Review calls NSW tolls as 'poorly functioning', Transurban slides
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The news: Transurban’s shares fell after the Independent Toll Review’s report on NSW’s road tolls proposed to tackle the complexity and inequity of a disjointed system that has cost motorists billions.
The numbers: Transurban shares were down nearly 1.5% to $12.72 by 11:42 am.
The report handed down today by Allan Fels and David Cousins found that motorists paid $2.5 billion a year in tolls and would pay $195 billion more over the next 35 years.
In early attempts to tackle high tolling, the NSW government introduced a $60 weekly toll cap at the start of 2024.
The context: The review said Sydney's toll road network was a "poorly-functioning patchwork" of numerous different price structures.
Responding to the review, Transurban said it was committed to working with the NSW government and noted the company and its partners had invested $36 billion in the state's motorways over decades.
Transurban, which operates 11 toll roads in Sydney directly and along with its subsidiaries has a near monopoly on NSW toll roads, recently restructured its executive team to retire executive roles overseeing NSW. The NSW government commissioned research into tolls to disentangle the complex privatisation of toll roads dominated by Transurban.
Sydney is one of the most tolled cities in the world, with Western Sydney residents affected the most financially. The report provides recommendations including two-way tolling on the Harbour bridge and lower tolls for long-distance drivers to bring equitable tolling to Western Sydney residents.
What they said: "Transurban is committed to working with the NSW Government and other investors in Sydney's motorways on potential reform, by exploring solutions that utilise several aspects of the review as a base, to improve customer outcomes while protecting the value of the significant investment made in Sydney over the past two decades," Transurban said.
NSW Roads Minister John Graham said: “Toll reform is critical for Sydney and this is a once in a generation chance to address this issue".
"Former governments have had an attitude of set and forget on tolls but the result is now a combined burden of $195 billion to be paid out to 2060 and a city that is more congested, more divided," he said.
The sources: NSW Government media release, ASX announcement
