September 2010
South Africa’s imminent Open Road Tolling (ORT) system is poised to offer road users greater convenience through nonstop payments. The intention of the South African National Roads Agency (SANRAL) to create uncongested, harmonious roads through free flowing traffic at highway speeds is admirable – but The South African Vehicle Rental and Leasing Association (SAVRALA) poses the questions: has anyone considered how this is going to affect the country’s car rental industry and general road users? And, perhaps more importantly: does anyone care? Government has already displayed a distinct lack of interest in the potential financial impact on the industry and by extension the consumer. Consider this: the new system means that the owner of the car, not the driver, is ultimately responsible for the payment of toll fees. This translates to a certain billing nightmare for car rental companies whose cars all have multiple drivers. Unless rental companies are able to receive a live information feed that effectively interfaces with various rental systems, they will not be able to bill the customers as they return their vehicles and depart for their destinations, many overseas. Who then accepts liability for those fees? Is the industry being asked to absorb these costs? Is the industry going to be forced to finance a live billing system? Or, will the consumer simply have to endure higher rental rates?
Government has indicated that car rental companies will be provided with free e-tags to affix to their vehicles, thereby ensuring minimal capital outlay for the companies. In order to be scanned successfully however, these tags have to be affixed to the windscreen of the vehicle. This of course means that the tag can be removed by any of the car’s numerous drivers – once again opening the door to potential revenue loss and fraud. The position of the new overhead gantries poses a further problem. Several of the gantries are located in close proximity to the airports. The implication of this to car rental companies is that their cars will be scanned every time they leave the airport for servicing or refuelling. Since the cars have no passengers in them at this time, who is to be liable for the costs incurred?
As citizens and companies who pay taxes, vehicle import duties, fuel levies and vehicle licence fees, it is frustrating to now be bulldozed into paying additional road tolls – especially as this is taking place without any collective consultation with the industry, public and general road users. And will it only be honest citizens paying the price? There is no doubt that not all road users will abide by the ORT process – how will the taxi industry who openly flaunt road use legislation be managed?
SANRAL’s project manager Alex van Niekerk has been quoted as saying: “We want to make this as affordable as possible.” SAVRALA welcomes comment as to how this statement applies to the car rental industry.