The Queensland Motorways Group completed its acquisition of the CLEM7 Tunnel today with settlement of the $618 million* deal with RiverCity Motorway (RCM) receivers.
The addition of the CLEM7 Tunnel further expands and diversifies the growing Queensland Motorways high quality portfolio of toll roads.
Queensland Motorways CEO Brendan Bourke said the deal was a positive step in further consolidating the Brisbane toll road network and provided a platform to work with Brisbane City Council and the State Government to improve the Brisbane road network over the longer term.
Mr Bourke said the CLEM7 Tunnel provided good value for money to motorists through its reliable travel times and free flowing, safe traffic conditions.
“Since AirportlinkM7 has opened we have seen steady traffic growth through the M7 corridor which includes the CLEM7. As Brisbane continues to grow and motorists enjoy the benefits of the tunnel’s connectivity and reliability of travel times, we expect traffic growth to continue.”
Mr Bourke said the change in ownership would be seamless for motorists, but would provide the opportunity to progressively move towards a one-stop-shop for customers.
“We will use our proven experience and expertise in tolling, road operations and customer service to ensure motorists enjoy a consistent, integrated, reliable and convenient customer experience,” he said.
Mr Bourke said that there was an opportunity to address concerns among some motorists regarding the ease of using the tunnel, as well as understanding the benefits.
“We have already commenced market research to help inform us in making responsive and practical improvements, such as signage, where possible,” he said.
* Including $33 million for taxes and other costs.
- The 6.8km tolled CLEM7 motorway passes under the Brisbane River and links major Brisbane roads, including the Pacific Motorway, Ipswich Road, Lutwyche Road, Inner City Bypass, AirportlinkM7 and Shafston Avenue at Kangaroo Point.
- The sale transaction represents the value of the assets and not the original construction cost of the CLEM7 Tunnel, and does not include the companies that comprise the RCM Group or liabilities, including litigation, which will remain with RCM.
- The Queensland Motorways toll road network includes the Gateway, Gateway Extension and Logan motorways, CLEM7 and shortly the Go Between Bridge, followed by the Legacy Way Tunnel on construction completion in mid-2015.