407ETR, Macquarie traffic coming back, revenue edges up

Leading concessionaire Macquarie report that their weighted average of traffic worldwide was up 1.6% in the last quarter, July-September, an improvement on the low point early this year. Greatest traffic strength was on the APRR motorway network in central France, up 3.4% over last year, and Westlink Sydney up 5.7%. The American pikes were the poor performers in traffic with the exception of Chicago Skyway. But the Skyway's increase in traffic is attributed to construction closures for widening of the competing Borman Expressway, work that is scheduled to continue through mid 2011.

Indiana Toll Road traffic is down on the longdistance heavily truck ticket system by 3.3% but up 3.8% in the more commuter intensive barrier segment in the west.

Dulles Greenway traffic was down quite strongly at 50k/day July-Sep v 52.4k previous corresponding period (pcp) - a 4.5% decline.

Mac's worst performer recently has been the South Bay Expressway on the eastern fringe of the San Diego metro area - prime foreclosure country. Daily traffic already low at 26.1k last year was down nearly 14% to 22.5k this year (Jul-Sept). The California tollroad also reports the adverse effects of a major drop in Mexican border crossing activity.

M6 in England  is down from an average 43.1k/day to 41.9, 2.7%. The decline is less than in the June quarter.

407ETR in Toronto is the giant of the Macquarie portfolio. It's traffic measured by vehicle-kilometers traveled was down from 613.6m to 610.2m, a drop of 0.6%. Number of trips were down somewhat more (2.4%) but the edge upward in trip length largely offset that. Macquarie has 30% of 407ETR, Cintra 35%.

Macquarie's revenue picture was generally slightly positive thanks to toll increases greater than the traffic drops on most pikes.

407ETR

407 International separately released their results. Their average workday trips this Sept Q were 380.7k v 391.6k pcp.

Toll revenues in 2009Q3 were C$156.6m v C$152.9m in 2008Q3. Average revenue per trip rose due to a combination of higher tolls and longer average trips.

Operating income at 407ETR was C$113.2m v C$107.5m pcp.  Net profit for the quarter was down to C$13m v C$60m pcp due to what the company described as "unfavorable net non-cash adjustments relating to inflation-linked financial instruments."

Tamariz new Prez, CEO

407ETR's board today also appointed Jose Tamariz president and CEO of 407ETR holding company 407 International to replace Antonio de Santiago.

Tamariz, an engineer was previously CEO of Cintra Ireland.

TOLLROADSnews 2009-10-20