Massive loss for Sanral South African National Roads Agency Limited’s (Sanral) has reported a loss after deducting finance costs of R2.77 billion for the year ended March 2014, from a prior profit of R1 billion in 2013. It noted an operating loss of R175.9 million, from a prior profit of R4 billion in 2013. The state-owned entity reported a revenue slide 24% to R8.55 billion in 2014, from R11.86 billion before. Sanral is facing heavy criticism following the implementation of an e-toll system in Gauteng in December 2013, which has by and large been rejected by motorists and is now being debated under the order of Gauteng’s premier, David Makhura. The panel is set to present its findings in November. The principal activities of Sanral are the financing, management, control, planning, development, maintenance and rehabilitation of South Africa’s proclaimed national road network, The declared national road network on 31 March 2014 was 19,704 km. Of this, 84% are non-toll roads and 16% are toll roads. During 2013/14, the group said that it spent R3 billion (2013: R3.2 billion) directly on toll roads, comprising R1.18 billion for capital and R1.9 billion on maintenance. It said that toll revenue from operations was R3.48 billion for the year, which is a 65.7% increase from the previous year. The Gauteng Freeway Improvement Project (GFIP) contributed R1.145 billion to this increase in revenue. The conventional toll revenue increased by 11.6%. Even though average traffic increased by a modest 3.7%, heavy vehicles increased by 8.8%, contributing more to revenue. Bond auctions Sanral had its first auction of bonds, since the failed auction in September 2011, on 16 April 2014. The auction raised R500 million (nominal), all within price guidance. Further auctions were held on 21 May (R500 million) and 4 June (R500 million). “At these two auctions there was significant oversubscription above the required R500 million which was allocated. Unfortunately, the 2 July auction was adversely affected by the pronouncements, of the honourable Premier of Gauteng, related to the impact of the funding model (tolls) applied to the GFIP. This auction did not realise the full requirement of R500 million – shortfall of R225 million,” Sanral said. Sanral CEO, Nazir Alli said that several huge capital projects are in prospect for 2014/15. Looking ahead to the challenges of a growing demand for better roads, constrained financial resources and a growing backlog, Alli said that the public purse cannot be relied on – hence the need for the “user-pay” principle for the rest (15%) of the proclaimed national roads. “It is an equitable way to ensure the supply of economic infrastructure. On the one hand, charges directly reflect usage of the tolled roads in a way that taxation or a fuel levy cannot. On the other, we can use technology to target those users, such as public transport and emergency services, which should be exempt from the payment of tolls.” businesstech.co.za/news/general/70471/massive-loss-for-sanral/
Posted on: Wed, 08 Oct 2014 07:01:15 +0000
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