#Gauteng Freeway Improvement Project

[annman]

Not here in the Western Cape. SANRAL's demise would suit us, our provincial roads are better maintained than national ones now. This mess is SANRAL's making, they are terrible at public-participation and stakeholder consultation. Their arrogance is coming back to bite them in the ass... Have no sympathy for them. But, it could be a disaster for northern provinces if SANRAL faces a capital crisis.

[juanw]

Maybe in Western Cape, but not in KZN (or in the Free State which I rode through during the holidays). The provincial roads here are atrocious, with the provincial department's annual report even stating that "the provincial roads department don't have enough budget to undertake grass cutting or line marking along their roads". I mean, wtf, KZN province doesn't even carry out these basic maintenance measures on their roads? Hardly any tender goes out from them, unlike the local SANRAL who has a tender going out almost weekly.

If SANRAL is devolved back to province, expect our highways to deteriorate back to garbage like the rest of KZN's provincial roads, or even converted back to gravel like what has happened in some instances. And don't even think about any new upgrades ever happening again.

That is why, choosing between Province and SANRAL for road infrastructure, I rather support SANRAL, which is the lesser of 2 evils; at least they are doing something unlike KZN provincial roads department.

[annman]

I definitely know that is a problem. SANRAL has actually been given jurisdiction over many previous provincial roads in many of the northern provinces, conversely, in the Western Cape, the PGWC actually refuses to give more roads over to SANRAL. SANRAL for example, has tried to acquire the R60 between Worcester and Swellendam, which the PGWC has flatly refused to hand over.

You look at the N1 outside of Cape Town, the N1 from Koeberg (M5) Interchange to Old Oak Rd is PGWC, beyond that is SANRAL. The PGWC portion is immaculate and extremely smooth. The SANRAL portion, particularly the N1 from the tunnel through to Worcester is uneven, patched up everywhere and in Worcester area, actually crumbling. New roads are actually being tarred in the Western Cape (R43 to Elim; R320 Hemel-en-Aarde; R364 Pakhuis Pass; Elandsbaai/Redelinghuys district routes) and satisfactory provincial roads with narrow shoulders being built-over to new, wide-shouldered highways (R44 Porterville;R43 Wolesley; R46 Tulbagh etc.).

That's what's concerning. The Western Cape only has the 3rd largest budget behind KZN and Gauteng (as far as I last recall); how can roads here be maintained and not in KZN or Gauteng, when larger portions of their roads are under SANRAL? Governance and wasteful expenditure issue of note!

But, your point is valid, without SANRAL up north, infrastructure could be in major trouble. However, I seriously doubt the national treasury will let SANRAL sink. However, this tough lesson may be just what SANRAL needs. It will teach both them and the Dept. of Transport that South Africans must be consulted when existing roads are simply declared toll roads. SANRAL has not been neither equitable, nor fair, nor transparent when it comes to their decisions to toll wherever they see fit.

Perhaps hereafter we'll still have a SANRAL, but a more cautious and considerate SANRAL, when it comes to engaging with communities and stakeholders.

[Lydon]

It's a pity that we've gotten to the point where we've got to pray for the survival of SANRAL because the idea of their demise is even more frightening.

[RYebreAD]

This is not unique to SA. Due to rising costs the world over, road agencies and municipalies are struggling to cover the cost of existing roads, let alone build new ones.

I personally cannot wait for roads to be outlawed and every cent to be spent on clean, safe and efficient public transport.

[annman]

Pipe dream though. Roads could never be "outlawed" in a sparsely populated country like South Africa or places like Australia or Argentina. We just need clean (non-fossil-fuel) personal transport for those who don't live in cities, efficient public-transit for urban-dwellers and for freight to be completely rail-focused.

[RYebreAD]

Very true... One can dream though.

With the dwindling of clean oil supplies and the inevitable increase in petrol costs, it may not be far off to say that in the near future, driving in private vehicles may well become nearly impossible. With the West waging a 'war on Iran', this may set the above in motion alot sooner.

This will affect our ability to invest in our road infrastructure, especially as SA relies on Iran for just under 1/3 of its oil needs.

