select committee on public services 14 june 2011
DESCRIPTION
SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011. 435423. MANDATE. Responsible for proclaimed national roads Toll and Non-Toll network Maintain, upgrade, operate, rehabilitate and fund national roads Levy tolls to service toll roads Manage concessionaires - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/1.jpg)
SELECT COMMITTEE SELECT COMMITTEE ON PUBLIC SERVICESON PUBLIC SERVICES
14 JUNE 201114 JUNE 2011
435423
![Page 2: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/2.jpg)
MANDATEMANDATE
Responsible for proclaimed national roads Toll and Non-Toll network
Maintain, upgrade, operate, rehabilitate and fund national roads
Levy tolls to service toll roads Manage concessionaires Advise the Minister on road related matters Create public value
![Page 3: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/3.jpg)
Minister of Transport (Regulator Minister of Transport (Regulator Owner)Owner)
Governance and ControlGovernance and Control
Planning, Design, Construction, Operation, Planning, Design, Construction, Operation, Management, Control, Maintenance & Management, Control, Maintenance & Rehabilitation of National RoadsRehabilitation of National Roads
Chief Chief Executive OfficerExecutive Officer
Board Board Of DirectorsOf Directors
MOTMOT
Day to Day Business and Day to Day Business and Operations ManagementOperations Management
SANRAL StaffSANRAL Staff
SANRAL RELATIONSHIP TO MINISTER/NDOTSANRAL RELATIONSHIP TO MINISTER/NDOT
![Page 4: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/4.jpg)
SANRAL has eight Strategic Objectives
1. Manage the national road network effectively • Non-toll roads• Toll Roads – ITIS, ITS• Concessions• Overload Control1.
2. Provide safe roads • Maintenance• Road Safety Management System
• Engineering• Education• Enforcement
STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVES
![Page 5: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/5.jpg)
3. Carry out Government’s targeted programmes • Community Development• Social and Entrepreneurial Development• Development of Human Capital
• Internal• External
• Education
4. Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries• Environmental relationships• Reputation Management• Other local efforts• Co-operation between neighbouring countries
STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES CONT’DCONT’D
![Page 6: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/6.jpg)
5. Achieve and maintain good governance practice
• Corporate Governance• Risk Management• Prevention of Fraud and Corruption• Internal Audit• Credit Ratings• Performance Agreement with the Executive
Authority
STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D
![Page 7: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/7.jpg)
6. Transformation• External Environment
• Procurement Policy• Developing Human Capital• Community Development Programme• Higher education – support tertiary institutions• Technology transfer
• Internal Environment• Employment Equity
• Bursaries• Scholarships• Internships• Young Professionals Cluster
STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D
![Page 8: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/8.jpg)
7. Achieve financial sustainability• Non-toll: Treasury allocations
• Optimum cash flow and liquidity management
• Toll: Borrowings : Currently close to R29 billion• DMTN Programme• Export Credit Agencies• Direct Foreign Investments• Bank Loans
8. Pursue research, innovation and best practice• Road Infrastructure Research• Performance Certification of Materials• Social Sciences Research
• Psychology behind pedestrian behaviour
STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D
![Page 9: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/9.jpg)
Asset Management Systems for the timely maintenance of national roads
Planned increase of national road network by incorporation of roads as requested by Provinces
Good co-operative relationships with relevant government departments, provincial and municipal authorities
Toll Road development: Gauteng Freeways, N1/N2 Winelands
Community Development Projects (rural areas) Using appropriate technology Incident Management Systems Research and Development – pavement standards
KEY PRIORITIES FOR 2011/12KEY PRIORITIES FOR 2011/12
![Page 10: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/10.jpg)
![Page 11: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/11.jpg)
606,000, 97.40%15,985, 2.57%
185, 0.03%16,170, 2.60%
South African Road Network Split
All Roads (Proclaimed) SANRAL Other SANRAL GFIP
![Page 12: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/12.jpg)
77%18%
5%23%
Annual Vehicle Kilometre Travel
All Roads (Estimate*) SANRAL Other (Measured) SANRAL GFIP (Measured)
*Estimated based on annual fuel sales (SAPIA) and average light vehicle fuel consumption of 8.7 km/litre and heavy vehicle of 3.5 km/litre.
