Revenues at Fermoy motorway operator fall

The operator of the €295m Rathcormac-Fermoy bypass in Co Cork has posted revenues of €315,655 a week.

According to accounts just filed by Directroute Fermoy Ltd, revenues fell slightly to €16.4m in 2016 from €16.7m the previous year. Operating profits increased slightly to €7.58m.

“Traffic levels grew faster than anticipated in 2016 and further increases are expected as motorists continue to recognise the benefits of the motorway,” according to the accounts.

It expects higher traffic volumes due to the upturn in economic activity in the region. The company’s revenues are made up of toll income and operational payments from Transport Infrastructure Ireland.

Toll income in 2016 increased to €12.89m from €11.94m, while operational payments fell to €3.5m from €4.6m in 2015. The firm proposed to pay a dividend of €6.35m last year.

The road, which was constructed by Directroute Fermoy as part of a public private partnership, opened in October 2006, eliminating one of the country’s worst bottlenecks and providing motorists with 33km of continuous motorway and a dual carriageway.

Directroute, which will operate the Rathcormac- Fermoy bypass to 2034 before handing it back to Transport Infrastructure Ireland, also operates the Limerick tunnel and is building the Tuam to Gort motorway.

“After operating expenses, the interest and charges associated with these loans remain a significant expense for the [Fermoy] project”, the company said, after posting €5m in interest payments and a gain of €1m on derivative financial instruments.

The tolled route has a book value of €123.8m. Motorists pay €1.90. HGVs with four or more axles pay €6.10.