There were studies done nearing the end of Apartheid, that if the country were to align its culture with the USA (suburbia, private vehicles, consumption) it would be disasterous for the country, especially since oil production peaked about 20 years before the end of apartheid. This means that, since that time, we will never be able to produce as much as we did at that stage.

You will thus see the oil price rise and people developing more alternative to private vehicle transport.

This is why I could not agree with you more Annman - 'clean (non-fossil-fuel) personal transport for those who don't live in cities, efficient public-transit for urban-dwellers and for freight to be completely rail-focused.'

[Hennie]

In Gauteng Sanral is not only doing a better job than the province, they are the only ones doing anything worthwhile.

Unfortunately while the freeways are now excellent the local road system has not been improved at all:
We have 4 lanes on the off-ramp to Gordon road in Roodepoort but Gordon Road itself is only 2 lanes (1 lane per direction).
There are Rivonia Rd, Witkoppen and William Nicol Rd: These urban roads are mostly either 2 lane (1+) or 4 lane (2+2) but being fed by an 8-lane freeway - on the freeway we now have 4-lane instead of 3-lane queues! In contrast: the much quieter south sees the benefit of the freeway improvements. Driving past Soweto in peak-hour is now a 120km/h pleasure where it used to be a 1st gear pain.

The biggest failure of the Gauteng province must be Hendrik Potgieter Road. This is a very busy and dangerous 2-lane traffic-light infested road (most of these intersections lack dedicated right-turn lanes, yet the speed limit is 90km/h). Hendrik Potgieter Road is the trunk link between Namibia/Botswana and Gauteng, is in fact partly a national road (N14), carries very high truck traffic and should have been upgraded to freeway status (even if it is tolled) decades ago. Instead in the last 30 years the only 'improvements' have been made by new shopping centres along the way which added another 1 or 2 traffic lights each (in one case a bridge).

The most notorious intersection on this road is with the R28 dual carriageway which comes down a long steep hill, crosses Hendrik Potgieter Rd via traffic light right at the bottom of the hill and then becomes a 120km/h freeway directly afterwards. Truck and bus brake failure is a major cause of accident and death here. For years residents have petitioned for a grade-seperated interchange so far without any success. (There was another accident there this morning claiming 3 lives)

In the north Sanral is doing great work!

[Urban Rambler]

Originally Posted by annman

We just need clean (non-fossil-fuel) personal transport for those who don't live in cities, efficient public-transit for urban-dwellers and for freight to be completely rail-focused.

+1. Spot on.

[juanw]

Yeah, its weird. We seem to be the exact opposite to the Western Cape.

Over here, its province's roads that are crumbling, while SANRAL continually maintains and widens their highways.

Originally Posted by Hennie

In Gauteng Sanral is not only doing a better job than the province, they are the only ones doing anything worthwhile.

Unfortunately while the freeways are now excellent the local road system has not been improved at all:
We have 4 lanes on the off-ramp to Gordon road in Roodepoort but Gordon Road itself is only 2 lanes (1 lane per direction).
There are Rivonia Rd, Witkoppen and William Nicol Rd: These urban roads are mostly either 2 lane (1+) or 4 lane (2+2) but being fed by an 8-lane freeway - on the freeway we now have 4-lane instead of 3-lane queues! In contrast: the much quieter south sees the benefit of the freeway improvements. Driving past Soweto in peak-hour is now a 120km/h pleasure where it used to be a 1st gear pain.

The biggest failure of the Gauteng province must be Hendrik Potgieter Road. This is a very busy and dangerous 2-lane traffic-light infested road (most of these intersections lack dedicated right-turn lanes, yet the speed limit is 90km/h). Hendrik Potgieter Road is the trunk link between Namibia/Botswana and Gauteng, is in fact partly a national road (N14), carries very high truck traffic and should have been upgraded to freeway status (even if it is tolled) decades ago. Instead in the last 30 years the only 'improvements' have been made by new shopping centres along the way which added another 1 or 2 traffic lights each (in one case a bridge).

The most notorious intersection on this road is with the R28 dual carriageway which comes down a long steep hill, crosses Hendrik Potgieter Rd via traffic light right at the bottom of the hill and then becomes a 120km/h freeway directly afterwards. Truck and bus brake failure is a major cause of accident and death here. For years residents have petitioned for a grade-seperated interchange so far without any success. (There was another accident there this morning claiming 3 lives)

In the north Sanral is doing great work!

