor) contract be renewed? If so, why?

The current operational contract ends on 15 June 2024.

  1. Will a new operations tender be issued? If so, when?

SANRAL is currently reviewing what the impact on the e-toll system will be due to the cancellation of e-toll and its existing and future planned Value-Added Services projects, to determine if, when and in what format these services will be provided, before the way forward can be determined.

  1. What is going to happen to the staff?

A team of experts is currently reviewing what the impact on the operations will be due to the cancellation of e-toll and its existing and future planned Value-Added Services projects, to determine if, when and in what format these services will be provided, before the way forward for the staff can be determined. All parties in following due process are committed to ensure the best interests of the staff and will communicate accordingly.

 

TOLL

  1. Why is Gauteng Province paying for SANRAL’S debt?

This is part of an agreement between National Treasury, Gauteng Province and the Department of Transport. Gauteng Province will pay 30% towards SANRAL’s debt on GFIP in order for e-toll to be cancelled.

  1. What will happen to other toll plazas in South Africa?

There will be no changes to the conventional toll plazas in South Africa. The user-pays principle remains, as does tolling as a policy.

  1. Is the user-pays principle still relevant?

Yes. The user-pays principle (in this case the collection of toll fees for the use of a road) is a sustainable funding model. Through borrowings from capital markets, it allows for funds to be available when they are required, rather than waiting for funds to be made available from the central fiscus. The appropriate toll fee is determined during the planning phase of a toll project and is calculated to ensure that there are sufficient funds for the initial construction costs and servicing of that debt, as well as for the future operations, maintenance and upgrades for the specific road. Toll income is ringfenced and may only be used for toll roads and ensures that the declared toll roads are in a good condition.

  1. What is the total outstanding debt?

The overall debt at year end was R42, 405 billion (audited) as of 31 December 2023, the debt was R29, 055 billion (Nominal terms).

  1. How much money has SANRAL received from account holders in the last year, what happened to the money?

For the 2023 financial year, R589,411 million.

The funds received from the toll portfolio is used to pay for, inter alia, outstanding debt, maintenance and operations.

 

BORROWING ON THE BOND MARKETS

  1. What is the bond market and how does it benefit motorists?

The bond market enables government to borrow money to implement projects faster. Motorists can receive quality roads faster, thus saving time and on vehicle maintenance. Government has limited money. Therefore, it cannot implement all important projects without borrowing.

  1. What is the significance of the bond market?

Without a bond market, projects would take time to be implemented, as government will need to save enough money before a project is implemented which would take time.

  1. Now that we will go back to the bond market, we will unlock those projects and impact positively in the construction industry. Therefore, what are SANRAL’s borrowing limits?

SANRAL’s borrowing limits from National Treasury is R16.5 billion.

 

//Ends

 

Media contacts:

Collen Msibi

National Spokesperson Ministry of Transport

066 476 9015

 

Sizwe Pamla

Spokesperson Gauteng Premier

060 975 6794

 

Lwando Mahlasela

Media Relations Manager SANRAL

082 440 5305