Transurban is preparing to chase a pipeline of deals as its existing projects near completion, according to Chief Executive Scott Charlton.
“We are tracking a substantial opportunity set in the core markets we participate in,” he told analysts at the company’s 2020 half-year results briefing today “These opportunities represent the largest pipeline of potential work in Transurban’s history.”
While he did not specify the opportunity he was referring to, he flagged AUD 19bn (USD 12.7bn) of projects under development and an “enlarged pipeline of future opportunities.” These include the recent emergence of the sale of the Elizabeth River Crossings tunnels in Virginia by Macquarie Infrastructure Partners II and Skanska, and a restructured deal for the Capital Beltway in the US states of Maryland and Virginia known as the Capital Beltway Accord.
In April last year Transurban pulled out of bidding for what was then planned as a PPP for the USD 7.6bn Phase 1 of the I-495/I-270 Managed Lanes project to extend the 495 expressways PPP project that Transurban operates in Virginia into Maryland.
Transurban intends to participate in Phase 1. This is now worth about USD 3-4bn and Transurban is starting a tender for a D&C contractor with a winner expected to be chosen in the first quarter of next year. Charlton said it will also likely bring in equity partners on the deal. The next step is an 22 April deadline for statement of qualifications (SOQ) and then bidders will be shortlisted on 5 June.
“Obviously our traditional partners have been both financial, equity [and] construction partners. We are in advanced stages of discussions with forming those partners,” he said.