Transurban traffic gains momentum as West Gate Tunnel and US lanes lift volumes

Group traffic growth broadens across major markets

Transurban Group (ASX:TCL) recorded 2.576 million average daily trips in the September quarter, a 3.1% increase on the prior corresponding period. Melbourne led the Australian markets with 4.2% growth, while North America rose 4.7% and Sydney gained 3.0%. Brisbane was the laggard, although traffic still edged 1.1% higher.

The result marks an improvement from the weaker traffic comparisons recorded in parts of the previous quarter. It also extends a run of positive monthly Group growth, with September traffic up 2.7% year on year. The figures build on the August traffic acceleration, when Transurban reported 3.4% Group growth and a particularly strong North American contribution.

Sydney benefits from M7 integration and freight traffic

Sydney generated 1.077 million daily trips, up 3.0%. Westlink M7 was the standout asset, with traffic 10.7% higher following the opening of the M7-M12 Integration Project. WestConnex traffic increased 2.2%, while large-vehicle traffic across Sydney rose 4.2%, supported by a 6.8% year-on-year increase in port container volumes cited by Transurban.

Melbourne’s 4.2% increase to 875,000 daily transactions was largely shaped by the West Gate Tunnel, which contributed 37,000 daily transactions during the quarter. Excluding that asset, CityLink traffic was broadly flat, down 0.2%. Southern Link growth was offset by a 1.7% decline on Western Link as traffic redistributed towards the new tunnel, while Melbourne Airport passenger volumes fell 0.5%.

North American toll lanes deliver higher prices and mixed traffic

North American traffic rose to 127,000 daily trips, led by a 17.3% increase on the 495 Express Lanes. The 95 Express Lanes declined 3.1%, partly because construction on adjacent roads connecting to the 395 Express Lanes corridor is expected to continue for several more months. Average dynamic toll prices nevertheless increased 20.0% to US$15.82 on the 95 Express Lanes and 47.4% to US$12.36 on the 495 Express Lanes.

Transurban also revised its July and August North American traffic and dynamic-pricing figures after correcting a reporting issue linked to a new gantry. The company said the correction reduced reported traffic and increased reported pricing, but had no impact on revenue. That makes the headline growth trend less straightforward to read than the quarterly number alone, particularly for the 95 and 495 Express Lanes.

Toll policy and macroeconomic risks remain in view

Transurban said it does not expect a material traffic impact from Victorian toll-cap policies announced to date during the state election campaign. The company also described the macroeconomic environment, including renewed conflict in energy-producing regions, as a watchpoint. More than 90% of Group revenue is CPI-linked or subject to fixed escalators, with inflation effects typically flowing through over as much as 18 months.

The company will provide monthly traffic data for the rest of 2026. Those releases should clarify whether West Gate Tunnel traffic continues to build, whether construction-related pressure on the 95 Express Lanes eases, and how much of the Group’s growth is coming from underlying demand rather than newly opened capacity.