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1 The South African National Roads Agency SOC Ltd (SANRAL) PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRANSPORT 19 August 2014

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The South African National Roads Agency SOC Ltd (SANRAL). PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRANSPORT 19 August 2014. Contents. Mandate Strategic Outcomes and Objectives Budget Projects Transformation Road Safety Finance Challenges Loss of Opportunity Discussion Points. - PowerPoint PPT Presentation

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Page 1: The South African National Roads Agency SOC Ltd (SANRAL)

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The South African National Roads Agency SOC Ltd

(SANRAL)

PRESENTATION TO THE

PORTFOLIO COMMITTEE ON TRANSPORT

19 August 2014

Page 2: The South African National Roads Agency SOC Ltd (SANRAL)

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Contents Mandate Strategic Outcomes and Objectives Budget Projects Transformation Road Safety Finance Challenges Loss of Opportunity Discussion Points

Page 3: The South African National Roads Agency SOC Ltd (SANRAL)

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MANDATE

• Responsible for proclaimed national road network

• Toll and Non-Toll network

• Maintain, upgrade, operate, rehabilitate and fund national roads

• Levy tolls to service toll roads• Advise the Minister on road related matters• Create public value

As determined by:Act No. 7 of 1998 - The South African National Roads Agency and National Roads Act, as amended

Page 4: The South African National Roads Agency SOC Ltd (SANRAL)

Minister (Regulator)

Governance and Control

Planning, Design, Construction, Operation, Management, Control, Maintenance & Rehabilitation of

National Roads

Chief Executive Officer

Board

MoT

Day to Day Business and Operations Management

SANRAL Staff

SANRAL RELATIONSHIP TO MINISTER and DOT

Page 5: The South African National Roads Agency SOC Ltd (SANRAL)

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South Africa has the 10th Longest Total and

18th Longest Paved Road Network in the World

Roads Represents one of the largest public

infrastructure investments in most

countries

RSA Road Replacement Cost

>R2 Trillion

 World 64 285 0091  United States 6 586 6102  India 4 689 8423  China 4 237 5004  Brazil 1 751 8685  Japan 1 210 2516  Canada 1 042 3007  Russia 982 0008  France 951 2009  Australia 823 217

10  South Africa 750 00011  Spain 681 29812  Germany 644 48013  Sweden 572 90014  Italy 487 70015 Indonesia 437 75916  Turkey 426 906… … …34  Dem Rep of Congo 153 49745  Zimbabwe 97 26754  Zambia 91 44055  Tanzania 91 04970  Madagascar 65 66380  Angola 51 42972  Namibia 64 18998  Mozambique 30 331104  Botswana 25 798122  Malawi 15 451148  Lesotho 7 438161  Swaziland 3 594173  Mauritius 2 066193  Seychelles 508

1 449 720

Rank CountryRoad

length (km)

SADC Total

Page 6: The South African National Roads Agency SOC Ltd (SANRAL)

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Page 7: The South African National Roads Agency SOC Ltd (SANRAL)

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South African Road Network - 2014

Un-Proclaimed Roads = Public roads not formally gazetted by any Authority

Authority Paved Gravel Total

SANRAL 21,403 0 21,403

Provinces - 9 47,348 226,273 273,621

Metros - 8 51,682 14,461 66,143

Municipalities 37,691 219,223 256,914

Total 158,124 459,957 618,081

Un-Proclaimed (Estimate)   131,919 131,919

Estimated Total 158,124 591,876 750,000

Page 8: The South African National Roads Agency SOC Ltd (SANRAL)

Strategic (20,000km) and Primary (14,000km) Network

8

Page 9: The South African National Roads Agency SOC Ltd (SANRAL)

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0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016

Kilo

met

re (C

entr

elin

e)

Year

Road Network Length

Future Incorporation

BOT Toll Roads

Agency Toll Roads

Non-Toll Roads

Page 10: The South African National Roads Agency SOC Ltd (SANRAL)

Description Non Toll Agency Toll

BOT Total

DualCarriageway

610 520 443 1 573

4-LaneUndivided

11 299 240 550

2-LaneSingle

17 662 1013 605 19 280

Total 18 283 1 832 1 288 21 403

% of SANRAL Network 85% 9% 6%

NATIONAL ROAD NETWORK (km)

Total RSA Road Network Estimated to be 750,000 km

Page 11: The South African National Roads Agency SOC Ltd (SANRAL)

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VISION, MISSION AND VALUES

VisionTo be recognised as a world leader in the provision of a superior primary road network in southern Africa.

