CONCESSIONS

CONCESSIONS

This business line, which is oriented

towards growth and attaining stable cash
flow in the medium term, has four key
strategic aims: maintain the leading
position attained in the last few years in
privately-financed toll road and car park
development; consolidate current projects;
tap the opportunities in the European and
North American markets; and complete
growth in airport management.
Cintra, the company which bids for and
subsequently manages concessions for the
group, analyses projects with a view to
minimizing the construction, financial and
management risks inherent to the
concession business. Projects always

257

CAGR: 77.3%
179

77

26

96

18

97

98

99

00

involve closed deadlines and prices in the

construction phase and long-term local
financing, and Cintra manages them
directly using common procedures and
systems for all its concessions.
The action plans drafted in order to meet
these targets are designed to achieve a
balanced portfolio between projects under
way and those which are in the early
stages of investment and construction
(currently only 7 of the 17 toll roads
managed by Ferrovial are in service) and
to attain a sufficient balance between
investment in various geographical areas,
giving priority to Europe and North
America.
In 2000, the projects for the Radial 4 toll
road (Madrid) and the Scut del Algarve
toll road (Southern Portugal) were added
to the other 15 toll road projects which
Cintra manages in Spain, Chile, Colombia
and Canada (where Cintra manages the
largest concession put out to tender
world-wide in recent years and the first
toll road operating under a free toll
regime, where vehicles are not required to
stop totally electronic toll system with
free access and where the average daily
volume of traffic was over 57,000 vehicles
last year).

NET SALES
millions of euros
CAGR = Compound Annual Growth Rate

29

The acquisition of Bristol Airport, the

largest in south-west England, has
enhanced the companys exposure to this
business (it now manages 12 airports in
the UK, USA, Mexico and Chile). In car
parks, where it has consolidated its leading
position and now manages a total of
132,427 parking spaces in Spain, Portugal
and Puerto Rico, Cintra is expanding and
growing via diversification and by seizing
alliance and/or acquisition opportunities in
Spain and elsewhere.

Cintra leads the world market in privatelymanaged transport infrastructure, where

its committed investment exceeds 1.3
billion. In 2000, revenues from concessions
amounted to 257.2 million, vs. 179.2
million the previous year, a 43.5% increase.
Operating profit totaled 103.6 million,
up 63.4% from 1999.

TOLL ROADS

Talca-Chilln toll road. Chile.

Under Spains Toll Road Concession

Program, Cintra was awarded the Radial 4
(from Madrid to Ocaa), which is Spains
largest civil engineering project.The toll
road is 96 kilometers long and represents
an investment of 600 million and a
concession period of 65 years.The winning
consortium entered a project envisaging
technical and environmental improvements
in addition to the novel step of free-ofcharge night-time use, plus toll discounts
depending on the time band and
frequency of use.

30

Outside Spain, in early 2000 Cintra was

awarded the Scut del Algarve concession
in Southern Portugal, involving an
investment of more than 259 million and
a concession under the shadow toll
system running until 2030.The toll road
(between Villa Real de San Antonio and

Talca-Chilln toll road. Chile.

Lagos) is 134 kilometers long, of which 42

kilometers will be newly-built, and 17
kilometers of access roads and junctions
with the rest of the road network will be
added.The project, which is due to come
into service in late 2002, will enhance
communications with Spain, Lisbon and
the rest of Portugal.
The toll road along the Costa del Sol
between Mlaga and Estepona, which
came into service in 1999, has greatly
boosted revenues and earnings in this
business, but the flagship toll road is
undoubtedly the ETR 407 in Toronto,
Canada, which represents an investment of
over 2.4 billion and is the largest toll
road concession ever obtained by any
Spanish construction company and whose
financing involved the largest-ever longterm bond transaction in the Canadian
market.

subordinated debt provided by the

shareholders by means of a 7-year
subordinated bond of 300 million
Canadian dollars and a subordinated
syndicated loan of 425 million Canadian
dollars.
In 2000, financing was completed for the
Collipulli-Temuco toll road in Chile via a
guaranteed 20-year UF-denominated bond
issue for the amount of 214 million,
without recourse to the shareholders.This
is the second bond placed in Chile
(following that for the Talca-Chilln project,
another Cintra concession, in 1998).
Furthermore, financing was closed for the
Scut del Algarve toll road via a 23-year
232 million project finance deal headed
by BSCH with the involvement of Spains
ICO and Germanys WestLB and
HypoVereinsbank.

In 2000, the long-term refinancing of the

bridge loan (senior and junior debt) was
completed via the issue of bonds in the
Canadian market, and the financing
structure designed in the tender process
was thus achieved over one year ahead of
schedule.The bond issues obtained an A
rating from Standard & Poors. In May
2000, the concession company also
completed the refinancing of the entire

31

CINTRA CONCESSIONS
KM.