![Page 13: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/13.jpg)
13
![Page 14: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/14.jpg)
Description Non Toll Agency Toll
BOT Total
Dual
Carriageway610 520 443 1 573
4-Lane
Undivided11 299 240 550
2-Lane
Single12 429 1013 605 14 047
Total 13 050 1 832 1 288 16 170% of SANRAL Network 81% 11% 8%
NATIONAL ROAD NETWORK (km)
Total RSA Road Network Estimated at 606,000 km
![Page 15: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/15.jpg)
ØPlease Note: 72% of Network Older than Original 20 Year Design Life
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Nat
ion
al R
oad
Net
wo
rk L
eng
th (
Car
riag
eway
km
)
Year
Pavement Age Trend
>25 yrs 21-25 yrs 16-20 yrs 11-15 yrs 6-10 yrs 0-5 yrs
![Page 16: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/16.jpg)
0
10
20
30
40
50
60
70
80
90
100
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
No
n-T
oll
Nat
ion
al R
oad
Net
wo
rk C
on
diti
on
(%
)
Year
Forcasted Non-Toll National Road Network ConditonR6bn/year Fiscus Funding for 13,050 km - NO New Toll Roads
Excellent
Good
Fair
Poor
Very Poor
![Page 17: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/17.jpg)
0
10
20
30
40
50
60
70
80
90
100
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027N
on
-To
ll N
atio
nal
Ro
ad N
etw
ork
Co
nd
itio
n (
%)
Year
Forcasted Non-Toll National Road Network ConditonR6bn/year Fiscus Funding for 11,050* km - With New Toll Roads
Excellent
Good
Fair
Poor
Very Poor
![Page 18: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/18.jpg)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Nat
ion
al R
oad
Net
wo
rk L
eng
th (C
arri
agew
ay k
m)
Year
Average Daily Traffic Trend
0 - 5000 5000 - 10000 10000 - 20000 20000 - 50000 > 50000
![Page 19: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/19.jpg)
![Page 20: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/20.jpg)
0
20
40
60
80
100
2008 2013 2018 2023 2028
Year
Roa
d C
ondi
tion
COST OF MAINTENANCE DELAY – AGENCY
Repair Cost = X / km
Good
Fair
Poor
Very Poor
3-5 Years
Repair Cost = 6X / km
5-8 Years
Repair Cost = 18X / km
(Ratio 1:6)
(Ratio 1:18)
Please Note: Typical Costs for 11.4m Wide Road in Flat Terrain
![Page 21: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/21.jpg)
Very Poor ConditionPoor ConditionGood Condition
COST OF MAINTENANCE DELAY - ROAD USER (2009R)
Good Poor
R 0
R 2
R 4
R 6
R 8
R 10
R 12
R 14
R 16
R 18
R 20
0 2 4 6 8 10 12 14 16
International Roughness Index (m/km)
Ro
ad
Us
er
Co
st
(R/k
m)
Toll Class 1
Toll Class 2
Toll Class 3
Toll Class 4
Based on HDM-4 Modeling
![Page 22: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/22.jpg)
0
50
100
150
200
250
300
350
Jan
-01
Ap
r-01
Jul-
01
Oct
-01
Jan
-02
Ap
r-02
Jul-
02
Oct
-02
Jan
-03
Ap
r-03
Jul-
03
Oct
-03
Jan
-04
Ap
r-04
Jul-
04
Oct
-04
Jan
-05
Ap
r-05
Jul-
05
Oct
-05
Jan
-06
Ap
r-06
Jul-
06
Oct
-06
Jan
-07
Ap
r-07
Jul-
07
Oct
-07
Jan
-08
Ap
r-08
Jul-
08
Oct
-08
Jan
-09
Ap
r-09
Jul-
09
Oct
-09
Jan
-10
Ap
r-10
Jul-
10
Oct
-10
Jan
-11
Ind
ex V
alu
e (B
ase
100
= 20
00)
Year
Indices Comparison Trend
CPI Index PPI Index CPA Indexsource: www.statssa.gov.za
![Page 23: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/23.jpg)
Strengthening/Regravel Backlog: Roads Strengthening/Regravel Backlog: Roads in Poor to Very Poor Conditionin Poor to Very Poor Condition
% Length Cost % Length Cost Length Cost
