Skip to main content

Cut in São Paulo road tolls may cause US$252.14mn revenue drop

A future 10% cut in toll charges on roads in São Paulo could result in US$252.14million (BRL 500mn) less in revenues a year for concessionaires CCR and EcoRodovias, according to a study of 2012 company results by economists at Valor Data. São Paulo state has reportedly closed a deal to lower tolls by 10%-20%, with Governor Geraldo Alckmin only confirming that the concession contracts would be reviewed in order to achieve lower tariffs. If prices are cut by the suggested percentages, CCR will see annual reve
April 12, 2013 Read time: 1 min
A future 10% cut in toll charges on roads in São Paulo could result in US$252.14million (BRL 500mn) less in revenues a year for concessionaires CCR and 2688 Ecorodovias, according to a study of 2012 company results by economists at Valor Data.

São Paulo state has reportedly closed a deal to lower tolls by 10%-20%, with Governor Geraldo Alckmin only confirming that the concession contracts would be reviewed in order to achieve lower tariffs. If prices are cut by the suggested percentages, CCR will see annual revenues drop by $203.72 million (BRL 406mn) to $407.44 million (BRL 812mn), while for EcoRodovias the loss of revenue could vary between $49.67 million (BRL 99mn) and $99.35 million (BRL 198mn).

For more information on companies in this article

Related Content

  • Brazilian manufacturers discouraged from electric vehicle investment, study claims
    January 21, 2013
    Manufacturers in Brazil are discouraged from investing in electric vehicles due to unfavourable environmental and market conditions, a study claims. Research by Maksen, through a partnership with Insper and Lisbon MBA, states that even though production costs keep decreasing, it is estimated that until 2020 electric engines will cost two times more than traditional fuel combustion engines. According to Deloitte, 65% of Brazilian consumers will only consider investing in electric vehicles if their price is s
  • More financial doubt over proposed Fehmarn Belt Tunnel
    March 17, 2017
    The proposed Fehmarn Belt Tunnel to link Denmark and northern Germany will never be economically viable, according a report commissioned by German ferry operator Scandilines. Revenue and traffic forecasts are unrealistically high, notes the report completed by German consultancy DIW Econ. It is unlikely that the latest cost to build the massive road tunnel, around €7.4 billion, would ever be recovered. The Fehmarn Belt is a strait between the German island of Fehmarn and the Danish island of Lolland. Cur
  • Brazil awards major concession
    April 19, 2012
    A consortium headed by Ecorodovias is taking over the concession for the BR-101 highway in Brazil. The road links the states of Espirito Santo and Bahia. The consortium led by Ecorodovias won the concession following competitive offer for the contract, despite tough competition from six other firms for the deal. Some US$1.21 billion will be invested in the highway by the consortium, in which Ecorodovias has an 80% stake and SBS holds a 20% share. Funds will be used to widen the road as well as for planned m
  • Private owners seek a buyer for the UK’s only toll road, M6 Toll
    February 15, 2016
    Britain’s only toll road, the motorway M6 Toll, is up for sale by its owners, a consortium of banks that hope to recover some of the €2.45 billion of debt. The 27 owners of M6 Toll, including Crédit Agricole, Commerzbank and Banco Espirito Santo, took over the 43km pay-as-you-go toll road from infrastructure group Macquarie in December 2013 after a debt restructuring. Midland Expressway Limited (MEL), part of Macquarie Atlas Roads, continues to operate the six-lane motorway around the English city of