Showing posts with label Cintra. Show all posts
Showing posts with label Cintra. Show all posts

Tuesday, 2 April 2013

News briefs - Indonesia, Philippines, South Africa, USA

Indonesia - Citra Marga Nusaphala Persada building more toll roads

The Jakarta Globe reports that Citra Marga Nusaphala Persada, the privately owned infrastructure firm, is planning to spend around US$200 million (Rp.2 trillion) on new projects.  It has a 62.5% share of a a 22.8-kilometer toll road, connecting Antasari, in South Jakarta, and Depok in West Java.

Philippines - Call to scrap VAT on tolls and subsidies for private toll roads

Business Mirror reports that Senator Ralph Recto has called for an end to the 12% VAT on tolls to ameliorate expected increases in tolls.  He suggests this would be preferable than plans to subsidise more toll roads to encourage private sector investment.  At present toll road operators have to apply for increases in tolls from the Toll Regulatory Board and are expecting to increase tolls by 10-33% this year.  His view is that if toll road operators could price the roads to generate a return that they could fully recover, the need for subsidies could be avoided.

South Africa - SANRAL CEO calls for acceptance of court decision

Engineering News reports that the South African National Roads Agency Ltd. Chief Executive, Nazir Alli, has called for opponents to tolling to "accept" the decision by the Constitutional Court to set aside the "interim interdict" granted to the Opposition to Urban Tolling Alliance (a lobby group opposed to tolling urban roads in the country), stopping tolls on the Gauteng Freeway Improvement Project (GFIP).

He said that without tolls, there wouldn't be the money to pay for major road improvements and claimed that the money for roads would need to involve cutting subsidies to public transport instead.   He claimed that government did not have enough money to pay for building and upgrading all of the roads required, and that much of South Africa's roads are not tolled.

USA- New York  - Could New York introduce congestion pricing more readily now?

Keystone politics points out that Manhatten now, effectively, has a cordon of automatic number plate recognition cameras, on all bridges, run by the NYPD.  So, perhaps, the costs of congestion pricing may be slightly less than otherwise thought?

USA - Texas - Groups urge boycott of USA's fastest toll road

Texas SH130 is now the USA's fastest road with a speed limit of 85mph, but the website of TV station KXAN reports that groups "Texans Uniting for Reform and Freedom" (TURF) and "Texans for Accountable Government" (TAG) are urging motorists to boycott the road.

Opposition appears to be based on:
- Safety fears at the high speed limit;
- Little efforts taken to avoid feral hogs from being a collision risk;
- Xenophobia (because the road is owned by Cintra, which is of course Spanish).

TURF is a contradictory organisation, that is opposed to tolls because roads "should be free".  It claims to "work tirelessly to secure a pro-freedom, pro-taxpayer, fiscally solvent, freely-accessible public road policy".  Quite how making taxpayers pay for roads they don't use, and opposing user pays is pro-freedom and pro-taxpayer, is rather curious.  Indeed forcing taxpayers to pay for something they don't use is quite socialist, opposing privately owned roads is as well.   I can empathise with concerns around eminent domain and improving the quality of government spending, but opposing Cintra because it is foreign is simply mindless nationalism.  Should foreigners stop buying goods and services produced by Texan firms?

TAG has a broader political focus saying it is "dedicated to safe guarding individual liberty, protecting personal privacy and property rights, election integrity, safe water, and electing representatives, not bureaucrats, to office", but it was far from easy to find anything on tolls on its website.

Tuesday, 12 March 2013

News briefs - Australia, Denmark, Indonesia, Italy, USA

Australia - Heavy vehicle charges review starts

Transport and Logistics News Australia reports on how the National Transport Commission is consulting on proposed changes to the heavy vehicle charges system (most of which are about how the charges are calculated).

The article is perhaps more interesting for its summary of how Australia charges trucks to use its roads. It is not road pricing or tolls, but a reasonable means of trying to be as efficient as possible in using fuel tax and ownership taxes.

Rather than the widely used non-system of political/bureaucratic guesses as to what might be charged, it involves calculating costs attributable to heavy vehicles, costs attributable to all vehicles and then setting charges to recover from heavy vehicles their share of infrastructure costs. 60% are recovered from fuel tax and 40% from vehicle ownership taxes.  Fuel tax is collected at the Federal level, but ownership taxes at the state level.

