Transurban eyes 'different business models'
Jenny WigginsInfrastructure reporter
May 2, 2022 – 4.54pm
Transurban will not diversify into other transport modes such as railways or airports but is keen to expand its tollroad operations into associated businesses like road user charging, chief executive Scott Charlton has told investors.
Transurban CEO Scott Charlton says a national shift to road user charging is inevitable because there is "no alternative". Eamon Gallagher
Transurban released a new strategy statement at an investor day in Melbourne on Monday, introducing the phrase "we focus on road transport solutions" and scrapping "to provide sustainable transport solutions".
Mr Charlton said the new strategy was intended to be "specific".
"It could be different business models and different business opportunities for Transurban," he said. "You won't see us buying an airport or going into rail."
The company is eyeing opportunities to operate road user charging systems, including using "price charging signals" to manage traffic flows.
It also wants to develop more apps and other services for drivers, particularly autonomous and connected cars that can communicate with infrastructure.
While Mr Charlton believes a national shift to road user charging for all vehicles will be slow, he argued there was "no alternative" and that the temporary cut in the fuel excise had helped drivers understand exactly how much they were paying in petrol taxes.
States and territories have started introducing charges for electric vehicles (EVs) based around how far they travel.
Victoria already charges 2.5¢ per kilometre for electric and hydrogen vehicles and NSW plans to introduce the same fee from mid-2027 or from the date that EVs comprise 30 per cent of all new vehicle sales, whichever comes first.
Transurban is urging drivers to consider EVs (Mr Charlton already drives one) and is looking for 11 motorists in Victoria to document their experience trying them out on the state's roads.
It is calling for applications from motorists who want to test drive a Nissan LEAF for a week and receive a $1000 travel voucher in return for documenting their experience through videos and photographs as part of program to create "new advocates who can join us in championing EVs and encourage others to give them a go".
About 10 per cent of the traffic on Transurban's A25 tollroad in Montreal already consists of EVs.
New data released by Transurban on Monday showed that traffic on its Sydney, Melbourne and Brisbane tollroads rose in the first three weeks of April compared with the same period in 2019, before the COVID-19 pandemic. But traffic on the company's North American roads remains mixed over the same period.
Transurban also disclosed that a dispute with a contractor on the expansion of its 95 Express Lanes toll road on the outskirts of Washington DC had led to an "immaterial cost adjustment" and that it would not open until late 2023, about one year late.
Another troubled Transurban project, Melbourne's West Gate Tunnel, has finally begun tunnelling but will be three years late.
Transurban's chief financial officer, Michelle Jablko, said that there would be "a net benefit" to the company if inflation and interest rates both increased in the near term because most of the company's debt that was maturing in the near term was above the average cost of its debt.
Jenny Wiggins writes on business, specialising in infrastructure and transport. Connect with Jenny on Twitter. Email Jenny at jwiggins@afr.com
Transurban
Latest In Infrastructure