In The News

Traffic continues decline on Macquarie roads

Toll roads operated by Macquarie partnerships, including the Indiana Toll Road and Chicago Skyway, continued to see traffic decline in the first quarter of 2009.

The Indiana Toll Road, jointly managed by Macquarie Infrastructure Group of Australia and Cintra of Spain, took a hit of nearly 12 percent from January to March. Traffic has dropped on the Indiana Toll Road by more than 14 percent since July 2008 according to a Macquarie press release.

“Apart from toll increases in April 2008, the slowdown in economic activity and harsh winter conditions in January 2009 have led to decreasing traffic volumes,” Macquarie officials stated in the release dated Friday, April 17.

Despite the 2008 toll increase, average daily revenue decreased by 2.1 percent in the first quarter of 2009. The Indiana state government guaranteed in the 75-year lease that toll increases will keep up with inflation after the last scheduled toll increase in 2010.

The Owner-Operator Independent Drivers Association has fought against the privatization of toll roads and the toll increases that accompany a profit-driven road system.

Traffic diversion to less-safe alternative routes remains a big issue for truckers, state and local officials, and the public.

The Macquarie toll road portfolio in North America consists of stakes in the Dulles Greenway in Virginia, the South Bay Expressway in San Diego, and the 407 Express Toll Route in Toronto, Canada, in addition to the acquisitions in Indiana and Illinois.

The South Bay Expressway, a greenfield toll road to add capacity in Southern California, saw a 9.2 percent decrease in traffic from January to March. Macquarie officials blamed a “weak regional housing market” as the reason for the traffic decrease.

Nonetheless, revenue on the South Bay Expressway increased by 8.1 percent during the same period because of a toll increase that went into effect Jan. 24.

Similar toll increases on the Dulles Greenway, Chicago Skyway and the 407 ETR helped those roads remain profitable despite similar traffic declines.

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