Wednesday, October 30, 2013

ADVANTAGES OF TOLL GATE FEES

Today we feature an article written by a Zambian, based in South Africa and it reads:

There has been a debate in Zambia as to whether we are ready to have tollgates or not. Some corners of society argue that Zambia does not have the capacity to build such infrastructure.

Firstly, Zambians need to understand what a toll gate is, how a toll gate is built and how it operates.

Secondly, to the average Zambian, having to pay for a service that is generally perceived to be free seems to be an absurd thing.

Why should one pay for a road when they want to move from one place to another. To understand this one needs to know what a toll road is.

This is a privately or publicly built road for which a driver pays a toll (a fee) for use.

To build roads costs billions of kwacha.

Tollgates are necessary as the money raised from this will be used to maintain the roads and assist us in meeting the demands of social services.

Toll roads therefore will reduce the total net cost to the economy, ensuring greater opportunities for prosperity and growth.

ADVANTAGES OF TOLLGATES

 Procurement and dedication of funds: Toll road schemes are more costly for road users than obtaining funds through taxation or a fuel levy, but the funds can be obtained much sooner.

Toll roads enable the public sector to contract the private sector for the construction, operation and maintenance of the road for a period of 25 to 30 years.

It is in short a self-generating form of income, the Zambian Government will play a moderating role and just ensure the laws are adhered to and roads are safe.

Improved road:  The road is usually upgraded and expanded before it is tolled. This expansion provides increased capacity and thus reduced congestion.

The upgrade of a road generally also improves the safety and decreases accidents. Expansion of roads like the Great North and Great East Roads in this regard would be a good thing.

Tolls also act as a form of congestion charge. It rations the use of the road to those with the highest need to travel.

Job creation and gross domestic product (GDP): Toll roads can significantly increase Gross Domestic Product (GDP) over the lifetime of the project. A toll road project leads to direct (constructors, builders, architects) and indirect (toll road attendants, ambulance services at toll points, casual workers) job creation.

We are so much in need of job creation in Zambia as the population is ever-increasing.

Encourage the use of public transport: Government will make revenue if they are to invest in the public sector like a modern train service and bus service because people will use them to avoid unnecessary toll fees.

This is a spill-over effect of tollgates.

Other major advantages of toll roads relates to funding, road condition and job creation.

Disadvantages

The disadvantages of toll roads are mostly related to user reactions. An increased load might be imposed on the alternative routes due to traffic diversion. Public transport will not be advanced, since toll roads encourage public vehicle use.

It has been revealed that society generally reacts negatively towards toll roads in the first few years after implementation. This is because the public finds it difficult to pay for things which were originally provided for free of charge.

Tolling is experienced as a sudden real expense, while the savings in running costs, services and saved time are not immediately notable. As soon as users get used to the tolls and realise the benefits, their attitudes will improve drastically.

The advantages far out-weigh the disadvantages so it tells us something

Why do I pay taxes and now also tolls? When we pay taxes the money is used for the service which government renders to us all. Taxes are used to pay for these services, whether we make use of all of them or not.

Tolls on the other hand, will pay only a portion of road that we use in other words it is a user-fee. Toll fees are used directly on the road, which is a benefit to the motorist.

Taxes will not be used to fund a toll road and therefore this will reduce the tax obligation of the individual.

Why do we have to pay tolls on an existing road, which was paid for out of taxes?

Road performance depends on how, what and when maintenance is performed.

Roads deteriorate over time due to environmental influences such as weather, ultra-violet radiation, overloading etc.

Tolls are not levied on the value of the current asset (road), but only on the initial and future improvements, including operations and maintenance. Funds derived from taxes are used on other things.

What will the toll fees be used for?

The tolls collected on a specific road will be used to, inter alia, and repay the loans obtained to finance the building, upgrading or improvement of the road. In addition, it provides a dedicated on-going revenue stream, which enables the road to be adequately maintained and improved, independent of tax based revenues.

What do I get from using a toll road?

Toll roads are built and maintained to the highest possible standards. Therefore, you are assured of a smooth ride, saving you on the running costs of your vehicle and saving you time. Improved security ensures you a safe and pleasant journey.

Conclusion

In conclusion, Zambians should understand four realities about the transportation infrastructure situation facing us.  Firstly, the time for continuous expansion of the capacity of road networks is reaching saturation point and new ways of managing traffic and infrastructure should be implemented.

Secondly, public funds are not enough to sustain or maintain roads at the current or anticipated future levels based on the prevailing interest to expand traffic and the road network.

Thirdly, borrowing to build and operate a heavily subsidised transportation infrastructure is not sustainable.  Fourthly, the rapid expansion of fleet of cars on our roads is simply unsustainable.

Zambians should actually learn from other countries such as South Africa and Morocco which have some of the best roads world-over.

Edwin Hatembo Jr.

(The author is Zambian student doing a course in International relations in South Africa.)

For comments/other contributions call: 0955431442, 0977246099 or email: jmuyanwa@gmail.com.

Ends…

 

 

 

 
 

No comments:

Post a Comment