BUSINESS
and gravel road maintenance backlogs
in a presentation on the issue during the
38th annual Southern African Transport
Conference (SATC) at the CSIR in
Pretoria recently.
According to Ross and Townshend,
who presented The Road Maintenance
Backlog in South Africa, 77.5% of all gravel
roads in the country are currently in poor
or very poor condition. This translates into
a R243.7-billion functional maintenance
backlog and a R281.2-billion technical
needs maintenance backlog.
The research paper suggests that R115-
billion is required to upgrade high volume
gravel roads in South Africa, the majority
of which are provincial. It adds that
upgrading all gravel roads in South Africa
would amount to about R1.7-trillion.
The research paper indicates that
the functional backlog for paved roads is
approximately R61.2-billion and the technical
maintenance backlog R135.4-billion. The
total technical maintenance backlog in South
Africa for paved and gravel roads currently
stands at around R416.6-billion.
Were South Africa to try and cover
these maintenance backlogs in a five-year
period, it would take up the entire new
economic stimulus plan presented by
President Cyril Ramaphosa. Alternatively, it
would require a 4% rise in the VAT rate or
that an extra R3 per litre be added to the
national fuel levy.
The research paper showed that the
calculated provincial road maintenance
backlog, at R150.7-billion, is six times the
annual provincial expenditure, while the
municipal road maintenance backlog at
R242.9-billion, is eight times the annual
municipal expenditure.
The two presenters explained that
the magnitude of these backlogs is going
to be immensely difficult to eradicate
completely, saying the country could
possibly address them over the long
term given South Africa's current low
growth trajectory and emphasis on fiscal
consolidation.
Still, a very high degree of prioritisation
is required within the road network
maintenance space. Alternative road
maintenance funding solutions are also
being created.
About 11% of the national road
network is in poor or very poor condition.
There is a fairly low road maintenance
backlog within the metros, however,
with much of the backlog found within
provincial networks.
The plant and equipment industry will
be following the political and economic
events with hawk eyes over the next year
or two. Almost all the current regimes
in southern Africa are struggling with
hangovers after years of misrule by their
predecessors. However, once politically
stronger, they will be able to bring
stability and create a more attractive
environment for investors, which will
hopefully result in infrastructure spend
and more opportunities in the equipment
space.
“Were South Africa
to try and cover
these maintenance
backlogs in a
five-year period,
it would take up
the entire new
economic stimulus
plan presented
by President Cyril
Ramaphosa.”
The functional backlog for paved roads in South
Africa is approximately R61.2-billion and the technical
maintenance backlog R135.4-billion.
www.equipmentandhire.co.za
OCTOBER 2019
31