GFIP & e-Toll Transport Portfolio Committee

1. GFIP & e-TollTransport Portfolio Committee 2014/02/18

2. Contents • Operations Commencement • Challenges • Interventions • General clarifications • Closing remarks

3. Operations Commencement • Operations of the e-tolling system in Gauteng commenced on 3 December 2013 • From the beginning of December to date, over 500 000 vehicles were newly registered on e-toll accounts • The operational commencement of a system that has an immediate impact on approximately 2,5m monthly users will unfortunately not happen without initial teething problems • SANRAL is well aware of issues and apologises to the general public if they were inconvenienced

4. Operations Commencement • Toll System: • The toll system is stable • System is handling large volumes especially as part of the initial ramp up period (high registration volumes, number of enquiries, etc) • System is exposing historic problems i.e • E-Natis data accuracy (e-Natis inaccuracies, e-Natis data not updated by vehicle owners) • Cloned & duplicate number plates • The number of vehicles without number plates (more than 50% of motorcycles don’t have number plates) • Vehicles that are not registered on e-Natis at all (illegal vehicles) • 3rd party impacts i.e. • communication links that impact on web accessibility • Post office strike

5. Operations Commencement • System Operations: • High number of customers wants direct interface – 57%registered at points of presence (kiosks & customer service centres) • Experienced times that access via web page is slow – two reasons: • Slowness on users connection • Slowness on SANRAL communication backbone

6. Operations Commencement • System Operations: • Non-registered and paying customers are forwarded an invoice and detailed transaction record via post: • Forwarded to e-Natis address details (legal requirement) • Due to e-Natis inaccuracies, e-Natis data not updated by vehicle owners, some users don’t receive invoices • In order to inform users as soon as possible about outstanding debt as soon as possible, and to allow qualification for applicable discounts – SMS’s are forwarded to users in terms of details on e-Natis. Again, inaccurate/outdated data on e-Natis causes some people to receive incorrect sms’s

7. Operations Commencement • Customer experience at points of presence and call centre: • Received complaints from some users regarding poor service at customer service centres and call centre: • Inability to assist with enquiries, especially with respect to transactions in the Violations Processing Centre (Unpaid outside 7 day grace period) • Long waiting times at customer service centres (Should be noted that a high volumes experienced due to late registrations – service centres were open for 2 years, operators exposed to verbal abuse by some members of the public) • Need for detailed transaction reports on site • Maximum payment on VPC limited to R15000 to be increased • There is also positive feedback received from some customers

8. Operations Commencement • Web page: • Web page is comprehensive – provides much information • Over 100 000 users so far registered an e-toll account via the website, adding a total of over 157 000 newly registered vehicles • Feedback received from users: • Some information is difficult to find • Web access sometimes slow • Requires some further explanation about some concepts – make it clearer

9. Operations Commencement • Payment channels: • Multiple payment channels are available to users: • Automated via linked credit card or debit order • Manual i.e. payment via EFT, cash at customer service centres, top up at retailers (Shoprite/Checkers/PnP), via e-commerce gateway) • There are standard banking delays between when certain payments such as EFT is made and when it reflects. Not as a result of SANRAL system – normal interbank processes • Experience high number of incorrect referenced payments – these payments then needs to manually paired and confirmed with users • Some users requires additional payment channels (over the counter at banks, ATM and cell)

10. Operations Commencement • Larger clients: • Some users with larger fleets have specific needs such as integrated detailed transaction records • Also experience incorrect understanding of the system: • Tags cannot be moved between vehicles • Number plates should not be obscured • Fleet banks are integrated with the SANRAL toll system – however not all of their clients are interested to work through fleet banks

11. Some Statistics – Claims and Complaints • Monthly user population of about 2,6m individual vehicles • Only 0,3% of those drivers per month raise a complaint through different channels (at Customer Service Centres, Call Centre and via the web) • The bulk of complaints are closed out within 5 days • Of all complaints received, over 85% are resolved by giving clarifications • The above statistic shows that further customer education is required – understand how system works and what discounts are available: • Account cycle • Payment options • When do you qualify for which discounts • What you can and cannot do with your tag • Why the importance of un-obscured VLN • Why you should contact SANRAL and not wait for an invoice

12. The Accounting Cyclewithin the 7 Day Grace Period Within the 7 day grace period after date of transaction: • The toll system is a pay-as-you-go system. • A road user has a seven day grace period, from the first gantry pass, to pay their e-toll transaction. • Registered e-toll account holders receive their invoices in a 14 day cycle (pending on the day of registration). • Invoices are forwarded to their selected communication option (e-mail/SMS/post) • If the e-toll transaction is not paid within seven days, it is transferred to the Violations Processing Centre (the section within e-toll operations that deals with overdue toll amounts).

13. The Account Cycleafter the 7 day Grace Period After the 7 day grace period – unpaid customer (Alternate User) • The user then becomes what is termed an alternate user. Due to the user’s status as an alternate user, discounts (e-tag, frequent user and time of day) are no longer applied and the Alternate Toll Tariff applies. • Transactions are rolled up and an invoice is issued to the road user. Invoices are mailed to the owner of the vehicle, with the contact details obtained from the eNatis database, as per the legal requirement. • A road user is then given an opportunity to settle his/her e-toll transactions and pending on the time within which the toll transactions are paid, post grace period discounts might apply: • If a road user pays within 30 days of the date of the invoice a 60% discount will apply, • if the road user pays within 60 days of the date of the invoice a 30% discount will apply. • If a road user, is not registered and then registers at the time of payment an additional once-off 6.67% discount will apply.

