Thus, public transport vehicles – disproportionately used by the poor – are exempted from tolls. In fact, since tolling began at the end of 2013, the Gauteng freeways have lost traffic share to the Gautrain, a provincial rail line. Traffic jams, which cost the economy dearly in extra fuel and reduced productivity, have been reduced. A study before implementation also found that 94% of the toll fees paid would be borne by the highest-earning fifth of the population.
November 2015
SA must create wealth in a socially and environmentally sustainable way
Nazir Alli, the outgoing CEO of South African National Roads Agency, on the right to social infrastructure
What is infrastructure for? When governments and experts turn their minds to working out practicable ways of funding investment in infrastructure, it helps to start off by asking which master we are serving.
As the biggest growth economy in Africa, we have the responsibility of creating wealth in a way that is socially and environmentally sustainable.
We need to bring people together and connect them to jobs and services; but such improvements should not come at the expense of more traffic and pollution, nor should users pay more than the benefit they derive from the improved road. Schools, hospitals and other social infrastructure exert their benefits across the population as a whole: we all benefit from a better-educated, healthier, more cohesive society.
Access to such facilities is a universal right of citizens, and it is equitable therefore to pay for them out of taxation, so that all can share in them equally.
Economic infrastructure, notably in the energy and transport sectors, serves
the whole country but it does so by helping the end customer. The savings in journey time and fuel costs from driving on a new or improved road are unique to that road user. Economic benefits can be objectively captured and measured, and the appropriate user contribution worked out.
The South African National Roads Agency (Sanral) manages about 21 400km of national roads, of which the vast majority – 18 000km – are funded through taxation. But with a large and growing infrastructure maintenance backlog (estimated at R197bn), we cannot rely on the public purse to continue funding the cost of existing roads, never mind new ones. The road tolling systems developed by Sanral are designed to fund the minority of our road network that is tolled – but they are also designed to be fair.
On the one hand, charges directly reflect the benefits flowing from the use of the tolled road network in a way that taxation or a fuel levy (a diminishing
source) cannot. On the other, we can use technology to target those users, such as poor households and public transport, who should receive a discount or be exempted.
These principles are embodied in all toll road projects under the jurisdiction of Sanral, including in the Gauteng Freeway Improvement Project, a R20bn programme of upgrades to freeways that has delivered new lanes, improvinter changes and intelligent transport systems to monitor traffic flow and respond to incidents. The project has dramatically increased capacity on the previously congested road network; but its aim is to unblock economic growth and reduce congestion, not to allow unconstrained traffic growth.
Thus, public transport vehicles – disproportionately used by the poor – are exempted from tolls. In fact, since tolling began at the end of 2013, the Gauteng freeways have lost traffic share to the Gautrain, a provincial rail line. Traffic jams, which cost the economy dearly in extra fuel and reduced productivity, have been reduced. A study before implementation also found that 94% of the toll fees paid would be borne by the highest-earning fifth of the population.
This is precisely the transformation that a sustainable transport policy seeks to achieve. Our tolling policy has been challenged in court several times – and
has been vindicated every time. As the courts have recognised, we have acted
lawfully throughout. By their very nature, mega infrastructure projects will always have a high public profile. That should not make us wary of controversial policy decisions; it should embolden policy makers to go on the offensive and inform the public about these projects and the benefits they will bring.
As the economy needs to grow, so the imperative to stop our infrastructure
falling behind will become ever more irresistible. We are pleased that our
country leads the way in attracting foreign business and inward investment. We also recognise the need to create a fairer, more cohesive society. The user pays principle is at the heart of how we at Sanral propose to deliver major projects, and we believe passionately that it is the best way to support our economy and nurture our society. A fuel levy disproportionately punishes the poor.