Why the rush to pay back GFIP loan?

The Road Freight Association (RFA) has questioned the rush to pay back a R20 billion loan for the Gauteng Freeway Improvement Project (GFIP) saying its calculations have shown that a mere 12 cents per kilometre per vehicle will still allow the loan to be paid back – only it will take 20 years and not five. “What is the rush? Why do we have to pay it back over five years? Why can’t we pay it back over 20 years like everywhere else in the world,” asked RFA spokesman Gavin Kelly. “We have looked at the this and found that at 12 cents per kilometre we will still pay back the loan, but it will be affordable to the road user.” Welcoming the announcement by the Minister of Transport, Sibusiso Ndebele, that the gazetted toll tariff would be suspended until further notice, Kelly said this was only a short reprieve. “Let us be honest, we are going to pay tolls. The matter we want to engage in is how they got to 66 cents per kilometre for light vehicles and R3.96 for trucks. The cost to build a new six-lane freeway has been estimated at R80 million per kilometre yet we are being charged R140 million for a mere two lanes and a long-overdue resurfacing with little explanation other than ‘it’s a done deal’,” he said. A task team will be appointed by no later than the end of March to investigate the entire financial model on which the R20 billion was borrowed to upgrade the freeways in Gauteng, according to Ndebele. Kelly told FTW there was no doubt that the RFA wanted to be part of that task team. “We don’t know how this task team will be put together but it is essential that our voice be heard and we put our viewpoint across.” He said the RFA would not stand back from any action addressing the toll system planned for Gauteng. “We are currently involved in meeting with various role-players to discuss our way forward.” The new tolling system for Gauteng, which will see 42 electronic toll gates erected on the N1, N3, N12, N17, R21 and the R24, will be rolled out in the province in June this year. The tolls that will cover a distance of about 185km will severely impact the economy, according to Kelly. “Current calculations indicate that truck operator costs will increase between 23 and 20% depending on the frequency of trips, times travelled and the routes taken. If the operator is unable to pass this on to his customers it will result in a 10 to 20% loss to his bottom line which will result in a lot of small operators folding.” Kelly said most operators would however pass the increases over to their customers. “What is the light motor vehicle driver going to do? We are fighting for the ordinary man on the street as well.” He said it was estimated the most impact would be on the 8-ton freight delivery vehicles. “Our calculations show that a basic foodstuff like bread delivered in Johannesburg from Germiston will see a 16 to 20% increase after the e-tag discount has been taken into account.”