The principles applied are as below:
  • Full recovery of allocated infrastructure costs while minimising both the over and under recovery from any class of vehicle;
  • Cost-effectiveness of pricing instruments;
  • Transparency;
  • The need to balance administrative simplicity, efficiency and equity (e.g. impact on regional and remote communities/access);
  • The need to have regard to other pricing applications such as light vehicle charges, tolling and congestion;
  • Ongoing cost recovery in aggregate;
  • The removal of cross-subsidies between vehicle classes.
Now without distance and weight based charging, the system is going to be very much second best, but this system for setting charges is more advanced than that used to set charges in much of North America and Europe.   It is, at least, based on setting clear objectives with the need for transparent economic analysis to be used to base charges, and it does provide a framework which could be easily adapted to weight/distance based road user charging.

Denmark - Environmental Economic Council calls for road pricing to replace ownership and purchase taxes

The Copenhagen Post reports that the head of Det Miljøøkonomiske Råd, the environmental economic council, Hans Jørgen Whitta-Jacobsen, has suggested replacing the extortionate vehicle ownership taxes with a distance based road pricing system.  Vehicle purchase taxes cost 105% of the purchase value of a car up to 79,000 DKK (US$13,778) and 180% for every Kroner of value above that.  This imposes an enormous tax on the purchase of a new car.   Ownership taxes start at DKK120 (US$21) for the most fuel efficient diesel cars up to DKK15090 (US$2632) for the least efficient.  All of this makes car ownership expensive, and so doesn't target driving on the most congested roads (so penalises rural areas and those who without jobs accessible by public transit, walking or cycling).   His biggest concern is that such taxes discourage motorists from buying newer, more fuel efficient low emission vehicles.

Indonesia - PT Jasa Marga expecting increased revenue from growing network

The Jakarta Post reports that PT Jasa Marga, Indonesia's largest state owned toll road company, is expecting a 16.1% revenue increase this year, worth a total of US$671 million.   It has a network of 545km of toll roads with four new toll roads to open this calendar year (Nusa Dua-Ngurah Rai-Benoa road in Bali, Kebon Jeruk-Ciledug road in Jakarta, Gempol-Pandaan road in East Java and the Ungaran-Bawen road in Central Java). 

Jasa Marga is looking to facilitate up to 1.2 billion vehicle trips nationwide in 2013, 9.1 percent higher from the 1.1 billion vehicles last year.  80% of trips are on toll roads in greater Jakarta, indicating the sheer density of usage in that city.  Notable in the report is the roll out of the new e-Toll pass, which involves the use of a DSRC on-board unit, and a contactless smart card with prepaid credit that can be topped up.  Only 11% of transactions are at present using this technology, the intention is to lift this to 30% within two years.    Now the toll booths with this technology are not free flow, the tag activates the barrier arm, but the intention is to expand the number of toll booths that are electronically equipped to 111 by the end of 2013.   I would have thought that given the chronic congestion in Indonesia, lifting up take of electronic tolling to 50% of trips within two years should be a realistic goal.

Italy - Atlantia diversifies into airports

According to Reuters, Atlantia, Italy's largest toll road operator, is to buy Gemina, the airport operator best known for owning Aeroporti di Roma (which owns Rome's Fiumicino and Ciampino Airports).  The report said:

The deal will allow Atlantia, which also operates about 1,800 km of motorways in Brazil and Chile, to branch out into airport concessions in Latin America. It will not, however, generate meaningful cost synergies, a Milan-based analyst said.

USA - California- Santa Clarita (LA) looking at tolls to help fund new lanes

The website of radio station KHTS reports that Santa Clarita city (part of the LA metro area) is investigating whether to accelerate the widening of the I-5 freeway (the main northern freeway out of LA) between Highway 14 and Castaic by tolling the additional lanes.   The project would cost $310 million and the city has 75% of the funds needed to progress it (when divided over 30 years), and is hoping tolling the additional lanes may provide the remainder.  The proposal is to make the project into a PPP, with a private concessionaire recovering the cost over 35 years, using tolls on the new lanes only. The intention is for pricing to be dynamic maintaining a minimum speed of 45mph.  Curiously, the proposal maintains the HOT lane concept, by keeping the lanes free for vehicles with three or more occupants, which seems crazy if the key desire is to raise revenue.  The only purpose to keep HOT lanes is consistency, but beyond buses there is little good reason for new lanes to be free for any cars.   There is sense in applying the HOT principle if the lanes are underutilised HOV lanes, but why should well occupied cars occupying the same road space get access for free?  What evidence is there that this actually changes behaviour on any meaningful scale?  (besides a car with three people in it can split a toll three-ways surely)?

USA - Texas - Cintra wins concession for North Tarrant Express expansion

International Construction reports that Ferrovial subsidiary Cintra has won the concession to build the North Tarrant Express expansion in Texas.  Cintra is to be responsible for developing a 6.5 mile extension, with the state responsible for another 3.6 miles, but Cintra responsible for the tolling, operation and maintenance of the lot, with the total cost of both segments being US$1.38 billion.   The contract involves building two new managed lanes which will be tolled, but also the maintenance and operation of the untolled lanes.

