Appetite for roads strong: Transurban
In making the case, it pointed to its agreement for the "basic funding" as part of its unsolicited proposal to build an eight-kilometre toll road between the F3 and M2 roads in northern Sydney. The construction costs of the new motorway link total $2.65 billion.
"Projects such as this demonstrate the ability of the private sector to bring capital to the table to address major infrastructure projects," chairman Lindsay Maxstead told shareholders on Thursday.
Transurban used its annual meeting in Melbourne to release a paper examining the funding models and options that governments could use to tap capital.
"A misconception has emerged in recent times that risk appetites for infrastructure development projects within the private sector have reduced to the point where patronage risk must be removed before the projects can attract private capital," Mr Maxstead said. "This is simply not true."
While it did not take part in the recent sales process for Brisbane's failed Clem7 tunnel, Transurban has indicated it is interested in buying the Cross City Tunnel under Sydney's CBD, which was placed in receivership last month.
Frequently Asked Questions about this Article…
Transurban says the private sector is still willing to provide capital for multibillion-dollar toll road projects. Chairman Lindsay Maxstead told shareholders that recent projects demonstrate private investors will bring capital to the table to address major infrastructure needs.
Transurban pointed to its unsolicited proposal to build an eight-kilometre toll road linking the F3 and M2 in northern Sydney. The company said it had an agreement for the 'basic funding' of the project, which has construction costs of $2.65 billion.
At its Melbourne annual meeting Transurban released a paper examining funding models and options governments could use to tap private capital. For investors, the paper highlights how different funding approaches could influence the availability of private investment in toll-road assets.
Chairman Lindsay Maxstead challenged the idea that private sector risk appetite has collapsed. He said it’s a misconception that patronage risk must be removed before projects can attract private capital, stating 'this is simply not true.'
No. The article notes Transurban did not take part in the recent sales process for Brisbane’s failed Clem7 tunnel.
Yes. The company has indicated interest in buying the Cross City Tunnel in Sydney’s CBD, which was placed in receivership last month.
Transurban’s comments suggest private capital remains available for toll-road projects and that the company is actively assessing opportunities. For everyday investors, that could mean continued market interest in toll-road assets and potential corporate activity, but the article does not make any claims about future returns.
No. The article reports Transurban’s view that private sector funding is available and describes specific projects and interests, but it does not guarantee outcomes or returns. Investors should treat the remarks as commentary on funding appetite rather than a promise of investment performance.
Call 1300 880 160
Start a chat
Schedule a call
