GAUTENG FREEWAY IMPROVEMENT PROJECT E-TOLL NEW DISPENSATION PRESENTATION

GAUTENG FREEWAY IMPROVEMENT PROJECT E-TOLL NEW DISPENSATION PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRANSPORT 09 JUNE 2015

Principles Agreed • The principles agreed to are: – The user-pay principle remains in place as per panel recommendation – New payment options will safeguard the integrity of the fiscus and, in particular, SANRAL’s ability to raise funds to meet its obligations – Equity considerations remain critical to protect the poor and the lower middle class. – Decongestion in the Gauteng freeway network and encouraging people to use public transport remains the principal objective of GFIP

NEW DISPENSATION • Comprise of 7 recommendations: – Registration – Tariffs – Reduced monthly caps – Infrequent user regime – Limit of travel costs – Discount: Outstanding debt – Compliance 3

It is not a new tariff structure an amnesty for unpaid e-toll bills a model that reduces payable e-toll fees a system that does away with e-tolls an equitable system where the user benefits and pays a system where those that do not use the roads have to pay a simplified model as the many tariffs from a complicated model that will make things the previous system, have been reduced more difficult for you to a standardised rate of 30 c per kilometre (light vehicles) a system that retains all benefits: multiple a system that restricts benefits to only lanes, alternate routes, lessened those who pay congestion, improved safety, freeway lighting, cameras to monitor incidents and improved responsiveness; and stimulates economic growth and development a system that is affordable with a reduced a system that burdens the poor monthly maximum cap for all users a system where infrequent users – less than 30 gantry passes per year – do not have to pay anything a system where a visit or two to Gauteng using the network requires you to pay 4

Recommendation 1: Registration Two types of registration possible: – Direct Registration: entails providing SANRAL with contact details, a preferred communication method i. e. email/sms/post which reduces administration costs and reduces billing errors (cloned/duplicate plates, illegal vehicles on the road, etc. ) – Indirect Registration: Users registered via the vehicle registrar (NATIS) details without a direct/automated payment method. Can use other SANRAL payment options but can also: • Pay toll when renewing vehicle licences at vehicle licensing offices • Pay toll when renew vehicle licenses at SAPO • User becomes responsible for additional 5 administration costs and fees

Recommendation 2: Tariffs • All users will now only be liable to pay the e-tag tariff for the different vehicle classes. • The previous Standard Tariff and Alternate Tariff will fall away. • There will therefore be one tariff that will be referred to as the User Tariff as follows: – Class A 1 (motorcycles): 18 c/km – Class A 2 (light vehicles): 30 c/km – Class B (medium heavy vehicles): 75 c/km – Class C (large heavy vehicles): 150 c/km 6

Recommendation 3: Reduced monthly caps • To reduce monthly caps for compliant users for different vehicle classes as follows: – Class A 1 (motorcycles) from R 250 to R 125 (50 % reduction); – Class A 2 (light vehicles) from R 450 to R 225 (50 % reduction); – Class B (medium heavy vehicles) from R 1750 to R 875 (50 % reduction); – Class C (large heavy vehicles) from R 3500 to R 2900 (17 % reduction) 7

Recommendation 4: Infrequent User • Introduce a new category of user: the infrequent user making thirty (30) or less gantry passes per annum: – This category of user will not be charged for the payment of tolls if making 30 or less gantry passes per annum – The user will become liable for payment of the first thirty (30) gantry passes as well if the user makes more than thirty (30) gantry passes per annum 8

Recommendation 5: Limit Travel Cost • All users who do not pay toll within the required period (30 days after the date of the toll invoice) will be obliged to pay a higher tariff which amounts to double the toll tariff. • These user’s monthly toll will be capped as follows: • Class A 1: R 250, • Class. A 2: R 450, • Class B: R 1 750 and • Class C: R 5 800 • This higher cap provides certainty in terms of the maximum toll payable per month, and serves to protect users from incurring high amounts of debt. 9

Recommendation 6: Discount: Outstanding Debt • The existing outstanding e-toll fees since December 2013 that is already payable at the Alternate Tariff – R 1, 74/km for light vehicles reduced to approximately 70 c/km (60% discount) • A six month window for payment at this tariff shall be available to the public • Those that have paid are not compromised by this discount (30 c/km e-tag tariff and 58 c/km standard tariff for light vehicles) 10

Recommendation 7: Compliance • Improved Compliance: – The failure to pay the outstanding toll debt should result in motor vehicle license disc not being issued until outstanding toll is paid – Accordingly, Users will be required to pay the outstanding toll and any outstanding toll related administrative fees when renewing license fees 11

Hybrid Model • The loss in revenue to SANRAL as a result of the revised tariff structure will be funded jointly by the Gauteng Province and National Government • Hybrid = GP + National Government + User 12

Reduction in Revenue Shortfall: Direct costs recovered from User • SANRAL previously applied the higher alternate tariff to recover additional administration costs related to users not directly registered with SANRAL – this in order to prevent registered users from subsidising others for additional administration and non-compliance costs • In terms of the new dispensation, users should remain responsible for the additional costs related to admin, late payment, fees, non-compliance 13

Implementation • Lead times for implementation: ü Caps and single tariff, 10 to 12 weeks ü Payment of historic debt at 60% discount on Alternate Tariff, 3 to 4 months ü Thirty gantry passes, long lead time up to 18 months ü System with SAPO and vehicle license offices integration 6 - 12 months ü Blocking of license disc renewal – 9 to 12 months ü FICA facilities at SANRAL kiosks, online option enquire, road traffic regulation – October 2015 • Legislative changes will follow due process 14

Thank You 15