E-tolls the “fairest way” of paying for road infrastructure
Kapsch Trafficom, the Austrian firm contracted to manage the e-toll system, maintains that electronic tolling is the fairest way of re-financing road infrastructure.
The company however, diplomatically sidestepped difficult questions on the system’s future.
The Gauteng Government is expected to announce a review panel on e-tolling later this week, which left South African National Roads Agency Limited (Sanral) seething after it failed to reach its target at a debt auction last month.
“There’s obviously a risk to Sanral in terms of people now stopping paying tolls because they may think that this will go away,” Inge Mulder, Sanral’s chief financial officer, told Bloomberg.
“It’s the perception that has been created by the premier rather than the fact that there could be a discontinuation of electronic tolling.”
Mmusi Maimane, Parliamentary Leader for the DA, said on Monday (7 July) that he will be moving for the Transport Portfolio Committee to push for a full review of the e-toll scheme, within the next few days.
A Kapsch spokesperson told BusinessTech that “the South African project will continue to be an important project for Kapsch. It represents the first toll system for multilane free-flow traffic on the African continent.”
“The planned project profitability has not been reached as yet and cannot compete with other projects. However, the number of registered on-board units still has the potential to rise further, as does the payment rate,” the spokesperson said.
When asked if the company had concerns about the future of e-tolls in South Africa, Kapsch said: “Our aim is to meet our client’s objectives and we will continue to work together with them to optimize earnings.”
“Our global experience shows that electronic tolling is the fairest way of re-financing road infrastructure. We are a technology and service provider and therefore we are not in the position to comment on political decisions.”
In its annual financial statement for the fiscal year 2013-14, published late last month, Kapsch lamented the “mediocre” performance in South Africa.
“In comparison with the previous year, the system in Gauteng province, South Africa, contributed significantly lower revenue, despite going into operation in December,” it said.
Kapsch noted sales in the rest of the world fell by EUR 20.1 million (-23.1%), due amongst other things, to lower revenue in South Africa.
The group said that, as of 31 March 2014, it had a workforce of 3,308 (3,120 salaried and 188 non-salaried employees), of which more than half were located outside of Europe – roughly 1,200 employees in South Africa only.
More on e-tolls
E-tolls should be put to a national vote: DA
DA hatches new e-toll plan of attack
Sanral takes swipe at Gauteng Premier over e-tolls
E-toll review panel expected next week
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