Taxation & Regulation News South Africa

E-tolls boycott hurts Gautrain's operations

More than R40bn has been spent but Gauteng transport chiefs are now coming to the realisation that the province's two flagship projects - the Gauteng Freeway Improvement Project and Gautrain - are not having the desired effect
The Gautrain Management Agency has expressed its disappointment at the boycott of e-tolls by commuters saying it had expected many more passengers to use its services once e-tolls were introduced. Image:
The Gautrain Management Agency has expressed its disappointment at the boycott of e-tolls by commuters saying it had expected many more passengers to use its services once e-tolls were introduced. Image: SA Transport

The two multibillion-rand projects seem to be working against each other, officials suggest.

Gautrain bosses recently told the provincial roads and transport portfolio committee that they did not initially view the upgraded freeways as a threat to the Gautrain. On the contrary, they had expected motorists to pour into Gautrain carriages as they battled to keep up with the rising cost of driving private cars on Gauteng's newly e-tolled freeways.

But this did not happen and indications are that it will not happen any time soon despite threats of prosecution as Gauteng motorists have stubbornly resisted paying their e-toll bills.

The SA National Roads Agency Limited is reportedly faced with R1.5bn in unpaid e-toll invoices as of this month.

E-tolls investigation

These details came to light during the first two weeks of submissions to the advisory panel set up mid-year by Premier David Makhura to investigate the social and economic effects of e-tolls on Gauteng's economy and residents.

Gautrain bosses said:"During the initial modelling process it was shown that the main 'selling' point of the Gautrain system, [was] that [it] would move commuters out of their cars and onto the trains.

"When the Gauteng Freeway Improvement Project was implemented it was not seen as a threat to the Gautrain as the perceived cost of private car use would go up by an estimated R1,200 or R1,500 a month through toll fees. This has not happened," they said.

They said that because of public pressure, concessions including capping monthly costs of e-tolls at R450, exemption of e-tolls for public transport and a three-year delay in implementing e-tolling had stifled the expected flow of motorists to the high-speed rail network.

Gautrain Management Agency spokesman Tlago Ramalepa said in July that between 56,000 and 58,000 passengers used the Gautrain on weekdays, with peak periods recording up to 62,000 passengers per day.

She said passenger numbers had increased by just 2.6% month-on-month since June 2012.

Source: The Times via I-Net Bridge

Source: I-Net Bridge

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