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 - 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 which are the basis for valuing industry projects... purchase to read more