South Africa needs a viable toll operation in view of the massively important role that roads play in the health and wealth of our national economy.
Annual toll tariff adjustments are vital in this regard. SANRAL manages less than 3% of the total road network, but carries more than a third of all daily traffic and 70% of road freight movement in South Africa. The toll portfolio is made up of 3 120km of roads, or 14.1% of the total road network managed by SANRAL. This includes the 201km of e-toll roads in Gauteng.
Because nothing is forever, the state of any road declines with time, due to a host of factors such as traffic flow, weather, overloaded trucks and regular wear-and-tear. This can only be mitigated through regular road maintenance. Maintaining infrastructure is like maintaining your home or your car: if you want to keep it in good working order, it’s going to need some regular upkeep. It’s just a fact of life.
Well-maintained roads are absolutely essential for economic growth and social cohesion. Toll tariffs are adjusted annually not just because we at SANRAL understand the importance of these for the future of South Africa, but because of the normal inflationary pressures indicated by the Consumer Price Index (CPI). The tariff adjustments ensure the availability of funds to finance current, ongoing and future toll operations. The operating expenses for these include the repair and maintenance of our roads, says SANRAL Company Secretary Alice Mathew.
Adjusting the levies for inflation enables the toll operation to cover the cost of maintaining the tolled roads this year in the same way it has in the past.
It is important for more road users to register for e-tolls and that those
who are in arrears settle their debts. Bigger and better infrastructure requires more revenue. It is for this reason that SANRAL continues with civil and criminal prosecutions for the outstanding Gauteng Freeway Improvement Project (GFIP) debt. We want to build and maintain roads that make your daily commute smoother, happier and stress-free. If we all arrive happier at work every morning, imagine how much more productive we can be. And that’s not just good for each of us, it’s how we grow South Africa’s economy.
The tariff adjustment ensures that funds will be available to finance future toll operations. This is particularly important as far as the GFIP is concerned.
GFIP forms only 1% of SANRAL’s roads portfolio, but is a vital asset to the country. As the country’s economic hub, Gauteng is experiencing accelerated urbanisation and population growth, which will require scaled-up investments in public transport and logistics.
More people means more pressure on existing roads infrastructure, which will have to be expanded to accommodate the needs of Gauteng residents and commuting workers. The adjustment for inflation shouldn’t be viewed in isolation. It is one of many measures the national roads agency has adopted and implemented to ensure its toll operation’s continued viability.
SANRAL must remain able to discharge its vitally important duty to the national economy. Other measures include the efficient and effective collection of revenue, robust capital risk management and prudent debt management.
And really, in the face of all the crises we as South Africans – and citizens of the world – experience every day, isn’t it great to know you can get to your destination safely, on time and in comfort? We think so.
SANRAL’s status is that of a going concern, which presumes funds will be available to finance future operations and that the realisation of assets and liabilities, contingent obligations and commitments will occur in the ordinary course of business. A key factor is an annual toll tariff adjustment, in line with the Consumer Price Index.