“What would be the cost of
supply chain logistics if crucial
national highways were not
maintained?”
This was the question
South African National Roads
Agency Limited (Sanral) CEO
Nazir Ali put to participants
in the first South African
Shippers’ Council (SASC) speed
networking session in Midrand
last week.
He said major funding was
required to maintain and
upgrade an ageing national
and provincial road network
of 618 000 kilometres. “A good
road system saves both time
and money,” said Ali, referring
to the Automobile Association
(AA) study which estimates
that the average person spends
40 hours per month stuck in
traffic. “With 75% of South
Africa’s freight currently moved
by road, what
does an average
work week’s lost
productivity
mean to your
business?” he
asked.
He believes
tolls are the only
viable option
for maintaining
the 10thlargest
road
network in the
world – 21 400
kilometres of which are
managed by Sanral. “Currently,
only 15% of South Africa’s
national road network is
tolled, which means that the
majority of road
upgrade and
maintenance
funding
comes from
the national
treasury,” he
said. Current
legislation does
not allow toll
funds to be
spent on nontolled
roads.
Responding
to a question
around e-toll
compliance in
Gauteng – which
has been put at less
than 40% – and
rumoured cash
flow problems,
Ali said the ratios of paying
and non-paying road users
varied from month to month,
“depending on a number of
variables”. “But in terms of cash
flow, we are doing far better
than we predicted.”
User-pay system?
Commenting on the
suggestion of a “user-pay”
principle which would see
those logistics operators who
“abused” the system
by overloading
trucks or not
adhering to other
road regulations
being penalised
more than their
compliant counterparts, Ali
said it was not practical as it
needed much closer policing
than was feasible. “Instead,
we need to collectively find
ways to change the behaviour
of the road user,” he said. The
South African culture has a
high tolerance of what Ali calls
“white collar crime” which
includes overloading and
speeding.
INSERT & CAPTION
What do you think
the cost of supply
chain logistics would
be if crucial national
highways were not
maintained?
– Nazir Ali
