Despite Transurban Group Stapled Securities’ [ASX:TCL] consistent share growth over the past five years, they’re still seeing small surges of decline. As of this morning, their shares dropped by 1.62%.
While operating a vast amount of toll road networks, Transurban holds interest in 15 toll roads across various Australian states. As well as the Greater Washington area in the USA.
Transurban has a profit margin of 15.45% and an overall operating margin of 32.43%
Last month, Transurban reached an agreement with Macquarie Infrastructure Partners to obtain 100% interest in the A25, which is located in the Montreal metropolitan area.
The acquisition will cost a total of $840 Canadian dollars not including transaction costs.
The A25 is a large 7.2 kilometre toll road which connects to a bridge, going across various commercial and residential areas. The bridge opened back in May 2011, while having a free-flow electronic tolling system.
The A25 is known as the fastest growing part of Montreal, and has been in operation for almost seven years.
While providing opportunities to leverage Transurban’s expertise in operations, both technology and customer management can also be further leveraged as there is huge potential in its overall asset growth.
Transurban reported that chief executive Scott Charlton stated:
‘The A25 is located in the fastest growing part of Montreal. In operation for almost seven years, the asset provides opportunities to leverage Transurban’s expertise in operations, technology and customer management.’
Toll roads and bridge concessions will end by the year 2042.
Back in Melbourne, the Victorian Government has publicly confirmed its intention to reinstate planning approval for the West Gate Tunnel Project.
Construction will now have the greenlight to recommence with any work that was underway, as 800 people have already been employed.
Scott Charlton also stated:
‘After nearly three years of planning, development and public consultation, we have an agreement with the State to build the West Gate Tunnel Project and are committed to providing Melbourne with this desperately needed infrastructure as soon as possible.’
Editor, Markets and Money
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