UNIVERSITY OF SOUTH AFRICA
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702: Transport Economics
Assignment 2 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702
Module Code:
Transport Economics
Module Name:
Road Networks, Freight Corridors and Port Systems
Assignment Topic:
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assignment 2
Assignment Number:
Submitted in partial fulfilment of the requirements for TRL3702 — UNISA 2026
,UNISA | TRL3702 Transport Economics
Question 1.1: Structure, Management, and Funding of South Africa’s National Road Net-
work with Reference to SANRAL and Toll and Non-Toll Financing Models
South Africa’s national road network is one of the most extensive on the African continent
and forms the backbone of the country’s freight, commuter, and regional trade infrastructure.
The network’s stewardship is entrusted primarily to the South African National Roads Agency
SOC Ltd (SANRAL), a state-owned entity whose funding architecture, governance structure,
and strategic choices have shaped both the condition of the network and the economic land-
scape it serves. A critical examination of the network reveals genuine strengths alongside
persistent structural challenges, particularly in the balance between toll and non-toll financing
models (SANRAL, 2024; Moneyweb, 2023).
1.1.1 Structure of the National Road Network
South Africa has a three-tier road network consisting of national roads, provincial roads, and
municipal roads. The national road network, under SANRAL’s management, has grown signifi-
cantly over the past decade, from 19,704 km in 2013 to 24,384 km by 2023/24, with a further
3,350 km under assessment for transfer from provincial authorities (SAnews, 2024; Mon-
eyweb, 2023). This growth reflects an ongoing policy decision to consolidate strategic and
primary routes under national management, given provinces’ limited capacity and resources
for maintaining high-traffic corridors.
SANRAL divides the national road network into two operational categories. The non-toll port-
folio constitutes approximately 87% of the network and is funded through annual govern-
ment grants from the national fiscus (SANRAL Stop-Over, 2019). The toll portfolio consti-
tutes roughly 7% of the network (self-managed toll) plus a small concession portion, and is
financed through toll revenue collections and borrowings on commercial markets (SANRAL
Stop-Over, 2019). A further category involves privately managed concession toll roads, where
companies such as Trans African Concessions (TRAC), the N3 Toll Concession (N3TC), and
Bakwena Platinum Corridor Concessionaire have entered into public-private partnerships with
SANRAL for specific corridors (Wikipedia, 2025).
Page 2 of 22
, UNISA | TRL3702 Transport Economics
National Roads
Provincial Roads Municipal Roads
SANRAL
Provincial Depts. Local Authorities
24,384 km
PPP Concessions:
Non-Toll: Toll (SANRAL):
TRAC, N3TC,
87% (Gov Grant) 7% (User Fees)
Bakwena
Figure 1: Structure of South Africa’s National Road Network under SANRAL
1.1.2 SANRAL’s Role and Governance
SANRAL was established under the South African National Roads Agency Limited and Na-
tional Roads Act 7 of 1998, which vests in the agency the responsibility to plan, design, con-
struct, operate, rehabilitate, and maintain the national road network (Wikipedia, 2025). The
agency’s sole shareholder is the South African state, represented by the Minister of Transport.
Governance is exercised through an eight-member Board of Directors: five voting members
(the chairperson and four others) appointed by the Minister for three-year terms, and two
non-voting officials from the Department of Transport and National Treasury respectively
(Wikipedia, 2025).
Total assets stood at R772 billion in the 2023/24 financial year, up 17% year-on-year, with
operating activities increasing by 23% and investing activities by 7% (SAnews, 2024). SANRAL
has a three-year budget allocation of R87 billion from National Treasury, providing a medium-
term planning horizon for major capital projects and maintenance programmes (SAnews,
2024). In 2023/24, SANRAL invested R27.1 billion in road infrastructure overall, of which
R4.1 billion was allocated to toll roads and R23 billion to non-toll roads; within the non-toll
expenditure, R12.3 billion was directed to capital projects and R10.7 billion to maintenance
(SAnews, 2024).
SANRAL has also committed to transformation, achieving 99.6% of Routine Road Mainte-
nance work by Black-owned SMMEs against a 75% target, participating 2,249 SMMEs against
a target of 1,800, and creating 12,652 full-time equivalent jobs against a target of 12,000
(SAnews, 2024). These achievements signal an agency that functions beyond pure infras-
tructure delivery, embedding economic development goals into its core operations.
