Kapsch TrafficCom, the Austrian toll systems manufacturer behind the controversial e-tolling in South Africa, has experienced a drop in shares due to another delay of the system in the country.
HumanIPO reported in June Kapsch TrafficCom was expecting a revenue boost of approximately US$67.6 million from the e-tolling system in South Africa, which has been previously delayed.
The recent delay has resulted in the Austrian company heading for its lowest in shares since April this year – according to a report by Bloomberg.
Kapsch TrafficCom’s shares reportedly fell by 4.1 percent and traded at 3.6 per cent less on Friday in Vienna, which positions the company as the worst performer in the 37 member ATX Prime Index.
Daniel Lion, an analyst for the Erste Group Bank, told Bloomberg the revenue boost from South Africa’s e-tolling system is “the most important trigger for Kapsch’s share price”.
Furthermore Lion said “it would have been nice” if the project had begun operating.
The e-tolling system in Gauteng, South Africa, has been met with fierce opposition from labour unions, civil groups, political opposition parties, a religious organisation, a bikers association and the South African public who use the highways the South African National Roads Agency Limited (SANRAL) is planning to toll.
It is thus unclear as to when e-tolling in South Africa will commence.
