PRESENTATION TO NATIONAL TRANSPORT PORTFOLIO MEETING 15 February 2011 PROPOSED N2 WILD COAST TOLL ROAD PRESENTATION TO NATIONAL TRANSPORT PORTFOLIO MEETING 15 February 2011

NATIONAL TOLLROAD NETWORK STATUS QUO Province Mainline Ramp Eastern Cape 1 Western Cape 1 (+4xN1/2 Toll) - (Approx 4 Winne) Northern Cape - Free State 3 (+ 2xR30) Mpumalanga 3 North West 2 Gauteng 9 (+ 51xGFIP) 15 Limpopo 4 KZN 7 14

KWAZULU NATAL NATIONAL ROAD NETWORK - STATUS QUO ROUTE DESCRIPTION LENGTH Non-Toll Toll R61 Port Edward to Port Shepstone 24km 21km R22 Hluhluwe to Mozambique Border 170km P720 N2 to Golela Border 10km N2 Brooksnek to Port Shepstone 136km Port Shepstone to Hibberdene 27km Hibberdene to Mdloti 117km Mdloti to Empangeni 138km Empangeni to Mpumalanga Border 250km N3 Durban to Paradise Valley 9km Paradise to Key Ridge 20km Key Ridge to Cedara 62km Cedara to van Reenen 151km N11 Bergville Interchange to Volksrust TOTAL EQUATES TO 27% OF NETWORK 948km 356m Additional 102 kilometers of toll road will increase the tolled network to 458kms which equates to 35% of the national road network

KWAZULU NATAL TOLLROAD NETWORK CURRENT TOLLS Mainline Toll Plazas Durban- KZN Border (N3) Class 1 Class 4 Mariannhill 7.50 26.00 Mooi Plaza 32.00 149.00 Tugela 46.00 165.00 Totals R85.50 R340.00 Durban- Richards Bay Tongaat 7.00 28.00 Mvoti 8.50 45.00 Mtunzini 29.00 93.00 R44.50 R166.00 Durban- Port Shepstone Oribi 18.00 74.00 R18.00 R74.00 TOTAL TOLL FEES R148.00 R580.00 Additional ramps tolls Mandini 4.50 14.00 Dokodweni 12.00 39.00 Bergville

PROPOSED N2 WILD COAST TOLL ROAD Length 560 km 9 Major Bridges

STATS KZN EC Length (km) 150 410 % Length 27 73 Cost (billions) R2 R7 Mainline Tolls 3 4 Ramp Tolls 22 2 Toll ratio 1 Proposed Toll Fees R61.00 R260.00

Toll Sites and Traffic Volumes

BACKGROUND Government’s Wild Coast Spatial Development Initiative (1997) focused on a developmental strategy which could address poverty, create jobs and uplift communities of the impoverished Wild Coast area. The strategy sought to extend the development corridor running along the South Coast of KwaZulu-Natal into the Pondoland area and ultimately link this with the Garden Route. The strategy entailed the conservation of the natural and cultural heritage of the Wild Coast through the establishment of a conservation area, focused on people and their sustainable use of the area’s assets.

BACKGROUND Cont. Submission of original EIA report – 28 February 2003 Record of Decision granted by Department of Environmental Affairs and Tourism (DEAT) on 3 December 2003 was appealed. Appeals upheld by Minister of Environmental Affairs and Tourism on 9 December 2004. Result of conflict of interest by environmental consultant

BACKGROUND Cont. Submission of final EIA report – December 2009 Record of Decision granted by Department of Environmental Affairs and Tourism (DEAT) on 19 April 2010. Appeals were submitted to the Minister of Environmental Affairs and Tourism by all stakeholders Awaiting final decision by the Minister

WHY THE N2 WILD COAST TOLL ROAD PROJECT? Improve the road network between East London (Gonubie Interchange) and Durban (Isipingo Interchange) Improved, shorter and safer road for all with a distance saving of +/- 75 km Provide mobility and access to economic activity along the Wild Coast

SOCIAL & CULTURAL ISSUES Limited capacity improvement to KZN Isipingo – Winklespruit section (15 km) Increase in capacity by adding an additional lane for only some 10 kilometers from Isipingo to the Amanzintoti River. The significant traffic volumes on this short section. (2.7% of the total length of 560kms) will have one mainline toll and 6 new ramp tolls which will generate the highest toll income along the route.

SOCIAL & CULTURAL ISSUES Cont. Winklespruit - Southbroom section (112 km) No capacity improvements One new mainline toll plaza at Park Rynie and 10 new ramp tolls. Southbroom – Mthamvuna River section (23 km) Improvement of intersections only Additional 6 ramp tolls

SOCIAL & CULTURAL ISSUES Cont. The Isipingo Toll Plaza will process the highest traffic volume in the country, which will lead: to traffic delays increased air pollution Will escalate transport costs to the commuters discourage economic development

SOCIAL & CULTURAL ISSUES Cont. Increasing the cost of transport and specifically Public transport as due to the user pay principle these costs will be passed onto the commuters who are the poorest of the poor. In KZN the route is not promoting rural development as it follows the coastline which is an already developed area.

SOCIAL & CULTURAL ISSUES Cont. The proposed alternative utilizing the R102 is not suitable for high volumes of traffic as: traverses through densely built up commercial and residential areas which would result in severe congestion damage to the road impact on traffic and pedestrian safety along the route

SOCIAL & CULTURAL ISSUES Cont. Anticipated increase of traffic on R102 to avoid the tolls R102 Joyner Road – Prospecton Road increase of 74% R102 Joyner Road – Dickens Road increase of 273% R102 Park Rynie – Pennington section increase of 62% Will result in the R102 having to be upgraded to accommodate these higher volumes and this cost would have to carried by the local municipalities and the Provincial Department of Transport.

ECONOMIC CONSEQUENCES The impacts of the following need to be considered. The effect the tolling will have on eThekwini integrated transport system (port, rail and road). The relocation of the Airport (KSIA) to the north of Durban and the change of traffic around the old airport (DIA) site.

ECONOMIC CONSEQUENCES Cont. Increase in the transport cost for business which will increase operating costs and will increase commodity prices. Discourage economic development as industry and commercial business will move to other areas to avoid the toll costs

ECONOMIC CONSEQUENCES Cont. The addition of these toll roads may have a negative impact generally on tourism because of the total cost of tolls from N2 North as well as N3 coming from Gauteng. It may become very expensive for tourist who may then choose other destinations.

Conclusion The proposed Tolling of N2 Wild Coast Road was tabled at the Transport Portfolio Committee and rejected It was referred to Cabinet for a decision by the EXCO To support the development of the new corridor.

Conclusion cont. However KwaZulu-Natal motorists should not subsidise the road in the Eastern Cape. Therefore the establishment of additional Tolls on the KZN section of the proposed road is not supported.

Thank You QUESTIONS AND ANSWERS