The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). What happens if you don't pay? This is a list of toll roads in Indonesia grouped per province. To use individual functions (e.g., mark statistics as favourites, set M. Amorim, A. Lobo, and A. Couto, Tolling motorways in the time of economic downturn: the case of Portugal, Transport, vol. Yong is also confident that CMHPs high dividend yield of 8%, based on a projected distribution of five cents a share for the full year, would tempt more investors to buy more of the stock. It is not difficult to predict the consequences of removing tolls from expressways after the loans are repaid: premature road deterioration, worsening safety, congestion, and complaints from non-users. With the significant new asset that CMHP has acquired, however, its shares may begin to close the valuation gap versus its much larger peers. 3043, 2019. In other words, Chinas toll road system must generate 567 billion yuan just to pay interest and principal on debt. Investment Moats, Fund or Withdraw Funds from Your Interactive Brokers Guide, All About Converting Currencies in Interactive Brokers, Buying and Selling Stocks, ETF with Interactive Brokers, Explaining Interactive Brokers Commission Structure Competitiveness, China Merchant Pacific 2011 sep 13 vickers, Dividend Stock Tracker which is updated nightly here, The Influence and Threat of Financial Influencers. In addition, it is rare to find papers that analyze the inefficient operation of the toll road industry from the perspective of economies of scale. 198, no. This is an open access article distributed under the. 3, pp. The first is the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways, since governmental loan-repayment toll highways are affected by administrative monopoly more significantly in terms of fund source, debt structure, and operation, compared with operating toll highways. Wang [35] studied the different impact mechanisms of manufacturing monopoly companies on innovation and rent seeking. According to Jiang, the highway could boost the companys annual cash flow to some RMB500 million, which he believes will enable it to service its debts, gradually repay its bank borrowings and continue paying decent dividends. The Malmquist index can be further broken down into Pure Technical Efficiency Changes (PTEC), Scale Efficiency Changes (SEC), and Technological Progress Changes (TC): Among these, and show the DEA efficiency values under the assumptions of constant return to scale and variable return to scale, respectively. Thus, we can use the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector as the proxy of administrative monopoly, to test Hypothesis 2. 3, 2019. This is because the cash flow of toll-road operators is higher than their net profit, Says Yong. Therefore, the premise of the role of the market mechanism is for the government to restructure its functions and role in the toll road industry. This means the toll roads will only lose more money in the future; there is no hope of any profit, except through a substantial increase in tolls. CMHP has already divested two of its original five toll roads, which are Class 1 highways. China is a global leader in building a modern, high-standard national road network to promote economic development, regional integration and social cohesion. In the long run, excessive administrative monopoly is not beneficial to the sustainability of the governmental loan-repayment highway sector. The feasibility study for the project to build the Meridian Toll Highway, which was proposed a few years ago, is being worked on again with Chinese partners, Igor Koval, the Deputy CEO for investment policy at Russia's SOE Russian Highways (), has said this week. In the context of worldwide governmental system reform, Dan [60] discussed the reform model for Shaanxis comprehensive transportation management system. Zhuhai, Huizhou and Dongguan in China's south Guangdong province close to Hong Kong have announced cash rewards for people who report suspected illegal crossings from the Hong Kong Special Administrative Region (HKSAR) amid reports of people fleeing to mainland by road and sea to escape the spread of the contagion, state-run Global Times . L. Li, Analysis of X Non efficiency management in tobacco commercial enterprises, Modern Business, vol. Access to this and all other statistics on 80,000 topics from, Show sources information To test Hypothesis 2, the influence of administrative monopoly on toll road operating efficiency, we introduce an intersection term () of administrative monopoly () and toll road scale () into equation (5), obtaining the following model: The strength of administrative monopoly is defined at both provincial and sector levels. Although China has more than 70 percent of the worlds toll roads, they suffer a loss every year. TCA is comprised of two Joint Powers Authorities formed by the California legislature in 1986 to plan, finance, construct and operate the 73, 133, 241 and 261 Toll Roads in Orange County. 5263, 2015. (October 28, 2021). According to the National Statistical Bulletin of Toll Highways (2018) released by the Ministry of Transport of the Peoples Republic of China, the cumulative investment in the construction of governmental loan-repayment highways was 4.48705 trillion yuan, and the debt balance of governmental loan-repayment highways was 3.05361 trillion yuan by the end of 2018. 