R/€ = 14.18
R/$ = 10.96
Au 1233.15 $/oz
Pt 1361.50 $/oz
Jan 28, 2005
SA toll-road developer secures Hungary concessionBack
Berlin|Bilfinger Berger|Construction|Engineering|Expertise|Lodz|Port|Warsaw|Consulting|Gdansk Transport Company|Group Five|Intertoll|JSE Securities Exchange|PROJECT|Projects|Road|Roads|Skanska|Europe|Czech Republic|Germany|Hungary|Poland|A1 Gdansk–TorunnMotorway|A2 Motorway|M6 Motorway|M6nMotorway|Poland’s Main Port|Port Of Gdansk|Torun Motorway|Equipment|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 (150 word limit)
Other Roads News
Article contains comments
Updated 5 minutes ago Construction on the bus rapid transport stations for Phase 1A of the Rustenburg Rapid Transport (RRT) project was likely to start before the end of the year, with the construction tenders currently being adjudicated, RRT said on Tuesday. Phase 1A of this four-phase...
Updated 40 minutes ago Hundreds of innovators and entrepreneurs have gathered in Cape Town to discuss how to support more innovation in South Africa in a bid to drive the economy forward. Venture capitalists, dealmakers, entrepreneurs and academics have been mingling at the South African...
Updated 46 minutes ago South African business leaders were more likely than their global counterparts to encourage creative behaviours and “disruptive processes” to drive innovation, the South African results of the GE Global Innovation Barometer, released on Tuesday, have shown. The 2014...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse. Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm Fischer Consortium the contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...