[annman]

e-tag billing shock

January 17 2012 at 09:00am

INLSA
HARD SELL: Despite e-tolling on Gautengs freeways having been delayed last week, Sanral has continued encouraging motorists to register for e-tags, which could be illegal.



ANGELIQUE SERRAO

The SA National Roads Agency Ltd (Sanral) not only wants your money – it also wants access to all your bank details and financial accounts.

The Department of Transport postponed e-tolling on Gauteng’s freeways on Friday, weeks before the system was due to go live next month. This is the second time the department has suspended the multibillion-rand project.

Despite this, Sanral has continued its advertising campaign, encouraging motorists to register for e-tags. But the registration of the e-tags may be illegal in terms of the Consumer Protection Act.

This is according to various organisations who have analysed the terms and conditions of e-tag accounts.

At the centre of their concerns is clause 33 of Sanral’s terms and conditions, which states that: “The user hereby irrevocably authorises the Agency or its duly authorised agent to obtain from any institution where the user may have an account, or from any credit bureau, any information concerning the user. This clause constitutes consent and an instruction to each such institution to disclose such information to the Agency or its agent.”


Fine print: Customers should examine the e-toll contracts before signing. Picture: Timothy Bernard
INLSA
Dr Cliff Johnston, from the SA National Consumer Union (Sancu), said this goes against the Financial Services Act, which states that an institution may not request more information than is needed.

“So they may see if you have been blacklisted. But what if you have? Will that mean you won’t be able to register? Will you not be able to use the road then? How will Sanral deal with those cases?” Johnston asked.

Sancu intended to complain about the terms and conditions to the National Consumer Tribunal before the suspension. It is now planning to approach Sanral’s new board to point out the illegalities in the conditions.

Another contentious term, said Johnston, was that “Sanral’s information is correct unless you can prove otherwise. So if someone fraudulently copies your licence plate, Sanral will remove money from your account. How are you going to prove it wasn’t your car? This is illegal in terms of the Consumer Protection Act.”

Another controversial term was that you must supply Sanral with your bank account details, giving it access to debit money from the account “once the user’s e-toll account balance goes below the user’s predefined top-up threshold level”.

Johnston said Sancu was initially encouraging people to register for an e-toll account, but only on the prepaid option, without giving banking details.

“But we soon realised Sanral would not register you without your bank details.

“What if you are poor and don’t have a bank account? Does that mean you won’t be allowed to drive on the roads?”

For road users who do not register for an e-tag, Sanral’s terms are that motorists must pay for the toll within seven days or they will be punished. But Johnston said this was impossible as it would take far longer for the notice to be posted to you and payment made.

The DA has taken its concerns one step further by sending a complaint of infringements by Sanral to the National Consumer Tribunal in terms of the Consumer Protection Act

: that users have to give access to their bank accounts for unknown amounts; there is a high possibility of fraud as 10 percent of all licence plates are cloned or fraudulent; there is no clarity on how disputed amounts will be refunded; there are undisclosed administration fees (R5 for posted statements and 20c for each sms); identification by e-tag as opposed to number plate is unclear; and certain road users (minibus taxis and buses) are exempted, leading to unfair discrimination.

Sanral had not responded to queries at the time of going to print.

[annman]

Moody’s puts Sanral on notice

Moody’s is concerned that the South African National Roads Agency’s debts will soar after the postponement of freeway tolling in Gauteng

NICKY SMITH
Published: 2012/01/20 06:46:15 AM

MOODY’s Investors Service has placed the South African National Roads Agency (Sanral) on review for a possible downgrade on concern that its debts will soar after the postponement of freeway tolling in Gauteng.

Sanral incurred R20bn in debt to finance the Gauteng Freeway Improvement Project, which was to be repaid from the tolls. It intended to start tolling in June last year, but this was delayed, first until next month, and this week indefinitely because of public opposition. The company’s total debt burden is R32,6bn.

"According to the company (Sanral), cash on hand available to date will only cover operating costs and debt service until June 2012," Moody’s said yesterday.