5768, 2014. Long Term Market Analysis: Bulls need a strong countertrend, Identifying the Business Model of your Dividend Income Stock. J. K. Wang, P. R. Bai, and H. C. Xu, Performance evaluation of infrastructure maintenance and influencing factors-take toll road as an example, The Journal of Humanities, vol. (STR/AFP/Getty Images), What Chinas Highway Robbery-Style Toll Roads Say About its Economy, a well-known Chinese economist and blogger, Facing public pressure, Sun Yonghong, the deputy director of the Ministry of Transportations Roads Bureau, explained in an interview with. Moreover, CMHPs earnings and cash-generation potential has increased significantly with the addition of the new asset. Strengthening the governance structure in this way, and matching tolls to identified long-term needs in a transparent way, might also increase the public acceptability of road user charges. In addition, X-inefficiency is also applied to the tobacco industry [24], Internet industry [25], family firms [26], National Defense Science and technology industry [27], insurance industry [28], forestry [29], etc. But can CMHP maintain its high dividend payouts if it makes more major acquisitions like Yongtaiwen? The pooled revenue will also be used to repay loans and expansion support for allocated to the Provinces toll road operating companies on a formula basis developed to reflect the legitimate rewards for investors in those companies promoting more successful Expressways but sufficient to sustain others at least in a good state of repair and maintenance, even if investors bear some losses. Whatever the case, toll-road operators like CMHP are careful not to base their investment decisions on the prospect of high toll rates. This special nature is manifested in the bureaucratic organizational system with the integration of political centralization and financial decentralization [49], which can be referred to as an authoritarian system with regional decentralization [50, 51]. That is, they provide significant financial cost recovery but are not generally set so high as to seriously discourage their use by long-distance vehicle trips. Since there are no toll roads in general in Hainan and Tibet, after removing the Hainan, Tibet, Hong Kong, Macao, and Taiwan regions, this paper selects the remaining 29 provinces as research samples. The expressway stretches 138km through Zhejiang provinces Wenzhou municipality to Fujian province. At the sector level, two proxy variables are used. By far, the company has successfully managed almost 13 toll sections, which spread in all . Chinas adoption of toll roads is good international practice. Register in seconds and access exclusive features. Learn how your comment data is processed. 157179, 2019. Data are available upon request to the corresponding author. Market-oriented reform is the path to improve industry economic performance. 5, pp. Transurban's revenue from tolls rose by 8.7 per cent to $2.3 . Table 4 shows the parameter estimation results from formula (5), where (I), (II), and (III) are robust least squares estimation of heteroscedasticity using mixed cross-sectional data; (IV), (V), and (VI) are generalized method of moments (GMM) estimates of panel data. 4, pp. 34, pp. Since the implementation of the policy of building highways by loans and repaying loans by tolls, the results of building highways by loans have been world-renowned, whereas the capacity for repaying loans by tolls has continued to decline. Hence, local governments are not only passive executors of central policies but also selective executors and sometimes even make local policy innovations [49]. [11] and Wei et al. In. The Spaniards "modernized" a huge network of Native American trails and roads from South America to Louisiana to California and north through Indian Territory during their colonial reign in the Americas. M. S. Qi, On the entropy effect of public administration systemon the law of decreasing management efficiency, The Journal of Yunnan Administration College, vol. 8995, 2009. This is not a good scenario for both users and non-users. Parent commenter can toggle ^NSFW or ^delete. Specifically, governmental loan-repayment highway enterprises operate in an environment free of any sense of external pressure (e.g., franchising, monopoly, one highway by one company, and separation of income and expenditure) [37]. 152161, 2019. Evidently, excessive administrative monopoly is the reason that hinders the scale efficiency of toll roads. The Nairobi Expressway built and financed by the state-owned China Road and Bridge Corporation has officially opened for public use, reflecting a new . 162, no. The estimated coefficient of toll road density is 6.851 and statistically significant, which is close to the estimate in column (I). Show publisher information 21, no. 6, pp. The government then began to build large-scale road, rail and canal systems using taxpayer money, and these are mostly free, as public infrastructure invested by public funds should be used by the people. 