Plus and thus NSE is going to reduce toll rate by 18%...and the toll rate of WCE is fixed at so much higher than the existing NSE toll rate of 13.96 cents per km, the NSE toll rate would be 11.4 cents after 18 % discount.
Earlier on, it was reported that WCE toll rate would follow that of NSE but now it turned out that WCE toll rate per km would be 35% higher on per km basis..
What would be the impacts on the traffic flow? Would there be diversion of traffic from NSE for the long haul, be it North bound from JB and the South Or South bound from Penang and the North?
The WCE is also unlikely to be a target of the government’s plan to buy back highways, said West Coast Expressways Holdings CEO Datuk Neoh Soon Hiong. This is given that the government appears to be focusing takeover attention upon completed highways, and there are sufficient clauses in the concession agreement to protect WCE if a situation for a takeover arises, the report noted
The distance is shorter from Taiping to Bukit Raja via WCE, it is about 248km while that via NSE is about 272km. Only a difference of 24 km.
The toll fee on NSE On class 1 vehicles would be about rm31 whereas via WCE is about rm 29 (take Kampong Lekir to Bruas, 45km toll fee of rm7.9, gives a toll rate of 17.55 cent per km). So traffic from the Greater KL or the Klang Valley will take NSE..
Heavy Vehicles from port to port would ply WCE. Class 1 vehicles on the long haul would prefer to travel on NSE.
.. Xyz.. +... -.. .. It will hit 0.40 above easily.... 6 months time.... Still 0.385 ? After toll collection for CNY... Raya...? ... Que sera sera... Calculated risks..
short term P&L will be affected, but cashflow will not be affected. the extension of 20 years for PLUS is good as there will be a toll competitor until 2058, which means there will not be a free alternative until that year. WCE will still attract its own crowd unless PLUS is totally free. small difference in pricing will not deter drivers, as either has its own users, unless a good free alternative. All in all, it is better for WCE and PLUS. Not good for the ones expecting free highways. Anyway, there will not be a free highway as it was a promise which could not be fulfilled. We know that.
It will take much longer time for WCE to build the traffic to sustain. Only those living along the coastal areas would take wce, there would not be traffic diversion from NSE except heavy vehicles, I believe.
small veh use NSE at lower rate. heavy veh use WCE at higher rate. isn't it a good planing? 35% higher toll rate with 6yr shorter concession period (not taking extension into consideration). In business sense it's most welcomed, right? Who doesn't want to earn money faster? Don't forget wcehb has 3bil loan to service. Finance cost 17.3 mil in the latest qr n keep increasing.
the gov doesn't say no extension of concession period. Just tat the gov doesn't promise another 10yr extension. U think too much, bro. We got our victory today n let's toast.
Only worry the traffic would not be able to sustain interest payments.. there will be higher amortisation since the concession period is shortened to 44 years from 50 years.
Tolls for short distance travel by the local folks who are financially no so well of, become much more higher. Would they choose to travel on the new WCE tolled roads or stick back to the toll free old roads?
Government came out with a " win-win" for both WCE and PLUS... I suppose.. However, without light vehicles diversion from NSE, and the local folks would probably shun away from the high toll rate tolled roads, it will take a long time for wcesb to breakeven..
This fake accountant is not fake after all. He is smart! Heavy veh will cause wear n tear at faster rate so divert them to WCE. The maintenance cost of NSE will b lower without heavy veh & sustainable at lower toll rate. Anyway he is fair enough to offer WCE higher toll rate amid higher maintenance cost. He is truely a CHARTERED accountant!
1. No more 60 years concession, only 44 years now 2. No more competitive advantage to NSE due to the 2 stretches total 83 Km toll free, built by the govt as the toll rate is 53% higher as compared to NSE (17.55 cents per km vs 11. 44 cents per km). Toll fees via WCE and NSE on the long haul is now more or less the same. No diversion of traffic from NSE to WCE. 3. Tolls are relatively expensive for those local folks who need to commute daily. Most likely they will minimise travelling via the tolled road.
Traffic volume in doubt.
Interest payments for the rm4. 74 billion ++ loan is about Rm300 millions per annum..
When there is a change in the fundamentals or assumptions made, stay out.
I sold and I told, some more with mentions of my doubts. I could be wrong. In stock market, there is no right and no wrong especially when facing with uncertainties. Just be a gentleman. No need to be bitter if someone made money, sold and got out.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
uptrending
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Posted by uptrending > 2020-01-16 16:11 | Report Abuse
Plus and thus NSE is going to reduce toll rate by 18%...and the toll rate of WCE is fixed at so much higher than the existing NSE toll rate of 13.96 cents per km, the NSE toll rate would be 11.4 cents after 18 % discount.
Earlier on, it was reported that WCE toll rate would follow that of NSE but now it turned out that WCE toll rate per km would be 35% higher on per km basis..
What would be the impacts on the traffic flow?
Would there be diversion of traffic from NSE for the long haul, be it North bound from JB and the South Or South bound from Penang and the North?