Dec 13 - The outlook for airports, ports and toll roads
remains stable for 2013 despite concern over the lack of a long-term federal
funding solution for GARVEEs, according to a new Fitch Ratings report.
"In 2013 we expect modest growth for airports, stability for ports despite
volume pressures, and toll road resiliency," said Mike McDermott, Managing
Director at Fitch. "Sustainability remains elusive for GARVEEs. A continued
imbalance between federal highway trust fund outlays and receipts is expected."
"Fitch will monitor progress on fiscal cliff budget negotiations, including any
potential gas tax increases, in order to assess the impact on long-term GARVEE
Modestly positive growth in airport traffic is expected in 2013. Enplanement
trends will vary, with large hub and international gateway airports performing
better than secondary hubs or regional airports with competition. A fiscal cliff
scenario could disrupt the sector due to lower demand and cuts to aviation
security and Federal Aviation Administration funding.
Ports will face volume pressures stemming from continuing economic challenges in
the eurozone, ongoing labor disruptions in the U.S., and fragile consumer
confidence in the face of the fiscal cliff. Investment in port infrastructure
will be a focus for both the private and public sectors as economic recovery
continues to progress.
Toll roads will be minimally affected by slowing growth or small reductions in
traffic volumes due to their pricing power. The tolling of roads and bridges is
expected to increase going forward due to the lack of state and local funding
for infrastructure. Elasticity may be higher and the political appetite to
increase tolls may be lower going forward than when the crisis began in 2007.
Fitch will host a conference call to discuss its 2013 U.S. Transportation
outlook on December 14th at 11:00 AM eastern.
Dial-in details are:
--U.S. Participants: +1-877-467-8597
--International Participants: +1-706-643-6296
--Conference and Replay ID: 73938113
Replays will be available for 30 days. Replay dial-ins are accessible using the
--U.S. Replay: +1-855-859-2056
--International Replay: +1-404-537-3406
For more information, a special report titled "2013 Outlook: U.S. Transportation
Infrastructure" is available on the Fitch Ratings web site at
www.fitchratings.com, or by clicking on the link below.