The Severn Crossings Toll - Welsh Affairs Committee Contents


Written evidence from Midland Expressway Limited (M6 Toll)

INTRODUCTION

  1.  This evidence is submitted by Midland Expressway Limited the Concessionaire of the M6 Toll. The company is private and owned by Macquarie Atlas Roads. The company holds a 53 year Concession to design, build and operate the UK's first tolled road and has responsibility for the entire financial costs of the development accepting all associated risks.

  2. The road was opened on the 9 December 2003 and we currently employ over 140 people recognising voluntarily UCATT as the Union representing our workforce.

  3. The M6Toll is the key strategic route through the West Midlands and our tolls are market driven. The route the M6 Toll follows is that of the existing road corridors of the A5, A38 and A446 passing through the counties of Staffordshire and West Midlands. There are mainline stations to the north and south with smaller satellite stations dealing with local traffic.

  4. In 2004 Midland Expressway opened a motorway service station mid-way along the motorway and leased this to Roadchef. This accounts for a further 150 jobs in the region.

  5. The company processes around 16million transactions every year and since opening has seen over 100 million journeys through our 38 toll lanes. Customer satisfaction levels are in excess of 90%, testament to the excellent quality of service we provide.

THE IMPACT OF THE TOLLS ON THE WELSH ECONOMY INCLUDING BUSINESSES, LOCAL RESIDENTS AND TOURISTS

  6. Tolls on the Severn Bridges are one-way only on entry into Wales and we would not purport to be experts on the Welsh economy. It is clear however that customers have little choice but to use the bridges, so it could be considered as a monopoly. The untolled alternative to the Severn Crossing adds around an extra 50 miles to the journey (via M5 and A48) and so is costly in terms of loss of time and fuel spent.

  7. This is markedly different from the M6Toll where there are other competing routes such as the M6, A5 and A38. The Agency will not direct traffic to the road so we depend on providing a reliable service ensuring a first class ride on a world class motorway facility.

  8. The vast majority of our staff live and work within the Staffordshire region and we see ourselves as an integral part of the business community. This is important as we work hand in hand with all the local authorities to promote the region and its economic growth.

  9. The opening of the M6Toll has a positive effect on stimulating development interest within the corridor. It was estimated by Staffordshire University that the direct effect of an additional 4.25 hectares of industrial land implied opportunity to create 265 new jobs in excess of those created to operate the M6 Toll and its motorway service station, with a development effect in the then current values of around £100 million.[1]

THE CURRENT LEVEL OF TOLL PRICES AND THE AVAILABLE METHODS OF PAYMENT

  10. Toll prices on the Severn Bridges are regulated and are subjected to annual increases. Toll rates in the M6 Toll are solely market driven. The M6 Toll payment methodology accepts all methods of payment; cash, credit/debit cards and fuel cards. Dedicated lanes are also available to process payment electronically. In any tolled regime where the user pays operators have a common interest in ensuring payment is made automatically. There is a move away from cash which is costly to collect.

  11. The M6 Toll current price for class 2 (cars) at our mainline plazas is £5.00 and HGVs are at £10.00, the multiple being 2 x the car rate.[2] This differs from the Severn where the multiple is 3 x the car rate. Different rates apply for the small toll stations and discounts of 5% are made in processing electronic payments.

  12. The Severn currently has no facility to cater for credit / debit card payments. We have been assisting the Severn management, the DfT and the Agency in evaluating the process of change to this method of payment. It will greatly assist in processing through traffic. It is understood that the Severn will soon introduce card payment similar to ours but with online verification.

THE CURRENT CONDITION OF THE BRIDGES AND THE COSTS ASSOCIATED WITH THE ONGOING MAINTENANCE

  13. We are aware that various surveys have been undertaken with regard to many of the suspension bridges in the UK. These surveys have underpinned the understanding that some cable integrity has been affected either during construction or post construction. We are not qualified to comment any further on these matters as we understand they are under the supervision of qualified engineers.

THE FUTURE OF THE BRIDGES AFTER THE CROSSINGS HAVE REVERTED TO PUBLIC OWNERSHIP

  14. This is really a matter of policy for the Government. The bridges will still exist and therefore the choice is whether to extend a Concession to the existing or introduce another party, retain in public ownership and/or relinquish tolls. In the case of Dartford the bridge and tunnel tolls still remain in place with the Dartford Crossing forming part of the Connect Plus contract for the M25.

  15.  In the case of the M6 Toll at the end of the concession in 2054 the road and the tolling infrastructure will be handed back to the Secretary of State for Transport. In the interim Midland Expressway will continue to maintain the road in accordance with all our liabilities under the Concession Agreement.





1   Evaluating the effects of the M6Toll Road on the Industrial Land Development and Employment: Professors Geoffrey Pugh and Jon Fairburn Staffordshire University Regional Studies Vol 42.7, pp977-990 August 2008. Back

2   M6Toll website www.m6toll.co.uk Back


 
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