More on the recent toll hikes, this time from the highway concessionaires themselves. According to a The Star report, the hikes are deemed as necessary by toll concessionaires as they needed to meet shareholder returns and to service debts.
Some highways are said to have been incurring losses despite having been in operation for over a decade. Such is the case for the Sprint Expressway, according to Lingkaran Trans Kota Holdings Berhad (LITRAK) COO, Richard Lim. Although it has been in operation for 14 years now, it only started making a profit this year, and losses incurred throughout those years amount to RM440 million.
Lim said that the Sprint Expressway costs RM40 million to operate, with a big chunk of it going into financing expenses. He added that since the highway started, none of the investors had received any returns. “Being a public-listed group, the shareholders expect a reasonable rate of return on their investments,” Lim said.
He noted that rates would usually start low and gradually increase to make up for depreciation. While he acknowledged that a single toll rate could be used over 36 years, it would have to start at a higher rate. “For example, RM2.50 instead of RM1,” the COO said.
As for Ekovest Berhad, concessionaire for the Duta-Ulu Klang Expressway (DUKE), its managing director Datuk Lim Keng Cheng said a gradual increase of rates is necessary. The reason behind this is due to the financing of the project – structured in a way where the toll revenue collected has to match the maturity of debt instruments.
“Without a toll rate increase, this may impact the toll concessionaires’ short-term cash flows. As such, this could affect their ability to service their debt obligations as well as to maintain certain required debt service coverage ratios in order to maintain the ratings of their debt issuances,” he added. Since it started in 2009, the DUKE highway has a cumulative net loss of 190 million.
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Oh, go to hell.
So many new Mercedes BMW facelifts are launched, of course need to increase toll fare for the shareholder to change their cars. This is called “Meeting shareholder expectation”.
The holy word “rakyat didahulukan” is merely a syok-sendiri slogan.
Wtf? First, they said the government not paying those bloody concessionaries, so the rakyat has to pay for the money shortage. Now the said shareholder is far more important than the rakyat. Yes, these tolled highways are big business in our country. Those concessionaries wouldn’t take a loss in profit, like a real business should. Right now, they want to break even (they probably have) as quickly as possible, knowing the current economy in malaysia is crappy, and maintain the toll rate for the next ten years. Greedy people at this state of nation, can we recover from the down fall? I dont know.
BUT this Bolehland 3rd world country goes and help the filthy rich AP cronies owners to gain more millions on the account… Infact normal Rakyat need to bare the cronies losses??? Government are to help Rakyat to manage country economic and not BURDEN Rakyat. Where the real justice when you need one???
Govt/JKR should take over the highways and use toll collections on maintenance costs only. No more shareholders craps as the owner is govt itself and the users/payers are rakyat also.
Yes rakyat still pay daily tolls but at lowest fix rate RM1 (all class vehicles) which is more than enough to cover maintenance costs.
Simple thing but cannot think about it.
Government is helping their cronies to fill up pocket 1st. Cronies di dahulu kan!
What a bunch load of crappy excuses. Learn to manage the highway’s condition first before concluding that a price hike is needed to pay shareholder returns.
Obviously if a highway is proper flowing and in good condition, who won’t want to use it often for the convenience?
“siapa yg perlu bayar?” – “rakyatlah yg perlu bayar hahaha”
#mcai #sacrsm
The company can’t get profit for pass 14 years is due to lack of capability of doing business, even give more years it will still be the same as there is no cure for stupidity.
Poor mgmt.. Cost transfer to end user..
Alahai. Bagitawu saja. Rule: orang kaya makin kaya, orang miskin lagi miskin.. tak cukup kot return dia orang selama ni
Why built a crap road at the first place. Then give excuse to maintain bla bal bla. LKSA for instance, a short bumpy-wavy-sudden bonggol whatever u wanna call it. Buat Jalan mcm sampah then naik harga tol, tak malu ke?
The toll complex is half of highway cost and and consume 3/4 operation cost.
We pay road tax, then have to pay toll. We buy vehicles at three times the normal price, that’s RM8 billion per year in duties. They also tax fuel companies for god knows how much. I mean, SHOW ME THE MONEY!!
Mai gua ajar Matematik tadika. Tahun 2005 ada 100 kereta lalu seminit, kutipan tol RM1 x 100 unit = RM100 setiap minit. Tahun 2015 ada 200 kereta, tol dinaikan 100%. Jadi RM2 x 200 = RM400 setiap minit. Jadi, dlm 10 tahun kutipan tol naik 3 kali ganda. Kalu macam ni pun tak untung, baik kasi Sam loo jadi menteri sudah la.
ada tak kalian yang naik gaji 3x ganda sejak 2005?
if no money and need pay debts to do this business, then don’t do la idiot… really whole bunch of idiots running the business in malaysia…
No money then dont build. Who ask you to take on huge debt. If you have no money to build highway then government should find those that have money like YTL, IOI group etc.
Roads and highways are infrastructures for a nation to function socially and economically.
How could it be treated like a business where shareholders and stakeholders financial interest are prioritise over the people who uses it. The users will forever be a “victim”.
Since it is a business, then it should be function like a business entity where it must accept the risk that comes with it just like any business out there. What these toll operators are asking for are guaranteed profits for themselves, which the government is already providing via the compensation(which is tax payers money as well).
If the toll operator has to go bankrupt, then it should just do that. It would be a process to go into bankruptcy, like sell off their assets to pay off their debts, etc etc.
Or go thru a restructuring process like MAS.
Btw.. Off all rage shown here..will cool down after few weeks.. Life back to normal.. :)
Wait until next few year.. Another toll hike.. And cycle continue….never ending
You sir seems to understand the human nature. Congratulations. I’ve been reading all the frustration that are posted here but none of them will last until the next election. True story
BR1M erases all ill-feelings.
These are not UMNO cronies, MCA cronies.
minister ‘lembik’…government ‘lembik’
If only China come to build 20 lane highway…. at zero interest and done in 2 years, plus no toll…
blood suckers crony.
the truth is they build highway to make profit, not for you guys’ benefit
with such long period of contract, a profit is already confirmed…y so desperate to get it fast? we dont see companies like AMD folding after making loss for 17 years, for example
What do you mean service their debts? Before designing and getting the go ahead, they should have calculated the figures with inflation, years of operation etc. worse case just extend the approved operation period. Saying that the profit doesn’t meet their demand simply means the consultants, owners and even the engineers are not doing their jobs correctly. Why burden the rakyat?
We are also paying tolls to get stuck in traffic. Really macam macam boleh jadi here.
GAMUDA mempunyai banyak projek mewah diluar negara selain dari projek Lebuh raya. Lihat saja laman web diorang..
macam mana depa kata rugi..
Apa menteri-menteri dari BN buat sekarang ni? Kira duit gaji cukup ke tidak untuk bergelar jutawan Asia ke?
I usually dont make sarcastic comments, but today is an exception. This is truly a “janji dicapati” moment.