SANRAL 11.86% 1,932 R 15,456,000,000 0.00% 0 R 0 1,932 R 15,456,000,000Provinces - 9 22.79% 10,980 R 87,840,000,000 50.66% 69,216 R 13,843,111,157 80,196 R 101,683,111,157Metros - 9 4.12% 2,127 R 10,635,000,000 8.48% 1,227 R 245,315,473 3,354 R 10,880,315,473Municipalities 3.62% 1,363 R 4,089,000,000 28.54% 86,245 R 17,249,009,106 87,608 R 21,338,009,106
Total Backlog 16,402 R 118,020,000,000 156,687 R 31,337,435,736 173,089 R 149,357,435,736
Strengthening/Regravel Backlog: Roads in Poor to Very Poor Condition
Authority TotalGravelPaved
![Page 24: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/24.jpg)
Actual numbers – Roads Infrastructure and Actual numbers – Roads Infrastructure and Fuel LevyFuel Levy
2009/10 2010/11 2011/12 2012/13
R Revised estimate (R)
Medium-term estimates (R)
Provincial 13,527,087,000 14,841,633,000 15,905,302,000 17,199,542,000
National 5,608,086,000 6,844,501,000 8,651,596,000 9,728,055,000
Local 10,050,262,238 6,955,989,601 8,380,816,634 1,713,432,045
Total 29,185435,238 28,642,123,601 32,937,714,634 28,641,029,045
Fuel Levy 28,832,536,000 34,300,000,000 35,000,000,000 38,110,000,000
General fuel levy sharing
6,800,000,000 7,542,000,000 8,573,000,000 9,040,000,000
Fuel pipeline 1,500,000,000 1,500,000,000 1,500,000,000
Net fuel levy 22,032,536,000 25,258,000,000 24,927,000,000 27,570,000,000
RAF Component
2009/10 – R12,556 billion2010/11 – R14,386 billion (est.)
![Page 25: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/25.jpg)
MAINTENANCEMAINTENANCE
• Routine Road Maintenance: all the time Repairing potholes within 48 hours Replace guardrails, sign posts etc. Grass cutting Patching Clearing up after accidents Fencing etc.
• Periodic Maintenance ( every 7 – 8 years)• Special Maintenance
![Page 26: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/26.jpg)
Community Development Community Development ProgrammeProgramme
Focus on the provision of much needed transport infrastructure within poor communities
Focus on method of infrastructure delivery Method of construction (labour enhanced
construction, maximize job creation) Transfer of skills Small contractor development Maximise retention of wealth in communities
![Page 27: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/27.jpg)
• N17 East Toll Road Extension • N1 South and R30 Bloemfontein – Kroonstad• N1 Polokwane Bypass• N3 Mariannhill Extension
• Gauteng Freeway Improvement Project: Tolling planned to commence – subject to outcome of further consultations led by the Ministerial Steering Committee
State Toll Network Development
CAPITAL INVESTMENTCAPITAL INVESTMENT
![Page 28: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/28.jpg)
Business area
R million
2010/11
No. of Projects
2010/11
R million
2011/12
R million
Non-toll Network
259 7 780 9 911
Toll Network(Excl Finance charges)
148 9 582 6 388
TOTAL VALUE
17 362 16 299
BUDGET BUDGET Total expenditureTotal expenditure
![Page 29: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/29.jpg)
FUNDINGFUNDING Government Grant for the non-toll network
Cannot budget for a deficit
Toll Revenue – to be used only on toll roads Borrowings from capital markets and financial institutions
Other income (minimal) – rental income etc
Alternate Funding Sources finalised/under discussion EIB ECA Foreign investors - roadshows
![Page 30: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/30.jpg)
RatingsRatings
Moody’sGlobal Scale Issuer Ratings:
(Non-guaranteed notes)
Long-Term: A3
Short-Term: P-2
National Scale Issuer Ratings:
(Non-guaranteed notes)
Long-Term: Aa2.za
Short-Term: P-1.za
![Page 31: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/31.jpg)
31
