Junior Public Infrastructure Minister Annette Ferguson on Friday announced that the Demerara Harbour Bridge tolls would be increased since without subvention the bridge would be operating at a drastic shortfall.
Ferguson stated that effective from January 1, 2017, the Demerara Harbour Bridge will implement a new toll structure for most of the vehicular classifications.
Minister Annette Ferguson and DHB General Manager, Rawlston Adams
The minister’s announcement comes days after the issue arose in the Committee of Supply during the consideration of the 2017 Estimates for the Public Infrastructure Ministry. It was during the examination of the estimates that Opposition parliamentarian Komal Chand enquired whether the Demerara Harbour Bridge would be self-financing, since the subsidy has been reduced from $150 million last year to a mere $2 million this year.
In response, Minister Ferguson revealed the intention to hike the tolls. She further disclosed the new fees, and the increases ranged from 50 to 200 per cent.
These are: motorcycles – from $20 to $40; cars – from $100 to $200; cars (hire) – from $100 to $200; tractors – from $200 to $300; one-axle trailers – from $200 to $300; hearses – from $100 to $300; lorries (class 1) – from $500 to $700; lorries (class 3) – from $600 to $700; goods vehicles (up to 2200 pounds) – from $100 to $400, and goods vehicles (up to 4400 pounds) – from $200 to $400.
This resulted in the Opposition kicking up a storm, which it says is “another broadside from the Government” even as the populace is still reeling from the “shock and horror” of the 2017 Budget.
However, there will be no increases for four-wheel drive jeeps and minibuses, which are currently tolled at $200 as well as for vehicles with double-axle trailers, which cost $300 to cross the bridge.
Pinpointing that there was no increase for toll on public transportation, Ferguson at a press conference on Friday stated that this decision was made because more often than not, the pressures are transferred to the public when bus operators experience any increase in expenditure.
Nevertheless on Friday Minister Ferguson stated that based on current traffic trends, it is projected that the DHB will make $550 million at the end of 2016 with the current toll structure in place while its expenditure – both current and capital – will stand at a projected $600 million.
On the other hand, the projected revenue for 2017 – with the new toll structure in place and based on the same amount of traffic – would lead to an income of $861million.
“The significant increase in income is important for two reasons: not only would DHB have more funds to dedicate towards its operations, but the need for Government subvention would be negated. In other words, the Corporation would be totally self-reliant,” she said.
“Some persons might question why the Corporation should stop receiving Government subvention. After all, it is the taxpayers’ monies and DHBC provides a service to the taxpayers. However, we must consider that not every taxpayer is a user of the Demerara Harbour Bridge,” she added, highlighting that it is necessary, therefore, to transfer this responsibility from the Government and to allow our taxpayers’ monies to go towards other sectors such as education and health.
DHB General Manager Rawlston Adams on the other hand, stated that as it relates to marine traffic, trawlers are currently charged $15,000 while the larger ocean-going vessels are charged $50,000. He indicated that there is a restriction of four vessels per day on the number of marine vessels, which is due to the large amount of vehicular traffic and the need to ease congestion on the bridge.
“Over the years, operational costs have significantly increased. Meanwhile, Government subvention covers capital costs. Therefore, operational costs must still be covered by DHBC. The projected increase in income will allow DHBC to better cover these rising costs,” he said.
“While the increases, when described as percentages, sound high, the actual figures must be taken into account,” Adams said, noting that other factors, such as the fact that the tolls have not been increased for many categories for decades and the cost of tolls around the world, must be taken into account.
Meanwhile, the increase were given Cabinet’s no objection since in June of this year but when the media had reported on the increases, Minister Ferguson had said that a “decision” had not yet been made to increase the tolls, rather it was up for discussions.
In January 2009 there were approximately 74,000 trips made by private cars. In January 2010, this number rose to 86,338 and, by August of this year, there were approximately 163,000 trips made by private cars. For minibuses, the figure stood at 39,000 in January 2010. In July 2016, the figure was 44,000.
Meanwhile, lorries with 2 axles moved from 10,000 trips in January 2010 to 12,000 trips in August 2016.
