Transcript Slide 1

www.salga.org.za
Impact of Gauteng e-Tolling
System on Gauteng Municipalities
and Communities
SALGA GP Chairperson
Cllr P Tau
1
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Contents
 Purpose of Presentation
 Background
 SALGA Mandate
 Impact Analysis
 Impact Assessment Outcomes
 Inputs from SANRAL
 Inputs from Municipalities
 Conclusion & Recommendation
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Purpose
To highlight the concerns of Organised Local Government
on the impact the e-tolling of the Gauteng Freeways on
municipalities and the communities that they represent
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Background
Previously SALGA Gauteng has engaged in number of
activities relating to etolls of the Gauteng Freeways:
•
In November 2011, GPG Petition committee held public hearings on etolls;
•
Presentation made to SANRAL highlighting impact of tolling on urban
areas;
•
Meeting held between Deputy President and Salga Chairperson;
•
In November 2012, comments submitted to NDT in response to published
etoll tariffs;
•
In November 2012, SALGA was successful in having a Clause included in
the South African National Roads Agency Limited and National Roads Act
pronouncing that studies should be done;
•
During 2013, SALGA GP conducted a study on the impact of the
introduction of etoll;
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SALGA MANDATE
SALGA
Mandate
Transform local
government to
enable it to fulfil
its
developmental
mandate.
Lobby,
Advocate &
Represent
Lobby, advocate,
protect and
represent the
interest of local
government at
relevant
structures and
platforms.
Employer
Body
Act as an
employer body
representing all
municipal
members and, by
agreement,
associate
members.
Support &
Advice
Capacity
Building
Build the capacity
of the municipality
as an institution as
well as leadership
and technical
capacity of both
Councillors and
Officials.
Support and
advise our
members on a
range of issues
to assist
effective
execution of
their mandate.
Strategic
Profiling
Build the profile
and image of
local government
within South
Africa as well as
outside the
country.
Knowledge
& Information
Sharing
Serve as the
custodian of local
government
intelligence and
facilitate intermunicipal peer
learning
The Voice of Local Government
The Voice of Local Government
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Role of SALGA
Outlined in the Constitution as including to:
• Represent, promote and protect interests of LG;
• Transform LG to be developmental;
• Enhance Role and Status of Municipalities;
• Represent municipalities in key IGR structures at both
provincial and national level;
• Position LG at the center of cooperative governance and
development;
• Deepen democracy and accountability at the local level;
• Optimize the governance system within municipalities.
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Scope of the SALGA Investigation
• Assess the extent to which tolling of the freeways to finance
Gauteng Freeway Improvement Project (GFIP) will affect
municipalities and municipal infrastructure.
• Assess the impact of tolling on municipal roads due to possible
diversion from freeways.
• Assess the socio-economic impact on rate payers and their ultimate
ability to pay for municipal services.
• Assess the impact of tolling on revenue generation capacity of
municipalities, including revenue from traffic law enforcement.
• Identify alternative ways of mitigating the negative effects of tolling.
• The investigation relies on readily available information and
datasets, as well as stakeholder interviews.
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IMPACT ANALYSIS
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SALGA impact analysis
The following areas were covered by the study
undertaken by SALGA to determine the impact of etolling of the Gauteng freeways.
 Quantitative: i.e. Fuel price hikes, household income &
expenditure, Socio economic and spatial mobility
 Qualitative : i.e. Interview with SANRAL, Interview with
municipalities:
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Questions posed…
 How does the municipality officially define impact in respect of
the freeway tolling scheme?
 What engagements has the municipality had with South African
Roads Agency Limited (SANRAL) in respect of the tolling
scheme?
 In relation to the above engagements with SANRAL, what written
submissions have been made by the municipality?
 What studies has the municipality undertaken to measure the
impact of the scheme?
 To what extent is the freeway tolling scheme taken into account
in the municipality’s integrated transport plan?
 How does the municipality currently budget for road network
maintenance?
 What systems does the municipality use to monitor traffic flow
changes, including heavy vehicles?
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QUALITATIVE IMPACT ASSESMENT
• Comparison with fuel hikes June 08 – March 13
• Commune travel time and household income
• Impact on household income & expenditure
• Spatial distribution of household income dociles
• Many to many trip origins and destinations
• Perceptions on use of public transport
• Spatial development patterns
• Potential traffic diversions
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Impact Assessment Outcomes Cont…
Fig 1: Fluctuations in inland fuel price changes
Data source: StatsSA, 2012
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Impact Assessment Outcomes
Comparison with Fuel price hikes from June ’08 –
March ’13
• Comparison is made between proposed toll tariffs and
fuel price changes;
• R1 increase in fuel – car operating cost increase by
10c/km
• Therefore a toll tariff of R0.54/km = fuel price increase of
R5.40/litre
The e-toll increases are approximately equivalent to
fuel prices between June 2009 and May 2012.
