Tuesday, January 28, 2014

Toll Concessionaires

Sources say the government is looking at increasing toll rates for some of the highways as early as April 2014.

The proposed toll hike would only benefit the concessionaires if the hike was scheduled as per the concession agreement. If the hike is merely an adjustment for a backlog from previous years, concessionaires need not necessarily benefit. This is because they have already been receiving compensation from the government as the result of previous hike delays.

However regardless of the proposed toll hikes, the concessionaires would still be collecting the same amount per vehicle as it merely alters the collection of toll from motorists and government, to motorist fully.

In fact the backlog hike can potentially impact the concessionaires as traffic volume may drop. The motorists will tend to shy away from these routes thus reducing the usage of the highways.

The proposal to hike toll rates in 2014 is mainly to adjust the previous hike backlog since 2008.

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