Gauteng Freeway Improvement Project and Gauteng Freeway Improvement Project and Open Road TollingOpen Road Tolling
![Page 32: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/32.jpg)
GautengGauteng
Most freeways in Gauteng reached their capacity
Peak hours are extending by 10 to 15 minutes each year
Results in congestion and uneconomical use of time with increased vehicle operating costs and carbon emissions
32
![Page 33: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/33.jpg)
Economic Impact of Congestion & Insufficient Maintenance
SACCI comments (Jan 2010) : Expressed concern about impact on business due to
congestion and insufficient maintenance Based on conservative assumptions, cost of congestion on
Ben Schoeman amounts to R15m/hour Excludes costs associated with:
Fuel and maintenance Late freight deliveries Lost business opportunities Accident costs
33
![Page 34: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/34.jpg)
Economic Impact of Congestion & Insufficient Maintenance
AA conducted tests (August 2007) : 1600cc vehicle travelling between Pretoria and
Johannesburg 122 Minutes additional driving per day (40 additional
hours per month) Engines operating for longer times – 1,5l/hr when idling Additional 705 litres wasted (469 hrs idling) per annum –
Extra R4 935 (R7 per litre) 80 000 people – R395 m per year wasted Excludes working time, frustration, accidents
34
![Page 35: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/35.jpg)
Maintenance and Repair Cost Increases due Maintenance and Repair Cost Increases due to Worsening Road Conditionsto Worsening Road Conditions
“The results obtained from the comparison indicate that the maintenance and repair costs of a truck increase as the condition of the road on which the truck is travelling deteriorates. When moving from a good condition road to a bad condition one, increases in vehicle maintenance and repair costs of approximately 121% can potentially be experienced. In addition, the increase in truck repair and maintenance costs due to deteriorating road conditions can potentially lead to an estimated increase of around 10% in the total logistics costs of a company.Other costs that can potentially be attributed to deteriorating road quality are increased vehicle operating costs, increased fuel consumption, increased cargo damages and ultimately increased vehicle design and manufacturing costs.”
*
35
![Page 36: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/36.jpg)
Maintenance and Repair Cost Increases due Maintenance and Repair Cost Increases due to Worsening Road Conditionsto Worsening Road Conditions
.
*When comparing the average repair and maintenance costs of vehicles of two companies travelling on specific routes, associated to the condition ... the results potentially indicate that a truck (truck 1) from Company B travelling from Newcastle to Gauteng (300 km) has on average maintenance and repair costs of R627 per trip. A similar truck (truck 2) from the same company travelling on the N3 between Gauteng and Durban for 300 km will have on average maintenance and repair costs of only R270 per trip. If we assume that both trucks make 100 round-trips a year (200 trips in total), the total maintenance and repair costs of truck 1 could potentially amount to R125 400 per year and for truck 2 it would be R54 000. This indicates a potential percentage increase in maintenance and repair costs of 132% per year when comparing a truck travelling on a bad road with one travelling on a good road for company B.
