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 comes from specific toll roads and is relatively 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. Total industry revenue can be lumpy, increasing 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 - 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