As reported by TollroadsNew.com:
Transurban, principal shareholder and operator of the 495 toll express lanes on the Capital Beltway has told shareholders in Melbourne Australia that initial traffic is below expectations and that adjustment to traffic patterns and motorist preferences will be required. In the 6-week period to the end of 2012 they report revenues of $1.0 million ($800k tolls, $200k other revenues), operating costs of $3.2m, depreciation of $2.1m, and financing costs of $7m for a net loss of $11.3m. . .
An earlier TollroadsNews.com article quantifies the traffic and revenue shortfall: "Traffic now is 36% of the rate forecast for the whole year and revenue is 15% of the rate." But the first year of operations is still months away, and traffic could pick up although sequestration or other budget cutting is likely to dampen demand.
The article highlights that these results are for a small period and that Vollmer/Stantec "couldn't have foreseen the depth of the financial crisis of later 2007 and 2008 or the length of the recession that resulted. And perhaps they have underestimated a dampener on peak hours' traffic from the internet and greater worktime flexibility."
Rapidly growing tolls on the Dulles Toll Road probably aren't helping either.
I take the Dulles Toll Road eastbound every morning between 7:30-8:00A. It seems to me that usage is lighter since January 1 and the latest toll increase. Is it my imagination?
ReplyDeleteYou may not be imagining things. MWAA has a briefing for its leadership at least every quarter when they run through the transactions & revenues from the toll road. We'll keep an eye out for that information.
ReplyDeleteTwo reasons at least why this may happen:
--Even CDM Smith forecast projects signifcant declines in DTR use as tolls escalate, so your traffic will become lighter--at least over time.
--Federal agencies and govt. contractors have already begun to cut back on their employment in the face of the pending sequester. That will significantly reduce DTR traffic!
Transurban and HOT Lanes. Admittedly the results are early, but overall Transurban as an organisation is suspect. On Saturday last the Australian press published the current price to earnings ratio (P/E) as 225.9 to 1 and with its market capitalisation of $9.7 billion it is number 27 out of 150 of the top companies in Australia. This is very odd when one considers that its total liabilities are $6.4 billion and it cannot pay distributions out of profit because this has been insufficient for 13 years. Is the security price being rigged in some way?
ReplyDelete