Transurban: NSW Toll Reform Direct Deal Finalised

Transurban (ASX:TCL) said it welcomes the NSW Government's announcement that the Direct Deal for proposed toll reform has been finalised, noting that implementation of the reforms is subject to definitive agreements and various approvals. The company said the broader reform package is expected to deliver additional and enduring benefits for motorists while preserving the value of existing concession contracts without negatively impacting Transurban's near-term distributions, which remain subject to traffic performance, macroeconomic factors and Board determination. Key changes listed include toll price reductions on the M2, M7, Lane Cove Tunnel and Cross City Tunnel, with the M7 adjustment dependent on the M7-M2 Widening proceeding and the Cross City Tunnel adjustment dependent on the opening of the Western Harbour Tunnel and two-way tolling of the Eastern Distributor and Harbour crossings; two-way tolling on the Eastern Distributor at 53 per cent of the status quo inbound toll; a new motorcycle vehicle class and standardisation of truck toll multipliers; a proposed M7-M2 Widening; toll notice digitisation and enforcement reform; and switching off toll notice administration fees. The outcome includes the early monetisation of the Hills M2 Promissory Notes and the Eastern Distributor Concession Notes, and equalisation payments made over time between the Government and the relevant concessionaires. The Government and the concessionaires of the M7 and M2 Motorways have each agreed to progress the proposed M7-M2 Widening Project, a proposed expansion to three lanes from two between Richmond Road and Windsor Road. Transurban CEO Michelle Jablko said the finalisation of key terms demonstrates what can be achieved when customers and motorists are put first.

On traffic, average daily traffic across the group increased 3.8 per cent in June compared with the prior corresponding period, or 2.4 per cent excluding the West Gate Tunnel (WGT). Sydney traffic increased 2.5 per cent, reflecting the easing of construction-related impacts associated with the M7-M12 Integration Project. Melbourne traffic increased 6.1 per cent, or 1.5 per cent excluding WGT, though Transurban said the ramp up profile of WGT has remained flat since February 2026. Brisbane traffic increased 1.7 per cent, rebounding from weather-related disruptions experienced in May, although the company said growth remained below longer-term averages. North America traffic increased 6.9 per cent, with average dynamic toll prices up 18.9 per cent on the 95 Express Lanes and 36.1 per cent on the 495 Express Lanes. Large vehicle traffic across the Australian portfolio increased 11.8 per cent in June, or 5.6 per cent excluding WGT. Transurban said July traffic, while not yet finalised, is broadly consistent with June's result, with full details to be presented as part of the FY26 result on 13 August 2026, and that the macroeconomic environment continues to be a watchpoint.