36
![Page 37: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/37.jpg)
Background: Economic Background: Economic Impact AnalysisImpact Analysis
SANRAL conducted an economic impact study by the Graduate School of Business of the UCT
Economic impact analysis provided robust indication of project value to economy
Indicators show that project is economically viable and provides very high benefits to the Gauteng Province and South Africa
TABLE 12-1: GFIP: RESULTS OF ANALYSIS OF ECONOMIC BENEFITS AND COSTS
Benefit-Cost Ratio (BCR) 8,4
Economic Internal Rate of Return (RR) 37%
Nett Present Value of Benefits minus Costs (in billions of Rand) R209,8 billion
37
![Page 38: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/38.jpg)
Background: Approval ProcessesBackground: Approval Processes
Approached Minister of Transport 2005 – project proposal
Inter governmental (all spheres) workgroup agreed project principles
DOT, SANRAL and Gauteng Government played leading role in compiling a document: “Gauteng Network Integration Process: Proposal for a Gauteng Freeway Improvement Scheme”
This report was concluded in May 2006. Participants presented the report to political decision
makers for acceptance
38
![Page 39: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/39.jpg)
Background: Approval Background: Approval ProcessesProcesses
Several other interactive sessions followed with metropolitan authorities and The Gauteng Province. The project was presented to the Gauteng Province at: The Gauteng Indaba (initiative of then MEC Jacobs) May
2006 Workshop with Gauteng Province in April 2007 Gauteng Legislature: Transport Portfolio Committee in
August 2007
39
![Page 40: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/40.jpg)
Background: Approval ProcessesBackground: Approval Processes
Cabinet approval – mid 2007 Intent to toll process – October 2007, indicated a tariff
of 50c/km Advertised in local and national papers Directly informed other authorities Presentations made
Declared as a toll road – March 2008 Procurement of contracts commenced thereafter
40
![Page 41: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/41.jpg)
Road Works
Road construction : Civil Works
17 Projects Value: R16.9 billion, including CPA, excl
VAT
41
![Page 42: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/42.jpg)
GFIP – Improvements Made
Widening of the freeways 34 interchanges are significantly upgraded which will
result in less congestion Median lighting has been provided on the route to
allow for a safer journey.
![Page 43: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/43.jpg)
GFIP – Improvements Made GFIP – Improvements Made
Result of Improvements: Less congestion Time savings Greater production Safer journey Reduced carbon emissions Created 20 000 jobs during construction
![Page 44: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/44.jpg)
Toll OperationsToll Operations
Components: Design and Build (project implementation) Operations (toll collection)
ORT roadside, back office, points of presence, systems maintenance and facilities – 8 Years
Transaction clearing house (TCH) – 5 Years Violation processing centre (VPC) – 5 Years
Asset Replacement
44
![Page 45: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/45.jpg)
Toll System Scope of Works – Design & Build:
Installation of roadside and other system hardware (tag readers, electronic vehicle classification, CCTV, servers, work stations, communications, etc);
Development and integration of software; Provision and fitment of equipment and furniture for points of
presence such as permanent kiosks, temporary kiosks, roadside customer service centres, mobile pay stations, etc;
Tag packaging, logistics
45
![Page 46: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/46.jpg)
Toll System
Scope of Works – Operations: ORT Back Office operations - road side transactions validated Customer services at ”Point of Presence”
14 Customer Service Centres 16 Kiosks at Shopping Centres 25 Mobile Service Centres 20 Mobile Pay Stations
46
![Page 47: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/47.jpg)
Toll Toll System System (cont.)(cont.) Call centre Account management Financial transaction settlement E-Tag logistics and testing System/equipment maintenance Facilities maintenance, rentals and rates Violation processing
The toll operations of the project will provide at least 900 permanent quality jobs (Technicians, IT, Points of Presence, Admin, Call Centre, etc)
47
![Page 48: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/48.jpg)
ImportsImports
Specialist equipment Software development Salaries
ZAR 500 million
48
![Page 49: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/49.jpg)
Other Investments ITS and Incident Management:
Network Monitoring Provides information to road users, radio stations Incident management (towing vehicles, medics on bikes, incident
