RiverCity Motorway
 | |
| Company type | Public |
|---|---|
| ASX: RCY | |
| Industry | Road transport |
| Defunct | 17 September 2019 |
| Headquarters | , Australia |
Area served | Brisbane |
Key people | Mark Snape, CEO |
| Services | Clem Jones Tunnel, FLOW tolling system |
| Website | www.rivercitymotorway.com.au/ |
RiverCity Motorway Group was a Queensland company that operated Brisbane’s first private tollway — the Clem Jones Tunnel (CLEM7). They also established FLOW Tolling, a tolling service provider. Rivercity Motorways Group won the rights to be the maintainer of the Clem Jones Tunnel. When the tunnel opened in 2010 it was to have a concession period of 45 years before it was handed back to the City of Brisbane. The value of the tunnel was written down by $1.56 billion to $258 million in 2010.[1]
The company was delisted, liquidated and subsequently deregistered in September 2019.[2]
History
[edit]In 2006, an initial public offerings raised $724 million with an issue price $1 per share.[1]
Tunnel tolls
[edit]In June 2010, the toll for cars was dropped to $2.00 in an effort to increase patronage.[3] Despite this the number of vehicles using the tunnel never significantly rose above about one third of forecast numbers.[3] The price increased in November to $3.00 and again in April 2011 to $3.95. The last toll rise led to a decrease in usage of the tunnel.
Collapse
[edit]Due to much lower than forecasted patronage of the tunnel it has been unable to generate enough revenue. Debts still owed by Rivercity Motorway totalled A$1.3 billion.[4] The company was placed into receivership in early 2011.[5] The Rivercity Motorways Group was listed on the Australian Stock Exchange in June 2006.[4] Shares in the company went into a trading halt on 24 February 2011.[5][6] and the company was delisted in December 2015.[7]
The collapse of this toll road operator follows similar failures for Sydney's Lane Cove Tunnel and the Cross City Tunnel.[4]
In December 2013, Queensland Motorways, operator of the Gateway and Logan motorways, acquired and took over the tolling and operation of CLEM7.[8]
Lawsuit
[edit]Investors of RiverCity Motorway Group sounded out the possibility of legal action against the troubled operators of Brisbane's first major tunnel project in late 2010.[9] The forecasts for traffic modelling in the tunnel were conducted by AECOM.[4] The class action lawsuit alleges that AECOM did not properly disclose various sets of figures related to traffic forecasts.[4]
See also
[edit]
References
[edit]- ^ a b Tracy Lee & Nabila Ahmed (25 February 2011). "End of the road as RiverCity Motorway sinks owing $1.3bn". The Australian. News Limited. Retrieved 14 May 2012.
- ^ "RIVERCITY MOTORWAY PTY LIMITED ACN 116 665 304". ASIC Connect. Retrieved 14 October 2021.
- ^ a b Marissa Calligeros (6 April 2011). "Traffic falls as Clem7 tolls rise". Brisbane Times. Fairfax Media. Retrieved 20 April 2011.
- ^ a b c d e Adele Ferguson (15 April 2011). "Investors sue RiverCity firm". Sydney Morning Herald. Fairfax Media. Retrieved 20 April 2011.
- ^ a b Matt O'Sullivan (25 February 2011). "Bankers pull the pin on RiverCity". Brisbane Times. Fairfax Media. Retrieved 20 April 2011.
- ^ "KordaMentha appointed Receivers and Managers to the RiverCity Motorway Group" (PDF). Archived from the original (PDF) on 26 February 2011.
- ^ "RiverCity Motorway Group". Delisted.
- ^ "Queensland Motorways reaches settlement of CLEM7 Tunnel". Queensland Motorways. Archived from the original on 21 October 2014. Retrieved 17 December 2013.
- ^ Liam Walsh & Alison Sandy (2 September 2010). RiverCity faces lawsuit threat over Clem7 tunnel losses. The Courier-Mail. Retrieved 2 September 2010.