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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Comment by Gabrielon Jan 06, 2024 5:44pm
106 Views
Post# 35814075

RE:RE:RE:Up $0.23

RE:RE:RE:Up $0.23

The O&M - operations and maintenance - is about 7% on average of the value of an infrastructure asset. The asset cost here is about 6.5B so the annual O&M would theoretically equate to about 450m. Take 5% in net profit and you're talking 25m. Our cut is 5m.

Economically speaking, the bridge is a very poor investment for the federal government. It is like buying a building for 1M rented for 1,000$ net per month.  But that is not Aecon's problem but the owner who I understand is the federal government so that makes it you, our distinguished Canadian posters and readers and myself.

This statement is based on an annual toll revenue for the concession of about 100m at best versus 450m needed.

12,000 trucks/day * 15 USD/truck * 1.35 $/USD = 243,000$ 8,000 other veh/day * 10 USD/OV * 1.35 $/USD = 108,000$

Assuming we get only 80% (very generous) and Ambassador keeps 20%, we have about 100m revenue per year. 

Sure we can calculate savings in monetized reduced emissions and reduced and monetized accidents but this will never close the gap. 


Source for traffic:
https://en.m.wikipedia.org/wiki/Ambassador_Bridge

Source for truck fare:
https://www.ambassadorbridge.com/commercial/commercial-toll-rates/

Source for cars, SUV,..
 https://www.ambassadorbridge.com/auto-toll-rates/

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