INVESTMENT
MANAGED

% CINTRA

FERROVIAL
INVESTMENT

EXPIRATION

SPAIN
EUROPISTAS (Bilbao-Behobia)
EUROPISTAS (Burgos-Armion)
AUTEMA (Terrassa-Manresa)
AUTOPISTA DEL SOL (Mlaga-Estepona)
AUTOPISTA DEL SOL (Estepona-Guadiaro)
TNEL DE ARTXANDA (Bilbao)
M-45 (ODonnell-N-IV)
R4 (Madrid-Ocaa)

105.5
99.0
48.3
81.1
22.0
5.5
14.4
96.0

838.0
285.0
312.2
451.8
211.4
78.0
148.0
598.0

26.53
26.44
77.67
66.63
66.63
35.31
50.00
52.00

108

2003
2017
2037
2046
2054
2048
2023
2065

CHILE
RUTA
RUTA
RUTA
RUTA

5 Talca-Chilln
5 Temuco-Ro Bueno
5 Collipulli-Temuco
5 Santiago-Talca

193.0
171.7
144.2
237.4

163.5
224.3
266.4
806.6

27.42
75.00
100.00
40.00

15
43
101
167

2007
2023
2024
2024

COLOMBIA
PISA Buga-Tulu-La Paila
CISA Cali-Candelaria-Florida
CCFC Fontibn-Facatativ-Los Alpes

60.0
32.1
40.0

89.7

16.24
60.00
25.00

6
4
2

2013
2018
2018

CANADA
ETR 407

108.0

2,476.2

61.29

372

2098

PORTUGAL
Scut Algarve

134.0

259.6

79.00

36

2030

120.2

24.50

42

2014

CHILE Antofagasta

10.2

100.00

2009

USA Niagara Falls

52.3

100.00

1.6 (*)

2099

325.0

50.00

TOLL ROADS

49
91
4
11
71 (*)

AIRPORTS
MEXICO Aeropuertos del Sureste (9 airports)

UK Bristol
CAR PARKS
Total
On-street
Maintenance
Off-street
Residents
TOTAL
(*) Pending payment. Amounts in millions of euros.

32

132,427 spaces
74,842
8,850
32,021
16,714

188.0

7,904.4

60 (*)

188

1,375.6

no limit

Bristol airport. United Kingdom.

Consolidation and growth are the main

strategic objectives in Cintras airport
management business, which has good
growth prospects (in view of the boom in
privatization worldwide) and high returns,
and which will seize growth opportunities
in Europe and North America.
In 2000, Cintra became the first Spanish
company to win a tender to acquire an
airport in another European country
(Bristol Airport, UK) and it is Spains
leading international airport management
company in terms of investment and
business volume.The acquisition of Bristol
International Airport, the largest airport in
south-west England, is of prime strategic
value since it establishes Cintra as an
airport operator in the UK, one of the
worlds prime sources of international air
traffic and the one with the largest growth
potential. Bristol is one of the regional
airports nearest to London and will take
on the traffic which Londons congested
airports cannot handle.
Last year, 2 million passengers used Bristol
airport, and 8 million people live in the
airports catchment area. Go, an airline
which is a subsidiary of British Airways, has
chosen Bristol as its base of operations,

and this will boost traffic through the

airport by 30%, enabling it to attain the
traffic volume projected for 2004 in just
one year.
The Bristol Airport acquisition represents
a total investment of 325 million, divided
equally between Cintra and its partner in
the consortium, Australian finance group
Macquarie Bank.The consortium has
acquired the entire airport (land, buildings
and installations) and will operate all the
services (aircraft operations, traffic control,
rescue services and fire-fighting, jet fuel
supply, car parks and shopping). Bristol has

Bristol airport. United Kingdom.

AIRPORTS

33

a new passenger terminal with capacity for

up to 5 million passengers and one of the
largest airport car parks in the UK (more
than 7,000 parking spaces). It is also
building a new control tower.
The Niagara Falls concession in New York
State (the second privatized airport in the
USA) also entailed Cintras approval by
the Federal Aviation Administration (FAA)
as an airport operator a basic
requirement to enable it to participate in
any future privatization ventures in the US,
which represents 45% of the worlds air
traffic and where investment is likely to
soar in the next few years.

CAR PARKS
Cintra Aparcamientos again led the car
park management market with 132,427
parking spaces in around 100 cities in
Spain, Portugal and Puerto Rico.
Cintras car park business is in the midst of
a new growth phase, in terms of both
volume and profitability, based on alliances
and acquisitions in Spain and abroad and a

Plaza de Coln car park. Madrid.

The nine airports in southeast Mexico

floated 80% of capital on the Mexican
capital markets in 2000 and they
contribute significantly to the groups
bottom line, along with the latest addition:
Antofagasta airport in Chile. Cintra
currently manages a total of 12 airports
and handles 14 million passengers per
year.

34

Calle Fuencarral car park. Madrid.

diversification policy oriented towards

managing car parks for the private sector
(shopping malls, hospitals and airports)
which, like municipal governments, are
increasingly seeking a professional
approach to the construction, exploitation
and maintenance of their car park
infrastructure. Indeed, Cintra
Aparcamientos is the private company
with the most parking spaces under
management in Spain, including the Parking
Express car park at Barajas airport
(Madrid) and the long-stay car park at
Palma de Mallorca airport.

Residents
13.6%

PARKING
SPACES
2000
Total: 132,427

On-street
56.5%

This diversification strategy also aims at

participating in city government-owned
companies (as in Seville and Mlaga),
management contracts and ancillary
services in off-street car parks (including
an ambitious plan to refurbish car parks in
Madrid at a cost of 6 million, involving
the installation of advanced new
ventilation systems, closed circuit TV and
surveillance, vending machines, cash
dispensers, car washes and windshield
repair shops).
With the aim of pooling resources,
obtaining synergies and improving the
management and productivity of its
business, last year Cintra reorganized its
companies under two brands: Cintra
Aparcamientos (off-street and residential
car park management) and Dornier (onstreet parking). FEMET specializes in the
distribution, maintenance and control of
car park equipment.

Off-street
24.2%

Maintenance
6.7%

35