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Ferret's Stock to Watch: TRANSURBAN HOLDINGS LTD
08:49, Monday, 22 May 2006

A FREEWAY OR TWO THAT MIGHT FINISH UP PAVED WITH GOLD

Sydney - Monday - May 22: (RWE Aust Business News)
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OVERVIEW
********

The Transurban Group (ASX:TCL) looks to be one of the most
prospective toll road operators in the country.
The company owns three of Australia's most important toll road
assets, and is positioned to pursue a number of key projects in the
US, UK and western Europe.
Overseas markets present a significant opportunity for future
growth, with the demand for infrastructure - including roads - growing
at a staggering rate.
Around the world governments are looking for experienced
players to develop private road networks and innovative road pricing
schemes.
With a track record of success in delivering complex toll
road infrastructure, Transurban receives many invitations to review and
participate in similar projects worldwide.
Transurban's healthy balance sheet and continuing growth mean
the company is in a strong position to select projects and consortia
which will deliver the best returns to investors.
Transurban only considers projects that fit its strategic focus
and will deliver results for its security holders.
Last week Transurban glimpsed the pot of gold at the end of the
rainbow when the Victorian government invited the company to become
involved in part of $3 billion worth of projects through public-private
partnerships.
Transurban will join the Victorian government's project to help
overhaul the the state's transport network including its CityLink
freeway.
Millions of dollars are expected to flow into the coffers of the
tollway operator over the coming years, which last year took over the
Hills Motorway in NSW.

SHARE PRICE MOVEMENTS
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Units of Transurban stapled securities on Friday traded steady
at $6.81. Rolling high for the year has been $7.73 and low $6.25.
Dividend is 42.5c to yield a solid 6.24 per cent. The company has paid
26pc a year since listing 10 years ago.
In the December half, EBITDA rose 58.2pc to $166.6 million.
Tolling and fee revenue rose 44pc.
Sydney's Westlink opened last December, eight months ahead of
schedule, gaining an $8.3 million bonus.
The Hills MC takeover has resulted in $3.5 million of synergies,
while CityLink revenue was up 10pc.
The company last week announced it had reached agreement with
the State of Victoria and VicRoads to jointly fund upgrades and
improvements to 75 kilometres of the West Gate-CityLink (Southern
Link)-Monash Freeway corridor.
Together, Transurban and VicRoads will undertake significant
improvements over a four-year period to alleviate congestion on
Melbourne's most important road corridor.
The project will tackle congestion and improve capacity by:
* implementing a tidal flow lane on the West Gate Bridge which
will create 25 per cent additional capacity during peak periods,
delaying the need for bridge duplication from 2007 to 2012;
* constructing a series of overpasses between the West Gate
Bridge and the CityLink Tunnels to eliminate weaving and improve safety;
* adding extra lane capacity in each direction from the West
Gate Bridge to Heatherton Road at the eastern end of the Monash Freeway;
and
* implementing the most advanced freeway management system in
Australia to deliver maximum benefit from the additional capacity being
added to the corridor.
The result will be a resolution of existing congestion problems,
improved safety and typical travel time savings of 20 minutes, with a
travel time saving of 38 minutes from Narre Warren in the southeast to
Werribee in the southwest.
The project enhances the corridor's role as the economic spine
of Melbourne, linking the port of Melbourne and the central business
district with industry in the city's west and manufacturing in the east.
Transurban will fund the CityLink upgrade, which is estimated to
cost $166 million and will be drawn down over the three-year
construction period, using funds raised via the Distribution
Reinvestment Plan.
The State will fund the non-CityLink works, estimated to cost
$737 million.
Full project completion is expected by December 2010.
Transurban's capital investment in the Southern Link will
generate an effective internal rate of return of 11.1 per cent.
Under the agreement, the State will also transfer to Transurban
all remaining and future Concession Note liabilities incurred under the
provisions of the Melbourne CityLink Concession Deed.
These liabilities amount to $2.9 billion in face-value terms
and will be replaced by payments over the next four years totalling $609
million.
In the event the Australian Taxation Office is successful in
its appeal regarding the tax deductibility of concession fees, the
payment reduces to $567 million.

BACKGROUND
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Transurban was listed on the Australian Stock Exchange on
November 25, 1999, and is now now among the country's top 50 companies.
It is a triple-stapled security embracing Transurban Holdings,
Transurban Holdings Trust and Transurban Infrastructure Developments
Ltd.
Transurban is a $6 billion company with more than 10 years
experience in the development, ownership and management of complex toll
road infrastructure.
Melbourne CityLink is the most prospective as the first fully
electronic toll road in Australia.
The road is 22km and links the three major Melbourne freeways -
the West Gate, Tullamarine and Monash. The project utilises an automatic
cashless tolling system and is operated by Translink Operations Ltd.
Transurban manages customer service operations including a large
customer database, the e-TAGs in circulation and an information
technology network.
Western Westlink was built eight months ahead of schedule.
The 40-km tollway links the M5, M2 and the M4 motorways,
bypassing 48 sets of lights.
Hills Motorway was taken over in mid-2005 and operates the M2.
Transurban and the Victorian Government have an agreement that
will fund a solution to congestion problems at the Tullamarine/
Calder Freeway interchange.
ENDS

Copyright © 2006 RWE