The report says that "the Cintra-led consortium, NTE Mobility Partners Segments 3 LLC, also involves Meridiam Infrastructure and Dallas Police and Fire Pension System"

Wednesday, 18 July 2012

News briefs - Australia, Canada, Indonesia, Jamaica

Does fuel tax reduce congestion?

The answer to that question is yes, but not very well. Andrew Coyne from the Nanaimo Daily News (Canada) writes a good summary article about why full network congestion pricing is the best single tool for addressing traffic congestion, compared to building more roads, adding more public transport and simple cordon pricing. I'd counter his claim that London and Stockholm congestion charging haven't work so well because of induced demand within the cordons, because this simply isn't true. In London, road space was reallocated to pedestrians, cyclists and buses. Nevertheless, whilst he doesn't address the real concerns people have about privacy (which I believe can be overcome, but cannot be ignored), it isn't a bad article as to why road pricing needs to be comprehensive to properly address congestion. So far, nobody has dared try it.  Singapore may be the first to do so?

South Australia not going to have toll roads

According to Australian public broadcaster, ABC, "Chief executive of the Department of Planning, Transport and Infrastructure, Rod Hook, told 891 Breakfast this morning that Adelaide's road future could come at a toll". His view was quite simply that tolls would be needed as a source of revenue perhaps in order to get continued Federal funding for South Australia's highways. The Labor, Liberal and Family First parties in the state of South Australia all oppose the introduction of tolls, even though tolls are widespread in use on highways in Victoria, New South Wales and Queensland.

Toronto 407 toll road continues to perform well

The Globe and Mail reports that the 407 ETR in Toronto has had a good year. Trips increased 1% year on year, but revenue increased 10.6%. This is due to an increase in tolls at peak times by between 5-10% indicating that users are still willing to pay to use the road at those times. Notable is that revenue in the latest quarter is 83% higher than the same quarter last year. Revenue per trip is around C$6.37 (US$6.28). “Unbilled trips” (those either not identified or not able to be pursued for enforcement) are now at 2.2%, which is attributed to improved technology (presumably better resolution of Automatic Number Plate Recognition images).

407 ETR is owned by the Canada Pension Plan Investment Board (40%) , Spanish infrastructure company Cintra Infraestructuras SA (43.23%) and Canadian engineering firm SNC-Lavalin (16.77%).

Total revenue was C$188.4 million (US$185.9 million) for the year till June 30 up from C$170.3 million (US$168 million).

Tolling pushes ahead in Indonesia but PPPs not yet a success says Minister

The Jakarta Post interviews the Public Works Minister of Indonesia who says that Public-Private Partnerships are not yet a success, but progress has been astonishing:

For instance, when constructing the Jagorawi toll road in 1978, the state set up a company called PT Jasa Marga that acted as a toll road operator. However, Jasa Marga also emerged as regulator because we did not open the service to the private sector. We revised the law on roads and established the Toll Road Authority Agency (BPJT) as regulator in 2004. This law puts Jasa Marga only as operator and it has to compete with other investors if it wants to construct toll roads. It really attracts the private sector to invest in toll roads.

The key problem apparently being that interest rates for borrowing for Indonesian projects are high, demanding a high rate of return from projects.
 
Meanwhile, the Jakarta Globe reports on lending having been approved for a new 34km toll highway southwest of Surabaya.

Decline in demand but increase in revenue on Jamaican toll road

According to Go Jamaica, the Toll Authority of Jamaica has reported a third consecutive annual decline in traffic volumes on its tolled highway. The report says there has been a 5% average decline in 2010/2011 compared to the previous year. However, revenues are up by over 4%, presumably due to higher tolls or longer trips taken by those vehicles on the road. I went to the Authority's website to learn more, but it is not kept up to date, with the latest news release being in November 2010, and there being no annual reports published on its website (or not easily found). Hardly a model of transparency, or maybe this isn't seen to be a key distribution channel to supply information.

It's not easy to find Jamaica Infrastructure Organisation's website, but it does have some more information. JIO is the name of the concessionaire company responsible for the three toll roads. It has up to date prices. Which even its regulator hasn't got. There is even a frequent user discount.

Friday, 23 September 2011

Series of toll road investor results: Ferrovial, Atlantia, Transurban, Metro-Pacific

Ferrovial

Construction News reports Spanish infrastructure investor Ferrovial reporting a 312 million euro in net profit in the first half of 2011, contrasting with losses of 164 million euro in the same period of 2010. Notable was how the EBITDA on the Toronto 407 ETR rose by 8% in part due to higher tolls and lower operating costs. The Airports division contributed 62% of EBITDA, Services 14%, Toll Roads 14% and Construction 10%.

