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

It is 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 the previous system, have been reduced to a standardised rate of 30c per kilometre (light vehicles) a complicated model that will make things more difficult for you a system that retains all benefits: multiple lanes, alternate routes, lessened congestion, improved safety, freeway lighting, cameras to monitor incidents and improved responsiveness; and stimulates economic growth and development a system that restricts benefits to only those who pay a system that is affordable with a reduced monthly maximum cap for all users a system that burdens the poor 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

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 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 A1 (motorcycles): 18c/km Class A2 (light vehicles): 30c/km Class B (medium heavy vehicles): 75c/km Class C (large heavy vehicles): 150c/km

Recommendation 3:Reduced monthly caps To reduce monthly caps for compliant users for different vehicle classes as follows: Class A1 (motorcycles) from R250 to R125 (50 % reduction); Class A2 (light vehicles) from R450 to R225 (50 % reduction); Class B (medium heavy vehicles) from R1750 to R875 (50 % reduction); Class C (large heavy vehicles) from R3500 to R2900 (17 % reduction)

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

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 A1: R250, ClassA2: R450, Class B: R1 750 and Class C: R5 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.

Recommendation 6: Discount: Outstanding Debt The existing outstanding e-toll fees since December 2013 that is already payable at the Alternate Tariff – R1,74/km for light vehicles reduced to approximately 70c/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 (30c/km e-tag tariff and 58c/km standard tariff for light vehicles)

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

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

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

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

Thank You