Proposed toll fee equivalent to doubling fuel price

Published: 2010/05/28 10:14:29

JOHANNESBURG - The toll fee proposed by the SA National Roads Agency Limited (Sanral) would be equivalent to doubling the fuel price, the Road Freight Association (RFA) said on Friday.
"Not only this, a number of small enterprises are set to be put out of business, as government continues to target motorists and truckers as an easy source of revenue for its road infrastructure development plans," Gavin Kelly, technical and operations manager for the RFA, said in a statement.
The RFA warned of even higher inflation rates, if Sanral's plans to levy a hefty toll fee on new and future toll roads were implemented.
Kelly said operators would be forced to pass the increased costs on to the consumer, fuelling inflation and leading to increases in the price of goods.
"Transport costs will increase by at least these margins and operators will have to factor in some sort of administration process within the businesses, which will incur an added cost and will be added into the transport cost paid by the customer."
Kelly said once again the small and micro-sized trucking companies would be most severely affected by the high cost of toll fees.
"The largest increase in real costs of transport will occur in the smaller category of vehicles -- express parcels, door-to-door deliveries, supplying of smaller retailers and short-haul deliveries."
These increases ranged from between four to eight percent and
would jeopardise operations.
"Many of them may go out of business as a result of their tariffs being too bitter for customers to swallow."
Kelly said the 25 percent discount bandied about, but not guaranteed, by Sanral would probably be negated by the hidden administration costs that operators would incur to manage the system.
Over 40 tolls are planned across all of Gauteng's freeways from April 2011.
From Soweto to Sandton, West Rand to East, and Johannesburg to Pretoria, tolls will be situated on average every 10 kilometres.
"We are already paying towards roads with the fuel levy, licence
fees and income tax," Kelly said.
"Where does this money go? It definitely is not used for the
very source it is collected from."
-Sapa

The Citizen

Comments by Sonny

The ANC does not stop stealing our money!!

They should all be redeployed - to HELL!!