The Right Road

Nazir Alli, the CEO of the South African National Roads Agency Limited (SANRAL), recently visited the Durban Chamber of Commerce and Industry, Northern Area Business Forum for a breakfast presentation. In an entertaining and informative talk, Alli described the South African roads scene – the difficulties and opportunities facing the country and the rationale around tolls.

South Africa has the 10th longest road network in the world at a total of 750 000 kilometers. The length of surfaced road is 18th in the world at 153 000 kms split between National, Provincial and Municipal roads authorities. Of this SANRAL controls some 21 400 kms.

SANRAL has a distinct mandate – to finance, improve, manage and maintain the national road network - the ‘economic arteries’ of South Africa. It also has a role in the creation of opportunities for employment, business and tourism.

It attempts to achieve this mandate through the Government Grant for the non-toll networks and Toll Revenue (to be used on toll roads only). The funding for the 85% of SANRAL roads which are not tolled is R12.5bn for the 2015/16 financial year. The revenue from the 15% toll-roads (Agency and non-Agency) is spent on operations and maintenance. The backlog on the network to maintain our aging road system and keep place with development, is R197bn – up from R149bn in 2010.

SANRAL adds value to all the developmental initiatives in the fields of transport, education, health, environment and development of communities. They revel in their role as partners in the development of all South African communities and see this as closely aligned to their core function. All this is carried out with a staff of 300, supported by their consulting engineers and contractors.

Mr. Alli pointed out the economic burden already being carried by the residents of remote areas who pay more for their daily bread and for the higher maintenance of the vehicles on poor quality surfaced and gravel roads The cost of the sophisticated road systems around the major metropolitan areas has to be carried directly by the road users of these facilities - which cut significant travel times off their daily commute. The imposition of a fuel levy would be a double taxation on poorer communities far from the metropolitan areas. The situation is further compounded by any increase in the number of hybrid and electric vehicles which will pay less or no levy by nature of imbalance in the amount of fuel they buy.

In KwaZulu-Natal 396 kms out of a total of 1344 kms are tolled and we are seeing the impact that SANRAL’s completed and under-construction projects, such as Ballito Interchange, KSIA Interchange, uMngeni Interchange and Mount Edgecombe Interchange -are having. These projects are stimulating the local economy and maintaining reasonable travel times in the region.

With regard to the N2 Wild Coast project, upgrading existing sections of the N2 and R61 routes and to construct new sections of road linking East London with Durban, SANRAL is proceeding with a hybrid model.

The Wild Coast in the Eastern Province is one of the most beautiful parts of the country. However, it is also one of the poorest and would be well served by the development of a road system to encourage tourism and open up the region to economic opportunities. Local sentiment in favour of the project has grown significantly from 2010 to today and the communities are lobbying for the growth and development which will take place during and following this project. Those who are agitating to delay the Wild Coast project do not see the link with the job losses in the mining sector and the deepening poverty in the areas which the road is intended to traverse.

In conclusion Mr. Alli encouraged those present to engage with the local construction projects where they would be welcome to visit and obtain a greater understanding of the scale of the work and the role played by SANRAL in a project such as Mount Edgecombe Interchange.

Written by Brian Downie