REPORT 91-X revenues doubled but still losses in 97

REPORT

91-X revenues doubled but still losses in 97

Calif Private Transp Co, owners of 91-X, say in their annual report for 1997 that revenues nearly doubled and costs increased less than a half for a $4.7m operating surplus. But much larger charges to depreciation and finance costs overwhelmed this operating improvement for an overall loss of $12.7m — against $6.7m in 1996. The toll express facility that operates 16km (10mi) of 4-lanes in the median of 8-lane CA-91 in Orange Co Calif opened for tolling in the last days of 1995 so the annual reports for 1996 and 1997 effectively cover the first two years of its operations. The facility has tolls that vary by day and by time-of-day according to a published schedule, which has been adjusted four times. There are several different payment plans but all users must have a transponder, issued either by CPTC itself, or by TCA, SANDAG or Caltrans.

The major 91-X results are shown in the table (see above) which we have compiled from various numbers spread through the two annual reports. The text of the report for 1997 emphasizes how customer-oriented is the management of the facility. Some extracts: “...the 91 Express Lanes has shown the private toll road concept to be a successful transp management alternative with tangible economic, environmental and quality of life benefits...more than 100,000 CPTC customers rely on the value and convenience the 91-X brings to their daily commute... many of our customers report time saving up to 60 minutes off their daily commute... Our innovation in value pricing has preserved congestion-free travel, allowing our customers to better manage their commute. Their achievements have pushed consumer satisfaction to new highs...”

Reports in the ORANGE COUNTY REGISTER and LA TIMES in May suggest that consumer satisfaction has slipped recently. A move to quarterly billing from monthly produced a rash of account inquiries and complaints that the customer service staff were not able to handle. Manager Greg Hulsizer has said he is working to overcome the problems and apologized to customers. (Copies of the annual report from Steve George, Man Dir, CPTC 402 943 1414)