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    • Operation Roads Toll Roads South Africa

    The Operation of Roads and Toll Roads in South Africa 2024

    Phila Rulashe | South Africa | 20 August 2024

    The Operation of Roads and Toll Roads in South Africa 2020

    Liz Kneale | South Africa | 25 October 2020

    The Operation of Roads and Toll Roads in South Africa 2015

    Ian Peddie | South Africa | 22 July 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the operation of roads and toll roads in South Africa includes information such as the size of the national road network, major road projects, budgets, road conditions, performance indicators, safety, and other key trends and issues. There is information on notable players and influencing factors including environmental issues and technology, research and development. There are profiles of nine companies including state-owned SANRAL, and the major players and toll concessionaires such as Bakwena, the N3 Toll Concession, Entilini and Trans African Concessions,

    Introduction

    • South Africa has a road network of 750,000km. \r\n
    • Of the 618,081 proclaimed roads, 4% is administered by the South African National Road Agency (SANRAL) and is largely made up of national roads. \r\n
    • Most roads are administered by provinces, metros and local municipalities.\r\n
    • Just under 90% of the SANRAL national road network is in a fair to very good condition, although a lack of good maintenance has led to a backlog of R75bn. \r\n
    • Road infrastructure is deteriorating due to the increasingly high volume of freight transported by heavy trucks instead of rail. \r\n
    • The closure of oil refineries has led to increased imports of bitumen, a critical input material for road construction.

    Trends

    • A decline in the number large and medium size construction companies and shrinkage of the construction industry in the last decade.
    • Low economic growth putting pressure on availability of funds for infrastructure development.
    • Road maintenance backlog leading to a deterioration in the secondary and tertiary network.

    Opportunities

    • Adoption of environmentally friendly practices such as the use of recycled materials for road construction and rehabilitation.
    • Better efficiencies and contract management of road projects.
    • Greater use of public private partnerships.
    • Provincial and municipal road improvement.

    Challenges

    • A decline in the number of oil refineries resulting in increased imports of bitumen.
    • Budget reductions .
    • Lack of reliable and current data on provincial and municipal road infrastructure.
    • Limited capacity of road authorities to implement projects and manage road networks.
    • Loss of construction capacity and expertise.
    • Threat from Chinese companies penetrating the local market.

    Outlook

    • The outlook for the roads and toll roads subsector of the construction industry hinges on the extent to which government can implement infrastructure development. \r\n
    • Slow economic growth will continue to put pressure on already reduced budgetary allocations.\r\n
    • SANRAL’s long term strategy attempts to address challenges of the current government-funded non-toll road portfolio and user-funded toll road network. \r\n
    • Due to high unemployment, the use of labour-intensive methods to construct roads is unlikely to change, raising the prospect of having to forego technologies that may offer quicker and better-quality outcomes and the adoption of smart infrastructure.

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    The Operation of Roads and Toll Roads in South Africa
    The Operation of Roads and Toll Roads in South Africa 2024

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    Industry Landscape

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    The Operation of Roads and Toll Roads in South Africa 2020-10-25

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    The Operation of Roads and Toll Roads in South Africa 2015-07-22

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    2.3. Size of the Industry 10
    3. LOCAL 15
    3.1. State of the Industry 15
    3.2. Key Trends 27
    3.3. Key Issues 27
    3.4. Notable Players 28
    3.5. Trade 30
    3.6. Corporate Actions 31
    3.7. Regulations 31
    3.8. Enterprise Development and Social Development 32
    4. AFRICA 33
    5. INTERNATIONAL 36
    6. INFLUENCING FACTORS 39
    6.1. Unforeseen Events 39
    6.2. Economic Environment 39
    6.3. Labour 40
    6.4. Environmental Issues 41
    6.5. Technology, R&D, Innovation 42
    6.6. Government Support 43
    6.7. Input Costs 43
    7. COMPETITIVE ENVIRONMENT 44
    7.1. Competition 44
    7.2. Ownership Structure of the Industry 45
    7.3. Barriers to Entry 45
    8. INDUSTRY SUMMARY 46
    9. OUTLOOK 47
    10. INDUSTRY ASSOCIATIONS 47
    11. REFERENCES 48
    11.1. Publications 48
    11.2. Websites 49
    ANNEXURE 1 51
    Industry Legislation 51
    APPENDIX 1 53
    Summary of Notable Players 53
    COMPANY PROFILES 55
    BAKWENA PLATINUM CORRIDOR CONCESSIONAIRE (PTY) LTD 55
    ELECTRONIC TOLL COLLECTION (PTY) LTD 58
    ENTILINI CONCESSION (RF) (PTY) LTD 59
    INSTATOLL AFRICA (PTY) LTD 61
    N3 TOLL CONCESSION (RF) (PTY) LTD 63
    PT OPERATIONAL SERVICES (PTY) LTD 65
    SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 67
    TOLCON GROUP (PTY) LTD 70
    TRANS AFRICAN CONCESSIONS (PTY) LTD 72

