Department of Logistics

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Browsing Department of Logistics by browse.metadata.advisor "Booysen, M. J."

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    Distance-based road user charges as a road cost recovery method : a South African case study
    (Stellenbosch : Stellenbosch University, 2024-03) van Rensburg, Johann Andre; Krygsman, S. C.; Booysen, M. J.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Logistics.
    ENGLISH SUMMARY: Transport infrastructure, especially relating to the road sector, is an important pillar to facilitate economic development and growth in any country. Roads, however, are subject to large capital outlays for new construction and upgrades, requiring timely maintenance to ensure transport links that are in a satisfactory condition to meet road user demand, improve accessibility and mobility, and reduce vehicle-operating cost. Despite the background of the infrastructure’s importance, the road sector is continuing to experience funding deficits, meaning that the current financing and funding methods (also known as road cost recovery methods) are unable to meet budgetary requirements. This study argues that distance-based road user charges, using Global Positioning System enabled vehicle tracking devices coupled with a short-run marginal social cost fare structure, could potentially augment the research on road cost recovery for an improved road funding framework given the characteristics of the South African road sector. This hypothesis was tested by assessing i) how the South African road-funding framework currently performs in terms of its ability to secure funding for the road sector. Secondly assessing ii) how it will perform in the future, followed by calculating iii) the correct charges to be levied for road use. Lastly, iv) the public acceptability of road cost recovery methods and v) the operational and economic viability of implementing a distance-based road user charge system in South Africa was assessed. The findings indicate that the South African road funding framework currently collects a large amount of revenue from road users annually, but this is less than what is invested in actual road infrastructure. Compared to select developed countries in terms of how much revenue South Africa collects and spends on road infrastructure as a percentage of Gross Domestic Product, it is definitely not below the norm. The fuel levy, however, although collecting the bulk of the revenue from road users, is becoming increasingly unproductive. It was found that technological and societal trends will have an incremental impact on the future revenue collected from road users in the short to medium term, without necessarily being disruptive. Calculations indicate that the average road user might already be paying more than their fair share of road cost per kilometre of travel and that deriving a short-run marginal social cost fare structure which represents fair and efficient road user charges, as required by the user-pay principle, is by no means an easy endeavour. A public opinion survey indicated that road users in general do not know the amount of costs they pay for using the road network and that they still favour the fuel levy as the main road cost recovery method to be used in South Africa. Simultaneously, they view distance-based road user charges as an acceptable supplementary option. Through a vehicle tracking study, it was determined that a distance-based road user charge system is operationally feasible and economically viable in South Africa and that if implemented with a short-run marginal social cost fare structure could lead to more equitable pricing while possibly increasing the road funding revenue base. It is advised that distance-based road user charges be considered to form part of the current road funding framework in South Africa as a supplementary road cost recovery method. Although there are many issues that should still be addressed, it is an avenue worth considering especially from an equity perspective.