TY - JOUR
T1 - Analysis of revenues, costs and average costs of highway concessions in Chile
AU - Vergara-Novoa, Cristian
AU - Sepúlveda-Rojas, Juan Pedro
AU - Alfaro, Miguel D.
AU - Soto, Pablo
AU - Benitez-Fuentes, Paulo Andrés
N1 - Publisher Copyright:
© 2019 Elsevier Ltd
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - 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%.
AB - 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%.
KW - Concessions
KW - Highway costs
KW - Highways
KW - Public private partnership
UR - http://www.scopus.com/inward/record.url?scp=85071510650&partnerID=8YFLogxK
U2 - 10.1016/j.tranpol.2019.08.008
DO - 10.1016/j.tranpol.2019.08.008
M3 - Article
AN - SCOPUS:85071510650
VL - 95
SP - 114
EP - 123
JO - Transport Policy
JF - Transport Policy
SN - 0967-070X
ER -