Transurban Group Ltd. · ASX:TCL
Transurban — 2015 Morgans Queensland Conference
20 slides from Transurban's conference presentation, 2015
Slide 1: Transurban 2015 Morgans Conference
SCOTT CHARLTON, CEO TRANSURBAN 2015 MORGANS CONFERENCE 1
Slide 2: Transurban Snapshot
TRANSURBAN SNAPSHOT TRANSURBAN OWNS AND OPERATES TOLL ROADS TRANSURBAN IS AN ASX TOP 20 COMPANY WITH A MARKET CAP OVER $19 BILLION 4 14 9 NETWORKS ASSETS DEVELOPMENT OPPORTUNITIES 2
Slide 3: Strategy
STRATEGY To be the partner of choice with governments providing effective and innovative urban road infrastructure utilising core capabilities NETWORK COMMUNITY DEVELOPMENT TECHNOLOGY OPERATIONS PLANNING / ENGAGEMENT / DELIVERY AND CUSTOMER FORECASTING MANAGEMENT 3
Slide 4: The Value of the Network
THE VALUE OF THE NETWORK TRAFFIC AND TOLLING OPERATIONAL EFFICIENCIES • Traffic growth through economic cycles • Economies of scale • Fully electronic tolling with dynamic pricing NETWORK • Early adoption of proven technology capability • Active network management CHARACTERISTICS • Inflation linked
Slide 5: Transurban's Portfolio
TRANSURBAN’S PORTFOLIO AUSTRALIA NETWORK MELBOURNE SYDNEY HILLS CROSS CITY LANE COVE M1 EASTERN WESTLINK M5 ASSET CITYLINK M2 TUNNEL TUNNEL DISTRIBUTOR M7 MOTORWAY LENGTH 22km 21km 2.1km 3.8km 6km 40km 22km Transurban 100% 100% 100% 100% 75.1% 50% 50% ownership % of proportional FY15 37.0% 14.2% 3.5
Slide 6: Transurban's Portfolio
TRANSURBAN’S PORTFOLIO AUSTRALIA UNITED STATES NETWORK BRISBANE WASHINGTON DC GO 495 95 LEGACY ASSET GATEWAY LOGAN CLEM7 BETWEEN EXPRESS EXPRESS WAY BRIDGE LANES LANES LENGTH 23.1km 38.7km 6.8km 0.3km 5.7km 22km 46.6km Transurban 62.5% 62.5% 62.5% 62.5% 62.5% 100% 100% ownership % of proportional FY
Slide 7: CityLink Tulla Widening
CITYLINK TULLA WIDENING MELBOURNE OVERVIEW Extra lanes to add 30% more capacity Upgraded Bolte Bridge to West Gate Freeway connection to improve safety Improvements to Bell Street entry and exit Installation of digitised tolling and traffic management systems, enhancing road safety and relia
Slide 8: CityLink Tulla Widening
CITYLINK TULLA WIDENING PROJECT ECONOMICS PROJECT ECONOMICS Toll price Index of minimum 4.5% extended by one year Truck multiplier (effective in one increment 1 April 2017) HCV tolls move from 1.9 x to 3 x HCV (day) from 1.3x to 3x HCV (night) from 1.0x to 2x Concession LCV (day) from 1.3x to 1.6x e
Slide 9: NorthConnex
NORTHCONNEX SYDNEY OVERVIEW Nine kilometre twin tunnels connecting the southern end of the M1 Pacific Highway to the Hills M2 Motorway at the Pennant Hills Road interchange Upgrade works to the Hills M2 to integrate the NorthConnex project, providing 3.5 kilometres of additional lane (westbound)
Slide 10: NorthConnex
NORTH CONNEX PROJECT ECONOMICS Truck toll multiplier and escalation Westlink M7 from 1x to 3x over a two year New tolls and concession period NorthConnex opening Tolls aligned with M2 main toll point Lane Cove Tunnel1 Approximate 29-year concession to June 2048 from 2x to 3x over a two year period2
Slide 11: Western Distributor
WESTERN DISTRIBUTOR MELBOURNE OVERVIEW Upgrading Cook Street and the West Gate Freeway to Bolte Bridge ramp, complementing port works already underway 50% additional capacity by adding two lanes each way from M80 Ring Road to the Western Distributor tunnel portal Tunnel and elevated motorway c
Slide 12: Transurban Queensland
TRANSURBAN QUEENSLAND AIRPORTLINK GATEWAY UPGRADE • Sale process underway NORTH • Operational efficiencies • TQ managing project on uniquely available to TQ behalf of the Queensland consortium Government • D&C contractor appointed TQ INTEGRATION LEGACY WAY • Integration program on track • Opened 25
Slide 13: Gateway Upgrade North
GATEWAY UPGRADE NORTH OVERVIEW Widening of 11km section of the highway $1 billion project Partnered with Queensland and Federal Government to deliver project on their behalf 13
Slide 14: Legacy Way
LEGACY WAY SUCCESSFUL OPENING OPERATION 1ST QUARTER OF OPERATIONS LENGTH OF TUNNEL 4.6km NUMBER OF LANES 4 (2 lanes each direction) OPENING DATE1 25 June 2015 TOLL PRICE (CARS)2 $3.00 ESCALATION Brisbane CPI annually (1 July) AVERAGE WORK DAY TRAFFIC 19,000 1. Legacy Way opened to traffic on 25 June
Slide 15: Legacy Way
LEGACY WAY NETWORK BENEFITS Traffic uplift on AirportLink since opening of Legacy Way during discount toll period Government to ~10% increase in upgrade traffic since Kingsford Smith opening of Drive, a free Legacy Way competing route during discount for AirportLink toll period 15
Slide 16: Investment Discipline
INVESTMENT DISCIPLINE COMPARISON OF TCL AND VENDOR TRAFFIC FORECASTS CLEM7 YEAR-ON-YEAR TCL APPROACH TRAFFIC GROWTH (AADT%) Commitment to accurate forecasting – alignment of interest as long-term FY15 ACTUAL operator CLEM7 long term FY15 TCL INVESTMENT CASE vendor forecast Detailed network model
Slide 17: Positioning for the Future
POSITIONING FOR THE FUTURE SIGNIFICANT OPPORTUNITIES EMERGING THROUGH TECHNOLOGY TECHNOLOGY Road network pricing opportunities Efficient road network operations Optimised traffic management Expanded customer interfaces 17
Slide 18: Technology No Longer a Barrier
TECHNOLOGY NO LONGER A BARRIER INTRODUCED CURRENT STATE IN AUSTRALIA – CRITICAL MASS 18.5 million GPS-enabled smartphones GPS 2000: personal GPS products launched in use ON BOARD DIAGNOSTIC 2007: OBD connector mandated as 60% of vehicle fleet have an OBD connector (OBD) CONNECTOR standard for Austra
Slide 19: Road Usage Study
ROAD USAGE STUDY 1,200 participants across the Greater Melbourne area Distance-based per Price per trip Monthly charge for a set kilometre charge number of kilometres 10 cents per km $1.30 per trip $100 for 1,000km 19
Slide 20: Questions
transurban QUESTIONS SCOTT CHARLTON