The South African National Roads Agency (Sanral) was dealt a blow on Friday, when the Constitutional Court scuppered its plans to use tolls in the Western Cape highlands.
The court’s decision means Sanral will need to embark on what may be several years of consultations if it still wants to introduce tolling in the province. The agency is struggling to win over Gauteng motorists who already owe about R9.4bn in unpaid e-tolls bills.
The City of Cape Town said it would oppose any introduction of e-tolls despite already beginning to discuss with the agency the best way to address infrastructure needs in the province.
The Constitutional Court on Friday dismissed Sanral’s leave to appeal against two decisions by lower courts on the validity of the process to introduce tolling.
When a new public participation process begins, Sanral will find that it has to deal with a well-informed public thanks to the work done by the city council and organisations [such as the Organisation for Undoing Tax Abuse],
— Janine Myburgh
Cape Chamber of Commerce and Industry president
Cape Town mayoral committee member for the Transport and Urban Development Authority Brett Herron said on Monday that the introduction of tolling as proposed by Sanral was "inequitable".
Sanral noted the judgment, saying on Sunday it had already begun a pivot towards a more consultative approach towards road infrastructure.
The roads agency is not only pursuing engagements in the Western Cape but with other municipalities and provinces such as eThekwini, Gauteng, KwaZulu-Natal and Free State to unlock economic growth potential and contribute to regional development, spokesman Vusi Mona said.
Cape Chamber of Commerce and Industry president Janine Myburgh said the judgment followed concerns from provincial residents that had been "simply ignored".
"When a new public participation process begins, Sanral will find that it has to deal with a well-informed public thanks to the work done by the city council and organisations [such as the Organisation for Undoing Tax Abuse]," she said.
"A new public participation process would also expose Sanral to questions on their business model and why they continued to charge ever-increasing toll fees on projects that have already been paid for, such as the Huguenot Tunnel.
"We now have benchmark figures for road construction costs and we have seen how tolling facilities simply add to the cost of road building. There is no longer a way for Sanral to ride roughshod over public opinion."
Transport economist Andrew Marsay said while Sanral’s disappointing toll revenue would certainly affect its ability to raise capital on the bond markets, the agency would simply put off road projects in order to remain viable.
"Sanral is a well-run entity, they can’t raise as much money as if they were receiving the expected toll revenue, they will just have to shuffle priorities."
Cape Town’s opposition to e-tolls could conflict with its own priorities in creating a viable public transport system.
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