MissionAs the custodian of a public good, we are committed to the advancement of the Southern African community through:A highly motivated and professional teamState-of-the-art technologyProficient service providers Promoting the ‘user pays’ principle.

Core ValuesExcellenceProactivenessParticipativenessIntegrityCare

EP²IC

Page 12: The South African National Roads Agency SOC Ltd (SANRAL)

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National Development Plan (NDP)

By 2030 aims to:

1.Eliminate income povertyi. Community Development Programme

ii. SMME Development

2.Reduce inequality.i. Develop Human Capital

Enabling milestones:1. Increase employment from 13 m in 2010 to 24 m in

2030

2. Establish a competitive base of infrastructure, human resources and regulatory frameworks

Blue : SANRAL’s contribution

Page 13: The South African National Roads Agency SOC Ltd (SANRAL)

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NDP: Critical ActionsPublic infrastructure investment at 10% of GDP (total 30%

of GDP in 2030), financed through tariffs, PPPs, taxes, loans and focused on transport, energy and water.

- toll roads

Transport: - Upgrade the Durban-Gauteng freight corridor -

- De Beers Pass (no new plazas)

- Build the N2 through the Eastern Cape

- Wild Coast

- Expand capacity of coal, iron ore and manganese lines

- Public transport infrastructure and systems, including the renewal of commuter rail fleet, supported by enhanced links with road-based services.

Blue : SANRAL’s contribution

Page 14: The South African National Roads Agency SOC Ltd (SANRAL)

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GOVERNMENT: 14 MTSF Priorities 2014 - 2019 EDUCATION: Quality basic education HEALTH: A long and healthy life for all South Africans SAFETY: All people in South Africa are and feel safe ECONOMY: Decent employment through inclusive economic growth SKILLS: Skilled and capable workforce to support an inclusive growth path INFRASTRUCTURE: An efficient, competitive and responsive economic infrastructure

network RURAL DEVELOPMENT: Vibrant, equitable, sustainable rural communities

contributing towards food security for all HUMAN SETTLEMENTS: Sustainable human settlements and improved quality of

household life LOCAL GOVERNMENT: Responsive, accountable, effective and efficient Local

Government system ENVIRONMENT: Protect and enhance our environmental assets and natural resources INTERNAL AND EXTERNAL RELATIONS: Create a better South Africa, a better

Africa and a better world PUBLIC SERVICE: An efficient, effective and development oriented public service

and an empowered, fair and inclusive citizenship SOCIAL PROTECTION: A comprehensive, responsive, sustainable social protection

system NATION BUILDING: A diverse, socially cohesive society with a common national

identity

Page 15: The South African National Roads Agency SOC Ltd (SANRAL)

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DoT: 6 OUTCOMES

1) An effective & integrated infrastructure network that serves as a catalyst for social & economic development

2) A transport sector that is safe and secure3) Improved rural access, infrastructure and

mobility4) Improved public transport systems5) Increased contribution to job creation6) Increased contribution of transport to

environmental protection

Page 16: The South African National Roads Agency SOC Ltd (SANRAL)

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SANRAL: Strategic Outcomes Oriented Goals (Impact)

Provide effective strategic road infrastructure Facilitate development, commerce, international trade Facilitate mobility: people, freight Facilitate access: community, tourism

Job creation By the implementation of projects

Transformation/empowerment Empowerment: BBBEE Community upliftment Skills development: training Educational support

Universities/research, internships, bursaries, scholarships

Page 17: The South African National Roads Agency SOC Ltd (SANRAL)

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Strategic Objectives

1. Manage the national road network effectively

2. Provide safe roads

3. Carry out Government’s targeted programmes - Transformation

4. Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries

5. Achieve and maintain good governance practice

6. Achieve financial sustainability

7. Pursue research, innovation and best practice

8. Safeguard SANRAL’s reputation: stakeholder communication

17Supported by an Annual Performance Plan with Key Performance Areas to which are linked Individual Performance Plans

Page 18: The South African National Roads Agency SOC Ltd (SANRAL)

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Non-Toll Budget (Rand ‘000)

