A review of Sydney’s 13 toll roads has recommended the government create a new system of “network tolls”, which Transurban would take to court, analysts say.
Already a subscriber?The NSW government has been put on notice to honour Transurban’s motorway contracts as it overhauls Sydney’s toll road network or face the toll road giant in court.
Peter Meany, head of global listed infrastructure at First Sentier Investors, oversees a 3 per cent stake in Transurban. He said it made sense to consider options for “fairer and more consistent toll structures” to help motorists manage the cost of living.But he points out that private investors have contributed to the development of Sydney’s road network.
Infrastructure Partnerships Australia chairman Adrian Dwyer, who represents entities in both the public and private sectors, said on Monday that any suggestion of unilaterally legislating over existing contracts “is reckless and should be ruled out”.Analysts believe the NSW government will have to find the cash to compensate Transurban for future revenue lost in any restructuring of toll fares or face the company in court.
Even if Transurban gets appropriate compensation for any changes to existing toll fares, it is less likely to secure extensions to toll road concessions in the future in return for extending motorways .
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