Transurban warns against changes to Sydney motorway network

Toll-road giant Transurban has warned against radical changes to the Sydney motorway network and any moves that could see drivers pay more.

Transurban boss Michelle Jablko said the Sydney motorway network already delivered significant value and travel time savings. Picture: Simon Anders

Toll-road giant Transurban has warned against radical changes to the Sydney motorway network and any moves that could see drivers pay more.

Transurban chief executive Michelle Jablko said the interim report into the network review raised many good points.

However, she said the Sydney motorway network already delivered significant value and travel time savings.

“This is why an average of 1 million trips are taken on these roads across the city each day,” Ms ­Jablko said.

In March, the report recommended that the state government pass legislation to create a new system of “network tolls” to replace current concession ­arrangements.

Written by former Australian Competition & Consumer Commission chairman Allan Fels and transport expert David Cousins, the report said each toll road had a unique fare structure, meaning trips on some toll roads were cheaper than others.

They suggested the state government could override existing toll-road contracts with fares being set by a government body, State TollCo, that would been overseen by the independent Pricing and Regulatory Tribunal.

They also recommended a new approach to public-private partnerships, specifically ruling out unsolicited proposals, which Professor Fels said had entrenched Transurban’s monopoly and dominance.

In its official response, Transurban – which operates 11 of Sydney’s 13 toll roads under separate concessions awarded by the NSW government – said it and co-investors had put more than $36bn into the Sydney road network.

“These are investments and contracts lasting several decades, that should be viewed through a long-term life cycle lens,” Transurban said in its submission.

“This structure gives price transparency and consistency. Viewing these investments only from a short-term perspective would result in higher tolls and fluctuations based on the economic environment, which is not efficient and provides less price transparency for motorists.”

Transurban chief executive Michelle Jablko. Picture: Aaron Francis

Transurban said a switch to ­declining distance-based tolling – as suggested in the report – would not make price transparency simpler, with different costs per kilometre applying to motorists for each trip, depending on their origin and destination.

“Currently, our customers can calculate and readily understand the cost of each trip on a toll road,” its submission said.

“Our research shows drivers choose to pay for toll roads for their convenience, and because these roads help drivers get to their destinations faster and more safely – not because of a lack of alternative transport options.”

Transurban said the interim report included ideas it had long ­advocated, such as changes to the NSW enforcement process regarding toll notices.

It also supported on-road signage improvements to help drivers make informed decisions, and the company said it had already taken steps and would continue to invest in and work on initiatives to improve this experience for its customers.

However, Transurban said its analysis also showed that other ­aspects of the interim report’s proposed solutions needed to be reconsidered as they would run contrary to the NSW government’s objectives of improving the efficiency, fairness, simplicity and transparency of the toll roads.

Ms Jablko said the interim report raised good points about the need for reform and the company agreed that Sydney’s network could be improved for the benefit of customers and the broader NSW community.

“We are committed to help delivering these improvements which is why we have teamed up with our key investment partners to sign an undertaking to work constructively with the NSW government,” she said.

“We believe there is a way to deliver meaningful reform that helps customers in practical ways as Sydney continues to grow, while also protecting the value of the investment we have made in the city’s roads over nearly two decades.”

Transurban shares closed down 0.4 per cent at $12.43.

Originally published as Transurban warns against changes to Sydney motorway network