Transurban Group (ASX: TCL) revealed that traffic continued to grow in its September 2018 quarterly report.
Transurban Group is a owner, operator and builder of toll roads in Australia and North America.
Transurban September 2018 Quarter Traffic Highlights:
The headline figure was that average daily traffic (ADT) grew by 3.3%, with growth across all markets.
In Sydney, Transurban acquired an additional 8.24% stake of the M5 West Motorway, it now owns 58.24% and has agreed to acquire another 7.15%. Sydney’s quarterly ADT grew by 2.5% to 681,000 trips.
In Melbourne, construction continues on the West Gate Tunnel Project and the Monash Freeway Upgrade. Melbourne’s quarterly ADT grew by 5.5% to 854,000 transactions.
In Brisbane, the Inner City Bypass Project was completed in August. Brisbane’s quarterly ADT grew by 0.6% to 414,000 trips.
In North America work on the 395 Express Lanes Project continues. Greater Washington Area ADT fell 0.7% to 98,000 trips due to Hurricane Florence, however Transurban did achieve price increases. Montreal ADT grew by 7.5% to 51,000 trips.
Transurban CEO Scott Charlton made reference to the business’ recent WestConnex win and highlighted the opportunity at the AGM:
“WestConnex is the largest single road project in Australia’s history and in just over 10 years, 40% of Sydney’s population is expected to live within five kilometres of this network.”
The Transurban share price has fallen 7% over the past year despite reporting toll revenue grew 9% in FY18.
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