In South Africa, most of the traffic and trade is transported by road. Due to its importance, policy-makers and stakeholders should have a continual commitment to ensure that the country’s road network is in good condition.
Challenges
Since an overwhelming majority of the country’s transportation and trade are facilitated by roads, they (the roads) are subject to a greater level of degradation than in other countries, where railway plays a major role in transportation. This means that, for as long as Transnet Freight Rail and PRASA are not taking up a sizeable portion of freight and passenger transportation, most local roads will continue to cost more than the revenue which they earn (through toll, fuel and vehicle license fees). In the United
States, for example, railway transports as much as 40% of the country’s total freight volumes. That is one of the reasons why the US. has a viable and intact road network. What SA’s stakeholders should pick from these examples, is that, in order to have the roads in the best shape possible, the domestic railway industry will need to be revived.
Growing urbanisation also implies that, some of the country’s cities and towns now have greater populations than they were designed to handle. The concurrent growing population of vehicles means that the roads now need more maintenance than ever before. To address the issue of an overpopulation of vehicles in the cities, quality public transport systems will need to be introduced, so that more people can find public transport as an alternative to private vehicles. This means that the current minivan taxis
will need to be gradually complemented by modern busses, trams, trains and other communal transport systems. Also, new cities will continually need to be built, nearby existing ones or even in other remote locations, in order to disperse the population so that both roads and public services such as water, education, healthcare, policing, sewage and waste management, can be provided for in line with available capacities.
Although heavy vehicles damage roads much more than private vehicles, weather actually destroys roads more than both heavy and private vehicles. This means that, it will be wise to ensure that, within capacity, the existing roads are utilized as much as possible, before weather naturally degrades them. In that regard, Special Economic Zones (SEZs) can be set up along highways (regional or trunk roads), so that new cities can be built in areas where there is accessibility to wider domestic and regional trade. This will lead to more intense use of the major roads, although the rate should be within their capacity.
The increased revenue earned through toll fees, and the greater profits (which will be taxed) made by those businesses (situated in SEZs) due to their accessibility to regional trade, can then be eventually channelled to the maintenance of the same highways. Therefore, although roads should be used within their designed capacity, they should also be adequately utilized at a level where they can generate enough revenue to cover all or most of their management costs, which include; repairs, maintenance, return on investment made by developers (if they are private developers), and so forth.
Advantages of a good road network
A good road network usually offers a competitive advantage to its country, over other nations within its region. That means decisions to commit both domestic and foreign investments will be easier, when the country in question has a viable road network. This is because efficient roads imply that goods and people will be able to be transported more efficiently, than in other regional countries with poorer road networks. An efficient movement of people means that they will usually be in time for work (punctual). Good roads, also mean that emergency services such as the police or ambulances, will be able to swiftly respond to crises. That also means that the road network upholds a country’s health and crime management systems.
Such circumstances are suitable for attracting foreign investors and encouraging wealthy locals not to emigrate to other countries. Additionally, rural and urban areas become seamlessly connected when there are reliable roads. Such will encourage more local and foreign citizens to set up more commercial activities in the villages. Research on the economic potential of the rural areas would be accelerated, leading once more to greater investments. Social integration between rural and urban areas would be improved. It would be easier for urban residents to send their children to rural schools and intermarry with village residents.
All those are perfect conditions for wealth creation within a country. In terms of freight, an efficient road network means that vehicle breakdowns and delays are less-likely to occur. So, businesses can accelerate trade (buying of raw materials and selling of final goods) under such circumstances. The reduced occurrences of breakdowns and delays also translates to lower costs of production, since additional costs to do with the breakdowns will not be encountered.
Safety of freight and workers would also be guaranteed, unlike where roads are in a bad shape. In-turn insurance costs may be lower, if accidents are less-likely due to the existence of intact road networks. Once more, such conditions will attract more domestic and foreign investment and higher economic activity. Ultimately, a country with better roads, has set itself up for economic growth and better citizen well-being (welfare).
Kevin Tutani is a political economy analyst- tutanikevin@gmail.com
