This detailed article will discuss the 15 most profitable toll roads in the world and their fares. In it, you’ll also get to see how the pandemic impacted the world’s major road networks and their revenues. If you want to skip the details, read 5 Most Profitable Toll Roads In The World.
The most profitable toll roads in the world are defined by their toll cost, net income, operating expenses, and annual revenue. A toll, conceptually distinct from a tax, is a user fee that necessitates payment only when an individual utilizes the facility. The toll system focuses on the provision of superior and safer transportation arteries, overcoming congestion, and giving dependable trip durations, among other benefits.
Although, there’s a pervasive misunderstanding that our roads and bridges, once constructed, need no further spending. But this notion overlooks the substantial costs associated with maintenance, upgrades, and eventual replacement.
The public often underestimates the financial implications associated with infrastructural sustainability. The capability of any state to bear the burden of renewing half-a-century-old interstates is questionable, at best, and the federal government’s capacity to subsidize such efforts is similarly constrained. Hence, the fiscal sustenance for infrastructural development in the upcoming decades is predicated on either future toll revenues or fresh tax impositions.
Moreover, Electronic Toll Collection (ETC) allows for the automated collection of toll payments from drivers, unlike the previous methods of manual toll collection. The system identifies the vehicle and deducts the toll fee from the driver’s account, eliminating the need for cars to stop and manually pay a toll.
ETC uses technologies like Radio-Frequency Identification (RFID), dedicated short-range communications (DSRC), infrared, or video imaging technology to identify vehicles and complete the transaction.
In this respect, Conduent Inc (NASDAQ:CNDT) is a major American company that provides transportation solutions like electronic toll collection. With a current market cap of $736 million, Conduent Inc (NASDAQ:CNDT) aims to help clients reduce congestion and time spent idling with its electronic tolling advances. Conduent Inc (NASDAQ:CNDT) also provides end-to-end electronic tolling systems designed to increase operational efficiencies at every turn.
Cisco Systems Inc (NASDAQ:CSCO) is another leading networking company best known as a manufacturer and vendor of networking equipment. Cisco Systems Inc (NASDAQ:CSCO) has a market cap of $211.17 billion as of current and also provides software and offers related services. Improving public safety, increasing operational efficiency, and optimizing traffic management with connected roadways are the primary goals of Cisco Systems Inc (NASDAQ:CSCO).
Likewise, another company named Trimble Inc (NASDAQ:TRMB) provides advanced location-based solutions such as GPS systems to optimize transportation networks, including toll roads. Trimble Inc (NASDAQ:TRMB) has a current market cap of $12.972 billion and is focused on delivering smart transportation solutions to reduce out-of-route (OOR) miles and fuel costs across a fleet. Trimble Inc (NASDAQ:TRMB) aims to make transportation sustainable and systematized.
The Pandemic Took A Toll On The Toll System
The 5,881 miles network, along with 331 toll facilities across the U.S., is an infrastructure asset for the nation. However, the advent of the COVID-19 pandemic and a broad-spectrum curtailment of economic operations mandated by governmental directives gave a bow to transportation activity and, subsequently, its funding avenues.
Revenue streams like motor fuel taxes plummeted, and transit farebox collections recorded an alarming contraction of 50 to 90 percent from their expected levels. According to WSP, the Washington State Department of Transportation, for instance, faced a projected monthly deficit of $100 million during the pandemic, a 38 percent shortfall from the year before.
The Colorado Department of Transportation also faced a drop of $250 million in 2020. The impact was equally harrowing on the urban transit infrastructure, as exemplified by the Los Angeles Metropolitan Transportation Authority, which confronts a projected loss of $800 million in sales tax revenue, $50 million in farebox revenue, and a further $25 million in express lanes revenue for the year 2020.
In the aftermath of the initial shock, a considerable resurgence of pre-pandemic VMT (vehicle miles traveled) levels was noted in 2022 because of halted consumer travel demand. The proliferation of e-commerce and the intensified need for delivery services, in particular, contributed to the resurgence of commercial traffic, bolstering toll road usage.
Which Is The Most Expensive Toll Road In The World?
The Pennsylvania Turnpike, with an expanse of 360 miles, is the most expensive toll road in the world. Commercial vehicles, such as trucks, are particularly hard-hit, often incurring costs exceeding $200, depending on their route specifics. While passenger vehicles encounter lower rates, around $100, the Pennsylvania Turnpike still holds the record as the costliest toll road in the world.
Several factors contribute to the high cost of tolls, i.e., the financial burden of constructing, maintaining, and operating these extensive road networks. Therefore, authorities aim to recover these expenditures through toll collection. Tolls also help manage traffic congestion and provide a funding mechanism for future infrastructure projects to maintain roadway quality.
It’s worth noting that the high toll rates on the Pennsylvania Turnpike are because of the infrastructural investment that the Turnpike represents. For instance, toll charges help fund the replacement of bridges, the addition of lanes, and other improvements aimed at ensuring the roadway meets modern safety standards and can handle high traffic volumes. That said, the U.S. has the highest toll revenue in the world because of the traffic volume. Other countries with hefty traffic inflow are way behind in terms of what they generate from toll roads each year.
Which Country Has The Most Expensive Toll Roads?
Research shows that Switzerland has the most expensive toll roads, as its average toll cost is $26.52, closely followed by Austria ($16.31). Unlike many countries that charge based on distance traveled or on a per-user basis, Switzerland mandates the acquisition of an annual ‘vignette’ or pass.
