US authorities have beaten a path to MIG's door wanting "me too" style deals.
Toll roads still gold-paved
October 12, 2005
By Rod Myer
The Age, Australia
Copyright 2005
MACQUARIE Infrastructure Group is pushing on with its dramatic expansion strategy, undeterred by concerns in some quarters that listed toll roads are becoming too highly geared. MIG will next week be formally selected to lodge proposals to develop $2.1 billion worth of toll roads in the US state of Oregon, ahead of US construction giant Bechtel.
The three projects comprise a $US400 million ($A527 million), four-lane road to service the developing city of Damascus, a $US700 million expressway in the state's capital, Portland, and a 17 kilometre bypass for a congested state highway worth $US500 million.
While the roads would represent a significant addition to MIG's $8 billion-plus road portfolio, they are still at the proposal level. The first project is likely to be given the go-ahead by late 2006, the second in 2007 and the third in 2009.
MIG has almost single-handedly remade the American road business, last year paying $US1.8 billion for the 40-year-old Chicago Skyway, $US1 billion more than its nearest competitor.
As a result, US authorities have realised that their heavily leveraged freeways are an asset, not a liability and have beaten a path to MIG's door wanting "me too" style deals. So far MIG has bought the Dulles Greenway road in Virginia and is bidding for a connecting freeway, the Dulles tollway.
Its competitor Transurban is also bidding for four toll road projects in the Virginia- Washington DC area. The states of Texas and Indiana are also likely to sell off toll roads in the near future, presenting more possibilities.
MIG has tossed its hat into the ring in the world's largest single toll road privatisation. It has bid for two of three toll road systems being sold by the French Government consisting of thousands of kilometres of freeways with French construction group Eiffage.
The two road networks MIG and Eiffage have bid for are worth at least $11 billion.
While it is difficult to compare gearing levels because of the complexity of their structures, MIG appears to have expanded more aggressively than Transurban. MIG has earnings to cover its interest bill about 1.5 times while Transurban has interest cover of two times, an analyst said.
Copyright © 2005. The Age Company Ltd.: www.theage.com
October 12, 2005
By Rod Myer
The Age, Australia
Copyright 2005
MACQUARIE Infrastructure Group is pushing on with its dramatic expansion strategy, undeterred by concerns in some quarters that listed toll roads are becoming too highly geared. MIG will next week be formally selected to lodge proposals to develop $2.1 billion worth of toll roads in the US state of Oregon, ahead of US construction giant Bechtel.
The three projects comprise a $US400 million ($A527 million), four-lane road to service the developing city of Damascus, a $US700 million expressway in the state's capital, Portland, and a 17 kilometre bypass for a congested state highway worth $US500 million.
While the roads would represent a significant addition to MIG's $8 billion-plus road portfolio, they are still at the proposal level. The first project is likely to be given the go-ahead by late 2006, the second in 2007 and the third in 2009.
MIG has almost single-handedly remade the American road business, last year paying $US1.8 billion for the 40-year-old Chicago Skyway, $US1 billion more than its nearest competitor.
As a result, US authorities have realised that their heavily leveraged freeways are an asset, not a liability and have beaten a path to MIG's door wanting "me too" style deals. So far MIG has bought the Dulles Greenway road in Virginia and is bidding for a connecting freeway, the Dulles tollway.
Its competitor Transurban is also bidding for four toll road projects in the Virginia- Washington DC area. The states of Texas and Indiana are also likely to sell off toll roads in the near future, presenting more possibilities.
MIG has tossed its hat into the ring in the world's largest single toll road privatisation. It has bid for two of three toll road systems being sold by the French Government consisting of thousands of kilometres of freeways with French construction group Eiffage.
The two road networks MIG and Eiffage have bid for are worth at least $11 billion.
While it is difficult to compare gearing levels because of the complexity of their structures, MIG appears to have expanded more aggressively than Transurban. MIG has earnings to cover its interest bill about 1.5 times while Transurban has interest cover of two times, an analyst said.
Copyright © 2005. The Age Company Ltd.:
posted by Porkus Maximus Tex: at Tuesday, October 11, 2005
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