Economic downturn shrinks toll revenues
Published:Friday | December 9, 2011 | 12:00 AM
The majority French-owned TransJamaican Highway earned US$33.9 million (J$2.9 billion) in toll charges from local motorists last year, which reflected a US$3.7 million or J$318-million decline in the amount collected during the pre-crisis levels in 2008, according to just-released data.
The economic downturn was blamed for the fall in traffic on the tolled highway, according to a November bond sheet issued by National Road Operating and Constructing Company Limited (NROCC), the government body overseeing the development of Highway 2000.
"Total revenue for the year ended December 31, 2010 was US$33.9 million. Over the three-year period spanning from 2006 to 2008, the traffic count was on a generally increasing trend, but subsequently has shown marginal declines as a result of the global economic downturn," according to the bond term sheet.
NROCC indicated that toll revenues in 2010 were flat, compared with 2009 and was down 10 per cent in 2008.
Highway 2000, initially designed to connect Kingston and Montego Bay via Manchester, was modified to incorporate a leg to Ocho Rios. Currently, three toll roads are operational on the highway to and from Portmore, Spanish Town and Old Harbour.
Total traffic was 17.6 million vehicles in 2010, which was 6.9 per cent lower than 2009. Traffic on the Old Harbour leg saw the largest decline, down 12.2 per cent over 2009, followed by the Portmore leg, down 6.8 per cent, and the Spanish Town leg down 5.2 per cent.
TransJamaican Highway Limited is a private company owned by French-based Bouygues at 48.9 per cent, Autoroute du Sud de la France at 25.2 per cent, International Finance Corporation at 17 per cent and Proparco 8.9 per cent, according to the NROCC term sheet.
Revenues fluctuate
Similar to traffic, revenues on the highway increased up to 2008, then dipped in 2009 and stabilised in 2010, said NROCC.
"Total revenues received by the project company (TransJamaican Highway) increased from US$33 million in 2007 to US$37.6 million in 2008. However, revenues declined 10 per cent in 2009 to US$34 million due to a contraction in the economy, the result of the global economic downturn," it said.
Portmore traffic accounted for approximately 62 per cent of total usage of the road in the last five years, with the Old Harbour leg accounting for 24 per cent and Spanish Town accounting for 14 per cent.
In November, NROCC raised some US$294.2 million (J$25 billion) from a 9.37 per cent bond to repay debt. The bond, which matures in 2024, was co-arranged by Jamaica Money Market Brokers and Credit Suisse, with Oppenheimer acting as co-manager of the issue.
NROCC reported a record J$6.15 billion in net profit even as it revealed a fresh dispute with French contractor Bouygues over the ongoing Mount Rosser project, which could materially affect its capacity to service its debt. NROCC said its profit was up 230 per cent at year end June 2011, but that much of it came from a gain on the sale of bonds used to finance the Highway 2000 project.