    Report Coverage

    This report focuses on the design, construction, operation, management and maintenance of roads and toll roads, and includes information on the state and size of the sector, infrastructure developments and budgets and influencing factors including coronavirus, policy, road conditions and the status of e-tolls. There are profiles of nine companies including Sanral and companies involved in tollgate operations such as Tolcon Group, Entilini Concession, Trans African Concessions and Electronic Toll Collection and N3 Toll Concession.

    Introduction

    This report focuses on the design, construction, operation, management and maintenance of roads and toll roads. Roads systems form the backbone of South Africa’s socio-economic activities by enabling the movement of people and goods. The Permanent International Association of Road Congresses (PIARC) states that roads provide access between locations for business and people. For the business sector, this means easy access to suppliers, markets and clients. For citizens it means access to work, education, shops, healthcare facilities, cultural activities, family and friends. Without good road infrastructure, transportation of goods and people are limited and inefficient. Road construction and maintenance also provides skilled and unskilled job opportunities. Road infrastructure often represents the most valuable asset of any country. The coronavirus lockdown restrictions on economic activity and the movement of goods and people have cost the South African National Roads Agency (Sanral) more than R640m to date. Government has not yet decided on the future of the controversial Gauteng Freeway Improvement Project (e-tolls) with motorist payment compliance dropping to 20% per month in March 2020. South Africa’s road maintenance backlog on the 750,000km road network is growing steadily and is estimated at R197bn. This situation could be alleviated by Sanral’s planned R30bn investment in road construction projects and the 15 road related projects worth R47bn that form part of government’s rollout of 51 strategic infrastructure projects.

    Strengths

    • Sanral collaboration with universities and the Council for Scientific and Industrial Research to promote research and capacity development.
    • Sanral transformation policy to break the “asphalt ceiling” by enabling black contractors to participate in road construction projects.

    Weaknesses

    • Lack of a comprehensive funding policy for roads.
    • Lack of government funding for road network maintenance and expansion.
    • Poor state of the construction industry.
    • Road maintenance backlog is estimated at R197bn.

    Opportunities

    • 15 road transport projects valued at R47bn and estimated to create 50,000 jobs included in the 51 strategic infrastructure projects and Sanral’s R30bn investment in construction projects.

    Threats

    • Impact of coronavirus lockdown regulations on the economy and Sanral.
    • No government decision on the future of the Gauteng Freeway Improvement Project.
    • Public resistance to payment of e-tolls.
    • Reduction in the Budget allocation for road transport.
    • Suspension of road construction activities during the lockdown.
    • Violent protests and attacks at road construction sites.

    Outlook

    South African Road Federation immediate past president Saied Solomons said it would take billions of rands to restore South Africa’s physical road network if maintenance is not taken seriously. “Roads are a vital public asset and can deliver a higher economic return on investment than any other type of infrastructure,” he said. “The real cost of not maintaining roads is difficult to quantify because poor roads are dangerous and affect road safety. They lead to higher transportation costs and bottlenecks on busy routes. They prevent people from accessing goods and essential services. They increase vehicle operating costs owing to frequent repairs and require more fuel use and they increase carbon dioxide emissions. Dealing with road maintenance across our 750,000km network will help avoid a debt burden on future generations”.\r\n\r\nSecond quarter GDP figures indicated that construction fared the worst of all economic sectors, declining by more than 30% year-on-year. However, economist Roelof Botha, compiler of the Afrimat Construction Index, stated that “arguably the most important tangible driver of recovery in construction is the infrastructure drive by government, which will be implemented in close cooperation with the private sector”. This includes 15 road-related projects valued at R47bn and estimated to create 50,000 jobs that form part of the 51 strategically-important infrastructure projects gazetted in July 2020 and Sanral’s planned R30bn investment in construction projects. \r\n\r\nAccording to Sanral’s Macozoma, government must decide on the future of the Gauteng e-tolls project as “Sanral is facing ever-increasing debt issues due to the non-payment of e-tolls by Gauteng drivers and this is threatening the liquidity of the state-owned enterprise. We need an answer and we need it urgently. We are not pushing the e-toll agenda at all costs anymore.” \r\n\r\nSanral’s long term Horizon 2030 strategy includes the development of an integrated funding model to diversify sources of income and be more resilient than the present twin-track approach of a government-funded non-toll road portfolio and a road user-funded toll road network. Income-generating opportunities include advisory road construction services, training and development programmes, exploiting Sanral’s land portfolio, wayleaves, outdoor advertising, property development and management. Sanral plans to establish a central toll division to consolidate its toll road management and engineering expertise and investigate the establishment of a separate toll subsidiary. The Africa and Beyond Initiative will explore international business opportunities to provide commercial services.

