South Luzon Tollway Corp. said net income rose 15 percent in the first quarter of the year on higher vehicle traffic.
The tollway unit of San Miguel Corp. posted a net income of P831.3 million in the January-to-March period from P723.3 million in the same period last year.
The company’s toll revenues amounted to P1.54 billion, up 5 percent from P1.47 billion year-on-year.
SLTC attributed the growth in revenues to the increase in traffic volume driven by the sustained growth of residential and industrial areas backed by the government’s de-centralization push to stimulate business activities in areas outside Metro Manila and amid expanding housing development and strong consumer socio-economic activity in the Calabarzon area.
“Apart from the industrial development in the area which gave rise to numerous industrial parks, Cavite and Laguna have become attractive to people looking for spacious housing facilities and veering away from condominium living which are offered at steep prices in Metro Manila. These developments enhanced the volume for class 1 vehicles,” the company said.
SLTC added the traffic volume for Class 3 vehicles also increased mainly due to the thriving Calabarzon, the second most densely populated region after National Capital Region.
SLTC in March started the construction of the 66.74-kilometer SLEX Toll Road 4 that would connect Sto. Tomas, Batangas to Lucena City, Quezon.
The toll road will shorten the travel time from Sto. Tomas, Batangas to Barangay Mayao in Lucena City from the usual three hours to just 45 minutes.
The new road is expected to boost economic activity through the faster transport and delivery of goods and services and cut vehicle volume along the busy Maharlika Highway, one of the main roads leading to the provinces of Laguna, Batangas, Quezon and the Bicol region.
SLTC will break ground today for the extension of South Luzon Expressway from Sto. Tomas, Batangas to Lucena City, Quezon.
San Miguel said the 66.74-kilometer South Luzon Expressway Toll Road 4 would significantly reduce travel time between the provinces south of Metro Manila.
The project is expected to be completed in three years or by 2021.
The toll road will be divided into six sections, namely Sto Tomas, Batangas to Makban in Laguna (11.32 km); Makban to San Pablo City (12.75 km); San Pablo to Tiaong in Quezon (7.5 km); Tiaong to Candelaria (15 km); Candelaria to Tayabas (10.21 km); and Tayabas to Lucena (9.96 km).
TR4 is a part of SLTC’s 30-year concession which will last until 2036.