Today, road operating company Transurban Group [ASX:TCL], the full owner of CityLink in Melbourne and further networks in the US, sought to update investors on activities in the March quarter of 2023.
In its most recent traffic update, Transurban stated that average daily traffic had increased by 12.9% compared with the same time last year, creating a quarterly record in traffic results for the business.
Currently, Transurban has a market cap of $45.41 billion, and a share for the road services giant would have set you back $14.74 each.
Its recent performance has been positive, having gained more than 2% in share value in the past month, and 13.5% so far in the 2023 calendar year.
TCL is currently up 10% on the wider market 12-month average:
Source: TradingView
Transurban Group hits new traffic record
Road operational company, manager, and developer of urban toll road networks in Australia, Canada and the US, Transurban Group released an update on traffic for the third quarter.
The group said it had just experienced a record quarter in traffic results, with particularly strong traffic activity in Sydney and Brisbane.
Average Daily Traffic (ADT) increased by 12.9% in the last quarter, as compared to the March 2022 quarter, thus giving the group its new record.
This total was made up of a 12% increase in ADT in Sydney, 13% ADT increase in Melbourne, and 14% improvement in Brisbane.
Stats also improved in the US, with North America posting an ADT rise by 15%.
Transurban noted overall positive underlying performance, with contributions from new assets and other notable recent enhancements now online.
Melbourne traffic continued to improve in the last quarter, weekend and weekday traffic having experienced a boost as the economy shifts more confidently out of COVID-restricted travel and commuting.
Transurban also noted that large vehicle traffic kept at a steady rate, while airport traffic went up across all Australian markets.
Project plans and improvements
On 20 January, the WestConnex M4-M8 Link was opened, a 33-kilometres — mostly underground — motorway scheme in Sydney. Post opening, traffic exceeded original expectations, and a single WestConnex trip now includes multiple assets, with around 5.5% of WestConnex trips qualifying for the toll cap.
Additionally, the opening of the M4-M8 Link has forced increased traffic from the Eastern Distributor, Lane Cove Tunnel and Cross City Tunnel, accruing further toll revenue from these tunnel and road assets.
In February, Transurban and its partners reached financial close on plans to widen the M7 Motorway and connect with the new M12 Motorway in Western Sydney. In 2022, Transport for NSW accepted a binding proposal for the project.
What about business in the US?
Of the Greater Washington Area, Transurban reported that a three-times toll multiplier was introduced for medium vehicles on the 95, 395, and 495 Express Lanes, which was launched from December 2022.
It was noted that around 2.6% of traffic for the quarter paid the higher toll from these roads.
The group also said global investment group CDPQ will become a 50% partner in the A25 asset for gross sale proceeds of CA$255 million.
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