Interlink Roads
| UTA holds an interest in Interlink Roads |
Interlink Roads manages the M5 South West Motorway (M5) in Sydney under a concession agreement with the NSW Government. The concession agreement expires in August 2023.
Performance highlights 2011
Total toll revenue was $167.5 million for the year, an increase of 3.1 percent on the prior year. Normalised EBITDA was $150.3(1) million for the year, 0.6 percent higher than last year. Toll revenues and traffic levels outperformed the prior year's results with the traffic mix improving as growth in heavy vehicle transport traffic over the year recovered in line with the economy.
Interlink carried an average of 123,641 vehicles per day for the year, which was 1.6 percent higher than last year. Traffic growth rate was lower than the prior year of 3.4 percent and may reflect post GFC adjustments; average traffic growth over the last five years was 2.4 percent.
Performance outlook
Traffic is expected to continue to grow, however the majority of the traffic growth is expected to occur in the off-peak periods as the M5 approaches capacity in peak commuting times.
During the year, Interlink worked on a proposal to widen the road from two to three lanes in each direction together with associated works along the corridor including construction of an operations management control system facility together with noise attenuation measures. Interlink submitted its proposal to the Roads & Traffic Authority (RTA) for consideration whilst concurrently working with the RTA and the NSW Government to progress the environmental assessment process for planning approval.
Interlink has been in negotiations with the RTA on the parameters of the transaction since July 2010. However, it was unable to reach agreement prior to the NSW State election. Since this time, Interlink is negotiating with the newly elected Government. In early June it was announced that an independent review of the project will be undertaken. It is expected that the output of the review will form the basis of an appropriate outcome.
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. The NSW Government remains committed to progressing the widening and Interlink believes that under a revised timetable, financial close could potentially be achieved by in the first quarter of 2012, with works to commence shortly thereafter.
Interlink roads
Financial and operational performance
| 30 June year end | 2007 | 2008 | 2009 | 2010 | 2011 | CAGR* |
| Average daily traffic (vehicles) ('000) | 112.3 | 115.6 | 117.7 | 121.7 | 123.6 | 2.4% |
| Toll revenue ($m) | 146.5 | 155.0 | 157.0 | 162.5 | 167.5 | 3.4% |
| EBITDA ($m) | 128.3 | 140.7 | 141.1 | 149.5 | 150.3 | 4.0% |
* CAGR: Compound Annual Growth Rate.
(1) Excluding a periodicals provision adjustment of $2.1 million. Periodicals are a maintenance provision required by accounting standards.
Note: Figures may differ slightly from previously reported information due to the timing of the completion of the audit of both statutory and regulatory accounts.
For more information please visit the Interlink Roads website