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Impact Assessment Outcomes Cont…
Fig 2: Toll impact analysis in terms of household income
deciles
Income
deciles
Average monthly
Income (Rand)
Household car
ownership
probability
Disposable
income (Rand)
Toll expenditure as
percentage of
disposable income
(54 cents/km)
Toll expenditure
as percentage of
disposable
income
(R450/month cap)
Decile 1
396
-1 462
3.7
-44%
-31%
Decile 2
1 119
-1 028
4.8
-63%
-44%
Decile 3
1 694
-898
6
-72%
-50%
Decile 4
2 354
-615
7.9
-105%
-73%
Decile 5
3 195
-272
10.8
-238%
-166%
Decile 6
4 409
180
16.2
360%
250%
Decile 7
6 464
688
26.8
94%
65%
Decile 8
10 444
1 712
45
38%
26%
Decile 9
19 130
4 606
71.2
14%
10%
Decile 10
50 398
17 390
93.7
4%
3%
Data source: StatsSA, 2012
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Household Disaggregate Analysis
Fig 3: Household Disaggregate Analysis
Income
deciles
Average
monthly
Income
(Rand)]
Household
car
ownership
probability
Disposable
income
(Rand)
Toll expenditure Toll expenditure
as percentage of as percentage of
disposable
disposable
income (66
income
cents/km)
(R550/month cap)
Decile 1
506
1.2%
-589
-134%
-93%
Decile 2
1 124
1.9%
-366
-216%
-150%
Decile 3
1 559
2.0%
-291
-273%
-189%
Decile 4
2 067
2.5%
-243
-325%
-226%
Decile 5
2 694
3.0%
13
6132%
4258%
Decile 6
3 579
6.0%
179
442%
307%
Decile 7
5 109
8.3%
660
120%
83%
Decile 8
8 149
19.1%
1 203
66%
46%
Decile 9
15 101
52.2%
1 730
46%
32%
Decile 10
47 562
82.0%
13 066
6%
4%
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Impact Assessment Outcomes Cont…
Impact of e-tolls on household income and
expenditure
• Household are divided into income deciles, low income
(decile 1) to highest income (decile 10).
• Deficit occur up to income decile 5 implying lowest
income household spend more than they earn
• Marginally affected are deciles 9 and 10 representing
20% highest income earning households.
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Development pattern in the province
Fig 4: Development pattern in the province
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Impact Assessment Outcomes Cont…
Fig 5: The relationship between commute travel time
and household income
Data source: StatsSA, 2012
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Impact of Spatial Development Patterns
• The many-to-many travel pattern, together with the perceived
general unavailability of public transport services, implies that
network tolling leaves many travellers with no option but to pay tolls.
•
Under these circumstances, tolls will not be perceived as a mobility
management instrument, but rather a pure income generation tool,
especially where an old pre-existing network is tolled.
• This is further exacerbated by development patterns in the province.
For example, Figure shows changes in built-up area in the province
for the period 1990 to 2009.
• What is evident from the figure is that most of the development has
been towards the periphery of municipalities.
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Fig 6: Income distribution
Medium income
group of interest.
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Who uses the GFIP network
Fig 7: Users are from many to many areas
(dispersed)
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Impact Assessment Outcomes Cont…
Socio-economic and spatial mobility impact based on
household travel survey
• Survey shows disproportionate relationship between
average one-way journey travel times and household
income.
• Travellers from high income households travel shorter
period than travellers from lower income household,
especially within ring road;
• Traveller from high income takes an average of 32
minutes, as compared to:
• Traveller from low income who takes an average of 75
minutes.
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Traffic distribution with no tolls on
improved network
Fig 8: Traffic Distribution with no tolls on improved
network
Without tolling, the GFIP has generally
improved operating conditions on
municipal roads
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Traffic distribution with tolling
Figure 9: Traffic Distribution with Tolling
With tolling, has some notable
impact on provincial roads, as well
as municipal roads, although not
severe in the peak
Adding some 3% to total household
expenditure in Gauteng Province
Some 7% increase in peak vehicle
hours
Relative to national network vehicle km
increase are 11% and 17% on provincial and
municipal roads respectively
Future impact more related to
land use development choices
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Relative industry impact
Fig 10: Relative industry impact
transport equipment
communication equipment
science equipment
leather
hotel
other industry
footwear
apparel
glass
electric machinery
non-ferous
water
machinery
print
gold
plastics
furniture
textile
beverage
electricity
metal product
vehicle
wood
rubber
construction
other chemical
other services
other producers
government services
transportation
paper
finance
nonmetal
food
communication
chemical
business
iron
agriculture
coal
petroleum
trade
other minerals
Industries that will be impacted directly include
agriculture, retail/wholesale trade, service
industries and government. A more thorough study
required to establish extent.
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1
2
3
4
5
6
7
8
9
10
11
12
13
Ratio sector input transport costs relative to input costs of the transport sector
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Latent demand for public transport
Fig 11 Latent Demand for Public Transport
Most travellers who do not use
public transport say they do not
use it because it is not available.
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Demand for Public Transport
•
Figure 11: summarises the main reasons disclosed by household members for not
using buses, trains and minibus taxis respectively, being the primary modes of public
transport in South Africa.
•
The main reason common among all the three modes is the unavailability of the
services at place of residence.