Description Actual 2013/14

Budget 2014/15

Budget 2015/16

Budget 2016/17

Treasury Allocations 10 497 184 11 916 947 12 497 294 13 159 651

Adhoc Maintenance 38 583 112 533 60 085 46 809

Routine Maintenance 1 178 673 835 588 795 171 785 349

Periodic Maintenance

1 785 083 2 040 300 1 788 714 1 248 030

Special Maintenance 898 656 471 841 553 327 762 310

Strengthening 3 045 771 3 515 873 2 589 703 2 738 026

Improvements 2 325 508 2 541 411 3 443 991 4 888 657

New Facilities 714 589 1 583 667 2 285 534 1 904 476

Land Acquisition 21 578 15 000 15 000 15 000

Page 19: The South African National Roads Agency SOC Ltd (SANRAL)

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Toll Budget (Rand ‘000)

Description Actual 2013/14

Budget 2014/15

Budget 2015/16

Budget 2016/17

Total Income 3 481 612 4 102 102 5 171 629 5 557 617

Other Toll Income 2 327 612 2 531 602 2 808 849 3 145 347

GFIP 1 154 000 1 570 500 2 361 780 2 412 270

Adhoc Maintenance 14 110 2 198 12 980 8 500

Routine Operations 1 710 063 1 754 362 1 644 843 1 533 244

Periodic Maintenance

216 728 207 075 217 346 37 702

Special Maintenance 16 870 930 - -

Strengthening 114 356 190 329 360 947 288 798

Improvements 507 877 879 134 2 652 268 6 162 259

New Facilities 512 644 558 822 873 216 218 026

Finance Charges 3 502 766 3 315 000 3 636 000 4 167 000

Page 20: The South African National Roads Agency SOC Ltd (SANRAL)

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Contracts Awarded (2013/14)

Type of Contract Number Value (ZAR)

Non-Toll 116 6 990 832 285

Toll 30 1 227 785 302

Other 29 697 107 968

Total 175 8 915 725 554

Page 21: The South African National Roads Agency SOC Ltd (SANRAL)

Pavement Age Trend

Please Note: 76% 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 2010 2011 2012 2013 2014Na

tio

na

l Ro

ad

Ne

two

rk L

en

gth

(C

arr

iag

ew

ay

km

)

Year

Pavement Age Trend

>25 yrs 21-25 yrs 16-20 yrs 11-15 yrs 6-10 yrs 0-5 yrs

Page 22: The South African National Roads Agency SOC Ltd (SANRAL)

0

20

40

60

80

100

2008 2013 2018 2023 2028

Year

Roa

d C

ondi

tion

What Is The Price We Pay – Government

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 23: The South African National Roads Agency SOC Ltd (SANRAL)

What Is The Price We Pay – Road User

Page 24: The South African National Roads Agency SOC Ltd (SANRAL)

R 7 218

R 4,013

R 7,300

R 0

R 1 000

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R 7 000

R 8 000A

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Year

Bitumen Price Trend2014 Rands

Page 25: The South African National Roads Agency SOC Ltd (SANRAL)

100

150

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Year

Indices Comparison Trend

CPI Index PPI Index CPA Index source: www.statssa.gov.za

Page 26: The South African National Roads Agency SOC Ltd (SANRAL)

SANRAL Condition Survey Vehicles

Various condition parameters collected using SANRAL Road Survey Vehicles: Roughness – how bumpy is the road – speed, wear, etc Rut Depth – water pond on surface - safety Macro Texture – assist vehicle tyre to drain water – safety, noise Cracking – how much water will get in - deterioration Deflection – remaining structural life of pavement Alignment (DGPS) – Speed, Fuel Consumption, etc ROW Video – Road Signs, Section Measurements, etc Surveys at between 75 to 100 km/h

2D/3D Surface Images

Page 27: The South African National Roads Agency SOC Ltd (SANRAL)

R 0

R 5 000 000

R 10 000 000

R 15 000 000

R 20 000 000

R 25 000 000

2014/15 - Need 2014/15 -Allocation

2015/16 - Need 2015/16 -Allocation

2016/17 - Need 2016/17 -Allocation

2017/18 - Need

Ran

ds

(Mill

ion

)

Year

MTEF Basic + Strengthening + Expansion Requirement vs Allocation

Cost Centres Routine Maintenance Periodic Maintenance

Strengthening Strengthening Backlog Expansion

Page 28: The South African National Roads Agency SOC Ltd (SANRAL)

0

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etw

ork

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ditio

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)

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Forcasted Non-Toll National Road Network ConditonR10bn/year Fiscus Funding for 16,584 km - NO New Toll Roads

Excellent

Good

Fair

Poor

Very Poor

Page 29: The South African National Roads Agency SOC Ltd (SANRAL)

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d N

etw

ork

Con

ditio

n (%

)

