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Witbank-Middelburg toll road : some strategic considerations for affected businesses

M.Comm. / The fundamental purpose of the dissertation was a descriptive analysis and a theoretical evaluation of the petroleum industry and its functions in South Africa, as well as the relevance of toll roads in South Africa. Toll roads provide the opportunity whereby an urgently needed road can be built at an earlier date than would be the case normally. The strategic management of businesses under normal market conditions has been studied extensively. Less importance has been given to the strategic management of businesses affected by external market forces such as quotas, import tariffs, restricted licenses and toll roads. South Africa has more than 200 000 kilometers of roads and more than seven million cars. Therefore demand for petrol has grown substantially over the last few years. There are ten different petroleum companies in South Africa; namely Afric Oil, BP, Caltex, Engen, Exel, Sasol, Shell, Tepco, Total and Zenex and there is no discernible difference between the fuels from the different oil companies. In May 1996, the governments of South Africa and Mozambique announced their vision and their objectives for the Maputo Development Corridor. In particular they expressed their belief that the corridor initiative held substantial opportunities for both the public and private sectors. The Trans African Concession (TRAC) was awarded the concession to develop the corridor. Concession grants the private sector a right to collect tollfees, which are used to service the loans incurred for: designing, construction, operations and maintenance of toll roads in the Maputo Development. The concessioning right usually extends for a period of 30 years after which the road is handed back to the South African National Road Agency. The first of five toll roads opened on the 8 December 1998 between Witbank and Middelburg. Tollfees are collected (R20,60 per car) by Plaza operators, and tariffs are adjusted annually. Toll Roads affect businesses, such as petrol stations, restaurants etc., due to high tollfees. Thereby some motorists use alternative routes. The study focuses on the petroleum industry, and more particularly on the retail of fuel and related products in the Maputo Development Corridor. An external market force in the form of the N3 toll road is affecting this market and industry. Consequently the strategic management of Shell Ultra City Middelburg and other affected businesses have to adapt from the task model to allow for the influence of the toll road. The toll road functions and annually toll tariff adjustments, formed the crux of this study. General strategic considerations are developed in the study to counter the effect of the toll road. Furthermore, a specific action plan is formulated to practically implement these general strategic considerations.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:9376
Date15 August 2012
CreatorsMarx, Liezle
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis

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