Sydney toll operator Transurban has issued a response to the NSW government’s intent to establish a state-owned toll agency, NSW Motorways, to own and operate the state’s toll roads that are not privately held concession agreements.
Legislation will be introduced to state parliament this week to create NSW Motorways, with an independent tolling customer ombudsman to be set up to deal with disputes and complaints, with toll operators bound by its decision.
The recommendations were laid out the in the recent Independent Toll Review, jointly led by former competition tsar Allan Fels.
Transurban is the only non-government owner of motorways in the state, and its operation has been highlighted as an obstacle to competition in a region where it has been found tolls are far higher than necessary.
Transurban says it will work with the state government to “improve outcomes for motorists” across Sydney.
“Transurban remains committed to working collaboratively with the NSW government and its investment partners in Sydney’s motorways on reforms to improve outcomes for motorists while protecting the value of the significant investment made in the state,” the statement says.
“Transurban and its investment partners have invested $36 billion in the state’s motorways over two decades which have provided significant value to Sydney’s motorists, including faster travel times and safer, more sustainable trips.
“As part of the announcement the NSW government reiterated the legislation does not override the existing contracts in place.
“The government also continues to express its preference for a negotiated outcome with the industry for toll reform through the direct deal process.”
Despite the expectation the legislation will pass in the immediate future, any changes to the current system would likely not be in effect until 2027.
The likes of the Sydney Harbour Bridge and tunnel, Western Harbour Tunnel and M6 Stage 1, once complete, would be included in any reform as they are not subject to private concession.
The Independent Toll Review also suggested boosting the heavy vehicle toll multiplier from three to 3.5 times higher than light vehicle tolls, in a move NatRoad CEO Warren Clark labelled as “unfair”, “unnecessary” and “unjustified”.
“Our industry simply cannot absorb these unfair and unnecessary costs, nor can we simply pass them onto customers,” Clark said at the time.
“These moves are in start contrast to the fairer tolling system the report claims to call for.
“This suggested increase in the toll multiplier to 3.5 is unjustified and mocks the essential role of trucking in our economy and supply chain.”
This year’s NSW state government budget included $16.6 million to support reforms arising from the review.
Roads Minister John Graham says the government is working to rein in Sydney’s out of control toll prices.
“We will transform the system into one that works better for those who use it, particularly motorists in Western Sydney who have little other choice than to spend big on tolls.”
Read more ATN:
Linfox sparks new EV rollout
Toll Group fleet upgrade continues
ATN Executive Profiles: C.H. Robinson’s Andrew Coldrey