407 ETR posts strong Q2

The Ontario toll road P3 netted C$205m in Q2.

Ontario Highway 407, commonly called 407 Express Toll Route (407 ETR), earned C$205 million ($198 million; €150 million) in revenues for the second quarter (Q2), up from C$188 million in Q2 2012.

In addition to its improved Q2, 407 ETR also bettered its first half performance from last year.

For the first six months of 2013, the ‘400-series’ highway recorded revenues of C$372 million compared to C$344 million in the first half of 2012, according to operator 407 International.

Meanwhile, operating expenses for 407 ETR continued their decline.

The 66-mile road—the first completely electronic toll highway in the world – cost C$26.7 million to run in Q2, compared to C$30 million in Q2 2102.

For the first half of 2013, 407 ETR cost C$58 million to operate – a decrease from C$60 million in the first half of 2012.

In 1999, Canada leased the highway to private consortium 407 International for 99 years in a multi-billion dollar deal. But 407 International might undergo a restructuring.

In May, SNC-Lavalin Group, a 16.77 percent owner of the highway, revealed its intention to monetise its concessions portfolio – a sell-off that could include the 407 ETR.

SNC-Lavalin, with Cintra and the Canada Pension Plan Investment Board (CPPIB), make up 407 International. Cintra is a 42.23 percent owner of 407 ETR, while CPPIB has a 40 percent interest in the road.

Last year, 407 ETR hauled in C$734 million in revenues.