What you haven’t been “Tolled” about the Toll

Public outcry is just the right expression that would explain the reactions to citizens of Jamaica as the proposed toll rates were released. The charges for the Caymanas to Mammee Bay toll road were $1220 for class one and a whopping $3700 for class three. Expensive by the standards of many, even for the more privileged in society, the rate seems a little bit high but what many failed to look into was that the difference between the capped toll rates and the proposed initial rate.  Before I explain the rates are not as bad as they seem, let me take you on a trip to the not so distant past.

The toll road which we have all come to love and use, and as the ads affectionately resound “Don’t stress it, East to West it”, is probably one the most covered up treasures in modern history. I justify by saying that it serves a purpose a purpose and solves a problem but in the process has cause a problem which no political promises could ever solve. Every year toll rates increase, this is due to the signed concessionaire agreement between the Government of Jamaica through (National Road Operating and Constructing Company, Trans Jamaican Highway and Bouyeages the developer, section 22.6 of the agreement under the sub heading of tolls highlights that ,

“The Developer shall be entitled at any time to collect Tolls at or below the Capped Toll Levels for the

relevant period. The Developer may on the termination of each six month period following the first

Handover Date, apply to the Toll Regulator, in accordance with the Tolling Policy, for the Toll Regulator's

approval to an increase in the Toll Levels. From the date that the Toll Regulator approves the proposed

increase the Developer shall be entitled to collect Tolls at the increased Toll Levels.”

Now this had to be signed so that the toll developer could recoup their investment, the government of Jamaica also has a responsibility to ensure that the developer receives not only his investment in return but a reasonable return on his investment.

Now let’s get back to Jamaica North South Highway, the one in the hot seat, in September of 2015 the toll rates for the Linstead to Moneague leg of the highway were increased from $200 to $360 for class 1 while class 2 was increased from $420 to $715, class 3 from $1000 to $1075. The upper values represent the capped toll rates, that is the highest possible rate under the afore signed agreement that  can be charged as toll for use of the road. My first reaction on this was the typical “What a wicked set a Chiney man dem,”, but with the little knowledge I have about capital investments is that if they charge the capped toll rates they will at least earn their principal in a much shorter time than if they stepwisely modify the toll rate in a similar manner to the East to West highway which I can assure you would be more expensive to the operator in the long run, as would have to take into consideration, changing the toll rate signs, updating the software and not to forget the mandatory television and radio ads informing the public of the increases. For this opening of the full highway this is what I presume to be the thinking of the toll operator, why not start at the cap and when we recoup our investment, we will lower the rate and hand over to the government and let the road be their problem.

Now let us get back to the math, which is problem for most of us.  For a class one vehicle, the cost round trip to Ocho Rios will be $2440, it will take approximately 35-50 minutes depending on your speed, to get to Mammee bay from Caymanas, pretty easy driving. The alternative is Mandela or east- west, then angels, flat bridge, Ewarton, Mount Rosser, Walkerswood/Golden Grove, Fern Gully/Chalky Hill then Ocho Rios/Draxhaul.

I would suggest that if you consider the wear and tear to your vehicle; you would drive the new highway,

If you consider getting to your destination much faster, then you would drive the new Highway,

If you only consider the cost wait six months, then you would drive the new highway.

In short I recommend you drive the new highway rest assured the rate cannot go up any further

Complementarity

One of the first tradeoffs between the North- South and East- West is the traffic coming from out of town that would normally take the Spanish Town leg would now be diverted to North- South, therefore east west would lose potential traffic both ways. Unfortunately, what is going to happen is that toll rates on East-West are going to increase even further, due to the government responsibility we mentioned before.

Secondly Portmore Toll road may experience more traffic as it has the potential to feed into North-South, traffic from Downtown Kingston would be encouraged to travel that route instead of the traditional route.

A Traffic nightmare on Mandela in the mornings, even though Mandela is expected to be expanded to a six lane highway, until then the traffic will be a problem till then, special provisions need to be made at Hydel for an overpass where students can cross to thoroughfare.   

Let us see what happens after the road opens up, drivers will decide whether or not the opportunity cost of the highway (i.e. the Alternative route) is greater than the cost of toll. Only time alone can tell, I know that no one expected the road to be free.