Delays In S. Africa Toll Project Affect European Stock

Delays In S. Africa Toll Project Affect European Stock

Opposition from drivers, labor unions and car rental agencies repeatedly delayed a South African electronic toll project in Gauteng province, this week pushing down the value of stock for an Austrian maker of toll-systems, according to a report in BusinessWeek.com.

The project’s failure to begin this month as scheduled pushed down the value of stock for Kapsch TrafficCom AG (KTCG) in Vienna, making it the worst performer in the 37-member ATX Prime Index, the report said.

The South African toll project will boost Kapsch’s revenue by more than 50 million euros ($65.6 million) a year, and is “the most important trigger for Kapsch’s share price,” Daniel Lion, a Vienna-based analyst at Erste Group Bank, told BusinessWeek.com.

In a report in BusinessDayLive, South Africa’s Opposition to Urban Tolling Alliance Chairman Wayne Duvenage said the toll money will be “extracted directly from the pockets of hard-pressed citizens to improve the profits and wealth of overseas business.

“The figure Kapsch mentions is around 45 percent of the annual running costs for the e-tolling system…which depicts sizeable profits for an offshore company, paid for by the Gauteng road user.”