garth bolton cargo carriers the impact of toll roads and the effectiveness of the sa supply chains
TRANSCRIPT
ADDRESS BY GARTH BOLTON TO FUTURE FUEL DISTRIBUTION
STRATEGIES 3-11-11
BETTER UNDERSTANDING OF COMPETITIVE ENVIRONMENT
CORRECT COMMONLY HELD MISSPERCEPTIONS
APPROPRIATE MODE FOR FREIGHT WHATS BEST FOR SOUTH AFRICA APPROPRIATE FUNDING ROAD Vs RAIL
Cheapest car running cost. Kia Picanto R1:49/km Hyundi Atos R1:55/km Ave Sedan R3:50/km Lux 4x4 R9: 00/km Truck R14:00/km
5000 0.55c 10000 R1.10 60km/hr=1km/min 20000 R2.20 30000 R3.30 Based on 150 hrs/Month 40000 R4.30 =9000mins/Month 50000 R5.50 Should be considered in evaluating
congestion Is considered when selecting transport mode
Freeway built to 15000veh/hr reduced to 7000veh/hr (100km/hr vs. 30km/hr)
You destroy half the value of the freeway Just when you need it the most
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M 1 150 000 passes/day X 17.75c/km X 300 days X 100 kms =R789 750 000/yr @12% yield would allow investment Of R6.65 Bill It cost R66.5m/km to build Roads with less passes are cheaper This excludes tolls
Certain Rail and Bus Public Transport Subsidised to the Extent of 50%
Taxi’s Not Subsidised Excepting Recapitalisation R50000
Gautrain If 120 000 Pac’s per day X 300days divided into Interest of 9% of R30B being R2.7B, amounts to R75/ticket for interest alone
Why subsidise when people prepared to use other modes. (another M1)
Petrol Diesel Sales Million Liters 11313 9119 Fuel Levy c/l 177.5 162.5 Fuel Levy Collection R20.1B R14.8B Tot R34.9B Road Allocation by Govt. R29B
Diesel Pays For 42% of Roads yet Occupies Only 20% of The Space
Steel Coil 50t/day 20 Days = 1000t/month Road Rail Rate R80/t R40/t Ave Stock 500t 2000t Steel R4000/t Cost Capital 20% Transport R960k R480k Stock hold cost R480k R1600k Total R1440k R2080k
PAVED LENGTH % POOR RM M/KM SANRAL 16290 11.7 1932 R15468 8 PROV 48179 22.8 10980 R87840 8 METRO 51626 4.1 2127 R10635 5 MUNI 37651 3.2 1363 R 4089 3 GRAVEL PROV 136628 50.6 69216 R13843 .2 METRO 13880 8.8 1227 R 245 .2 MUNI 302189 28.5 86245 R17249 .2 TOTAL 606443 R149357
LAND EXPOPRIATION DESIGN & PLANNING LEVELING GRADIENTS BRIDGES VERGES FENCING WATER CONTROL PAVEMENT TRUCKS ONLY REQIRE INCREASE IN
PAVEMENT AND BRIDGE SPECIFICATION
Cars Taxi’s Busses 75% Road Freight 19% Road 94%
Rail Freight 6%
Investment Share Road 15 X Rail
Chinees Walls Rail Not Govt. Investment
Delayed maintenance causes its costs to increase by 600-1800%
Can you allow this when you can borrow at 10%
Need to grow all parts of the economy equally and not let any part deteriorate .
Cars 120000 @.40c =R48000/day Med Trucks 15000 @R1.00 =R15000/day Heavy Trucks 15000 @R2.00 =R30000/day =R93000/day X 300day X 185kms =R5.161m/year - 10% for Maintenance =R.516m =R4.644m @12% yield Allows Investment =R38.7B
BALANCE ENFORCEMENT SELF REGULATION
OVERLOADING HIGHLY LUCRATIVE 10% PROFIT 135%
ENFORCEMENT SELF FUNDING. FINES PAY FOR IT
LACK OF ENFORCEMENT UNSCRUPULOUS FLOURISH , COMPLIANT WITHER AND DIE
COST OF ENFORCMENT 100M,ROAD DAMAGE 600M
GOVT HASENT THE WILL .RESPONSIBILITY LIES WITH GOVERNMENT.
Moving 100 ton of Sugar from Point A to Point B
Option 1:4 X 25 ton vehicles
Moving 100 ton of Sugar from Point A to Point B
Option 2:3 X 33.3 ton vehicles
Less congestion No greater axle weights Less drivers 33% more efficient Less pollution
Has monopoly and needs to service clients It’s a profitable venture Invest to stop destroying value and make
money Create jobs and an investment friendly
environment Make SA effective and efficient