Ferrovial owns its toll roads through its subsidiary CINTRA.  Its highway assets (whole and partial) are:

Atlantia

Reuters reports that the Italian toll road investor company had a 41% increase in profit for the first six months of 2011 compared to 2010. This reflected sale of a stake in one road and increased toll revenue, despite declining traffic volumes (with a 0.5% decline in volumes on Italian toll roads).

"Excluding the sale of an investment and charges related to impairments, profit rose 12 percent over the period."

Atlantia's highway assets are:
- Autostrade per l'Italia SpA (2854.6 km of network of Italian motorways);
- Società Italiana per Azioni per il Traforo del Monte Bianco (5.8 km), which manages the Italian section of the Mont Blanc Tunnel;
- Raccordo Autostradale Valle d'Aosta SpA (32.3 km), which manages the road linking Aosta and the Mont Blanc Tunnel (Italy);
- Autostrada Torino-Savona SpA (130.9 km), which manages the motorway linking Turin and the Ligurian coast (Italy);
- Società Autostrada Tirrenica SpA, which holds the concession for the entire length of the Livorno-Civitavecchia motorway (240 km) and currently manages the Livorno-Rosignano section (36.6 km) (Italy);
- Tangenziale di Napoli SpA (20.2 km), which manages Naples' orbital motorway (Italy);
- Società Autostrade Meridionali SpA (51.6 km), which manages the Naples-Pompei-Salerno motorway (Italy);
- A4 Krakow-Katowice motorway (Poland);
- Pune Solapur Expressways (50%) in India, which holds the concession (expiring 2030) for 110 km motorway in the state of Maharashtra;
- 135 km toll motorway serving the cities of Rio Bueno and Puerto Monttt in Chile;
- 442 km toll motorway in the state of San Paulo in Brazil;
- 23.5 km southern section of the orbital toll motorway serving the city of Santiago del Chile;
- 79 km toll motorway serving the cities of Algarrobo, Casablanca and Cartagena in Chile;
- 43 km of road network in the city of Santiago in Chile;
- 21.5 km north-eastern bypass in the city of Santiago del Chile; and
- Urban motorway linking the city of Santiago with Arturo Merino Benitez International Airport.

Transurban

The Herald Sun reports that Australian toll road company Transurban has reported a 90% increase in full year profit.  An 8.8 per cent rise in traffic on Melbourne CityLink, which netted A$434.6 million (US$424 million) in revenue, was a key contributor to total toll revenue of A$891 million (US$870 million) - up 10 per cent.  It carries a reported A$5.8 billion of debt behind its assets. 

The Australian reports an interview with Transurban chief Chris Lynch who said "Our roads are very robust ... There's not a lot of discretionary travel on our roads, it's largely people getting to work or the airport."

It was also noted that the Melbourne CityLink, it gained from an additional lane on the western approach to the toll road network allowing for greater use of its capacity.

The Australian also noted that:

"The acid test of an infrastructure company is the ability to pay generous distributions funded by real cash rather than debt. The "wedge of free cash" -- $390 million in all -- enabled Transurban to declare a 27c per security full-year payout, with management promising "at least" a 29c distribution this year."

Adelaide Now reports that Melbourne Citylink grew faster than the average 10% "with an increase of 12.8 per cent to contribute $434.6 million. Transurban said the completion of the upgrade on its southern link, adding lanes on CityLink between both tunnels and Toorak Rd, had been important in boosting traffic."

Transurban said traffic growth on the Lane Cove Tunnel, purchased nearly a year ago, had initially risen 6 per cent but had declined to 2.8 per cent this calender year due works on the M2.

Transurban's highway assets are:
- Hills M2 motorway, Sydney. Australia;
- Lane Cove Tunnel, Sydney, Australia;
- Eastern Distributor, Sydney, Australia;
- Westlink M7, Sydney, Australia;
- M5, Sydney, Australia;
- Pocahontas 895, Virginia, USA; and
- Capital Beltway HOT lanes, Virginia, USA

Metro Pacific Tollways Corporation (Philippines)


earnings slipped 4 percent in the first half of the year to P725 million (US$17 million) due to lower-than-expected traffic growth and higher tax payments during the period. “Though traffic demand could be lower given sharp increases in fuel prices and the expiration of MNTC’s (Manila North Tollways Corp.) income tax holiday, MPTC still expects a strong financial performance this year with the increase in toll rates and modest traffic volume growth,” MPTC president Ramoncito Fernandez said in a statement.

The company's latest road is the Subic-Clark-Tarlac Expressway. Its portfolio also includes the North Luzon Expressway.