Road Projects | Stratecon

Economic Analysis of Roads

Roads form an integral part of a country’s transport infrastructure. The growth in the number of vehicles necessitates the ongoing upgrading of this infrastructure and, where necessary, the building of additional new roads or increasing the capacity of existing ones. The main issue of importance to policy makers is whether such upgrades or greenfield construction is justified from an economic perspective. In order to do this it is necessary to understand whether the benefits to the country as a whole outweigh the overall costs of the project.

The analysis is made more complex if the cost of construction is to be funded by tolling the road. In this case additional issues present themselves. Here it is not only necessary to assess the proposed upgrades from a societal perspective but it is also necessary to determine whether the benefits to individual road users exceed the cost of the toll. This, in addition, needs be done for each section of the road, for different road users and at different times of the day. Further, an assessment needs to be made of the affordability of the proposed tolls relative to the frequency of journeys and peoples’ incomes.

Policy makers often want to know the macroeconomic impact of the upgrades or greenfield construction.

Completed Projects

Upgrade options for the N3 between Pietermaritzburg and Durban. For SANRAL, 2013-20
Upgrade options for the N2 between Umhlati and Isipingo. For SANRAL, 2014-15
Economic analysis of the preferred by-pass alignment for Butterworth and Dutywa in the Transkei. For SANRAL 2011-12. The final upgrade alternatives were assessed in 2016.
Assessment of economic contribution made by the national road EN4 between Ressano Garcia and Maputo in Mozambique. For SANRAL and the Mozambican Road Agency, 2011–12.
An assessment of the economic feasibility of tolling the recently upgraded national road A2 between Masianokeng and Mafeteng in Lesotho. For Tolpan, 2010.
Economic assessment of upgrading the N2 and R72 between Port Elizabeth and East London in the Eastern Cape of South Africa. For the South African National Roads Agency and the Provincial Government of the Eastern Cape, 2008.
Development of a strategic social impact analysis of upgrading the N2 and R72 between Port Elizabeth and East London in the Eastern Cape of South Africa. For the South African National Roads Agency and the Provincial Government of the Eastern Cape, 2009.
Advisor to the South African National Roads Agency of the upgrading and tender adjudication process for the N1 and N2 in the Western Cape 2006-8, 2010-14.
Assessment of the economic efficiency of building the Tshwane western by-pass (PWV 9). For the City of Tshwane and the South African National Roads Agency 2007-9.
Assessment of the economic impact and efficiency of upgrading the Gauteng Freeway Network, for the South African National Roads Agency 2007-10.
Economic analysis of the integrated land use and transportation infrastructure upgrading of the N1 corridor in the Western Cape. This work included both financial feasibility assessments and economic impact analysis. Prepared for the project steering committee, 2005.
Advisor to the Western Cape Department of Transport to determine the optimal mix of labour and price in the tender allocation for the expanded public works programme of surfacing of the road between Gansbaai and Bredasdorp, 2005. This work was part of the development of the tender documentation for that project.
Determination of the potential social and economic impact of upgrading and tolling the R30 provincial road in the Free State. For the South African Roads Agency, 2004-5.
Economic assessment of the upgrading and tolling of three main arterial routes into Cape Town. For the South African National Roads Agency and two road consortiums, 2001-3.
Economic assessment of the upgrading and tolling of the N4 East of Pretoria. For the South African National Roads Agency, 2001-2.