•
is followed by preference for a car as opposed to public transport. Figures 5.5 to 5.7,
in fact, show that availability, relative to other service quality attributes, is the main
reason for not using public transport. This may crudely imply that if public transport
was available, most of the household members would use it.
•
The many-to-many travel pattern, together with the perceived general unavailability of
public transport services, implies that network tolling leaves many travellers with no
option but to pay tolls.
•
Under these circumstances, tolls will not be perceived as a mobility management
instrument, but rather a pure income generation tool, especially where an old preexisting network is tolled. This is further exacerbated by development patterns in the
province. For example, Figure 5.8 shows changes in built-up area in the province for
the period 1990 to 2009. What is evident from the figure is that most of the
development has been towards the periphery of municipalities.
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QUALITATIVE IMPACT ASSESMENT
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Inputs from SANRAL
 A traffic monitoring system has been put in place to quantify
diversions. Indications are that after SANRAL network updates there
has been net diversion to the national network prior to the tolling
system becoming operational.
 Most of the tolled road network users are in higher income
categories. Also, most users will pay a small proportion of the
maximum monthly tariff.
 Very little road network capacity is being added by municipalities.
This in turn puts pressure on national network, where national roads
are increasingly being used for localised traffic. On the contrary,
national roads are primarily provided for national/long distance
traffic.
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Inputs from SANRAL Cont…
 Public transport is being accommodated by exempting it from tolls.
Parallel to this, treasury investments in high capacity public transport
is addressing public transport backlogs.
 Municipal emergency vehicles are exempted from the tolls.
 Municipal traffic law enforcement will not be barred from carrying out
enforcement on the tolled network and therefore their revenue from
law enforcement will not be negatively affected.
 If toll tariffs are set too low, the newly added road capacity will be
taken up too quickly by traffic because users will be less sensitive to
the costs.
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Inputs from Municipalities
All Gauteng municipalities were consulted and their inputs
are as follows:
• Municipalities were all concerned on the impact of diversion to
municipal roads during the initial consultations SANRAL was
requested to provide road network monitoring data, and report on
the extent of traffic diversions;
• SANRAL must implement mitigation measures if it becomes evident
that the scheme impacts severely on road network;
• The scheme presented an opportunity to promote public transport
and integrated transport planning and management;
• There were concerns on the impact on businesses and rate payers
within the jurisdiction of municipalities.
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Inputs from Municipalities Cont…
• Recommendations were made to SANRAL for inclusion of new
lanes on the road network which must be in the form of dedicated
High Occupancy Vehicle lanes.
• At the time of the interviews none of the municipalities had
incorporated GFIP in their Integrated Transport Plans (ITPs).
Legally, ITPs are supposed to be the only instruments through which
municipalities make formal interventions in their respective transport
system and budget accordingly.
• It is difficult to conclusively estimate the likely impact of diversions.
This is because most of the travel data in the province is available
only for the morning peak period, and also very little origindestination data exists for heavy vehicles. Additional surveys would
need to be carried out to be able to estimate the probability of
diversions.
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CONCLUSION
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Shortcomings of the DOT impact
analyses
•
Public engagement was relatively low key. For example, only 82 representations were
received for the toll declaration process in 2007 (Department of Transport, 2012).
•
The assessments did not explicitly take into account the historical socio-political context
of the urban region, including the travel patterns of different income groupings.
•
The analyses were undertaken at a highly aggregate level, for example, affordability
was assessed at the level of regional GDP as opposed to disaggregate household
income and expenditure patterns.
•
Alternative mobility solutions were not considered for the long term given that the road
capacity provided is still likely to be exceeded at some stage in the future.
•
The costs of secondary road impact were not explicitly quantified and taken into
account in the cost: benefit analyses.
•
The quantification of the impact of road traffic accidents that may be caused by
diverting traffic were not assessed, given that the secondary road network was built with
less stringent geometric and overall quality standards than the primary network.
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Conclusion & Recommendations
• The SALGA study shows that municipalities have
been concerned with the impact of e-tolling the
Gauteng freeways and communicated this to
SANRAL
• Tolling has increased traffic on municipal and
provincial roads.
• The e-tolls will impact mostly on the poor and the
high income group will be the least impacted
• From the graphic presentation shown it is clear that
e-tolling of the Gauteng freeways has a negative
socio-economic impact.
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Conclusion & Recommendations
Based on the analysis it is important that the following be
taken into consideration:
•
Consider the impact of the e-tolls on communities based on the the spatial
development patterns in the province.
•
Overhaul the funding model for transport infrastructure and services and
introduce funding options to fast-track sustainable transport interventions;
•
Integrated transport planning and management should be implemented;
•
Processes to establish the impact of current diversion onto municipal roads
should be instituted together with methods to ameliorate the impact once it
is found that the diversions have a significant impact on municipal
infrastructure and transport operations;
•
A need to indicate an acceptable methodology for planning and
implementing open road tolling; and
•
Consider a person- and goods (freight)-based corridor capacity design as
opposed to vehicle-based capacity designs.
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THANK YOU