Indiana Toll Road

Nature of the asset

The Indiana Toll Road, which opened to traffic in 1956, is a 253 km long divided highway which runs the full length of northern Indiana. The Indiana Toll Road connects to the MIG, MIP and Cintra owned Chicago Skyway in the west and the Ohio turnpike in the east. It is a critical part of the transcontinental route that moves freight to and from major US distribution hubs.

On an average day approximately 150,000 transactions are conducted on the road which is two to three lanes in each direction. The eastern end of the road works on a ticket system, primarily for freight based traffic. The western end is a barrier system catering more to commuter traffic. ITR completed the installation of ETC along the full length of the road in April 2008.

The lease of the Indiana Toll Road to a private consortium in June 2006 marked the first State privatisation of an existing toll road in the United States. Chicago Skyway was privatised by the City of Chicago in January 2005.

Nature of the investment

The Indiana Toll Road was formerly a State owned business.

The MIG-Cintra led consortium, known as Statewide Mobility Partners, was announced as the preferred bidder for the Indiana Toll Road in January 2006. The lease and concession agreement was signed in April 2006 with financial close reached on 29 June 2006.

The final purchase price for the lease was US$3.8 billion. MIG's net investment for the 50% equity commitment was US$374 million.

In December 2006 MIG divested 50% of its interest in the Indiana Toll Road to Macquarie Infrastructure Partners (MIP), retaining a 25% interest in the asset.

Length

253 kilometres

Number of lanes

2-3 lanes in each direction

Tolls

Cars: US$5.1c per mile*

Trucks: US$20.3c per mile

* Cars with an electronic tolling device pay US$3.0c per mile with the State reimbursing Indiana Toll Road Concession Company for the difference between case and ETC tolls for cars. The reimbursement agreement with the State is currently due to remain in place until June 2016.

Toll price escalation

Toll schedule set until 2010 after which tolls will increase at the greater of 2%, CPI and nominal GDP per capita growth (four year catch up in 2010, annual thereafter)

Toll collection

Cash and electronic tolling

Concession end

2081