496503, 2015. [13]; (2) investigation of economic efficiency based on the basic principle of no waste of resources by integrating X-inefficiency with technology efficiency, allocation efficiency, and scale efficiency, Pu et al. Naturally, the level of tolls on a particular road may reduce when capital is repaid, but continuing to charge for the use of roads, albeit at a lower level, can sustain stable revenue streams dedicated to properly maintaining and, in due course, rehabilitating the road system, independent of fluctuating public budgeting decisions. [17], You et al. Maintenance and rehabilitation costs in China will inevitable increase over time and it is important to recognize that the Expressway system will face a big financial challenge when the concentration of road building in the last 20 years generates a corresponding spike in renewal needs in the future. Toll highways emerged in China in the late 1980s. [Online]. Wang [30] reviewed the research progress of administrative monopoly in China and found that administrative monopoly mainly focuses on qualitative analysis; therefore, empirical research on administrative monopoly should be strengthened in the future to provide an empirical basis for monitoring the governance effect of administrative monopoly [30]. As a Premium user you get access to the detailed source references and background information about this statistic. Use Ask Statista Research Service. Using expressway density as a proxy variable (), the conclusions based on the above reference model are subjected to a robustness test. 3036, 2016. 189, no. 146154, 2019. 146159, 2013. Accordingly, they have identified the market structure of the toll highway sector as being a horizontal monopoly and a vertical lock-in, and have pointed out that toll highways are characterized by significant increasing returns to scale and governments need to undertake highly targeted regulatory measures and methods at different stages [55]. However, excessive administrative monopoly not only adversely affects the scale efficiency of the sector but also increases the debt burden of the sector. Column (II) reports the impact of toll road density on scale efficiency of toll road industry (). Finally, this study conducts an extended analysis of the relationship between operational efficiency and debt in the toll highway sector. Improving the supply quality and efficiency of public service has always been the core pursuit of government managers and scholars. It can be concluded that from the perspective of toll road property rights, the administrative monopoly characteristics of the industry will affect the scale of toll road into total factor productivity and scale efficiency. 49, no. CMHP became a toll road operator in 2004, when its parent, the state-owned China Merchants Group (CMG), injected five toll roads into the company. Currently, you are using a shared account. 53, no. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Rong [31] systematically analyzed the form of administrative monopoly in the railway industry after a series of reforms, the impact on transport efficiency and operation cost, and the regulations under the existing legal framework [31]. They're safe, convenient and can get you where you want to be, sooner. At this time, its effect is insufficient; therefore, the efficiency of the toll highway sector can be improved continuously by enhancing the administrative monopoly. 126139, 2016. So what is really behind these huge stated losses? 9, pp. Please create an employee account to be able to mark statistics as favorites. Jiang says he is currently negotiating for five or six project and is hoping to acquire one or two more toll roads next year. CMHP can continue to leverage its parents network and connections to buy more quality toll-road assets either from CMG itself or other third parties.. P. R. Jia, Chinas listed airports: cost efficiency, scale efficiency, allocation efficiency and X efficiency, Chinese Journal of Management Science, vol. The price of agricultural products, for example, is no longer decided by production season, but by fluctuations in transport costs. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Last year, Yongtaiwen reported earnings of RMB430 million. 22, pp. to incorporate the statistic into your presentation at any time. 7, pp. Analysis of typical toll-roads in China by the Asian Development Bank suggests that current toll levels are often a good compromise between financial needs and economic benefits. By his estimates, the companys revenue will jump from HK$131 million in FY2010 to HK$797 million in FY2011, and increase further to HK$1.59 billion in FY2012. Unlike the tolls in neighboring Florida and Georgia, Alabama toll roads and bridges are privately owned and operated. As a result, the length of highway sections varies significantly, and the highway section operated by a small-scale branch office can be as short as a few dozen kilometers; hence, it is very difficult to allow full play to scale efficiency. The results of the robustness test show that we can still obtain parameter estimation results that are highly consistent with those based on the reference after toll highway density (a proxy variable) is replaced. Li [61] investigated the existing highway management system of Jilin Province and offered specific optimization suggestions. These projects generally failed to live up to revenue expectations, and needed direct infusions of public. This paper selects the operating and management expenditures and maintenance expenses as input variables and toll income as an output variable to measure the operating efficiency of toll roads and carries out a global reference Malmquist index decomposition. Comparing Portfolio Performance of Some Singapore Robo Advisers (2023 Update 2.4 Years Later). We face big challenges to help the worlds poorest people and ensure that everyone sees benefits from economic growth. High tolls are a reflection of public resources turning into public burdens. The idea that once capital investment in a toll-road has been repaid, the facility should be made free is also not persuasive. Then you can access your favorite statistics via the star in the header. On the other hand, despite its powerful parentage, CMHP is one of the smallest, if not the smallest, of the 21 listed expressway companies operating in China. Almost all Expressways are toll roads and located close to an existing parallel highway which may be free, or subject to a lower toll. Please do not hesitate to contact me. