Kapsch Trafficom, the Austrian firm contracted to manage the controversial e-toll system, says that the operation has reached the break-even point, despite the low payment rate.
This is according to CEO Georg Kapsch, in a report on the group’s Q1 of the fiscal year 2014/15.
Gauteng premier David Makhura set up an advisory panel in July to examine the economic and social impact of the Gauteng Freeway Improvement Project and the e-tolling system set up to fund it.
The panel handing in its findings in a report last month, and is expected to be made public early next year.
It follows mass opposition towards the system from Gauteng motorists, to a point where one of the main opponents to the system – Opposition to Urban Tolling Alliance (Outa) – claimed that e-toll payment compliance now stands at 35%.
“Our toll collection system in the South African Gauteng province went into operation at the beginning of December 2013.
“The payment rate remains very low but the system operation has reached the break-even point in the meantime. However, the project in its entirety is still negative for Kapsch TrafficCom. We plan to work with the customer to improve the profitability,” Kapsch said.
Before the implementation of e-tolls, Bloomberg reported that Kapsch TrafficCom expected to get an annual revenue boost of “significantly more” than €50 million for eight years from the Gauteng project.
The South African National Roads Agency meanwhile, reported to the panel in November, that its total income from e-tolls between July and October was R365 million. The group had projected income of R545 million.
The road agency had reported December-to-June income of R725 million, which it said was ahead of its R590 million projections.
Sanral collected its highest monthly revenue of R120 million between May and June. However, since July, those numbers have been on the decline, to a lowly R65 million, collected in October.
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