A recently released investor presentation by toll road operator Transurban has detailed the company’s FY24 revenue on each of its fully and partially owned toll roads.
The company is currently engaged in discussions with the NSW government regarding its toll price rises, the most recent of which cane on January 1st this year and charged up to an extra $1.17 per trip for heavy vehicles.
Overall, the toll revenue earned by Transurban in its Sydney operations in FY24 accumulated to over $1.76 billion, or almost half of its overall toll road revenue from its assets across Australia and North America.
Transurban’s highest-earning road overall was Melbourne’s CityLink, which accounted for $948 million of revenue, while Sydney’s M2 accounted for $371 million of revenue and was Transurban’s top earner in the city.
Both roads are 100 per cent owned by Transurban, with the company’s Sydney and Melbourne assets generating a total of over $1.9 billion of free cash.
Transurban’s toll road prices in Sydney increase on January 1, April 1, July 1 and October 1 each year at a total increase of 4.25 per cent per annum.
The recent NSW Independent Toll Review conducted by Professor Allan Fels has projected the city’s motorists will, overall, pay $195 billion in tolls over the next 35 years. The same toll review recommended an increase to the current heavy vehicle multiplier.
Any changes to the current toll system in Sydney will likely not be in place until 2027, even if legislation changes before then.
Upon the announcement of the attempted reform, Transurban said it would work closely with the state government to “improve outcomes” for drivers 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,” an earlier statement from the company said.
“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.”
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