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 - Starting a New Business Chapter
Concessions for operating toll roads have historically been awarded as part of larger public/private infrastructure development arrangements. So even though the construction activities associated with these developments are not included in the industry, the ability form agreements with funding and construction partners is a major barrier to entry. This has been reflected historically in the small number of industry enterprises.
The failure of several high profile projects in the past three years is likely to deter investment in the near term. Investors and governments have been disappointed by the reliability of traffic forecasts that are the basis for valuing industry projects... purchase to read more