State Highway 130 Segments 5&6

Both TIF and UTA hold an interest in Ballarat Water

State Highway 130 Segments 5&6 (SH130 5&6) is a new 41-mile tollroad in central Texas under construction by SH130 Concession Company (SH130 CC). SH130 CC will operate and maintain the road for 50 years from the initial operations date. Segments 5 and 6 are the last two segments of SH130 to be constructed; Segments 1 to 4 were opened between December 2006 and April 2008. The highway will connect Interstate Highway 35 north of Austin, Texas to Interstate Highway 10 east of San Antonio, Texas and will serve as a relief route to Interstate Highway 35 for North American Free Trade Alliance-related traffic, other long distance traffic and provide additional daily commuter lane capacity in the Austin region.

Performance highlights 2011

The project is now more than three-quarters complete. Construction is proceeding in all segments, with utility and bridge work well progressed.

The total cost of acquiring the necessary right of way for the tollroad is now forecast to be slightly higher than originally budgeted but is expected to still remain within the allocated contingency. All land has been released for construction; though a small amount of acquisition activities remain to be completed.

The SH130 CC Board and management have identified a number of strategic initiatives with the potential to deliver revenue upside for the asset as the project prepares for service commencement in 2012. Initiatives undertaken by the Concession Company include:

• Truck marketing research and planning: Enhance understanding of Texas freight and logistics issues to more effectively market the facility to heavy trucks;

• Commuters/cars marketing research and planning: Engage third-party marketing expertise to more effectively market the corridor to passenger vehicles;

• Travel plaza development: Attract heavy vehicles by offering more amenities than the alternative; and

• Signage outside project limits: Provide clear guidance at decision points to the public for accessing SH 130 5&6 as the preferred express route.

Performance outlook

Gross state product (GSP) per capita determines the rate of toll increases for SH130 5&6. Whilst GSP for Texas continues to outpace the overall US gross domestic product growth, on a per capita basis it has not yet recovered to pre-recession levels due primarily to the population of Texas increasing faster than economic growth. The Texas State Comptroller's forecast indicates this growth will stabilise in the near term as Texas job creation catches up with population growth.