More motorists on weekends means more money for tolling giant
CityLink users have coughed up hundreds of millions of dollars after an increase in traffic — and revenue — on the busy toll road. And Sunday drivers have helped fuel the cash cow.
Motorists on CityLink coughed up $813 million last year to tolling giant Transurban, with more weekend trips helping to fuel the cash cow.
Weekend traffic grew by 4.6 per cent compared to weekday traffic growth of 2.6 per cent, with congestion and travel disruptions on the road network blamed for the Monday to Friday figures.
Overall, traffic on CityLink rose by more than 3 per cent in the past financial year, with strong growth in truck and other heavy vehicle numbers contributing to the rise.
TRANSURBAN TO RAKE IN TENS OF BILLIONS IN TOLLS
GO BEHIND THE SCENES OF THE WEST GATE TUNNEL
The company’s full-year results, reported to the ASX, show that the West Gate Tunnel remains on track to open by the end of 2022, in what will be a significant boost to Transurban’s Melbourne operations.
Overall, the company’s net profit was $170 million, fed by a total of $2.64 billion in tolling revenue but down almost 64 per cent on the previous year.
Transurban announced it was moving to increase its ownership of Sydney roads, with $500 million raised in equity to take full ownership of the M5.
Transurban won the right to build the West Gate Tunnel in Melbourne through a market-led proposal, and is stumping up $4 billion for building the project.
When finished, it will connect the West Gate Freeway to CityLink via a 17km road — 6.8km of which will be underground.
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Transurban has an agreement to charge tolls on the new road until 2045, and was also granted a 10-year tolling extension on CityLink by the Andrews Government as part of the deal.
Toll amounts will escalate by 4.25 per cent a year until 2029, which is the same rate of increase allowed on CityLink.
Macquarie Research analysis released in late 2017 projected Transurban would collect $27.3 billion from all West Gate Tunnel tolls and a 10-year CityLink toll extension it was granted by the Andrews Government this year.
On top of the extra revenue, at least $17.8 billion is likely to be coughed up by motorists under the old CityLink agreement that had been set to expire in 2035.
Originally published as More motorists on weekends means more money for tolling giant