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Pitfalls in toll road infrastructure investing
By Investment Moats  •  August 13, 2012
Pitfalls in toll road infrastructure investing 430265816 166e25c92d At times we can get quite optimistic in projecting a high yield dividend stock. Toll roads generate  a lot of cash flows but there are much downside as well.

Maintenance of roads and upgrading of toll technology

When road is being used too much, authorities will need to relay or fix roads.  To improve collection of tolls, investment in technology in the future may be necessary. These will increase capital expenditure

Changes in government policy

The china government have been trying to reduce toll charges to ease consumer inflation burden. This is also to reduce toll gate congestion and cut car emissions.
Cabinet has approved a proposal for all cars and motor bikes to travel toll-free during four main national holidays, namely the Spring Festival (Chinese New Year), Tomb Sweeping Festival, Labour Day and National Day. The measure applies to both local toll roads and expressways.
Measures like this ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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