Melbourne drivers pay $388 million in road tolls: Transurban

MOTORISTS have coughed up $388 million in tolls on Melbourne roads over the past six months alone, coming as the Andrews Government signed a new deal which could see CityLink fees extended for a further decade.

TOLL giant Transurban reaped $388 million in tolls from Melbourne drivers in just six months.

The multinational company’s half-year profits from Victoria’s CityLink jumped 14.2 per cent.

It comes a week after Transurban signed contracts with the Andrews Government to build the $6.7 billion West Gate Tunnel in December.

TOLL DEAL A $15B JACKPOT FOR TRANSURBAN

DRIVERS WEIGHED DOWN BY A HEAVY TOLL

Under the deal, Melbourne drivers could see CityLink tolls extended for a further 10 years until 2045 to help pay for a portion of the project.

The move is worth billions of dollars in extra tolls over the life of the deal.

Transurban CEO Scott Charlton welcomed the news of the company growth and spruiked the recent deal in Victoria.

Transurban chief Scott Charlton says West Gate Bridge works are officially underway. Picture: Richard Dobson

An artist’s impression of the Melbourne’s West Gate Tunnel project.

“After nearly three years of planning, design and community engagement, we have reached contractual close on the West Gate Tunnel Project which will provide Melbourne with a critical alternative to the West Gate Bridge,” he said.

“Construction is officially underway on this project and it is forecast to open to traffic by 2022, when it will transform how people and goods are moved around the city.”

WEST GATE TUNNEL TO NOW COST $6.7 BILLION

The company has already raise $1.9 billion in equity as it begins the construction of the project.

Premier Daniel Andrews has previously come under fire for the proposed toll deed extension, which could net the company between $8 billion to $15 billion over the life of the deal.

Victorian Premier Daniel Andrews announcing the approval of the Westgate Tunnel that is to be completed by 2022. Picture: James Ross

Victorian Greens spokesman for transport, Sam Hibbins said the extension was a concern.

While shadow Treasurer Michael O’Brien said revenue had increased despite the number of vehicles decreasing and labelled it as “ a kick in the teeth to Melbourne motorists.”

“This is more evidence that Daniel Andrews’ decision to ram through the Westgate Tunnel project is giving Transurban a license to print money,’’ he said.

Both the State Opposition and the Victorian Greens party have flagged they will attempt to block the tolling plan in the Victorian Parliament.

Today’s announcement also confirmed the $16.5 billion Melbourne ring road connection known as the North East Link was now also on Transurban’s wish list.

Mr Charlton yesterday took aim at the parties, branding their stance “frustrating” and “cheap politics”.

“The motorists in Melbourne are sick of congestion and they want solutions,” he said.

“If we don’t build this road that means no new major road has been built in Melbourne in 15 years while Sydney has done five.”

Mr Charlton said the current political climate was a concern and the Westgate Tunnel project could be held up if parliament did not approve the deed extension by the time the road opens in 2022.

However, he highlighted compensation clauses had been written into the contract to protect investors and shareholders.

An estimated payout figure of $3 billion was strongly denied by Mr Charlton.

Between July and December, toll revenue in Victoria jumped 14.2 per cent and increased by $99 million Australia-wide.

Transurban’s shares opened at $11.48 on Tuesday.