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 SWOT Analysis Chapter
The Toll Road Operators industry is in the growth stage of its life cycle. Over the 10 years through 2020-21, the industry's contribution to the economy (industry value added) is expected to rise by a compound annual rate of 4.5%, a strong performance when compared with annualised GDP growth of 2.6%. This indicates that the industry is growing at a faster pace than the overall economy.
The industry has been growing strongly in terms of revenue over the past five years as the capacity available on toll roads has increased. Growth has been supported by increased privatisation by state governments and the rise of public-private partnerships (PPPs). PPPs are cooperative arrangements between private investors and government for the development and operation of major projects... purchase to read more