http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.06
R/$ = 11.58Change: 0.00
Au 1263.14 $/ozChange: 3.84
Pt 1230.00 $/ozChange: 12.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Constitutional Court asked to set aside Gauteng e-toll interdict

Back
Africa|Lighting|PROJECT|Resources|Road|Roads|South African National Roads Agency Limited|System|Africa|South Africa|Constitutional Court|E-tolling|Energy|Maintenance|Transport|Bill Prinsloo
Africa|Lighting|PROJECT|Resources|Road|Roads|System|Africa|||Energy|Maintenance|Transport|
africa-company|lighting|project|resources|road|roads|south-african-national-roads-agency-limited|system|africa|south-africa|constitutional-court-facility|e-tolling|energy|maintenance|transport-industry-term|bill-prinsloo
© Reuse this



The National Treasury, along with the South African National Roads Agency Limited (Sanral) on Wednesday moved to have the temporary interdict, restraining the tolling of some of Gauteng's freeways, set aside in the Constitutional Court until the full review of the system in November.

Attorneys representing the parties reiterated that the interdict, brought against Sanral by the Opposition to Urban Tolling Alliance (Outa) and handed down by North Gauteng High Court Judge Bill Prinsloo in April, placed pressure on Sanral's ability to meet the debts incurred during the upgrading of Gauteng's highway and caused irreparable harm to the company.

Outa sought an interdict while challenging Sanral's funding model, in efforts to resolve issues surrounding the way in which the agency would collect the toll fees on the highways making up the Gauteng Freeway Improvement Project (GFIP) and the costs related to the collection, before the system went live.

The National Treasury and Sanral stated that it was unrealistic to halt what was ready to generate revenue pending reviews and that the judge should have run scenarios outlining the harm that could actually be done to the opposing parties should the tolling start, as well as the damage Sanral could face if the tolling was halted.

In its appeal documents to the court, the National Treasury requested the court to determine whether the High Court applied the correct test in granting the interdict, as it believed that it was inconsistent with the separation of powers. Sanral believed that the court should have placed all its energy into pushing the review and declined the interdict.

The agency also reported that the suspension of the tolling of the upgraded highways also resulted in a Moody's downgrading of the agency, reputational harm for South Africa and obliged the government to relocate resources and revise public finances, leading government to reduce expenditure in other areas to offset the revenue loss.

However, Outa believed that, while there were consequences such as lost revenue and the possibility of the National Treasury having to find the funds to maintain Sanral's debt, the interim interdict was not causing the agency irrepairable harm or even more harm than any other standard interdicts ordered in other cases.

Outa stated that the interim order was not the reason for Sanral's harm, but that it was a number of external factors, including a lack of readiness to implement tolling seamlessly and requirements for amendments of related legislation, besides others.

Responding to questions by deputy chief justice Dikgang Moseneke surrounding Sanral's delayed implementation on four previous occasions, its legal team argued that, despite costing about R2.7-billion, the bulk of the suspensions were to ensure sufficient public participation and once owing to technical difficulties.

But Sanral's representative stated that, while the system may hold some imperfections, it was ready to go and could be generating revenue in the interim, particularly as the legal matters were not expected to be concluded before the end of 2012 and into late 2013.

Further, defending its stance on the user-pay model, Sanral noted that the implementation of a fuel levy or other alternative means of tax was inefficient as the funds meant for the maintenance of roads would compete with government's other social and economic expenditure responsibilities.

The agency noted that the implementation if a higher fuel levy, for example, would burden the country's economy, would raise transport costs, result in shifts in consumption and production choices, penalise those with less efficient vehicles and affect those in other regions that would not benefit from the use of the upgraded highways.

It was also stated that 94% of the e-tolling revenue was expected to be sourced from the 'top quintile of Gauteng income earners' and that a month-long dry run in June found that 91% of the users would pay less than R200 a month. Less than 0.2% may reach the R550 limit.

Sanral predicted a compliance rate of 93% and a recovery rate of 40% from noncompliant users, adding that it was addressing the manner on which 'deviants' would be dealt with to avoid the clogging of courts through enforcement. However, Sanral was confident that, generally, ordinary citizens would abide by the law.

The toll collections were estimated to cost about 25% of the overall cost of the project over a period of 25 years.

In its appeal affidavits, Sanral outlined that the GFIP would cost R71.4-billion over a 24-year period. This cost encompassed R20.6-billion for the repayment of initial capital costs, R10.6-billion for road maintenance, R6.2-billion for violation processing centre capital and operating expenditure, R12.2-billion for toll-related capital and operating expenses, R1.7-billion for other operational expenses such as freeway lighting and R20-billion for interest during the 24 years.

However, there was no way to determine whether this was unreasonable when compared with general economic improvements and social benefits, including skills and jobs.

The agency stressed that the opposition should have challenged the e-tolling approach while the project was still in its infancy, as the funding mechanism was an integral part of a project and delays in implementation when the project was complete were costly.

A Constitutional Court decision would follow.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
An Airbus A400M (with a Cessna Citation business jet in the foreground)
Updated 13 minutes ago Yet further delays in the production and delivery schedules for the Airbus A400M military airlift and air-to-air refuelling aircraft have led to a major shake-up at Airbus Defence and Space, the Airbus Group company responsible for the aeroplane. The changes were...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
Germany will soon be home to some of the hottest and coldest temperatures, most arid and humid conditions, hurricane force wind speeds, and highest altitudes to be found on the planet, courtesy of a new climatic test centre being built by Ford at its engineering...
More
 
 
Latest News
An Airbus A400M (with a Cessna Citation business jet in the foreground)
Updated 19 minutes ago Yet further delays in the production and delivery schedules for the Airbus A400M military airlift and air-to-air refuelling aircraft have led to a major shake-up at Airbus Defence and Space, the Airbus Group company responsible for the aeroplane. The changes were...
Updated 43 minutes ago Kenya's government will inject 500-million shillings ($5.5-million) to bail out cash-strapped Mumias Sugar, Felix Koskei the agriculture minister said. The cash is meant to help turn around struggling Mumias, which accounts for close to a third of Kenya's annual...
Updated 1 hour ago Ghana's new oilfields are on schedule to start production next year as development has passed the half-way stage, lead operator Tullow Oil said on Thursday. The offshore Tweneboa, Enyenra and Ntomme (TEN) project, which will have a peak production capacity of 80 000...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks