National Toll Roads has warned that the cost of expanding into new businesses, as well as lower growth in its toll bridge operations, will mean that profits are unlikely to grow in the short term. NTR reported a 5.7 per cent increase in half-year profits yesterday to €9.4 million.
The two toll bridges across the Liffey continue to generate strong revenues, but the West-Link bridge is suffering severe congestion and this is unlikely to be relieved until a new bridge running beside the existing West-Link structure is completed in 2003. Work on this new bridge is expected to begin early next year.
Revenue from the West-Link - after paying the State a licence fee of €4 million - was up 5.6 per cent at €11.4 million, while traffic increased just over 6 per cent to 11.9 million vehicles. Toll revenues at the East Link increased 12.5 per cent to €3.5 million, while traffic volumes were up just under 3 per cent to 3.8 million vehicles.
In the past couple of years, NTR has expanded from its core toll bridge business into waste management and wind energy. The Celtic Waste operation, in which NTR has a 50 per cent stake, has developed a landfill site in Kildare and this generated an after-tax return of €300,000 in the first half for the group. Eirtricity, the wind energy group in which NTR has a 51 per cent stake, produced a loss of €300,000 for NTR - "in line with expectations".
NTR chief executive designate Mr Jim Barry said he expected one of the Public Private Partnerships toll road schemes to go to a pre-qualification stage before the end of the year. The National Roads Authority has identified three pilot PPP projects - the N25 Waterford bypass, the Limerick southern ring road and the second West Link bridge being developed by NTR.
Other projects for PPP's include the Dundalk western bypass and tolling of the Boyne bridge, and various stretches of the N1/M1, N3, N4, N6, N7 and national primary routes.