vehicles, etc) Objective to clear road as soon as possible in the event of incident, and
assist road users R50 m per year
Routine road maintenance: Fixing guardrails, potholes, do crack sealing, pick up litter, grass cutting,
lighting maintenance and electricity, etc) R120m per year
49
![Page 50: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/50.jpg)
Other Investments
Periodic Maintenance Comprise periodic maintenance actions such as rehabilitation
and overlays. Scheduled to take place as follow :
Overlays (2020/21 – 2022/23): R2 895 million Rehabilitation (2030/31 –2032/33): R8 683 million
50
![Page 51: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/51.jpg)
FundingFunding GFIP is not funded through the central fiscus Funds are raised on the Capital Markets through
SANRAL’s Domestic Medium Term Note Programme The user-pay principle (tolling) is used to re-pay the
loans, as well as for future operation and maintenance of these roads
51
![Page 52: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/52.jpg)
Basis for Determination of Tariffs Basis for Determination of Tariffs
Service and repay loans to fund initial capital cost Interest payments during term of loans Asset preservation Routine road maintenance Operational costs
![Page 53: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/53.jpg)
Considerations– Setting TariffsConsiderations– Setting Tariffs
Affordability – Since 2007, indicated tariff of 50c/km (2007 Rand)
Benefit to user should be greater than overall cost
Project should be financially viable – must be able to repay debt incurred, as well as cover operational maintenance costs
![Page 54: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/54.jpg)
Considerations – Heavy VehiclesConsiderations – Heavy Vehicles
Heavy Vehicles: Have highest impact on road pavement Use of the road – requirement to conduct business,
also high value of time Mostly commercial vehicles – deductions for VAT
and toll as normal business expense
![Page 55: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/55.jpg)
Considerations – DiscountsConsiderations – Discounts
Public concern about affordability for frequent and longer travel distance users – Frequent User Discounts (FUD) to address issue
Project principle – promotion of public transport – Public Transport Discounts to assist
Motorcycles – requests for reduced tariff – toll system designed to classify motorcycles
![Page 56: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/56.jpg)
DiscountsDiscounts E-Toll Tag users:
Class A1, A2, B and C – 25%
Discounted Tariff (per km), VAT Incl. Class A1 – 30c/km Class A2 – 49,5 c/km (42,5 /km, VAT excl) Class B – R1,49 /km (R1,28 /km, VAT excl) Class C – R2,97 /km (R2,55 /km, VAT excl)
Ratio between tariffs for class A2: B: C is: 1: 3: 6
NB: No tag, no discount!
![Page 57: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/57.jpg)
Other Additional DiscountsOther Additional Discounts
Public Transport Operator discounts for qualifying vehicles: 50%
SAPS & SANDF exempt Time of Day Discounts
![Page 58: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/58.jpg)
Time of Day DiscountsTime of Day Discounts
![Page 59: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/59.jpg)
Other Additional Discounts Other Additional Discounts (cont.)(cont.)
Frequent User Discounts only for Class A1 and A2 e-toll tag account users:
Cumulative tolls (after all discounts) for the calendar month prior to current
gantry pass
Discount for each gantry pass in the category*
0 – R100 0% >R100 – R200 2,5% >R200 – R380 7,5% >R380 – R550 15,0% >R550 – R700 25,0% >R700 – R830 37,5% >R830 – R940 45,0%
>R940 50,0%
![Page 60: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/60.jpg)
Payment termsPayment terms
SANRAL is not a financial institution and would therefore not be able to extend credit without being exposed to the National Credit Act, hence no payment terms
7 day grace period from date of transaction
![Page 61: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/61.jpg)
Impact of Toll Tariffs upon Impact of Toll Tariffs upon Financial FeasibilityFinancial Feasibility
VLN Tariff Tag Tariff(-25%)
80c per km 60c per km
66c per km* 49,5c per km*
40c per km 30c per km
To illustrate the impact of different toll tariffs upon financial viability, three sets of light vehicle tariffs were considered:
All discounts remain the same percentages
* Gazetted Tariffs
![Page 62: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/62.jpg)
![Page 63: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/63.jpg)
Monthly TollsMonthly Tolls
51% of all light vehicle users would pay less than R200 toll per month 69% of all light vehicle users would pay less than R400 toll per month 77% of all light vehicle users would pay less than R500 per month. A maximum of 2% of all light vehicle users is expected to pay more than
R1000 per month toll.
