Greedy Government Targets Captive Enterprises and Consumers through Hefty Toll Fees - The Road Freight Association (RFA) has warned of even higher inflation rates, if the SA National Road’s Agency Ltd’s (SANRAL) plans to levy a hefty toll fee on new and future toll roads are implemented. Not only this, a number of small enterprises are set to be put out of business, as Government continues to target motorists and truckers as an easy source of revenue for its road infrastructure development plans.

“The toll fees proposed by SANRAL are equivalent to doubling the fuel price”, says Gavin Kelly, Technical and Operations Manager for the RFA. “The bottom line is that operators will be forced to pass the increased costs on to the consumer, fuelling inflation and leading to increases in the price of goods.” Transport costs will increase by at least these margins and operators will have to factor in some sort of administration process within the businesses, which will incur an added cost and will be added into the transport cost paid by the customer.

“Once again the small and micro-sized trucking companies will be most severely affected by the high cost of toll fees,” continues Kelly. “The largest increase in real costs of transport will occur in the smaller category of vehicles (express parcels, door-to-door deliveries, supplying of smaller retailers and short-haul deliveries). These increases range from between 4 to 8% and will jeopardise their operations, and many of them may go out of business as a result of their tariffs being too bitter for customers to swallow.”

The 25% discount bandied about (but not guaranteed) by SANRAL would probably be negated by the hidden administration costs that operators would incur to manage the system.

The Road Freight Association was established in 1975 to support its members who are, in the main, road freight service providers. It is a facilitating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, development funding for emerging operators, education, health, the fuel price, law enforcement, labour relations and many other issues related to road freight transport.

For more information, contact Catherine Larkin, Communications and Projects Manager for the RFA. Tel: (011) 789-7327. E-mail: clarkin@rfa.co.za. Website: www.rfa.co.za

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