Analysis of revenues, costs and average costs of highway concessions in Chile

Cristian Vergara-Novoa, Juan Pedro Sepúlveda-Rojas, Miguel D. Alfaro, Pablo Soto, Paulo Andrés Benitez-Fuentes

Resultado de la investigación: Article

Resumen

In this document we present an analysis of the revenues generated, the total costs and average costs incurred by Chile's highway concessionaires between the years of 1995 and 2014. We have collected financial data from the Chilean Assets and Insurances Authority's website, and with this data, we have determined that the highway concessions system (as a whole) generated revenues of around 25,137 million dollars and incurred total costs of 21,193 million dollars during this period. Therefore, they have gained a profit of 3944 million dollars. Moreover, the accumulated investment by 2014 was approximately 12,000 million dollars and, therefore, the capital revenue was 26%. However, since the concessionaires' capital structure, in general, considers 20% as equity and 80% as debt, then the equity's return rate could have been over 100%. Additionally, we estimated the average costs (unitary costs), and found that this industry presents natural monopoly characteristics because its average cost decreases as vehicle flow increases. Furthermore, we compared the average costs of main concessionaires with their weighted average fares and discovered that some of fares are over valuated between 30 and 330%.

Idioma originalEnglish
PublicaciónTransport Policy
DOI
EstadoAccepted/In press - 1 ene 2019

Huella dactilar

concession
Chile
revenue
road
dollar
costs
cost
Costs
equity
pricing
monopoly
Highway systems
Insurance
debt
analysis
insurance
indebtedness
website
Websites
Profitability

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Law

Citar esto

Vergara-Novoa, C., Sepúlveda-Rojas, J. P., Alfaro, M. D., Soto, P., & Benitez-Fuentes, P. A. (Aceptado/En prensa). Analysis of revenues, costs and average costs of highway concessions in Chile. Transport Policy. https://doi.org/10.1016/j.tranpol.2019.08.008
Vergara-Novoa, Cristian ; Sepúlveda-Rojas, Juan Pedro ; Alfaro, Miguel D. ; Soto, Pablo ; Benitez-Fuentes, Paulo Andrés. / Analysis of revenues, costs and average costs of highway concessions in Chile. En: Transport Policy. 2019.
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Vergara-Novoa, C, Sepúlveda-Rojas, JP, Alfaro, MD, Soto, P & Benitez-Fuentes, PA 2019, 'Analysis of revenues, costs and average costs of highway concessions in Chile', Transport Policy. https://doi.org/10.1016/j.tranpol.2019.08.008

Analysis of revenues, costs and average costs of highway concessions in Chile. / Vergara-Novoa, Cristian; Sepúlveda-Rojas, Juan Pedro; Alfaro, Miguel D.; Soto, Pablo; Benitez-Fuentes, Paulo Andrés.

En: Transport Policy, 01.01.2019.

Resultado de la investigación: Article

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AU - Benitez-Fuentes, Paulo Andrés

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Vergara-Novoa C, Sepúlveda-Rojas JP, Alfaro MD, Soto P, Benitez-Fuentes PA. Analysis of revenues, costs and average costs of highway concessions in Chile. Transport Policy. 2019 ene 1. https://doi.org/10.1016/j.tranpol.2019.08.008