*Based on 27 000 interviews
![Page 64: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/64.jpg)
Examples of the Monthly Toll Cost of a Passenger in a Taxi
For 22 return trips, as described, between Golden Highway (south of Jhb) and Centurion via the N1:• R472,18 per month divided amongst 16 passengers• R29,51 per passenger per month• R1,34 per passenger return per day
64
![Page 65: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/65.jpg)
Examples of the Monthly Toll Cost of a Passenger in a Taxi
For 22 return trips, as described, between south of Johannesburg and Centurion via the N1, M1 and N1 again• R228,94 per month divided amongst 16 passengers• R14,31 per passenger per month• 65c per passenger return per day
65
![Page 66: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/66.jpg)
Examples of the Monthly Toll Cost Examples of the Monthly Toll Cost of a Passenger in a Taxi of a Passenger in a Taxi
For 22 return trips, as described, between Golden Highway (south of Jhb) and Jhb CBD via the N1 and M1• R45,71 per month divided amongst 16 passengers• R2,86 per passenger per month• 13c per passenger return per day
66
![Page 67: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/67.jpg)
Economic Study: Inflationary Economic Study: Inflationary EffectEffect Economic study - impact on the cost of consumer
goods determined. Only considered the cost of tolling - ignoring all the
benefits of the freeway upgrades. Conclusions w.r.t. “Cost of Living” increases:
Household incomes less than R24 365 - 0.31% increase. (31c for each R100 spent)
Household incomes between R24 365 and R55 159 - 0.29% increase (29c for each R100 spent).
The scheme will have little impact on the cost of consumer goods and will not be inflationary
67
![Page 68: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/68.jpg)
Traffic Diversion Issue of traffic diversion to supporting road network raised by
local authorities during toll declaration process Extensive traffic modelling conducted to demonstrate impact
during different peak and off peak periods: Additional GFIP capacity attracts traffic to network during peak periods At night and during weekends – slight increase in traffic on alternative
“free” network – however, highway bonus not considered In terms of the overall alternative Provincial and Metropolitan road
network, there should be a reduction of ±10% in travelled distance and in excess of 20% reduction in travel time on a daily basis as a result of the GFIP project.
68
![Page 69: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/69.jpg)
How does it work?How does it work? Overhead gantries are fitted with electronic equipment When entering the toll area the electronic equipment will:
– photograph your front and rear number plate;– read the E-tag on your vehicle;– verify that the specific tag is linked to the specific vehicle
[number plate and class] and have an account linked to it;– Generate a transaction; – transactions are rolled up at night;– toll fees are deducted from your e-toll account; – transactions can be viewed on-line the next day
69
![Page 70: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/70.jpg)
SANRAL Principles for ORTSANRAL Principles for ORT
One tag standard One account – may include various vehicles Central clearing
Full interoperability
70
![Page 71: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/71.jpg)
Toll Toll PointPointPositionsPositions(with (with distances)distances)
71
![Page 72: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/72.jpg)
ORT – Central Operations CentreORT – Central Operations Centre
ORT Back OfficeORT Back Office Transaction Clearing House (TCH)Transaction Clearing House (TCH) Violations Processing Centre (VPC)Violations Processing Centre (VPC) New ITS ops centreNew ITS ops centre
![Page 73: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/73.jpg)
Assumptions
12 mins at ave of 80km/h = 16km
Turnaround only possible at next interchange
Satellite Satellite Centre Centre Coverage @ Coverage @ 12 min reach12 min reach
![Page 74: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/74.jpg)
Electronic Toll CollectionTag linked to vehicle and number plateAgreements with rental companiesDay passes will be availableCBRTA to facilitate registration/toll collection at border posts
Automatic Number Plate Recognition – CamerasGrace period of 7 days for payment, thereafter lose discountsViolations
Fines will be stiff Applicable legislation under discussion – AARTO Act, SANRAL Act
etc Will be linked to E-Natis Dedicated enforcement personnel – through RTMC
Gradual country-wide roll-out N4 Platinum Highway e-tags to align first One card, one account country-wide
![Page 75: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/75.jpg)
Account Registration/Obtaining an e-Account Registration/Obtaining an e-Tag Tag
Obtaining an e-tag and registering an e-Toll account will take place as follows; at the e-toll Customer Service website, ww.sanral.co.za; at an e-toll Customer Service kiosk located at a mall; at an e-toll Customer Services centre situated along the
freeway network; contacting the e-toll Call Centre; or buying an e-tag at conveniently located retail outlets – set
up account through website or contacting the Call Centre
Interoperable with all other toll plazas in RSA
![Page 76: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/76.jpg)
Account Registration Account Registration
Locations of the registration points will be available on www.sanral.co.za once registration commences.
