The Indiana Toll Road - an essential part of the US National Interstate Highway System
LENGTH
253 kilometres
NUMBER OF LANES
2-3 lanes in each direction
TOLLS
Cars: US$5.1c per mile*
Trucks: US$17.4c per mile * Users with an electronic tolling device will pay US$3.0c per mile with the State reimbursing Statewide Mobility Partners for the differential until June 2016.
TOLL PRICE ESCALATION
Toll schedule set until 2010 after which tolls will increase at the greater of 2%, CPI and nominal GDP per capita growth (four year catch up in 2010, annual thereafter)
TOLL COLLECTION
Cash and electronic tolling
CONCESSION END
2081
Nature of the asset
The Indiana Toll Road, which opened to traffic in 1956, is a 253 km long divided highway which runs the full length of northern Indiana. The Indiana Toll Road connects to the MIG, MIP and Cintra owned Chicago Skyway in the west and the Ohio turnpike in the east. It is a critical part of the transcontinental route that moves freight to and from major US distribution hubs.
On an average day, over 155,000 transactions are conducted on the road which is two to three lanes in each direction. The eastern end of the road works on a ticket system, primarily for freight based traffic. The western end is a barrier system catering more to commuter traffic. Tolls are collected by cash and electronic toll collection which commenced in June 2007 on the western section and will be available for the entire length of the road by April 2008.
The lease of the Indiana Toll Road to a private consortium marked the first State privatisation of an existing toll road in the United States.
Nature of the investment
The Indiana Toll Road was formerly a State owned business.
The MIG-Cintra led consortium, known as Statewide Mobility Partners, was announced as the preferred bidder for the Indiana Toll Road in January 2006. The lease and concession agreement was signed in April 2006 with financial close reached on 29 June 2006.
The final purchase price for the lease was US$3.8 billion (A$5.143 billion*). MIG's net investment for the 50% equity commitment was US$374 million (A$506 million*).
In December 2006 MIG divested 50% of its interest in the Indiana Toll Road to Macquarie Infrastructure Partners (MIP), retaining a 25% interest in the asset.