Year

Forcasted Non-Toll National Road Network ConditonR10bn/year Fiscus Funding for 14,584* km - With New Toll Roads

Excellent

Good

Fair

Poor

Very Poor

Page 30: The South African National Roads Agency SOC Ltd (SANRAL)

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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 – sharing of asset management systems across jurisdictions

Smooth implementation of e-Tolling in Gauteng Roll out of electronic toll collection lanes at current

plazas for quicker flow of vehicles N1-N2 Wineland Toll Road (Western Cape) N2 Wild Coast Toll Road (Eastern Cape)

KEY PRIORITIES FOR 2014/15

Page 31: The South African National Roads Agency SOC Ltd (SANRAL)

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Routine Road Maintenance: 100% of Network

Others: Strengthening, Improvement etc.• N1 Trompsburg – Sydenham• N2 Mt Edgecombe Interchange• N2 Umgeni/Inanda Interchange• N5 Vaalpenspruit - Winburg• N8 Alexanderfontein – Petrusburg• N9 Wolwefontein - Colesberg• N10 Baavians River – Riet River• N11 Ermelo – Hendrina• R23 Standerton – Greylingstad• R27 Niewoudtvie - Calvinia

MAJOR NON-TOLL PROJECTS

Page 32: The South African National Roads Agency SOC Ltd (SANRAL)

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• N3 Durban to Pietermaritzburg• N12 Kimberley to Johannesburg• N1 Ring road at Musina• N1 Kroonstad to Winburg• N1 Polokwane Eastern Ring Road

FUTURE PROJECTS CAPITAL INVESTMENT

Page 33: The South African National Roads Agency SOC Ltd (SANRAL)

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CONCESSIONS: CURRENT

N4 East: Maputo Development Corridor

563 km from Pretoria to Maputo, Mozambique

N3 Toll Road 429 kms from Heidelberg to Cedara

N4 West: Bakwena Platinum Corridor

385 km between Pretoria and Bela-Bela on the N1 and Pretoria and the Botswana Border

Private sector investments for three years 2012/13 – 2014/15: R 7.5 billion

Page 34: The South African National Roads Agency SOC Ltd (SANRAL)

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CONCESSIONS: PLANNED

N2 Wild Coast Two court actions, both attacking validity of Record of Decision

N1/N2 Winelands Legal process with regard to environmental authorisation is current. Dispute with City of Cape Town

Page 35: The South African National Roads Agency SOC Ltd (SANRAL)

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MAINTENANCE

• Routine Road Maintenance: all the time Repairing potholes within 72 hours Replace guardrails, sign posts etc. Grass cutting Patching Clearing up after accidents Fencing etc.

• Periodic Maintenance ( every 7 – 8 years)• Special Maintenance

Page 36: The South African National Roads Agency SOC Ltd (SANRAL)

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Overall Empowerment Rating: Level 2 (2009/10)

STAFF Board approved Employment Equity Plan to October

2014. New 3 year EE Plan to be developed in 2014/15 Bursaries

SKILLS DEVELOPMENT Scholarships Bursaries Internships Funding to universities: Pavement/Transport Planning

/Mathematics & Science chairs

TRANSFORMATION

Page 37: The South African National Roads Agency SOC Ltd (SANRAL)

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Education: Community Outreach

SANRAL’s presence at national career expos and exhibitions

Roadshows at secondary schools – including presentations by community development specialists to schools

Use of the database of the Department of Basic Education

Attendance at university open days

Page 38: The South African National Roads Agency SOC Ltd (SANRAL)

University of Witwatersrand

WTTP Grade 10-12

2013/14 – 42 learners

University of Witwatersrand

WTTP Grade 10-12

2013/14 – 42 learners

SUPPORT: TERTIARY INSTITUTIONSChair in Pavement Engineering: University of Stellenbosch

Chair in Transport Planning: University of Cape Town

NMMU890 Grade 10 – 12 learners ICT190 Educators36 BSc Botany

students

NMMU890 Grade 10 – 12 learners ICT190 Educators36 BSc Botany

students

University of the Free StateBSc Physics: 369 students

ICT Grade 10-12 learners: 1081Family Math & Science Grade R-

3 learners (7624), educators (155) student educators (474) parents

(1171) from the Free State, Northern Cape & Eastern Cape

1 Postgraduate Internship

University of the Free StateBSc Physics: 369 students

ICT Grade 10-12 learners: 1081Family Math & Science Grade R-

3 learners (7624), educators (155) student educators (474) parents

(1171) from the Free State, Northern Cape & Eastern Cape

1 Postgraduate Internship

University of the Free State – The SANRAL Chair in Maths and

Science

Page 39: The South African National Roads Agency SOC Ltd (SANRAL)

