Industry Analysis & Industry Trends
Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. The industry's revenue from individual toll roads is typically stable. Individual assets build in popularity with motorists over their lifetime, while congestion growth and market acceptance increase toll road use and allow operators to raise prices and expand. However, volatility in total industry revenue can increase when new roads enter operation. The industry is capital-intensive, as tunnels and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both operating costs and provide a return for investors after debt payments... purchase to read more
Industry Report - Industry Analysis Chapter
Industry players are responsible for operating toll roads, a function that is often combined with the ownership of the underlying asset. The value proposition of toll roads is that they allow commuters to save travel time in exchange for a fee. The fee is used to provide a return to the operator for their management of the asset, and a return to the owners for the capital tied up in what are often expensive roads. As toll roads in Australia increasingly involve extensive tunnelling, the industry’s asset base is growing.
The industry has performed strongly in terms of headline revenue over the past five years, growing at a compound annual rate of 5.4%. Revenue is projected to increase by 4.4% over 2015-16, to reach $2.2 billion... purchase to read more