Transurban have played their data ace too late in race for WestConnex

The Transurban offer to share more traffic data is both too little and too late. The ACCC and NSW should reject this deal.

Motorist driving through the Eastern Distributor toll point at Woolloomooloo. Picture: Jonathan Ng

Transurban is attempting to swing clearance of its $5 billion bid for WestConnex by agreeing to publish full detail of all traffic flows on its Sydney toll roads in an apparent attempt to level the playing field.

The last minute attempt comes as the NSW Government is considering a rival bid for 51 per cent of the Sydney toll road led by IFM.

The ACCC gave the game away in its statement calling for comment on the undertaking noting: “This data is more detailed and accurate than data that is currently available or has been shared with the bidders for WestConnex.”

The ACCC noted one of its concerns in the bid “related to Transurban potentially having an advantage in obtaining future toll road concessions because it has access to detailed traffic data from existing toll roads.”

It is the first time data control has emerged as a key merger issue and it can be assumed data will be a key sticking point in future deals.

On this issue, the Transurban offer is both too little and too late because the damage is already done.

One wonders just what service the NSW government was offering its taxpayers by not forcing the release of the data from the day the bids were lodged last November.

Furthermore, while Transurban controls seven of the nine tolls roads around Sydney they are concessions on government land so surely the NSW government would retain some rights over the traffic data. The concessions suggest Transurban’s Scott Charlton knew he was holding an undisclosed ace in his hands and if he was serious about the offer he would have made it back in January when other bidders were circling.

Traffic flows are one thing but the real advantage Transurban has by being the incumbent is it can do deals like it does in Melbourne. It is currently building the West Gate Tunnel in return for a longer monopoly on the City Link project which is a concession no other bidder can offer.

The same applies in Sydney and there are some big deals coming up like the West Harbour Tunnel project and the M5 which is owned jointly with IFM.

Whoever controls WestConnex will take out the partner in M5 and if its bid is successful that gives it a virtual lock on the city’s toll roads.

The question is, outside of Transurban shareholders, who benefits from that sort market control?

On any read, NSW taxpayers will be the losers just as Victorian taxpayers are subject to Transurban’s unfettered powers in Melbourne.

The company rightly argues it is the state which sets the rules and the toll prices and, arguably, motorists can choose other roads.

Partly this is due to the quality of the road but incumbency brings extraordinary power.

The ACCC should reject this deal and so should the NSW government.