Government22.10.2013

Nothing strange about e-tag sales figures: Sanral

By Staff Writer

Sanral has said that the e-toll registrations and e-tag distribution figures followed logical patterns when looked at in context over the last two years (see The truth about e-tag sales figures).

Vusi Mona, GM of communications at Sanral, told MyBroadband that as with all products, the cost of a product and the environment in which a product is being sold, play a big part in the sales figures.

“It is no different with the e-toll registrations and e-tag distribution,” said Vusi.

Mona provided a detailed explanation of the e-tag sales figures since e-toll registrations were first launched in November 2011.

The following graph will assist with the points raised by Mona about e-tag sales over the last two years.

e-Tag sales

1 – E-toll registration was first launched in November 2011, after a period of extended public consultation lea by the then Minister of Transport S’bu Ndebele. At this time, the cents per kilometre toll tariff reduced, from the first announcement in February 2011 and the public started registering e-toll accounts.

2 – In January 2012, Sanral announced that VLN/e-tags committed account units passed the 200,000 mark.

3 – In February 2012, with the Budget speech, Minister Pravin Gordhan, announced yet another reduction in the cents per kilometre rate and capped the light vehicle toll cost (which made the toll costs more affordable) and confirmed Government’s commitment to the implementation of e-tolls. VLN/e-tags committed account units increased in March 2012, to 320,000.

4 – Toll commencement was announced for the end of April 2012 and registrations increased to just over 500,000. Two days before the collection of toll was to commence, an urgent interdict was granted and the project was halted.

5 – During the period April 2012 to February 2013, the project faced numerous challenges. The Department of Transport, Treasury, and Sanral, successfully challenged the interdict and review request in the Constitutional and High Court. However, during this period, the public was unsure of the outcome of the legal challenges and if e-toll will be implemented. During this period the VLN/e-tags committed account unit figure had little movement.

6 – In the beginning of 2013, after the successful court outcome in December 2012, the VLN/e-tags committed account units figure started picking up slowly. Between February and April 2013, Government demonstrated its firm commitment to the implementation of e-tolls, by passing the Transport and Related Matters Bill, from Parliament to the NCOP. Road users were informed that the bulk of road users will pay less than R200 a month in toll costs and the VLN/e-tags committed account units increased to 600,000.

7 – Between April 2013 and October 2013, there was speculation that, due to the election in 2014, the President will not be signing the Transport and Related Matters into law and in anticipation of the outcome of the appeal, VLN/e-tags committed account unit figures plateaued again.

E-tag sales increasing again

Mona said that directly after the outcome of the court case, VLN/e-tags committed account unit figures started increasing again.

He added that during periods of uncertainty of e-toll implementation, there were movements within the VLN/e-tag account units committed.

“Fleet management service providers, indicated that they didn’t want to tag their vehicles in a period of uncertainty due to the constant changes within the fleet composition of their customers,” said Mona.

“This resulted in e-tags being returned to Sanral. Fleet management providers indicated that they did not want to keep the e-tag stock with them, until toll commencement becomes a certainty.”

“With individual account holders, some closed their accounts and/or returned their e-tags, some new accounts were opened, resulting in the plateau within the VLN/e-tags committed account unit figures.”

Mona said that to understand the variability of the VLN/e-tags account units committed better, one needs to consider the type of account holders, the type of accounts and how the e-tags are distributed.

Type of e-tag account holders

E-toll account holders

E-toll account holders can choose to register by only using their Vehicle Licence Plate Number (VLN) and not to obtain an e-tag. When calculating account holders, Sanral counts both types of account holders.

An e-toll account holder can have an account that has more than one vehicle (account unit) linked to the account. For example, companies with fleets might have one e-toll account but have thousands of vehicles linked to the one account.

Account types

Within the e-toll system, a road user can open an account for a business, or an individual. Accounts can be managed through the e-toll account management website, or electronically integrate directly into the e-toll system.

Some large fleet management companies and fleet banks as well as vehicle rental companies have opted to integrate directly into the e-toll system. They are referred to as Key Account Holders.

Key Account Holders have contracts directly with their clients and manage their e-toll account on their behalf. With the integrated system it allows the Key Account Holder to manage their vehicle registrations onto the e-toll system, upload details and allocate e-tags directly. As a result, they can upload in bulk thousands of account units in a short space of time.

E-tag distribution

E-tags are distributed through the e-toll Customer Service Outlets, Retailers (Checkers, CNA, Pick n Pay, Shoprite, and SPAR), as well as through the Key Account Holders.

Registration onto the e-toll system

During the registration process, Key Account Holders and fleet operators upload their account registrations in bulk, which allows for thousands of vehicles to be registered within a short space of time.