By Khairul Khalid
Highway operators are going cashless, promising a more efficient traffic flow. But will they pass on cost savings to long-suffering road users?
It looks like in a few years’ time, Malaysian road users will see fewer faces in uniforms and gloves at toll booths. The highway operators are fast phasing out human collectors and relying more on electronic cards to collect toll fees.
There will be cost savings, but ultimately, will road users enjoy cheaper toll rates?
Many of the highway concessionaires have already gone cashless. More will follow suit. One of the biggest highway concessionaires PLUS Malaysia Bhd said that it is targeting to go fully electronic in 2017. So far, 14 of PLUS’ 92 tolls are already cashless. Five toll booths in Johor Bahru are already fully automated.
Last month, the Malaysian Highway Authority announced that 12 toll plazas across the country will go fully automated. Road users will have no choice but to rely on the all-Electronic Toll Collection system such as SmartTAG, Touch ‘n Go and PLUSMiles card.
These include the Penang Bridge toll; SMART Highway toll; Dato Keramat toll on the Ampang-Kuala Lumpur Elevated Highway; Ayer Panas, Sentul Pasar and Batu tolls on the Duta-Ulu Kelang Expressway; Jitra and Bukit Kayu Hitam tolls on the North-South Expressway; Lunas and Kubang Semang tolls on Butterworth-Kulim Expressway; and Gombak and Bentong tolls on the Kuala Lumpur-Karak Highway.
The decision to go cashless has not exactly been a smooth experience. Many road users and travellers have been caught unaware, causing massive delays at tolls. For example, the Batu Tiga toll at the Federal Highway in Kuala Lumpur went fully cashless in November last year but is still plagued with long lines and traffic congestion.
This is despite claims that transaction time is faster electronically. Touch ‘n Go is touted at six seconds per vehicle and SmartTAG only three seconds compared to cash payments’ 15 seconds per vehicle.
Some gripe that highway tolls should at least provide minimal cash lanes for motorists, such as for those who only use these tolled highways occasionally.
At least, in emergency cases where electronic cards malfunction or if motorists forget to bring their cards, there will be a backup option to pay cash.
Isn’t it always good to give consumers options?
However, most road users seem to have grudgingly accepted that tolls will go fully automatic. It is only a matter of time. Many commuters in the Klang Valley are already using electronic cards for other public transportation such as buses, light rail transit and commuter trains.
The big question is if the move to go fully electronic will ultimately benefit the road users or highway operators more.
Toll operators are touting a more efficient traffic flow as the main rationale for going electronic. That remains to be seen. Highway concessionaires will also benefit from saving on labour costs when they go cashless.
Manpower is reportedly approximately 10% of total costs for highway operators. They would also stand to benefit financially from less administrative costs and losses or shortfalls in cash collection.
At the moment, it is still unclear if highway concessionaires plan to absorb redundant workers to other departments or not. If they are laid off, companies such as Gamuda Bhd, IJM Corp Bhd, Ekovest Bhd could add significantly to their bottom line.
Although it is not imperative for these companies to pass on any savings on labour (or anything else) to its end users, would it hurt to do so?
Arguably, it would not undermine their profits. More importantly, it would be a great public relations gesture and goodwill to millions of customers who have been incredibly patient with its numerous shortcomings (and hikes). Many motorists would be happily snap up more electronic cards. More sales volume would offset the toll rate discounts. A win-win situation.
And while we’re still in dream mode, can we all get free and loaded SmartTags and Touch ‘n Go starter kits? With a bag of chips?
One can only hope. Highway boys, the ball is in your court. Long-suffering road users would welcome some good news.
GRRRRR!!!
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