SKILLS DEVELOPMENT

SCHOLARSHIPS177 scholarsGrades 10 -12Across 40 schools

BURSARIES106 bursars qualifying in engineering (and a few other) degrees, including post graduate degrees7 universities

INTERNSHIPS196 interns training with 57 contractors across the country

Page 40: The South African National Roads Agency SOC Ltd (SANRAL)

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CONTRACTORS SMME Development in Routine Maintenance

Contracts 72% of work to black SMMEs 8% to other SMMEs 20% to managing contractor responsible for

Empowerment Training Support

TRANSFORMATION CONT’D

Page 41: The South African National Roads Agency SOC Ltd (SANRAL)

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COMMUNITY DEVELOPMENT PROGRAMME Community based projects (generally safety related)

Pedestrian bridges Walkways Roads

Economic opportunities in rural areas Employment of women and youth is targeted Catalysts for opportunities such as tourism,

hospitality industry etc.

TRANSFORMATION CONT’D

Total number of projects: 42 Budget: R 1.03 billion Jobs to be created: 5641

Page 42: The South African National Roads Agency SOC Ltd (SANRAL)

SANRAL Road Safety Education and Awareness Programme

– Education – making road safety practical in schools• 2013/2014

- 1 410 educators attended workshops- 5 911 educators implemented road safety education in class- 416 739 learners received learning material

• Road safety art competition – to test the knowledge of learners on road safety – 1 281 schools were invited – more that 5 000 entries

– Awareness • Facebook page www.facebook.com/chekicoast; 10 000 followers• T-shirt competition for students• CHEKiCOAST – SAVE A LIFE CAMPAIGN

• Radio and television adverts• Radio adverts flighted on national radio stations• Four television ads flighted on SABC, E-TV and selected DSTV channels

Page 43: The South African National Roads Agency SOC Ltd (SANRAL)

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Research: Road Safety Behaviour

3 year longitudinal study of road safety knowledge, attitude and behaviour of different road user groups

- Involving 5 communities nationally- Target user groups

- Grade 6 learners- Educators- Public Transport Users

- Research led by SANRAL - by Universities of Pretoria, KwaZulu-Natal and North West

Page 44: The South African National Roads Agency SOC Ltd (SANRAL)

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Research: Road Safety Behaviour Cont’d

General findings from Year 1:- General road risks identified – speeding, drunk driving, disregard for

rules, lack of infrastructure and enforcement- Road safety perceived as important learning opportunity but only one

learning opportunity per year- Educators do not have confidence in learners’ road behaviour- Road safety education does not translate into safe road behaviour- Learners possess basic road safety knowledge - Learners do not know about cycling or appropriate passenger behaviour

on public transport- Learners do not anticipate mistakes by other road users and so do not

have behavioural control- Educators encouraged to attend additional training which are not

necessarily passed on in class to learners- Study confirmed that public transport users had expected knowledge- Year 2 will focus on ‘attitude’

Page 45: The South African National Roads Agency SOC Ltd (SANRAL)

ROAD SAFETY PROJECTS (Sample List)

Location Project Description StatusDesign/Construction

Completion Date

TotalBudget

Eastern Cape: Port St. Johns R 61

Pedestrian crossings, traffic calming measures,street lighting

Construction October 2013 R 135m

Eastern Cape: Nyandeni Local Municipality R61

Kerbs, sidewalks access roads will be upgraded to 4.5m wide surfaced roads.

Construction May 2014 R109m

Eastern Cape: Nyandeni Local Municipality R61

Pedestrian overpass/bridge Design Est. June 2015 R 7m

Dr Kenneth Kaunda and Tlokwe Municipalities N12

Cyclist and pedestrian facilities, provision of taxi lay byes and closing of all illegal accesses

Design December 2013 R18m

Dr Kenneth Kaunda Districtand Tlokwe Municipality N12

Cyclist facilities, walkways as well as the safety of improvements of four intersections.

Design Est. December 2014

R 15m

City of Johannesburg and Ekurhuleni Municipality. N17

Construction of pedestrian facilities (bridges and walkways) on National Route N17 section 1, km 55.4 and section 2 km 27.4 and km 30.0.

Design Est. December 2014

R 37m

KwaZulu Natal: Ugu District, Hibiscus Coast Municipality N2

Pedestrian facilities including a Cantilever Pedestrian Bridge across the Umzimkhulu River.

