Chilean toll road operators enjoy positive business outlook

Chile’s toll road operators are maintaining a positive outlook despite a slight reduction in traffic and dollar-based revenues during 2023, but they are not facing heavy debt and benefit from a stable rate regime.

“The initial projections for these concessions were widely surpassed, and [operators] were able to speed up their debt repayments in some capacity", Daniela Cuan, VP and senior analyst at Moody’s Ratings, told BNamericas.

Toll road traffic fell slightly last year from a 2022 high, while dollar-based revenue was also affected by the depreciation of the peso.

But Cuan said the depreciation will not have a significant impact on operators as tolls are regularly adjusted for inflation. 

Traffic surpassed pre-pandemic levels in 2022, after a series of pension fund withdrawals boosted car sales.

Meanwhile, the government has started to relaunch tenders for existing road concessions, such as the Santiago-Los Vilos stretch of route 5, as well as for new infrastructure such as the Pie de Monte and Orbital Sur highways.

Regulatory changes are causing some concern, however, as a bill that would make operators responsible for improving safety conditions against carjackings and other crimes is being evaluated.

The bill would also force concessionaires to acquire insurance to cover damage to third parties.

Industry association Copsa is opposing the bill, claiming it could affect contract costs. 

The bill has been approved by the senate's public security committee and is now being reviewed by the public works committee.