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Brazilian Toll Road Implements Rate Increase

Travelers motoring on BR-116, in the region of Santa Cecilia, Brazil will be paying an increased toll due to higher-than-expected maintenance costs.

Since 19 December 2016, the tariff for automobiles, in the toll plaza of the municipality, went from BRL$4.80 (about USD$1.50) to BRL$5.60 (about USD$1.75). This represents a 16.68% increase authorized by the National Land Transport Agency (ANTT). ANTT must approve and authorize all toll fares in Brazil and characterized the increase as a “readjustment”.

In addition to Santa Cecilia, the rates of the toll plazas of Mandirituba (PR), Campo do Tenente (PR), Monte Castelo (SC) and Correia Pinto (SC) were “readjusted” to the same value.

In order to rationalize the new rate, ANTT considered a number of factors including the impact of the Truckers’ Law. This law provides for discounts for trucks with axles suspended or for empty trucks. It also increased tolerance of weight limits by as much as 10 percent.

According to the advice of the Autopista Planalto Sul, the concessionaire that manages the stretch, these changes have caused premature wear in the road surface, generating additional costs for maintenance.

ANTT also factored into the adjustment decision, expenses caused by government expropriation of certain rights-of-way; removal costs of interference and maintenance; and, increased conservation and monitoring costs for new projects.

For mobility managers, this successful rate increase highlights the importance of generating solid statistical data to justify changes to the status quo. In this case, the maintenance cost arc was altered by the government and the concessionaire’s previous budget assumptions were no longer valid. The rate change also validates the concept of having a concession partnership based upon reasonable consideration of the other side’s needs and objectives.

Source: http://tinyurl.com/zfv6gzv.

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