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CMAA – OWNERS FORUMTHE TRANSURBAN PERSPECTIVETony Adams

May 3, 2010

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TRANSURBAN

Toll road manager, investor and long-term partner in US and Australia

Financially secure, $7 Billion market capitalization and A- credit rating

40% owned by North American investors

More than 5 million customers worldwide

Dow Jones Sustainability Index of high-performing companies

Pioneered fully electronic tolling, customer service model

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TRANSURBAN ASSETS LOCATIONS

Melbourne, Australia

Sydney, Australia

Richmond, Virginia, USA

Washington DC, USA

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A MOTORWAY OPERATOR & ASSET OWNER

Long term focus – whole of life approach to the investment

Partnership with Government and community Network perspective Innovation – continuous asset improvement

Vision: “Transurban is a values-based toll road owner and operator, delivering value to security holders and communities.”

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PPP’s IN ACTION:CAPITAL BELTWAY HOT LANES

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CAPITAL BELTWAY HOT LANES

Early 90’s plans cost prohibitive, highly disruptive to community and environment

Private sector proposed HOT Lanes as alternative

Completed under Virginia’s PPP legislation

14 miles, two new HOT lanes in each direction

First time introduction of HOV and transit network to Beltway and Tysons Corner

Replacement of more than $260 million of aging infrastructure

New choice to pay a toll for faster, more reliable travel time

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CAPITAL BELTWAY PPP AS AN EXAMPLE

Nearly $2 billion transportation improvement project

80-year partnership agreement – Operator led example

Approximately $1.5 billion in private equity and debt

Key risks transferred to private sector, away from taxpayers

State grant and use of innovative federal loan programs

Stringent Performance regime

Partnership agreement includes key provisions to protect public interest Revenue sharing No non-compete Transparency Performance requirements

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PPPs - PART OF THE SOLUTION

Challenges require broad spectrum of tools and strategies

PPPs part of the solution – not the “silver bullet” Private partnerships can support governments in

advancing major transportation improvements Private capital Innovative financing Risk transfer Financial incentives to continually improve

efficiency, traveler experience and safety Meet transportation needs more quickly

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PPPs UNDER SCRUTINY

Market failures have placed increased scrutiny on the PPP model in Australia

Focus on winning the project rather than delivering ‘transportation outcomes’

Media and PPP opponents have focused on recent high profile project failures

Successful projects, such as Westlink M7, have not received the same level of attention

Scrutiny has rightly been placed on traffic forecasting and financial engineering for failed projects

The effects of the Global Financial Crises has put pressure on the PPP model for the delivery of toll roads

PPP market in the US is maturing and will evolve

Operator led examples are a more positive approach

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BENEFITS OF THE OPERATOR-LED MODEL

The Operator-led model has a number of advantages over traditional procurement :

Traditional Contractor Model Operator-Led Model

Efficient mechanism for “hard” asset delivery

Partnership approach for the term of the concession

Little focus on customer service provision

Concessionaire interests aligned with Government, community & customers

Focus on D&C and financing provision, not long term operation

Focus on service delivery over the life of the asset

Short-term view has seen bids won on unrealistic traffic forecasts

Less incentive to inflate traffic forecasts

Limited competitors increase bid pricing

Long term equity protected through robust project metrics

Lack of protection for long term equity holders

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WHAT DELIVERS THE MOST VALUE?

A motorway operator who is also the asset owner: Long term focus – whole of life approach to the investment Partnership with Government and community Network perspective Innovation – continuous asset improvement

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SUSTAINABILITY IN ACTION:CAPITAL BELTWAY HOT LANES

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CURRENT CONGESTION

The Beltway currently experiences 6 to 8 hours of congestion per day* The fifth worst congested region in the United States* Commuters lose an average of 69 hours a year sitting in traffic* Congestion costs the local economy nearly US$5.5 billion a year* Minimal to no ability to build out corridor due to physical constraints and social

impacts *Data from the Texas Transportation Institute

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“While the HOT lanes project won’t single-handedly solve Northern Virginia’s traffic nightmare, it is a key piece in a complicated puzzle.”

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SUSTAINABILITY:PROJECT SCOPE

Private proposal for HOT Lanes provided funding source, reduced impact from 350 homes and businesses to 8

Significant expansion of carpool and transit service

First-time bicycle and pedestrian access

Improved safety with bridge replacement

Enhanced evacuation and incident response

Dynamic pricing to manage traffic levels and reduce stop-and-go traffic, which can lead to reduced GHG emissions

“HOT Lanes can create financial incentives to make public transport and carpooling more attractive…”

- U.S. Dept. of Transportation

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HOW HOT LANES WILL KEEP TRAFFIC MOVING

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COMMITMENT TO CUSTOMERS AND COMMUNITY

Outreach surrounding construction

Community grant program

Signature partnership programs Bike-to-Work “Orange Cones. No Phones” Driver

Safety Campaign

Robust consumer research to inform operations planning

New approach to on-road information and customer management

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CONCLUSIONS

PPP’s are part of the solution – not the answer to all delivery methods and they are not a means of delivering non feasible projects

Operator led model delivers the most benefits

Demonstrated sustainability benefits

HOT Lanes becoming important tool in addressing growing congestion crisis in U.S. urban areas

Pricing is effective in managing traffic levels and providing congestion-free pathway for buses, carpools and toll-payers

Technology can provide improved safety, driver information and travel experience

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DISCLAIMER

This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ARBN 121 746 825). The responsible entity of Transurban Holding Trust is Transurban Infrastructure Management Limited (ACN 098 147 678) (AFSL 246 585).

No representation or warranty is made as to the accuracy, completeness or correctness of the information contained. To the maximum extent permitted by law, the Transurban Group, directors, employees or agents or any other person, do not accept liability for loss arising from or in connection with this publication including without limitation, any liability arising from fault or negligence.

The information does not take into account individual investment and financial circumstances and is not intended in any way to influence a person dealing with a financial product, nor provide financial advice. It does not constitute an offer to subscribe for securities in the Transurban Group. Any person intending to deal in Transurban Group securities is recommended to obtain professional advice.

United States

These materials do not constitute an offer of securities for sale in the United States, and the securities referred to in these materials have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration.

© Copyright Transurban Limited ABN 96 098 143 410. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the Transurban Group.

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