I think that anyone who has driven the road in peak, could see that Dr Goldburg was wrong, the road easily handles peaks and could probably handle 2 times the traffic flow through the heaviest points (the tunnels) and around 5 times current flows on most other sections in peak, and over 10 times in off peak.
The problem is getting people to use it.
When it was free, it had alot more usage, so greater demand is there, people just arnt willing to pay the current asking price to use it, especially outside of morn and arvo peaks.
Thinking outside the square, would say trying to do a deal with the vic govt, for halving the tolls all the time, or halving the tolls just outside of those two peak periods work days, for a one off payment to connecteast of say $400-$800 mil, be sensible for CEU.
It would be a win-win, it would increase the roads utilization, and probably not be as bad a revenue loss to CEU as it first seems, it would takes vehicles off alternate roads, it would improve victorias productivity and probably help (brumby) restore some credibility in the eyes of those who still remember being told that the road was not going to be tolled, and are thus reticent to use it.
The traffic estimates were a crock, the road is "a road to nowhere" IMO as it doesnt directly go to where most people want to go 'the city' it just joins up other freeways.
Even with the new cap raising, it looks like it will still be losing money, the economics of it are still below par IMO, there is now less risk, but also less potential reward.
This is a fantastic asset, way underutalized, which unfortunately shareholder and roadusers wont get the most out of until changes are made.
cheers grant
the above is opinion only and written without prejudice.
CEU Price at posting:
37.0¢ Sentiment: None Disclosure: Not Held
