Transurban Ticks Along Despite Rate Hike Fears

Transurban Group (ASX:TCL) has reported another month of traffic growth across its motorway network, with groupwide average daily traffic ahead of the same month a year earlier in August.

The North American express lanes and recently opened connections in Sydney and Melbourne contributed to the growth, led by the North American assets which delivered the strongest growth of any market.

Dynamic pricing on those lanes means revenue growth has run ahead of traffic growth, as congestion in free lanes pushes tolls higher in real time.

The New South Wales government's finalised toll reform package preserves the value of existing concession contracts and leaves near-term distributions unaffected.