Interlink Roads
| UTA interest in Interlink Roads: | 19.2% |
Interlink Roads manages the M5 South West Motorway (M5) in Sydney, Australia under a concession agreement with the NSW Government. The concession agreement expires in August 2023.
Performance highlights 2008
Interlink Roads generated a return of 11.8 percent for the year and has delivered 22.0 percent per annum since inception.
Total toll revenue was above expectations delivering $155.0 million for the year, an increase of 5.8 percent on last year. EBITDA was $143.5 million for the year, 12.0 percent higher than last year, and higher than forecast.
Revenue and EBITDA were above budget due to higher advertising revenues generated from billboards and the deferral of periodic maintenance costs. It is now intended that the major periodic maintenance (originally budgeted in 2008) will be undertaken during the proposed widening project in 2009.
Interlink carried an average of 110,479 vehicles per day for the year, which was 2.4 percent higher than the previous year.
Traffic levels were lower than budget largely due to lower traffic volumes driven by the impact of higher fuel costs. Interlink Roads has seen the impact of fuel prices directly influence discretionary travel. However, heavy transport vehicle traffic volume has grown at a rate greater than forecast.
The lower vehicle traffic experienced on the road network has been offset by higher Consumer Price Index growth during the year resulting in higher than anticipated toll revenues.
Performance outlook
During the year management continued discussions with the NSW Roads and Traffic Authority (RTA) in relation to the M5 widening project and will most likely submit a non-binding proposal to the RTA in the second half of 2008.
The proposal, whilst still subject to negotiations with the RTA, outlines the construction work, the upfront costs, as well as the funding required.
The M5 widening project is expected to provide improved travel times from the city to the south, and towards the city up to King Georges Road and include a cashless tolling solution. Current feedback from the RTA has been positive and assuming negotiations progress, management expect financial close to occur by mid 2009, with works to commence shortly thereafter.
Interlink roads
Financial and operational performance
| 30 June year end | 2004 | 2005 | 2006 | 2007 | 2008 | CAGR* |
| Average daily traffic (vehicles) ('000) | 97.8 | 102.1 | 105.5 | 107.9 | 110.5 | 3.1% |
| Toll revenue ($m) | 116.1 | 121.5 | 127.2 | 146.5 | 155.0 | 7.5% |
| EBITDA ($m) | 105.9 | 108.9 | 115.4 | 128.1 | 143.5 | 7.9% |
* CAGR: Compound Annual Growth Rate
For more information please visit the Interlink Roads website