The decision to indefinitely delay tolling "will likely exert pressure on the company’s cash flows and casts doubt on the government’s transport policy strategy", Kenneth Morare, Moody’s lead analyst on Sanral, said yesterday.

About half of the R20bn Sanral borrowed to help pay for the project has been guaranteed by the government.

Sanral has a global scale rating of A3 and a national scale rating of Aa2.za, according to Moody’s.

"The debt issue was the single largest contributor to the rapid increase in Sanral’s overall debt stock to its current level of R32,6bn from R6,2bn in 2007," Mr Morare said.

This debt "exerted significant pressure on operating margins and cash flows during the freeway project’s implementation phase" between 2009 and 2011, he said.

"Delays in the implementation of tolling operations prompted Sanral to issue additional debt in order to cover the financing shortfall, adding pressure on its already high financial leverage."

Sanral has had to cancel its plans to return to the bond market in March after an absence of six months. The agency had its first failed bond auction in September last year because of the uncertainty over tolling.

The agency had expected to generate about R300m a month from the collection of toll fees.

Department of Transport spokesman Logan Maistry said yesterday the government reiterated that Sanral’s loan would be settled. " Following the meeting between the board and the minister on January 12, the board is seized with the very serious matter of the e-tolls and the debt, and it will address all the issues pertaining to this matter and is exploring various options."

Sanral chairwoman Tembakazi Mnyaka yesterday declined to answer any questions on the Gauteng Freeway Improvement Project. The board is reviewing petitions sent to the transport department protesting against the tolls and calling for their abolition, scaling back or substitution with increased fuel taxes. She could not say when the board would hand its findings to the ministry.

Moody’s said it expected to conclude its review in the next four to six weeks. It "will focus on the assessment of the financial implications for the agency of any government decision on the future of … toll operations and on Sanral’s funding model".

It would also study the "ability of Sanral to consolidate its budget, so as to compensate for the associated loss in revenue and limit cash absorption and incurrence of borrowing".

smithn@bdfm.co.za

[Hennie]

Put up the petrol price in Gauteng sufficiently to cover the cost of this freeway improvements (and the next phase). We all benefit from it even if we dont drive on them. Then we would not have 'rat-running' on alternative routes and we are spared the mess of toll collection.
At least with Sanral we see the benefit of our money.

[Nostra]

I hate the way Sanral's being hug out to dry by our politicians, this populist decision is going to drive up the cost of all subsequent infrastructure roll out in this country...

[annman]

I would be happy with "Provincial Fuel Levies" imposed province-by-province to fund SANRAL and Provincial Transport projects within their boundaries and levied according to provincial needs, provided the levy is COMPLETELY ring-fenced for transport projects only!

None of this National Treasury kitty, then used for other nonsense.

SANRAL created their own monster. Although the politicians are now being lame-asses by claiming it's all SANRAL (they rubber stamped the tolls for years), the National Roads Agency has not followed transparent public-participation and stakeholder-input protocol; this in ALL provinces. The Winelands N1/N2 Toll Project was rife with accusations, communities left in the dark and WC Province and CoCT being shut out of having a say in the project and its economic/social implications.

SANRAL must unfortunately learn the hard way, but politicians must also not think we don't see their cowardice in partaking in these decisions, but now hanging SANRAL out to dry.

[annman]

SANRAL's Debt Guarantee

The Dept. of Transport has announced they will furnish SANRAL debt and make sure the parastatal remains afloat and meets its obligations.

[ToxicBunny]

*mutter*

I know this is necessary, but its a get out of jail free card for SANRAL

[Hennie]

I think if the 'padmakers' at Sanral had it their way they would have been far happier to get sufficient money from the State rather than resorting to toll roads. Very few of us who are used to 'pothole dodging' on provincial roads in Mpumalanga, etc would want to have the N roads look like that.

Next time when you drive from Cape Town to Jhb take the R717 between Colesberg and Bloemfontein (N6 after Reddersburg, the N6 part is fine). Better take an extra spare wheel or take it real slow. Now imagine driving like that for 1400km.

I am no SANRAL fanboy but I have seen provincial roads in the north where one makes better progress driving next to the road that on it.

