The article ‘City of Cape Town takes Sanral to court’ refers.
Please allow us to correct statements and clear up misconceptions around the proposed N1/N2 Winelands toll road project.
The article starts off by stating as a fact that road users in the Cape will be paying 72c/km – three times that of Gauteng tolls. The truth is that toll tariffs have not been set. They will be determined by the Minister of Transport on recommendation by Sanral, which must still negotiate the tariff structure once a preferred bidder has been appointed.
Councillor Brett Herron of the City of Cape Town, maintains the projected cost has escalated from R1,6bn in March 2000 to R44,9bn in March 2010. These figures are wrong. Mr Herron is misleading the public because he is deliberately confusing a predicted revenue stream over the concession period of 30 years with the initial cost of construction, which in 2010 terms, was estimated at R11,5bn. Mr Herron does not understand the envisaged upgrading and maintenance interventions at the initial construction phase, and expansion works after the initial construction years, such as years 10, 18 and 27, where the road will be once again fully rehabilitated and capacity improved before it is handed over to Sanral in 30 years. He is confused about income and makes no consideration to cost of works.
Regarding the statements by players in the tourism industry that it will be negatively affected if tolls are instituted, while there would obviously be a cost to road users, the benefits of having improved freeways around the City of Cape Town far outweigh the cost of a toll tariff.
The tourism industry would, over the long-term, benefit as the major freeways would not be congested as they are now. Tourists would spend less time on the current congested roads and get to their destinations faster. More than 165km of sections of the N1/N2 would have been improved with several new interchanges and an additional lane added in both directions (city-bound and out-bound), which would make for vastly improved traffic flows. At present, on many occasions, all lanes have to be closed when there are serious accidents. With new lanes added, this won’t happen.
In addition, improved road infrastructure helps solve both long-term and short-term economic problems. In the short-term investment in road infrastructure helps provide jobs for low-skilled workers. In the long-term it has a wide range of benefits, for example, multiplier effect (creates direct, indirect and induced jobs), improves productivity as commuters spend less time on roads, reduces congestion and carbon emission and benefits business by reducing transport costs. Mobility is fundamental to and an important characteristic of economic activity.
Vusi Mona
GM: Communications Sanral
