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Fin24 user Laurie Searle believes there is a huge discrepancy between the e-toll rate charged on Gauteng freeways as opposed to billing for other tolled freeways. He writes:
I am responding to Jason’s open letter to Mr Ali as published on May 14,2014.
I believe a very important point is being missed altogether. What needs to be investigated is the rand cost (R) per kilometre that is being billed on the e-tagged freeways as opposed to the rate that is being billed on other tolled freeways.
Billing points
There is a huge discrepancy in the rate per kilometre when comparing the tolls levied on the N1 from JHB to Cape Town (R89.00 before the increase for approx. 1 400 kilometers), N3 Jhb to Durban, N1 Jhb to Polokwane and on the N4 from Pretoria to Nelspruit.
If my calculations are correct, the average R per kilometre billed on the Gauteng freeways (e-tag) is about R0.30 per kilometre or in some cases higher if you look at individual billing points, whereas the rate billed on other freeways is approximately R0.05 or lower per kilometre.
This is based on sedan rates.
Tender
Why are these rates so high in Gauteng? Surely the cost of construction remains relatively constant wherever the construction or upgrades are undertaken.
Was there price fixing by the construction companies when this tender was awarded?
What about infrastructure that has been in existence for more than 20 years? Why is there not a reduction in the rate as the capital investment has been recovered?
Process
A complete review and analysis of the entire roads development plan needs to undertaken so that a clear picture can be established and excessive overcharging can be eradicated.
I have not mentioned anything about the e-tag billing process as I believe that it is common cause that it is inefficient and should be scrapped.
I trust that this is a useful contribution to the fight against e-tags and the billing process.
Laurie Searle
* Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
I am responding to Jason’s open letter to Mr Ali as published on May 14,2014.
I believe a very important point is being missed altogether. What needs to be investigated is the rand cost (R) per kilometre that is being billed on the e-tagged freeways as opposed to the rate that is being billed on other tolled freeways.
Billing points
There is a huge discrepancy in the rate per kilometre when comparing the tolls levied on the N1 from JHB to Cape Town (R89.00 before the increase for approx. 1 400 kilometers), N3 Jhb to Durban, N1 Jhb to Polokwane and on the N4 from Pretoria to Nelspruit.
If my calculations are correct, the average R per kilometre billed on the Gauteng freeways (e-tag) is about R0.30 per kilometre or in some cases higher if you look at individual billing points, whereas the rate billed on other freeways is approximately R0.05 or lower per kilometre.
This is based on sedan rates.
Tender
Why are these rates so high in Gauteng? Surely the cost of construction remains relatively constant wherever the construction or upgrades are undertaken.
Was there price fixing by the construction companies when this tender was awarded?
What about infrastructure that has been in existence for more than 20 years? Why is there not a reduction in the rate as the capital investment has been recovered?
Process
A complete review and analysis of the entire roads development plan needs to undertaken so that a clear picture can be established and excessive overcharging can be eradicated.
I have not mentioned anything about the e-tag billing process as I believe that it is common cause that it is inefficient and should be scrapped.
I trust that this is a useful contribution to the fight against e-tags and the billing process.
Laurie Searle
* Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