This necessity applies to all motorists intending to traverse the country’s expressways and motorways. The vignette places a significant initial financial burden on travelers and, in effect, increases the average toll cost per user.
The country also imposes additional charges for specific sections of its tunneling system. As these stretches of tunnel, critical in navigating Switzerland’s mountainous terrain, often have no feasible alternatives, road users face an inevitable added expense.
However, in terms of annual revenue generated by toll roads, Switzerland is way behind the U.S. owing to its limited transportation needs. So if our parameter is annual revenue, the United States has the most expensive toll roads. But if individual toll prices are to be taken into account, Switzerland takes the lead with its costly tickets.
15 Most Profitable Toll Roads In The World
Our Methodology
We ranked the most profitable toll roads in the world according to their 2018 annual revenue in ascending order. The primary data sources for this study are IBTTA (International Bridge, Tunnel and Turnpike Association), ASECAP, S&P Global, New York City Council Financial Division, and The News Daily, among others. Based on our research, we’ve discovered that 14 out of the 15 most profitable toll roads are all in the US.
Based on our finding of major tolls’ annual revenue, here are the most profitable toll roads in the world:
15. Oklahoma Turnpike, US
Annual Revenue: $317 million
The Oklahoma Turnpike system of toll roads spans approximately 605 miles throughout the Oklahoma state. Its extensive network connects urban centers and bolsters regional accessibility. Based on financial reports and calculated usage, the Turnpike’s annual toll revenue is around $317 million, which reflects the high volume of vehicular traffic it accommodates.
14. Delaware River–Turnpike Toll Bridge, US
Annual Revenue $335 million
The Delaware River – Turnpike Toll Bridge contributes substantially to the regional economy, as it generates an estimated annual toll revenue of $335 million. This bridge covers an area of 6,751 feet and links Bristol, Pennsylvania, and Burlington Township, New Jersey. The heavily tolled bridge facilitates extensive vehicular traffic on the I-276 as its strategic location enhances inter-state commerce.
13. Central Florida Expressway, US
Annual Revenue: $442 million
The Central Florida Expressway Authority (CFX) oversees 125 miles of tolled expressways, integral to the region’s transportation infrastructure. These roadways crisscross the four counties of Orange, Lake, Seminole, and Osceola. As a result, CFX smartly manages traffic demand and provides funding for roadway enhancements. Central Florida Expressway earns a substantial annual toll revenue of $442 million.
12. Express Toll Lanes (I-95), US
Annual Revenue: $724 million
The I-95 Express Toll Lanes in Northern Virginia make an approximate revenue of $724 million, drawn from high traffic volume. When combined with dynamic pricing strategies that adjust tolls based on real-time traffic conditions to maintain free-flowing travel, I-95 proves to be one of the most profitable toll roads in the world.
11. Bay Area Bridge Tolls, US
Annual Revenue: $727 million
The San Francisco Bay Area bridges, a network including seven state-owned toll bridges, collectively generate $727 million in annual revenue. The toll road’s revenue represents a crucial funding source for the region’s infrastructure, as it also includes the iconic Golden Gate Bridge. The income eventually funds maintenance and supports critical seismic retrofit projects.
10. New York State Thruway, US
Annual Revenue: $736 million
The New York State Thruway is the 496-mile artery that runs across the Empire State and generates $736 million in annual toll revenues. Examining the financial health, we note that Thruway’s FY2021 operating revenues surpass those of FY2019, which demonstrates the steady demand for its use and the impact of astute rate increases.
9. Hardy Toll Road, US
Annual Revenue: $740 million
The Hardy Toll Road is a 21.6-mile highway traversing from Interstate 45 (just below the Harris County line) to Interstate 610 in central Houston. Despite its relatively short length, the toll road makes $740 million in toll revenue per year, which makes it one of the most expensive highways.
8. Melbourne’s CityLink Tollway, Australia
Annual Revenue: $780 million
Melbourne’s CityLink tollway is an expansive network of toll roads that interconnects the Tullamarine, West Gate, and Monash Freeways. The toll road is 22 kilometers long and generates an estimated annual toll revenue of $780 million. Such a considerable revenue stream shows the operational sustainability of the tollway system and the country’s busy commuter roads. Also, Sydney is now said to be one of the most tolled jurisdictions in the world.
7. Dallas North Tollway, US
Annual Revenue: $841 million
The Dallas North Tollway (DNT) is a 30.2 miles long road system running from Interstate 35E near downtown Dallas to U.S. Highway 380 in Frisco, Texas. The toll road’s annual revenue is $841 million, and its strategic placement in a rapidly expanding urban corridor of North Texas has made it one of the most expensive highways.
6. Florida’s Turnpike, US
Annual Revenue: $1 billion
Florida’s Turnpike starts from north Miami and ends in Wildwood. Annually, this 312-mile-long toll road makes $1 billion in toll revenues. According to IBTTA, the Turnpike experienced a 13.7% rise in operating revenues in Fiscal Year (FY) 2022 compared to FY 2021. Interestingly, this growth also represents a 4.8% increase when contrasted with FY 2019 and subtly indicates a progressive recovery and stronger performance, surpassing pre-pandemic levels.
Click to continue reading 5 Most Profitable Toll Roads In The World.
Suggested Articles
- Top 15 Railroad Companies In The World
- 20 Biggest Electric Vehicle Companies in the World
- 15 Most Profitable Car Companies in the World
Disclosure: None. 15 Most Profitable Toll Roads In The World is originally published on Insider Monkey.