TRAC manages the road link between two countries – South Africa and Mozambique
Trans African Concessions (TRAC) owes its existence to a decision in 1994 by the newly elected democratic South African government to develop the so-called national route 4 – stretching from Pretoria in Gauteng to Komatipoort inMpumalanga and beyond the South African border to the Mozambican capital of Maputo – as part of a wider spatial development initiative for the region, comprising both countries. Called the Maputo Development Corridor Initiative, the aim was to develop the N4 route to such an extent that it would facilitate the stimulation of trade and investment in the region and provide access to global markets through the Port of Maputo. The N4 toll route runs over a distance of almost 600km between Gauteng (east of Pretoria) and the Port of Maputo in Mozambique, and operates six toll plazas along the route.
The N4 is a BOT (build, operate, transfer) toll road – over a 30-year period it is built, operated and then transferred back to the two states involved, South Africa and Mozambique. These countries' governments remain the legal owners of the land on which the N4 is built and will reassume responsibility for the road once TRAC's concession expires. Thanks to TRAC's continuous maintenance, expansion and rehabilitation of the N4, the two governments will be handed back essentially a new road in 2027.
Serving communities along the N4
TRAC created more than 7 000 jobs during the construction phase alone, and currently provides 1 000 permanent jobs with the company and its subcontractors.
TRAC is especially proud of the enabling role it has played in the development of the wider construction industry. It trained 11 503 entrepreneurs in construction skills over a three-year period during the initial phase, and provided extensive and dedicated SMME training that has improved the emerging sector's ability to respond to opportunities in both small and large construction projects.
Who determines toll tariffs?
The initial toll tariffs were set jointly by the roads agencies of South Africa (SANRAL) and/or Mozambique (ANE), TRAC and the lenders and shareholders to the project.
Annual tariff adjustments are based on the consumer price index (CPI) of the previous year and are determined and gazetted by the transport ministry in the respective countries.
How are toll fees used?
The money collected by TRAC for passage on the N4 toll route is used to:
- Pay off the more R1.5 billion debt incurred to construction the corridor route. TRAC is not funded by the government, but by the private sector.
- On-going road maintenance.
- Daily route patrols to evaluate road conditions.
- Operation of the toll plazas.
- Future expansions and upgrading of the road infrastructure.
- Route management with emphasis on improvement of safety features.