The National Road Transport Association (NatRoad) has voiced its opposition to tolling giant Transurban swallowing another operator in a submission to the country’s competition regulator.
NatRoad was asked by the Australian Competition and Consumer Commission (ACCC) to contribute to its review of Transurban’s proposed majority acquisition of Horizon Roads in Victoria, which operates the 39km EastLink motorway in Melbourne.
Horizon Roads, through ConnectEast, holds a concession from the State of Victoria to operate the EastLink toll road until November 2043.
NatRoad has opposed the deal, reported to be worth $2.5 billion, which it says will have a negative impact on competition and open the way for higher toll charges for road freight operators.
EastLink is the second-busiest tollway in the country, with around 250,000 users each day, and serving 40 per cent of Melbourne’s population.
According to the EastLink website, truckies currently pay $17.91 per trip in one direction.
“In our opinion, the proposed acquisition will increase Transurban’s bargaining power and therefore result in a lack of price competition,” said NatRoad CEO Warren Clark.
“We have strongly recommended that the ACCC consider the potential for increased toll charges and their impact on end consumers.”
Clark says, as in New South Wales, Transurban already operates a significant number of toll roads in Victoria.
“Toll traffic data is crucial in competing for toll road development, ownership, and operation.
“The purchase could also limit the Victorian government’s ability to influence or control future competitive processes for toll road concessions.
Transurban provides electronic tolling and tag-issuing services under its Linkt brand, and in Victoria has interests in CityLink and the West Gate Tunnel, which is currently under construction. In NSW, it has a near monopoly on toll roads in and around Sydney.
“With the election of a new government in NSW, we are expecting real toll relief for truck drivers in that state but the creeping rise in tolls is something that needs attention nationwide,” Clark said.
“We have urged the ACCC to carefully consider our submission and to prohibit the proposed acquisition.”
EastLink is the second-busiest tollway in the country, with around 250,000 users each day, and serving 40 per cent of Melbourne’s population.
Transurban is Australia’s largest toll road operator. Transurban’s operations include the development, ownership, management and operation of toll roads in Australia and North America. In Melbourne, Transurban operates the CityLink toll road, and is building and will operate the West Gate Tunnel toll road.