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 Investment Chapter
The Toll Road Operators industry exhibits a high level of capital intensity. IBISWorld estimates that for every dollar spent on wages, $15.17 is spent on capital costs. 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.
Over the past decade capital costs of building large infrastructure projects has increased. This is partially due to the use of electronic monitoring and toll systems but also due to increasingly complex engineering and design, such as greater use of tunnels. The increasing cost of building these projects has led governments around the world to seek the assistance of a private partner... purchase to read more