MANILA North Tollways Corp. (MNTC), operator of the newly integrated North Luzon and Subic-Clark-Tarlac Expressways, projects strong revenue growth in 2016 as it expects to sustain or even surpass average traffic growth of 7 percent per year.
“I think we are going to increase this year,” MNTC Vice President Glen Campos replied when asked about the outlook for the company’s earnings on the sidelines of an event in Subic.
Campos said that with the integration of the SCTEX and NLEX, the toll operator is definitely seeing growth.
“We are expanding. And with expansion, increase [in revenue]follows,” he said.
Campos explained that there is an increase of roughly 7 percent in traffic every year and MNTC is in a position to surpass that this year.
“The seamless travel to the north will encourage motorists,” Campos said.
Last week, MNTC announced that the integrated NLEX and SCTEX would be enjoyed by motorists in March. With the seamless transfer to and from the two highways that connect the northern provinces of Luzon to Metro Manila, travel time will be shortened by 35 to 40 minutes.
Campos said that the drop in fuel cost and the active promotion of tourist spots in the north of Luzon is also a driver of MNTC’s increased revenue.
“Yung fuel cost bumaba, marami na ang nagpupunta sa [The fuel cost dropped, hence many are going to the] northern destinations because of active promotion of tourist spots,” he said.
Campos also noted that the boost in car sales in the Philippines is also a major driver of the tollways’ growth.
MNTC, a subsidiary of Metro Pacific Investments Corp. (MPIC), took over the operation and maintenance of SCTEX in November from the state-run Bases Conversion and Development Authority (BCDA).
Under the concession agreement, MNTC will operate, maintain and connect SCTEX to NLEX, another highway it operates.
NLEX has a daily vehicle volume of 200,000 while SCTEX sees around 35,000 vehicles every day.