Motorway nets firm over €800k per week

It was one of the most controversial road schemes ever built — but now the M3 motorway is making tens of millions of euro in profits for its private operator.

Figures show the M3 is the most lucrative privately tolled motorway scheme in the country, making over €800,000 a week in profits for Eurolink Motorway Operation (M3) Ltd. The Spanish-Irish joint venture firm recorded a profit of €41.6m in 2011 — a 114% increase on the €19.4m profit in 2010.

The company earned €50.87m or €139,375 per day in revenues from tolls on the route in 2011 — doubling the €25.1m taken in during 2010 when the route opened on Jun 4.

The 50km M3 that runs from Clonee to the north of Kells in Co Meath was built at a cost of almost €1bn. It was the largest infrastructure scheme delivered through a Public Private Partnership at the time.

The M3, which sparked protests as it runs near the Hill of Tara, bypasses Dunshaughlin, Navan, and Kells.

The company is jointly owned by Irish firm, Siac Construction and is a subsidiary of Spanish company, Ferrovial. The joint venture company last year approved the first dividend of €5.6m from the route to the firm’s shareholders.

The firm almost tripled its pre-tax profit from €11.3m to €28.3m. The increased profits were recorded after the route’s daily traffic volumes increased by 8% from 21,004 to 22,684.

The accounts do not specify the amount received from the NRA in operational payments.

However, the NRA has already confirmed that it paid the motorway operator €1.86m in ‘traffic guarantee’ payments in 2011 and this followed €547,000 between Oct and Dec in 2010.

The monies were paid as the NRA guaranteed a certain number of vehicles would use the road. The guarantee was put in place due to the high cost of the route and due to it being a challenging project to deliver.

There are two toll plazas on the M3. The current toll for cars is €1.40 with tolls for goods vehicles with four axles of more costing €3.40.

The numbers employed by the operator of the route last year increased from 20 to 26 with staff costs increasing to €1.4m.