[annman]

That is why there has been such a public outcry about tollroads. It has more to do with mistrust in government and disgrace in the lack of efficient tax-spend. Misappropriation of funds is so rife, SANRAL isn't getting funded the way it should and provinces are stealing money, not allocating it to infrastructure spend and maintenance.

Sorry to be the broken record and bring it up again, but to prove a point:
Western Cape: case-in-point! Why should we pay tolls when government steals the money!!! The Western Cape can do it, why can't other provinces? We know why... but the tax-paying public have had enough, and SANRAL was the metal rod the lightning of public disgrace struck. It's only a matter of time... if government does not clean up its act, the tax-payers are going to revolt; this is just the beginning if things don't change. ESKOM might be the next victim of civil disobedience.

In a constitutional democracy, if the government trounces the constitutional rule-of-law, it is the constitutional duty of citizens to break the law.

[annman]

E-tag conditions are illegal, unfair

February 6 2012 at 11:00am
By ANGELIQUE SERRAO

INDEPENDENT NEWSPAPERS

The terms and conditions motorists have to sign when registering for an e-tag to use Gautengs toll roads are not in line with the Consumer Protection Act.

The terms and conditions motorists have to sign when registering for an e-tag to use Gauteng’s toll roads are illegal and unfair – not in line with the Consumer Protection Act.

Today The Star can bring its readers a full response to the terms and conditions written by the Consumer Commissioner Mamodupi Mohlala.

This follows a dismissal by the South African National Roads Agency Limited (Sanral) of a story published in The Star two weeks ago. Sanral said the story was “emotive journalism which not only lacks substance but fails to provide any reasons for the allegations made”.

We asked the Consumer Commissioner for a full analysis of the terms and conditions, which Mohlala said were “excessively one sided in favour of the supplier, and as such are not in line with the spirit of the act”.

The Star reported that it was unfair that the e-tag conditions stated: “The user hereby irrevocably authorises the Agency (Sanral) or its duly authorised agent to obtain from any institution where the user may have an account, or from any credit bureau, any information concerning the user. This clause constitutes consent and an instruction to each such institution to disclose such information to the Agency or its agent”.

Sanral’s response:

Nowhere in the conditions does it indicate that Sanral would obtain more information than it otherwise needed. The information required may differ from person to person and accordingly the reason for the provisions of the clause. As to whether Sanral obtained more information than may be permitted is a factual issue which can be addressed at the relevant time. Such clause would not allow Sanral to transgress the requirements of legislation and Sanral would not seek to do so. Sanral and the institutions or credit bureaux from whom the information may be obtained are all subject to the laws of our country.

Commissioner’s response:

It is a gross violation of a consumer’s right to privacy if a service provider is allowed unrestricted access to a consumer’s accounts without any limit. There should be some restriction to the kind of information that a service provider may have access to as long as it relates to the nature of the account or to the core business. To be granted access to information beyond the nature of business amounts to abuse and is against the spirit of the legislation.

The Star reported if an e-tag account is not in credit it can be suspended or red-flagged without notice to the user.

Commissioner’s response:

It would be unfair to the consumer to have their accounts suspended or red-flagged without giving them notice and an opportunity to top up the account. The act promotes consumer rights to information; it requires suppliers of goods and services to always disclose information to allow consumers to make informed decisions. It is not enough that there are facilities where consumers can check their balances; it is the supplier’s responsibility to inform consumers about the status of their account before any action is taken. Suspension or red-flagging an account should be the last resort after the account holder has been notified about consequences in the event of failure to comply.

This point appears to also contradict Sanral’s response that road users without an e-tag must pay their tolls within seven days.

Sanral’s response:

A user who elects not to register has the responsibility to go to a customer service centre, after use of the toll road (but is granted a grace period of seven days within which to do so), and make payment of their toll charges. Users should not wait for a notice to be posted to them.

The Star reported that Sanral may change the terms and conditions and the user must be bound to the changes.

Commissioner’s response:

Terms that require consumers to waive their right are unfair and unreasonable and against the spirit of the act. To expect consumers to be bound by future terms and conditions is unfair and unjust and defeats the purpose of the act, which is to protect consumers against unfair business practices.

Under these terms and conditions consumers are left at the mercy of the supplier who can change conditions at any time; they have no recourse as they have committed to these terms. - The Star