Construction July 2013 R 11m

Page 46: The South African National Roads Agency SOC Ltd (SANRAL)

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NON-TOLL

Funding Sources

Grant from National Treasury MTEF submission in July of every year No borrowing allowed

Page 47: The South African National Roads Agency SOC Ltd (SANRAL)

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TOLL

Funding Sources

Toll income Financing through capital market

• Government Guaranteed• Non-guaranteed

Public/Private Partnership• Concessions• Unsolicited Proposals• Miscellaneous

Page 48: The South African National Roads Agency SOC Ltd (SANRAL)

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BORROWING CAPACITY

Initial R6 billion guaranteed funding

(SZ bonds) R0.73 billion N1 loan – separate guarantee R26.91 billion guaranteed funding (HWAY

bonds & other) R15 billion – non guaranteed funding (NRA

bonds)

Total Borrowing capacity = R48.64 billion

Page 49: The South African National Roads Agency SOC Ltd (SANRAL)

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Ratings June 2014

Moody’s

Global Scale Issuer Ratings:

Long-Term: Baa3 Short-Term: P-3

Stable Outlook

National Scale Issuer Ratings:

Long-Term: A3.zaShort-Term: P-2.za

Stable Outlook

Page 50: The South African National Roads Agency SOC Ltd (SANRAL)

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TOLL NETWORKBENEFITS OF TOLL FINANCING

Early Project Implementation: Economic spin-offs Releases Fiscus Funds for Non-Toll Roads Concessions (BOT): Sharing of Risk with Private Sector For Investors

Long-term Investment Low risk as Government Guaranteed (to date) Improved Road User Benefits

Time Savings Safety and comfort Reduction in Vehicle Operating Cost

Page 51: The South African National Roads Agency SOC Ltd (SANRAL)

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Toll vs Fuel levy Fuel levy has the following limitations:

Not ring-fenced and goes to general fund Fuel efficiency is an objective = declining fuel levy Everyone pays regardless of use, incl the poor

Toll Demand Management = Tolling incentivise different choices, i.e.

Public transport usage, ride sharing, time of day travel Urban sprawl is limited Pro-poor: exempt public transport Users pay fraction of benefit received

Government spends more than net receipts of fuel levy on road infrastructure

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Characteristic

Gauteng Household Quintile

1(Bottom

20%)

2 3 4 5(Top 20%)

Estimated average number of people per household

4.7 3.5 3.1 2.7 2.5

Estimated % of household income earned from employment

28% 40% 58% 72% 74%

Estimated % of household income from transfers

60% 51% 30% 13% 3%

Estimated average monthly income per household – June 2012

R 811 R 2 282 R 4 417 R 9 479 R 41 062

Implied average monthly income per household member –June 2012

R 171 R 659 R 1 406 R 3 488 R 16 448

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GFIP USER TOLL COST

Category A2 (light vehicles) Actual % (Audited)

Less than R100 p/m 82,83%

Between R101 and R200 10,10%

Between R201 and R300 4.03%

Between R301 and R400 1,82%

Between R401 and R450 0.63%

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• Resistance to e-tolling on GFIP by interest groups• Slow e-tag registration• Resistance to user charge- N1/N2 Winelands, N2 Wild

Coast legal action• Need firmly communicated message on toll road funding• Delays in project related approvals from water affairs,

provinces etc.• Inadequate law enforcement:

• Traffic rules• Overloading by hauliers• Enforcement in relation to electronic/open road tolling

• Driver behaviour – road safety• Reputational risk for SANRAL, DoT

CHALLENGES

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Insufficient funding for timely upgrades and maintenance of the non-toll network

Poor progress on SIP-1 and SIP-4 projects

Insufficient high-level planning and co-ordination between inter-modal transport and the three spheres of Government

CHALLENGES CONT’D

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LOSS OF OPPORTUNITY

N2 Wild Coast Project

N1-N2 Winelands Project

N3 De Beers Pass

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• Future of private sector investment in funding road infrastructure – toll road projects

• Improve inter-Government departmental co-operation

DISCUSSION POINTS

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Thank you!

SANRAL48 Tambotie AvenueVal de GracePretoria0184

PO Box 415Pretoria 0001

Telephone: +27 12 8448 000Fax: +27 12 8448200

Nazir Alli [email protected] Mulder [email protected] Mathew [email protected]

FRAUD HOTLINE: 0800 204 558

Website: www.sanral.co.za