The document discusses the impact of e-tolls on development in Gauteng, South Africa. It summarizes that e-tolls were implemented to fund the Gauteng Freeway Improvement Project (GFIP) which upgraded roads to support economic growth. The GFIP reduced congestion and improved access, benefiting commercial and residential development. Studies found the GFIP created jobs and increased GDP, and that e-tolls provided savings through reduced travel costs and times that outweighed toll fees. The conclusion is that while e-tolls have some negative costs, the GFIP and tolls overall benefit the Gauteng economy.
2. Who we are
Established in 2010
Technology and toll collection
services for SANRAL
1,200 South Africans employed
Presently owned by Kapsch
SA Govt successful in bringing skills/
technology into the country.
3. The Cost of Road Congestion….
Source: INRIX Global Survey 2018
4. Recap: GFIP - the reason
why…
2004 Feasibility Study found
economic growth would slacken if
Gauteng did not upgrade its roads
Construction goals:
• improve interchanges
• reduction of cross road activity
• widening of bridges
• median lighting improvement
• improvement of road surface.
5. Recap: GFIP - The
Reason Why…
Traffic goals:
• Maintain growth trajectory of Gauteng
• Increase traffic capacity
• Reduce congestion
• Access for western and southern
Johannesburg underdeveloped peri-
urban areas
• Improving accident management
• Intelligent Traffic System > provides
information to road users
7. Midrand -
Development is
booming
Atterbury Group announced
construction of R800million
65,000 m² industrial park in Midrand
Midrand is a growing business node-
it benefits from excellent connections
to major transport routes, highway
visibility
8. Midrand - Waterfall
City development
980, 000m² gross leasable land
available for commercial and light
industrial development
Waterfall City development – Mall of
Africa = total retail area of 131 000m²
Largest single phase shopping mall in
SA
9.
10. Menlyn Park – total lettable floor
space of 117, 000m², 500 stores,
8,250 parking bays!
10 biggest shopping malls in SA are
found along the e-road that links
Pretoria, Midrand and Johannesburg
Lynwood Retail
Development is on the
up
16. Job creation
Jobs span across a wide variety of
different industries.
GFIP would contribute towards:
• Jobs in construction and operation of
road
• Indirect jobs
• Jobs created through increased
business and commercial
opportunities
• Estimated jobs created by GFIP
2012/2013: 2.1million
17. Economic impact analysis conducted by
SANRAL in 2013
Source: SANRAL Economic Impact Study
conducted by UCT School of Business
Indicators show that the project is economically viable and provides huge benefits to Gauteng and the country.
18. GFIP: Contribution Towards GDP
GFIP would increase
the GDP by over
R207billion by 2030
(Standish 2010,
p.89)
20. GFIP: Real Time Cost of Living Impact
Without the Upgrades:
• Cost of morning peak journey increases by R1.90/trip annually
• By 2018 morning peak hour costs an additional R9.51/trip
With the Upgrades:
• Morning peak hour savings in running costs of R19.54 in 2014
• 14 minutes in time savings
• e-tag tariff of R8.64/trip uncapped (Current cap of R266/month)
• Net out-of-pocket savings of R10.90/trip
Example: Soweto – Isando Commuters Trip in 2014
21. GFIP Phase 2: Cost Benefit
Analysis…
The BCRs indicate that for
every R1.00 spent on this
project society benefits by
between R8.10 and R8.40.
22. Estimated that if GFIP was fully operational business
time savings will increase from R3.27billion to
R7.69billion in 2030 (Standish et al 2010)
23. Conclusion
• GFIP provides meaningful out-of-pocket savings – R10.90/trip
• GFIP is economically efficient
• There are some area/times where costs exceed benefits.
• Mitigated by:
• Additional time of day discounts
• Completion of GFIP Phase 2
• Introduction of monthly cap of R276/month (from 1 March 2019)
• The Cost of Tolling:
• Total toll revenue very small compared to provincial GDP – 19 cents for every
R100 generated
• Total toll revenue very small compared to Gauteng household disposable
incomes – 25 cents for each R100 earned
• Very small impact on the cost of food – 4 cents to 17 cents for each R100
(excluding benefits)
• Tolls are progressive across income categories
24. +27 (0) 11 083 2030
coenie.vermaak@etcsolutions.co.za
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Editor's Notes
Transport infrastructure needs to ensure mobility of people, goods and services
1995 – 2001 increase in urban sprawl + drop in population levels of people living in central or inner urban areas.
Public transport ill equipped to provide services in less populated areas.
Public transport modal share dropped from 51% t0 38% since mid 1990s
At the same time car ownership rose globally at about 11%
Increase in cars + decrease in usage of public transport = increased congestion, slower travel times
Research shows that average travel time during peak drops below 20km/h = lack of mobility = impact on economic growth.
Transport infrastructure needs to ensure mobility of people, goods and services
1995 – 2001 increase in urban sprawl + drop in population levels of people living in central or inner urban areas.
Public transport ill equipped to provide services in less populated areas.
Public transport modal share dropped from 51% t0 38% since mid 1990s
At the same time car ownership rose globally at about 11%
Increase in cars + decrease in usage of public transport = increased congestion, slower travel times
Research shows that average travel time during peak drops below 20km/h = lack of mobility = impact on economic growth.