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Transurban looking for growth in the US

Toll road operator Transurban says it's not clear what infrastructure opportunities may arise under US President Donald Trump, but Australia still looks good.

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Source: AAP


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US-exposed toll road operator Transurban is hopeful of more opportunities if President Donald Trump boosts infrastructure spending, but says it also has strong growth plans in Australia.

Chief executive Scott Charlton says Transurban is still looking to expand its presence in north America even though it lost a bid in November to construct and operate high-occupancy toll lanes on Interstate 66 in northern Virginia, where it already owns two toll road assets.

"There's been lots of talk about infrastructure. While we believe it's positive, infrastructure takes a very long time and basically infrastructure is delivered in the US by the states," Mr Charlton said on Tuesday.

"So while we will be watching for new opportunities, we still remain patient about the US."

Transurban has a $9 billion pipeline of development projects, which are all on time and on budget, he said.

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The company is in negotiations with the Victorian government over the development of the $5.5 billion Western Distributor project, which will put a second bridge across Melbourne's Maribyrnong River to ease congestion on the Westgate Freeway.

Transurban's proposal includes an extension of its toll concession on CityLink, but the Coalition and Greens could block a toll extension.

Mr Charlton is confident of reaching financial close on the Western Distributor project.

"I think it's best for us not to comment on politics," he said.

"We think the project speaks for itself, and we remain confident with the outcome."

Mr Charlton said Transurban may have to raise capital to fund the Western Distributor project once the project reaches financial close, but that was not definite.

The company would also be interested in Sydney's $16.8 billion WestConnex motorway project if the NSW government moves to sell it or part of it, he said.

"It's obviously a fairly big project, fairly complicated and depending on how they sell it, might involve us having partners," Mr Charlton said.


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