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. is the scale of regional toll roads, calculated in terms of the density of the toll road (kilometers of toll road per square kilometer of land). About Us. Under the constraint of the overall environment of the toll highway sector, operating toll highways actually present an operation management model similar to that of governmental loan-repayment highways. 7, pp. And finally, how much has been the annual collection of various tolls across the country over the years? He writes columns for a number of prominent business websites and was named a Top Ten Influential Blog Writer on Phoenix Televisions website for three consecutive years. 1627, 2010. E. Velinov, Y. Petrenko, E. Vechkinzova et al., t al.nzovale in Crossref,Pus Power Grid: Losses and Inefficient Distribution of Electric Power Energies, Research on Economics and Management, vol. [57] analyzed and summarized the reform process of the management system of Chongqings toll highways and proposed a three-step strategy for the management system reform of Chongqings toll highways. Meanwhile, PT Jasa Marga Tbk (JSMR) also released 20% shares in three segments, namely Batang - Semarang, Solo - Ngawi, and Ngawi - Kertosono, to RDPT last year. A California toll road has been sold to an Australian company. Jiang is hopeful that CMHPs parent will be able to engineer more such asset exchanges. In view of the characteristics of the toll road infrastructure, PPP and other market-oriented operating methods are adopted. C. Xu, The fundamental institutions of Chinas reforms and development, Journal of Economic Literature, vol. 13, 1991. X. H. Li, J. Q. Qin, and L. Sun, Model empirical study of relationship between dynamic changes of commercial bank total factor productivity and the operating environment, Governance Structure, vol. As soon as this statistic is updated, you will immediately be notified via e-mail. More innovative financing methods accessing private investment may be sought, though is not a full solution for funding Expressways where there is lower traffic density and/or more costly terrain, where financial returns may be lower and more risky. There have been five U.S. leases of toll roads under a long-term public-private partnership concession agreement. H. Y. Lu and Y. Qi, A Study on Japans environmental management and governmental responsibilities, Contemporary Economy of Japan, vol. Guihuang expressway is a good asset. Using toll roads. Foreign Companies Are Buying Up American Highways and Bridges Built by U.S. Taxpayers. In other words, Chinas toll road system must generate 567 billion yuan just to pay interest and principal on debt. This outcome means that a significant increase in scale efficiency is an important reason for the improved efficiency of toll road operations. Across different parameter estimation and statistical inference methods, the estimated values and significance levels of the main parameters are approximated to each other. 114, pp. 11, no. Regarding the inefficiency of internal resource allocation and utilization in monopoly enterprises, Leibenstein, a professor at Harvard University, proposed the concept of X-inefficiency on cost distortion in 1966. The toll-road program in Texas started as a public entity, but as of 2003, most Texas toll roads are now owned by public-private partnerships. Chinas road infrastructure is an easy growth story to sell to investors. There exists scale efficiency loss in Chinas toll road industry. 1422, 2017. The shortfall in debt cover is an unmet liability which will lead either to a bankruptcy for the Expressway corporations or it will require the Province to essentially offer sub-sovereign guarantees to the banks for payment of the debt. 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Optimization suggestions into your presentation at any time which is close to the detailed source references and information... Has officially opened for public use, reflecting a new the governmental loan-repayment highway sector Dividend Income Stock the of... Run, excessive administrative monopoly not only adversely affects the scale efficiency of toll roads and bridges are privately and... A Premium user you get access to the estimate in column ( I ) of Jilin and... C. Xu, the facility should be made free is also not persuasive public burdens built financed... Economic performance Identifying the Business model of your Dividend Income Stock, Analysis of Non!, two proxy variables are used Dividend toll roads owned by china if it makes more acquisitions., the conclusions based on the above reference model are subjected to a robustness test 8.7 per to.