The full amount of the purchase price of an e-tag is credited to the road user’s e-toll account upon registration - means the e-tag is effectively free to road users.
Same account and e-tag can be used at any other plaza where e-toll is/will become available
![Page 77: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/77.jpg)
Account Payment/Top-UpAccount Payment/Top-Up
Road users will have the option to link their e-toll account directly to their credit card
If user elects to have a pre-paid account: Electronic fee transfer (EFT), Debit orders, At selected retailers (similar to the purchase of air-time). At dedicated e-toll customer service centres/kiosks.
![Page 78: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/78.jpg)
Monthly Tolls – Toll CalculatorMonthly Tolls – Toll Calculator
Toll calculator available to determine estimated monthly toll costs
Calculator can be accessed on www.sanral.co.za/tollcalc
78
![Page 79: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/79.jpg)
Monthly Tolls – Toll CalculatorMonthly Tolls – Toll Calculator Input:
Entry/exit points Number of journeys Time of day when journeys are undertaken Vehicle class
Output: Distance travelled Estimated toll cost before discounts Estimated toll costs after discounts
79
![Page 80: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/80.jpg)
Non Payment of Toll TariffNon Payment of Toll Tariff The non-payment of Toll Tariff will result in :
levying of administrative fees, levying of fines and/or prosecution in terms of applicable legislation.
Frequent User Discount, e-Toll Tag Discounts and Public Transport Discounts will not be applicable in the case of the non-payment of Toll Tariffs within the prescribed time period
80
![Page 81: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/81.jpg)
Non Payment of Toll Tariff Non Payment of Toll Tariff (cont.)(cont.)
Non-payers – 7 day grace period Be invoiced for outstanding toll, if no registration
takes place within grace period Debt collection processes will be implemented On road enforcement unit: physical enforcement of
amongst others, law enforcement functions and the collection of outstanding tolls
81
![Page 82: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/82.jpg)
GFIP: STATUS
Roadworks near completionBitumen shortage: surfacing slower than planned
ETC Infrastructure will be ready in time
Tariffs announced in early February 2011
Public/political outcry against tariffsMinisterial Steering Committee and Work Groups reviewing tariffsMinister’s statement assures investorsPublic participation with stakeholder groups currentFinal report expected soonTolling expected to start in Q3 2011
![Page 83: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/83.jpg)
CONCLUSIONCONCLUSION
Investing in roads For sustainable economic growth Leverage procurement to transform industry Make communities economically independent Create public value Core components of South Africa’s growth strategy
Knowledge based organisation Right professional skills Support tertiary educational institutions
Effective delivery of road infrastructure for public transport and movement of freight
![Page 84: SELECT COMMITTEE ON PUBLIC SERVICES 14 JUNE 2011](https://reader037.vdocument.in/reader037/viewer/2022110102/56813afb550346895da38de1/html5/thumbnails/84.jpg)
SANRAL: Touching Peoples LivesSANRAL: Touching Peoples Lives
“Where a road passes, development follows
right on its heels”
THANK YOU!THANK YOU!
Fraud Hotline: 0800 204 558Website: www.nra.co.za