Industry Analysis & Industry Trends
The Toll Road Operators industry has grown steadily over the past decade as governments have sought to lower the cost of transport infrastructure through public-private partnerships (PPPs). As a result, industry revenue is projected to grow at a compound annual rate of 3.5% over the five years through 2012-13 to $2.0 billion. The completion of new toll roads and increased traffic on existing ones has supported this growth. Over 2012-13, industry revenue is expected to increase by 4.2%.
The industry's revenue streams are in theory relatively stable. Industry revenue is highly correlated with population growth. More people mean more cars, even though growth in car ownership per capita has stabilised in the past 10 years... purchase to read more
Industry Report - Industry Investment Chapter
The industry is very capital intensive owing to the high start-up costs of building roads and bridges, installation of computer driven toll collection systems, and costly material handling equipment in the container segment. This is represented in the ratio of wages to capital expenditure. The industry employs just 0.4 units of labour for every unit of capital engaged.
Over the last decade capital costs of building large infrastructure projects has increased. This is partial due to the use of electronic monitoring and toll systems but also due increasing complex engineering and design, such as greater use of tunnels. It is because of the increasing cost of building these projects that governments around the world have been seeking the assistance of private partner... purchase to read more