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    The Operation of Roads and Toll Roads in South Africa
    The Operation of Roads and Toll Roads in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.45 (USD)*

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    Historical Reports

    The Operation of Roads and Toll Roads in South Africa 2024-08-20

    R 20 000.00(ZAR) estimated $1104.51 (USD)*

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    The Operation of Roads and Toll Roads in South Africa 2015-07-22

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 7
    3. SIZE OF THE INDUSTRY 8
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 18
    4.3. International 20
    5. INFLUENCING FACTORS 22
    5.1. Impact of the Coronavirus Pandemic on the South African Roads Sector 22
    5.2. Roads Policy for South Africa 25
    5.3. Economic Environment 26
    5.4. Gauteng Freeway Improvement Project (GFIP) 28
    5.5. Infrastructure Projects 31
    5.6. Road Conditions 36
    5.7. Rising Operating Costs 37
    5.8. Technology, Research and Development (R&D) and Innovation 38
    5.9. Labour 39
    5.10. Environmental Concerns 41
    5.11. Vehicle Overloading 44
    5.12. Cyclicality 44
    6. COMPETITION 45
    6.1. Barriers to Entry 46
    7. SWOT ANALYSIS 47
    8. OUTLOOK 47
    9. INDUSTRY ASSOCIATIONS 49
    10. REFERENCES 49
    10.1. Publications 49
    10.2. Websites 51
    APPENDIX 1 52
    Summary of Notable Players 52
    APPENDIX 2 54
    Road Construction, Upgrading and Rehabilitation Projects on the African Continent 54
    COMPANY PROFILES 58
    BAKWENA PLATINUM CORRIDOR CONCESSIONAIRE (PTY) LTD 58
    ELECTRONIC TOLL COLLECTION (RF) (PTY) LTD 61
    ENTILINI CONCESSION (RF) (PTY) LTD 62
    INSTATOLL AFRICA (PTY) LTD 64
    N3 TOLL CONCESSION (RF) (PTY) LTD 66
    PT OPERATIONAL SERVICES (PTY) LTD 68
    SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 70
    TOLCON GROUP (PTY) LTD 73
    TRANS AFRICAN CONCESSIONS (PTY) LTD 75

    Report Coverage

    The Operation of Roads and Toll Roads focuses on the current state of the sector and the challenges faced by Government and stakeholders. The report also profiles nine industry players, including Bakwena Platinum Corridor Concessionaire (Pty) Ltd, which employs 122 people in the management and operation of its two toll roads, and the country’s largest employer in the sector, toll operator Tolcon Group (Pty) Ltd, which employs approximately 1,000 people in Limpopo, North West, KwaZulu-Natal and the Western Cape.

    Introduction

    This report reviews the operation of South Africa’s road network of 747,000 kilometres, with an emphasis on national roads. The Department of Transport is responsible for policies relating to South Africa’s roads while road building and maintenance is the responsibility of the South African National Roads Agency (SANRAL) as well as the nine provinces and local governments. Funding for non-national roads is provided from the country’s tax base while national roads are funded by SANRAL, partly from the fiscus but also through self-acquired sources. National roads are generally well-built and maintained and are likely to stay that way, while other roads vary in their standards and are likely to deteriorate as government struggles to balance its budget and deal with ever-increasing demand for funds across all departments under its control. Government has put in place some strategies and programmes to overcome the maintenance backlog, underpinned by the National Transport Masterplan (NATMAP) 2050 which coordinates policies and strategies across all Transport Departments in the country.

    Strengths

    • Better roads sooner than if public involvement.
    • Direct and indirect job creation.
    • Fast fund raising.
    • Foreign investment.
    • Revenue dedicated to expenditure on the scheme, so no political interference.
    • Tolls act as a form of congestion relievers.
    • Upgrading improves safety.

    Weaknesses

    • Failed toll schemes load taxpayers.
    • The introduction of tolls can cause traffic diversions and thus congestion.
    • Toll road schemes can have an inflationary effect due to increased investment.
    • Toll roads negate use of public transport.
    • Unplanned residential or industrial nodes as a way of avoiding paying tolls.

