R/€ = 14.93
R/$ = 10.76
Au 1340.45 $/oz
Pt 1476.50 $/oz
Jan 28, 2005
SA toll-road developer secures Hungary concessionBack
Berlin|Bilfinger Berger|Lodz|Warsaw|Gdansk Transport Company|Group Five|Intertoll|JSE Securities Exchange|Skanska|Europe|Czech Republic|Germany|Hungary|Poland|A1 Gdansk–TorunnMotorway|A2 Motorway|M6 Motorway|M6nMotorway|Poland’s Main Port|Port Of Gdansk|Torun Motorway|Motorway Facilities Developer|Motorway Network|Transport|Baltic Sea|Tim Woodhead|Uwe Sauerburg
© Reuse this South African toll and motorway facilities developer, Intertoll, a wholly-owned subsidiary of JSE Securities Exchange-listed construction company Group Five, has secured yet another European project: the operation and maintenance of a 58-km stretch of the M6 motorway in Hungary over a 20-year concession period.
The deal was preceded by the signing last August of a 35-year concession contract to operate the new A1 Gdansk–Torun Motorway in Poland, says Intertoll MD Tim Woodhead.
This is in keeping with the com-pany’s strategy, as it aspires to move from an existing base into both emerging and established markets, especially in Europe, where there are numerous tolling projects.
The concession for the M6 project was signed in October and attained financial closure in December, breaking new ground in the European industry, as the entire process from prequalification of prospective bidders to financial close by the appointed concessionaire was finalised in a year, rather than the conventional period of two to three years, explains Woodhead.
He attributes this feat to Hungary’s strong political will to develop its motorway network and the Department of Transport’s decade of experience with toll-road concessions.
Construction of the first phase of the M6 motorway is scheduled for completion in March 2006. Operating the motorway is expected to provide Intertoll with a turnover of between €2-million and €3-million a year.
The controlling shareholder of the M6 concession company is Bilfinger Berger, Germany’s second-largest construction company.
With regard to Intertoll’s prospective contract in Poland, the com- pany became involved with the project in 1997, shortly after initial concession rights were awarded to Gdansk Transport Company (GTC). GTC is currently pursuing financial closure, which is targeted for the end of April.
Closing this project will be a significant achievement for Intertoll as it will increase the company’s European presence, says Woodhead.
Even though the project funding may only be finalised in April, a risk-sharing arrangement between GTC and the Polish government has made provision for the progression of the design work.
The project cost will be some €700-million and involves the construction of a new dual-carriageway motorway, which will extend 90 km from the port of Gdansk, Poland’s main port on the Baltic sea, south towards the town of Lodz and will, in a later phase, intersect with the A2 Motorway that connects Berlin to Warsaw.
Woodhead tells Engineering News that the Polish government is also ultimately considering the extension of the A1 to the Czech Republic.
Currently, there are other existing roads, but these are much smaller, single-carriageway routes with relatively high accident rates.
The construction joint venture is being led by Swedish construction group Skanska.
During the construction phase, scheduled to begin in mid-2005 and be completed in 2008, Intertoll will be providing the tolling facilities and maintenance centres.
It will also be procuring the motorway’s operating equipment, which includes snow-clearing equipment, summer maintenance equipment, accident management and route patrol vehicles, says Intertoll’s European Commercial Director Uwe Sauerburg.
Intertoll will employ a permanent staff complement of 150 and is also investing some R50-million in the concession.
Initially a significant component of the input will be from South African engineers and commercial staff, but the company will also be drawing on expertise from its Hungarian staff, where Intertoll has been operating since 1996, adds Sauerburg.
The company has also undertaken some consulting work in Germany on the Herrentunnel in L
Edited by: elizabeth rebelo© Reuse this Comment Guidelines
Other Construction Materials News
Creamer Media’s Construction 2014 report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification,...
Updated 5 hours ago Telecommunications group Gilat Satcom on Monday said it was set to sponsor the second yearly Great Rift Valley Mining Summit, where it planned to unveil new mining-focused mobile satellite services and technologies. The summit, held from March 13 to 14, in Lusaka,...
Updated 6 hours ago The amount of senior business positions filled by women in South Africa declined by 2%, to 26% this year, while 21% of local businesses had no women in senior management positions, auditing firm Grant Thornton’s 2014 International Business Report’s (IBR’s)...
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
This month’s report includes details of junior miner Papillon Resources’ mining permit for its flagship Fekola gold project, in Mali; the Waterberg Coal Company’s feasibility on the development of an opencast mine, in Limpopo, to produce ten-million tonnes a...
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...