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News Article - Provincial
Bhisho seeks a partner for EC’s first toll road
Posted on: Tuesday, 22 May 2007. Article source: Eastern Cape Business News
By ROUX VAN ZYL
Finance Reporter
BHISHO transport chiefs want to recruit big business to run the proposed toll road along most of the coastal R72 between East London and Port Elizabeth.
They want the road taken off their hands because it is too expensive for the province to maintain. Last year, R54m was spent on upgrades.
But currently, only 95km of the R72’s entire length of 260km is in an acceptable condition for the amount of traffic it carries.
To bring the rest up to standard is estimated to cost R1,59billion – only slightly more than the R1,5bn needed to bring the N2 up to standard.
A R4,6 million feasibility study is currently being conducted by the SA National Roads Agency Limited (Sanral) on the most sustainable location for the road’s toll-gates.
Announcing this yesterday, Transport MEC Thobile Mhlahlo said the Nanara-East London road was “by far the highest trafficked provincial rural road” in the Eastern Cape and was vital in supporting both industry and tourism.
The target is to have it ready by 2013 but Mhlahlo aims to proclaim it a toll road before 2010.
“It has one of the highest strategic priorities,” he said. “The feasibility study will come up with the most strategic place for the tolls and how many will be needed.”
Mhlahlo, who was speaking at a Public-Private Partnership (PPP) workshop organised by Finance MEC Billy Nel yesterday, said the toll road would be run on a PPP-basis as it was “fundamental that the risk be carried by a private company”.
“The road must pay for its own maintenance. The type of road we have in mind should have double lanes. It should be a link between the coastline, including Port Alfred and East London, with the rest of the country. This will help make the IDZs more viable.”
He added: “The current traffic volumes are close to sufficient to consider tolling.”
But not everyone is happy with a general toll. Cosatu provincial secretary Xola Phakathi expressed doubt about the wisdom of imposing a levy on motorists: “Only truck operators must be tolled,” he said, after the scheme was announced by premier Nosimo Balindlela last December.
The R72 is similar in length to the N2 through Grahamstown, but is favoured by truckers travelling between East London and Port Elizabeth because it has fewer hills.
According to a timeline by the Transport Department, the Sanral feasibility study and an environmental impact assessment are expected to be completed by January 2008.
That October, a detailed socio-economic study should be finished, followed by a detailed design and tender process by April 2009.
The first contractors would move on site by April 2009 and take four years to complete the new road.
Mhlahlo also told of the need to fast-track another major East London road project, which he described as a “vital link” between the R72 near the Airport over the Buffalo River and through the city to the N2.
Construction was due to commence this year and be completed by 2010, but the project “was already late and needed fast-tracking”, Mhlahlo said.
Finance Reporter
BHISHO transport chiefs want to recruit big business to run the proposed toll road along most of the coastal R72 between East London and Port Elizabeth.
They want the road taken off their hands because it is too expensive for the province to maintain. Last year, R54m was spent on upgrades.
But currently, only 95km of the R72’s entire length of 260km is in an acceptable condition for the amount of traffic it carries.
To bring the rest up to standard is estimated to cost R1,59billion – only slightly more than the R1,5bn needed to bring the N2 up to standard.
A R4,6 million feasibility study is currently being conducted by the SA National Roads Agency Limited (Sanral) on the most sustainable location for the road’s toll-gates.
Announcing this yesterday, Transport MEC Thobile Mhlahlo said the Nanara-East London road was “by far the highest trafficked provincial rural road” in the Eastern Cape and was vital in supporting both industry and tourism.
The target is to have it ready by 2013 but Mhlahlo aims to proclaim it a toll road before 2010.
“It has one of the highest strategic priorities,” he said. “The feasibility study will come up with the most strategic place for the tolls and how many will be needed.”
Mhlahlo, who was speaking at a Public-Private Partnership (PPP) workshop organised by Finance MEC Billy Nel yesterday, said the toll road would be run on a PPP-basis as it was “fundamental that the risk be carried by a private company”.
“The road must pay for its own maintenance. The type of road we have in mind should have double lanes. It should be a link between the coastline, including Port Alfred and East London, with the rest of the country. This will help make the IDZs more viable.”
He added: “The current traffic volumes are close to sufficient to consider tolling.”
But not everyone is happy with a general toll. Cosatu provincial secretary Xola Phakathi expressed doubt about the wisdom of imposing a levy on motorists: “Only truck operators must be tolled,” he said, after the scheme was announced by premier Nosimo Balindlela last December.
The R72 is similar in length to the N2 through Grahamstown, but is favoured by truckers travelling between East London and Port Elizabeth because it has fewer hills.
According to a timeline by the Transport Department, the Sanral feasibility study and an environmental impact assessment are expected to be completed by January 2008.
That October, a detailed socio-economic study should be finished, followed by a detailed design and tender process by April 2009.
The first contractors would move on site by April 2009 and take four years to complete the new road.
Mhlahlo also told of the need to fast-track another major East London road project, which he described as a “vital link” between the R72 near the Airport over the Buffalo River and through the city to the N2.
Construction was due to commence this year and be completed by 2010, but the project “was already late and needed fast-tracking”, Mhlahlo said.
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