    Opportunities

    • Best in class toll roads.
    • Build, maintain and operate roads which otherwise would not be possible.
    • Competitive and transparent procurement.
    • Direct cost for road users, not all tax payers.
    • Mitigation and flexibility in managing macro-risks.
    • Reduce strain on the tax base.
    • Strong corporate institutions with appropriate resources.

    Threats

    • Inadequate financial and economic analysis.
    • Inappropriate sharing of risks (private investor).
    • Lack of competitive procurement.
    • Public resistance (willingness to pay not assessed such as in the eToll fiasco in South Africa).
    • SANRAL unable to attract private investors due to inadequate returns.
    • Unrealistic revenue and cost estimations.

    Outlook

    The global economy’s recovery, or not, will have bearing on South Africa’s own economic performance, the tax base and government’s capacity for financing road development and maintenance. State-owned companies and municipalities will continue to face substantial investment requirements, and moderation in the main budget deficit must be controlled.\r\n\r\nThe economy will have a similar impact on the willingness of private investors to become involved with large capital projects. Specifically:\r\n
    • They may be undermined by lower than expected usage of their Concession roads;\r\n
    • Interest rates in the capital markets need to remain favourable;\r\n
    • The unfavourable exchange rate makes imports prohibitive, but foreign investment positive.\r\n\r\n\r\nNational Non-Toll roads\r\nFunding of non-toll roads will remain under pressure and will become worse, especially if access to funds are tightened.\r\n\r\nToll Roads\r\nSANRAL has declared that the following roads will be implemented and/or completed by utilising SANRAL funding: \r\n
    • N1-N2 Winelands Toll Highway Project - Upgrading for Safety\r\n
    • Gauteng Open Road Tolling - Electronic Tolling (E-toll)\r\n
    • N2: Upgrade between Umdloti interchange to Tongaat toll plaza[10]\r\n\r\n\r\nSimilarly SANRAL has plans for three additional concession/state toll projects: \r\n
    • N2 Wild Coast Toll Highway \r\n
    • N1-N2 Winelands Toll Highway \r\n
    • R300 (N21) Cape Town Ring Toll Highway.[10]\r\n\r\nThe Minister of Transport has announced that 14 projects with the overall budget allocation of R400m for the 2015/16 financial year are planned. \r\n

    Read More..
    The Operation of Roads and Toll Roads in South Africa
    The Operation of Roads and Toll Roads in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $104.93 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.45 (USD)*

    Buy Now +

    Historical Reports

    The Operation of Roads and Toll Roads in South Africa 2024-08-20

    R 20 000.00(ZAR) estimated $1104.51 (USD)*

    View Report Add to Cart

    The Operation of Roads and Toll Roads in South Africa 2020-10-25

    R 1 900.00(ZAR) estimated $104.93 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.1.1. Non-National Roads 2
    2.1.2. National Roads 3
    2.2. Geographic Position 10
    3. SIZE OF THE INDUSTRY 10
    4. STATE OF THE INDUSTRY 15
    4.1. Local 15
    4.1.1. Corporate Actions 15
    4.1.2. Regulations & Government programmes 16
    4.1.3. Enterprise Development and Social Economic Development 17
    4.2. Continental 18
    4.3. International 19
    5. INFLUENCING FACTORS 20
    5.1. Government Intervention 20
    5.2. Labour 23
    5.3. Economic Environment 23
    5.4. Rising Input Costs 23
    5.5. Cyclicality 24
    5.6. Information Technology 24
    5.7. Environmental Concerns 24
    6. COMPETITION 25
    6.1. Barriers to Entry 25
    6.2. Research and Development (R&D) and Innovation 27
    7. SWOT ANALYSIS 27
    8. OUTLOOK 28
    9. INDUSTRY ASSOCIATIONS 30
    10. REFERENCES 30
    10.1. Publications 30
    10.2. Websites 31
    ORGANOGRAM 32
    COMPANY PROFILES 33
    BAKWENA PLATINUM CORRIDOR CONCESSIONAIRE (PTY) LTD 33
    ENTILINI CONCESSION (PTY) LTD 36
    INFRASTRUCTURE CONCESSIONS SOUTH AFRICA (PTY) LTD 38
    INTERTOLL (AFRICA) (PTY) LTD 39
    N3 TOLL CONCESSION (RF) (PTY) LTD 41
    PT OPERATIONAL SERVICES (PTY) LTD 43
    SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 45
    TOLCON GROUP (PTY) LTD 49
    TRANS AFRICAN CONCESSIONS (PTY) LTD 51

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