Metro Pacific Investments Corp. expects traffic volume in its expressways to grow in varying rates by year-end, thanks to the economic developments in the northern and central parts of Luzon, and the increasing sales of vehicles this year.
Metro Pacific Tollways Corp. President Rodrigo E. Franco said the group forecasts that daily vehicle entry in the North Luzon Expressway (Nlex), the Subic-Clark-Tarlac Expressway (SCTEx) and the Manila-Cavite Toll Expressway (Cavitex) to increase by 10,000 vehicles each this year.
“For Cavitex, we expect volume to increase to 140,000 vehicles, from 130,000; for Nlex, around 240,000 vehicles, from 230,000; and for SCTEx, around 50,000 vehicles, from 40,000,” he said in an interview.
Franco explained that growth will be fueled by the growing vehicle sales this year, and the continued developments in the Northern and Central Luzon.
“The drivers would be good economic developments in Central and North Luzon. There are new businesses being set up there like warehouses. Also, vehicle sales are still growing by double digits,” he said.
The Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association reported that, during the first half of 2017, vehicle sales reached 196,164 units, representing a 17.1-percent increase from 167,480 units the year prior.
As this developed, Metro Pacific Chairman Manuel V. Pangilinan said he is optimistic that his group will score two toll-road investment deals in the Asean region through 2018, paving way for the company’s vision of building a Pan-Asean tollways group. He listed the two countries as Indonesia and Malaysia.
“I’m quite optimistic that we will have an investment in both countries. One is imminent than the other. This year for one, the other one should be next year,” he said in a chance interview.
He did not disclose specifics of the deals, and refused to say which one is more imminent that the other.
Pangilinan also refused to divulge further details on the deals such as the location of the toll roads and the amount of investment needed, as negotiations are still on going.
“The potential is always there. There’s an initial investment and in the future we will have to put in more investment,” he said.
Franco noted, however, that his group is looking at closing a deal with an “Indonesian company within the year.”
He added that the most likely way that the company will enter a new market is through the acquisition of a “significant minority stake” in a tollways company that currently operates in a country.
“We are discussing about investing in an existing operator,” he said in an interview. “The discussions are very fluid.”
Pangilinan added the company aims to secure more deals in Asean nations to create a “Pan-Asean tollways group.”
Currently, the company has significant interests in toll-road operators in Thailand and Indonesia.
Metro Pacific Tollways is the country’s largest tollroad operator in the Philippines. Its portfolio of expressways also include the future Cavite-Laguna, and the Cebu-Cordova Link Expressways.