Industry Analysis & Industry Trends
Toll road operators charge motorists fees in exchange for providing high-quality roads that reduce travel times. Ideally, tolling revenue is sufficient to cover both operating costs and provide a return for investors after debt payments. The industry's revenue streams from specific toll roads are relatively stable, expanding over time as population growth and congestion result in increasing use. Given the nature of industry services, sharp expansions in revenue follow from increased capacity, and capital structures are a key factor behind the viability of industry participants.
These features of the industry have been amply demonstrated over the past five years, as the industry absorbed three new establishments and revenue expanded at a compound annual rate of 3.9%... purchase to read more
Industry Report - Industry Analysis Chapter
Toll road operators are responsible for operating toll roads, a function that is often combined with ownership of the underlying asset. The value proposition of toll roads is that they allow commuters to save precious 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 (literally carving out time savings for motorists), the industry's asset base is growing.
In the past five years, the industry has performed well in terms of headline revenue, growing at a compound annual rate of 3.9%. In 2013-14, revenue is forecast to increase by 0.6% to reach $2.3 billion... purchase to read more