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 remains willing to provide capital for large toll-road projects. Chairman Lindsay Maxstead told shareholders that successful proposals — like Transurban's own unsolicited plan — show private investors will still back major infrastructure despite some recent project failures.
Transurban proposed building an eight-kilometre toll road linking the F3 and M2 in northern Sydney. As part of that unsolicited proposal, the company noted it had an agreement for the project's “basic funding.”
The article states the construction costs for the new motorway link between the F3 and M2 total $2.65 billion.
Transurban argued that it's a misconception that private-sector risk appetites have fallen so far that patronage risk must be eliminated to attract capital. Chairman Lindsay Maxstead said that view is "simply not true," indicating some private investors will accept patronage-related risk on projects.
At its Melbourne annual meeting Transurban released a paper examining the funding models and options governments could use to access capital for infrastructure. For investors, this signals the company is engaging with policy and finance solutions that could affect how future toll-road projects are funded and structured.
No. The article says Transurban did not take part in the recent sales process for Brisbane’s failed Clem7 tunnel.
Yes. The article indicates Transurban has expressed interest in buying the Cross City Tunnel in Sydney’s CBD, which was placed in receivership last month.
Everyday investors can take from Transurban's statements that the company sees continuing private capital interest in large road projects, is actively proposing and studying funding models, and is exploring acquisition opportunities. These actions illustrate Transurban's ongoing focus on growing and financing toll-road assets, though specific outcomes will depend on project approvals and market conditions.
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