SANRAL are responsible for 3,120km of tolled roads in SA, of which the Gauteng eToll roads account for 220km (185km tolled to date with the rest to follow)
ETC have the concession to run Gauteng eTolling, which includes managing and funding the highways under concession.
Who Owns ETC?
Much has been made of the South African ownership portion of ETC. Is it true?
Kapsch TrafficCom AG: 25% (Austria)
TrafficCom AB (Sweden): 40%
But TMT is 56,8% owned by local 100% Kapsch subsidiary KTCSA
So, in effect, Kapsch own 85% of ETC
I always maintain if you want to see the full picture, look at the money.
Follow the money
We'll start with total SANRAL expenditure on Toll roads for 2012/2013 financial year.
Remember, there is 3,120km of Toll roads under SANRAL management.
1,979km of roads at R1,46 Billion
571km of roads at R1,82 Billion
Total roads 2550km at R3,28 Billion
Was the other 18,2% (570km) of roads just ignored? Mmmm
For comparison here are the figures for non tolled roads
20,597km of roads at R3,7 Billion
2715km of roads at R5,9 Billion
Total roads 23,147km at R9,6 Billion
So, 25,4% of expenditure was on 9,9% of roads. This raises the first question. Are the toll roads just bigger, or is the profit far bigger for the concessionaires (potentially 50% plus gross profit margins)
NOTE: actual road network is 19,704km under SANRAL management, so you will see an overlap of capital an operational i.e. some sections have both a capital and operational expenditure, the rest just operational expenditure.
Now to the Income Statement
Tolled Roads: R2,1 billion from Tolls
Non Tolled Roads: R4,8 billion from Treasury (actual allocation R9 billion, less capitalisation deferred of R 5 billion see financial statements.
Remember that Gauteng Toll COSTS are included, but there is no income for the financial period quoted.
Finally Getting there!
So, we know that current tolling income on 2550km of roads is R2,1 billion. SANRAL have projected R2,5 billion from Gauteng Freeway Improvement Project etolling income.
Let's put that in perspective shall we?
FIFTY FOUR PERCENT (54%) of ALL toll income will come from just 8,6% of the total toll roads, which just happen to be the Gauteng freeway improvement project.
Now be good little citizens and go out and buy your eTags without question.
In the SANRAL strategic plan is to toll a possible extra 6,524km of roads, essentially TRIPLING toll roads. And people outside of Gauteng thought they were safe. How silly of them.
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