Disclosing yearly financial records of toll operators, PKR director of strategy Rafizi Ramli said today that they were already making obscene profits due to rising use.
He pointed out that toll operator Plus made 61 percent net profit before tax in 2011, while Litrak Bhd, which operates LDP and Sprint, earned 49 percent profit in 2013.
This was calculated based on toll collection minus road maintenance and interests costs.
"There are not many businesses in the world that are that profitable," Rafizi told reporters at the PKR headquarters.
In addition, Rafizi also provided 2013 data to show that use of the highways were up 3-8 percent for five highways - Plus, LDP, Sprint, Kesas and Maju expressways. Of these, the Maju expressway for exceeded agreement targets for the concessionaire, he said.
"Even at current rates they are already making obscene profits. There is no element of subsidy for tolls," Rafizi said, in protesting against a government move announced over the weekend.
He pointed out that toll operator Plus made 61 percent net profit before tax in 2011, while Litrak Bhd, which operates LDP and Sprint, earned 49 percent profit in 2013. This was calculated based on toll collection minus road maintenance and interests costs.
"There are not many businesses in the world that are that profitable," Rafizi told reporters at the PKR headquarters.
In addition, Rafizi also provided 2013 data to show that use of the highways were up 3-8 percent for five highways - Plus, LDP, Sprint, Kesas and Maju expressways. Of these, the Maju expressway for exceeded agreement targets for the concessionaire, he said.
"Even at current rates they are already making obscene profits. There is no element of subsidy for tolls," Rafizi said, in protesting against a government move announced over the weekend.
For Plus, Rafizi provided figures based on its last financial disclosure in 2011. This was before the public-listed company, which operates the North-South Expressway connecting the most prosperous west coast towns in peninsular Malaysia, was made private in one of Malaysia's biggest such deals.
He said that it collected RM4.098 billion, and recorded a net profit before tax of RM2.515 billion in 2011. The cost to maintain the road was only RM241 million or six percent of the tolls collected.
Now owned by Khazanah and EPF
Plus is now owned by state-linked funds Khazanah Nasional and the Employees Provident Fund (EPF) which bought the concessionaire out in a RM23 billion cash deal.
Rafizi also cited a Maybank Investment Bank Research report dated November 2013 for other highways’ financial figures. The report said that Kesas highway had earned a 121 percent cumulative annual growth rate (CAGR) from 2008 to 2012. This meant that returns more than doubled over the four-year period.
From Litrak Bhd's annual report, Rafizi extracted figures to show that the company earned a net profit of RM180 million in financial year 2013, from RM369 million collected in tolls on LDP and Sprint expressways. From this, it spent only 6 percent, or RM21 million, in road maintenance.
The PKR MP for Pandan said that available user figures for the highways in 2010 showed that Plus had 417 million users a year, while the Maju Expressway which connects KL to Putrajaya and KLIA had almost 79,000 users a day. Both were then growing at 8 percent a year.
The 2013 user figures were only available for LDP, Sprint and Kesas - which saw weekly users of between 200,000 to two million. This was growing at 3-5 percent a year.
Along with many critics, Rafizi also slammed Minister in Prime Minister’s Department Abdul Wahid Omar for being “universally annoying” for saying that the government had no power over toll concessionaires.
“If he is CEO, it’s okay but once you become a cabinet member, you have to empathise with the public. How do you trust a cabinet minister who make statements as if they don't live in this country... it is as if they are from the moon,” Rafizi said.
He noted that Wahid, who said that those who don't like to pay higher tolls can use other roads, was used to earning millions in salary as former CEO of Maybank.
Yesterday, Rafizi said that since three entities - which have substantial government holdings involved - ran almost 80 percent of the tolled expressways in the country, the government could stave off a toll hike in 2014 if it wants.
He said that it collected RM4.098 billion, and recorded a net profit before tax of RM2.515 billion in 2011. The cost to maintain the road was only RM241 million or six percent of the tolls collected.
Now owned by Khazanah and EPF
Plus is now owned by state-linked funds Khazanah Nasional and the Employees Provident Fund (EPF) which bought the concessionaire out in a RM23 billion cash deal.
Rafizi also cited a Maybank Investment Bank Research report dated November 2013 for other highways’ financial figures. The report said that Kesas highway had earned a 121 percent cumulative annual growth rate (CAGR) from 2008 to 2012. This meant that returns more than doubled over the four-year period.
From Litrak Bhd's annual report, Rafizi extracted figures to show that the company earned a net profit of RM180 million in financial year 2013, from RM369 million collected in tolls on LDP and Sprint expressways. From this, it spent only 6 percent, or RM21 million, in road maintenance.
The PKR MP for Pandan said that available user figures for the highways in 2010 showed that Plus had 417 million users a year, while the Maju Expressway which connects KL to Putrajaya and KLIA had almost 79,000 users a day. Both were then growing at 8 percent a year.
The 2013 user figures were only available for LDP, Sprint and Kesas - which saw weekly users of between 200,000 to two million. This was growing at 3-5 percent a year.
Along with many critics, Rafizi also slammed Minister in Prime Minister’s Department Abdul Wahid Omar for being “universally annoying” for saying that the government had no power over toll concessionaires.
“If he is CEO, it’s okay but once you become a cabinet member, you have to empathise with the public. How do you trust a cabinet minister who make statements as if they don't live in this country... it is as if they are from the moon,” Rafizi said.
He noted that Wahid, who said that those who don't like to pay higher tolls can use other roads, was used to earning millions in salary as former CEO of Maybank.
Yesterday, Rafizi said that since three entities - which have substantial government holdings involved - ran almost 80 percent of the tolled expressways in the country, the government could stave off a toll hike in 2014 if it wants.
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