Page 3 of 22
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702: Transport Economics
Assignment 2 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702
Module Code:
Transport Economics
Module Name:
Road Networks, Freight Corridors and Port Systems
Assignment Topic:
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assignment 2
Assignment Number:
Submitted in partial fulfilment of the requirements for TRL3702 — UNISA 2026
,UNISA | TRL3702 Transport Economics
Question 1.1: Structure, Management, and Funding of South Africa’s National Road Net-
work with Reference to SANRAL and Toll and Non-Toll Financing Models
South Africa’s national road network is one of the most extensive on the African continent
and forms the backbone of the country’s freight, commuter, and regional trade infrastructure.
The network’s stewardship is entrusted primarily to the South African National Roads Agency
SOC Ltd (SANRAL), a state-owned entity whose funding architecture, governance structure,
and strategic choices have shaped both the condition of the network and the economic land-
scape it serves. A critical examination of the network reveals genuine strengths alongside
persistent structural challenges, particularly in the balance between toll and non-toll financing
models (SANRAL, 2024; Moneyweb, 2023).
1.1.1 Structure of the National Road Network
South Africa has a three-tier road network consisting of national roads, provincial roads, and
municipal roads. The national road network, under SANRAL’s management, has grown signifi-
cantly over the past decade, from 19,704 km in 2013 to 24,384 km by 2023/24, with a further
3,350 km under assessment for transfer from provincial authorities (SAnews, 2024; Mon-
eyweb, 2023). This growth reflects an ongoing policy decision to consolidate strategic and
primary routes under national management, given provinces’ limited capacity and resources
for maintaining high-traffic corridors.
SANRAL divides the national road network into two operational categories. The non-toll port-
folio constitutes approximately 87% of the network and is funded through annual govern-
ment grants from the national fiscus (SANRAL Stop-Over, 2019). The toll portfolio consti-
tutes roughly 7% of the network (self-managed toll) plus a small concession portion, and is
financed through toll revenue collections and borrowings on commercial markets (SANRAL
Stop-Over, 2019). A further category involves privately managed concession toll roads, where
companies such as Trans African Concessions (TRAC), the N3 Toll Concession (N3TC), and
Bakwena Platinum Corridor Concessionaire have entered into public-private partnerships with
SANRAL for specific corridors (Wikipedia, 2025).
Page 2 of 22
, UNISA | TRL3702 Transport Economics
National Roads
Provincial Roads Municipal Roads
SANRAL
Provincial Depts. Local Authorities
24,384 km
PPP Concessions:
Non-Toll: Toll (SANRAL):
TRAC, N3TC,
87% (Gov Grant) 7% (User Fees)
Bakwena
Figure 1: Structure of South Africa’s National Road Network under SANRAL
1.1.2 SANRAL’s Role and Governance
SANRAL was established under the South African National Roads Agency Limited and Na-
tional Roads Act 7 of 1998, which vests in the agency the responsibility to plan, design, con-
struct, operate, rehabilitate, and maintain the national road network (Wikipedia, 2025). The
agency’s sole shareholder is the South African state, represented by the Minister of Transport.
Governance is exercised through an eight-member Board of Directors: five voting members
(the chairperson and four others) appointed by the Minister for three-year terms, and two
non-voting officials from the Department of Transport and National Treasury respectively
(Wikipedia, 2025).
Total assets stood at R772 billion in the 2023/24 financial year, up 17% year-on-year, with
operating activities increasing by 23% and investing activities by 7% (SAnews, 2024). SANRAL
has a three-year budget allocation of R87 billion from National Treasury, providing a medium-
term planning horizon for major capital projects and maintenance programmes (SAnews,
2024). In 2023/24, SANRAL invested R27.1 billion in road infrastructure overall, of which
R4.1 billion was allocated to toll roads and R23 billion to non-toll roads; within the non-toll
expenditure, R12.3 billion was directed to capital projects and R10.7 billion to maintenance
(SAnews, 2024).
SANRAL has also committed to transformation, achieving 99.6% of Routine Road Mainte-
nance work by Black-owned SMMEs against a 75% target, participating 2,249 SMMEs against
a target of 1,800, and creating 12,652 full-time equivalent jobs against a target of 12,000
(SAnews, 2024). These achievements signal an agency that functions beyond pure infras-
tructure delivery, embedding economic development goals into its core operations.
Page 3 of 22