14. The Account Cycleafter the 7 day Grace Period • During this time, a process to inform users about outstanding debt commences. • As part of the debt collection process, SMSs, e-mails and telephone calls are made to notify road users of the outstanding debt to allow him/her to take advantage of the early payment discount in case of delays within the postal system. • It should be noted that this communication is merely done to inform a road user of outstanding debt and does not replace the invoices. • Once it appears that this process is unsuccessful, a final demand will be issued and the issue handed over to the prosecuting authority. • Some users experienced SMS communication to be “aggressive”

16. Tariff Escalation

17. Legal Limitations • Legally the VPC invoice must be send to the address of the registered owner as registered on the eNatis database. Unfortunately, the change of contact details or ownership are not always done timeously. • Due to protection of privacy legislation, when enquiring through the web, or at an e-toll Customer Service outlet or through the Call Centre, a security check is done by comparing the ID number and Vehicle Licence Plate Number with the eNatis database.

18. Current Status – Registrations & Payment • The trends in registration is positive: • Total number of tags/VLN’s taken up – 1 180 000 (includes approximately 110 000 exempted vehicles such as qualifying public transport and emergency vehicles & includes tags that retailers have sold or Key Accounts took up, but not yet registered) • Since beginning of December 2013, over 500 000 individual vehicles were newly registered • Initial transaction violation rate of 86% already dropped to 64% (excludes payments made post the grace period) • Invoicing cycle commenced – payments by violators increasing steadily • Overall payment rate – Within 7 day grace period and as part of invoicing cycle (VPC) – approximately 43% 18

19. Summary – Main issues raised • Accuracy of e-Natis information • Issue related to cloned vehicles, duplicate number plates and illegal vehicles (not registered on e-Natis at all) • Erratic communication with website causing slowness of operations • Improving customer services at points of presence and call centre • Improving clarity on web content and improve wording related to “aggressive” customer correspondence • Additional payment channels, especially for non-electronic & cash payments • Additional account management services for larger account holders (20+ vehicles) • Road user education – invoicing cycle, discounts and frequently asked questions

20. Interventions • Accuracy/Relevance of e-Natis information: • Education campaign – road users responsibility to keep information updated i.e. contact details, when relocating – new address, inform when vehicle is sold • Investigating options to improve vehicle owners ability to check online if details on e-Natis is correctly captured • Investigate options for vehicle owners to update such details • Processes i.e. FICA of e-Natis data

21. Interventions • Cloned/Duplicate/illegal vehicles: • E-toll system already captures such information if identified by system or reported by road users • Vehicles of special interest lists (VOSI lists) are compiled already • In collaboration with law enforcement agencies, and by means of Automated Number Plate Recognition (ANPR) equipment, on-road enforcement already takes place • A more comprehensive on-road enforcement campaign, focused on: • Cloned vehicles • Duplicate number plates • Vehicles not registered on e-Natis (illegal vehicles) to follow soon – will be properly announced through the media

22. Interventions • Communication problems – web accessibility: • Already addressed issues with 3rd party service providers • Ongoing optimisation of communication options and back-up options • User education regarding firewall settings on own PC or server • Improved web content clarity and “aggressive” customer correspondence: • Already identified content on web, invoices/statements, client communication that can be improved • Contractor in process to implement • Already changed wording on SMS correspondence related to first warning of outstanding tolls • Direct link to “itemised billing” included in e-mail account and invoice notification

23. Interventions • Customer services at POP’s and Call centre: • Ongoing training for operators • 2 tier escalation process for complicated enquiries – user must not leave without issue resolved or handed over to next tier of assistance: • Deployment of additional staff at the POP’S to walk the floor  and offer immediate assistance to front line staff.   • Help desks to be manned from this week. • Configuration setting change to allow for POP staff to edit email addresses as this allows them to immediately dispatch invoice and detailed transaction report. • Change configuration setting to R500,000 on card payments for VPC, cash to remain at R15,000.

24. Interventions • Additional payment channels: • Already engaged with service providers to explore options such as over the counter payments and ATM payments • Awaiting final proposals • Expansion of existing channels for “unpaid” customer – those outside 7 day grace period • Road user education to inform about existing channels • Additional account management services for larger account holders: • Additional reports • Combined detailed transaction reports for all account units (vehicles) • Handle as “corporate” accounts

25. Interventions • Road user education: • Ongoing process • SANRAL will publish a wall chart before end February explaining: • Frequently asked questions • Invoicing cycle • Payment channels

26. General Clarifications • Issues raised in the media (continued): • “Toll money leaving the country” – Actual status – the revenue collected is used by SANRAL for all project related costs. Toll operations is one aspect of these costs. The contractor is compensated in terms of each service delivered in terms of tendered prices. These services are procured locally and includes salaries (more than 99% local employees), system maintenance costs, postage, telecommunications, rates and taxes, etc. • “SANRAL will arrest people” – Actual status – SANRAL follows various processes (billing, debt collection, final invoices) to give users opportunity to make payment if they failed to pay toll within the 7 day grace period. Only if these options failed (about a 4 month process), the CPA process commence. The DOJ is responsible for CPA. 26

27. Closing Remarks • The e-tolling system is a new system. In the event that problems are experienced, all processes, manpower, etc is in place to manage these issues and improve where necessary • SANRAL has an overall network of 19700 km. Toll roads makes out 16% (3120 km) of which the GFIP comprises 201 km. • SANRAL is in process to provide infrastructure at existing toll plazas to accommodate the same e-tag technology at these plazas. This will further enhance the services to e-tag customers, reducing delays at existing toll plazas 27