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

  • Modified asphalt trials in Brazil
    October 17, 2012
    An urgent need to improve and extend its road network means that Brazil is open to innovation and new ideas - the timing looks good for Kraton and its highly modified asphalt. Kristina Smith reports On 15th August Brazilian president Dilma Rousseff announced a US$66 billion (BRL 133 billion) investment package for the country’s road and rail networks. Of that, $21 billion (BRL 42 billion) is earmarked for the upgrade or construction of 7,500km of highways through a series of concessions. “We’re starting an
    Read More
  • Brazil state of Sao Paulo offering road concessions
    August 31, 2018
    In Brazil’s Sao Paulo State the authorities are looking to develop infrastructure projects by offering a series of road concession deals. In all some 1,000km of road concessions are being made available. This includes a number of road sections managed by the state’s road department (DER-SP). The roads being offered as concession include a 120km stretch of the SP-294 route, a 95km section of the SP-304 route and a 6km stretch of the SP-308 route.
    Read More
  • S&P Global Rating: credit stability for toll road operators
    August 14, 2017
    The outlook is generally stable for business conditions and credit quality for toll roads worldwide, according to the latest survey from ratings agency S&P Global.The exception is the US where the overall outlook is “positive”, noted the report S&P Global Ratings' 2017. The 21-page report considers broad economic and industry-specific trends. It looks at economic conditions, demographic trends and geopolitical risks that affect the movement of people and goods. “We expect stable or improving, but still frag
    Read More
  • State of São Paulo opens consultation for Rodovias dos Calçados
    September 22, 2016
    The state of São Paulo has launched a public consultation on the international bidding process for the Itaporanga-Franca Lot, also called the Rodovias dos Calçados. The resulting tender will be carried out by the Transport Agency of São Paulo State – ARTESP – and involves upgrading or construction of nearly 750km of roads throughout 35 cities. Initial investment for Rodovias dos Calçados - Roads of the Shoes Industry, in English – will likely be around US$1.43 billion over the 30 years of the concessi
    Read More

Highlighted Content