Incredible Connection unaffected by e-tolls
Computer and technology retailer, Incredible Connection says it does not foresee a major impact on its costs if the implementation of a R20-billion South African National Roads Agency Limited (SANRAL) e-toll system does indeed go ahead in Gauteng.
Many companies and industry bodies and organisations have come out strongly against SANRAL’s implementation of the e-toll system, which is due to kick in from April 30, 2012.
Industries and consumer bodies have banded together to form OUTA – Opposition To Urban Tolling Alliance. This new lobby group has sought to impose a court interdict against SANRAL to have the tolls put on hold.
South Africa’s largest worker union, COSATU, has also rallied support from its members with the intention of staging the “mother of all protests” from April 23, to put an end to the tolls.
“Incredible Connection does no significant transporting of products within the e-toll area as our vendors and business partners are responsible for those logistics. We have not been informed by them of any potential impact on our costs,” said Stefan Marnewick, acting CEO of Incredible Connection, in a statement.
“Considering the volumes of relatively small physical items that would be transported, the economies of scale are likely to mitigate cost increases – however, it’s very difficult to speculate accurately on the ultimate impact of e-tolls on retailers and their consumers. The e-toll system is before the courts at this stage and we will have to await the outcome of this process,” Marnewick said.
Incredible Connection, a subsidiary of JSE-listed JD Group (JDG), along with Hi-Fi Corporation, generated revenue of R4.58 billion rand in 2011, and an operating profit of R224 million. The technology retailers boast 96 stores across the country, employing 3,625 people.
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