Cebu’s first toll road seeks expansion

Cebu’s first toll road seeks expansion | Daily Tribune

The Cebu-Cordova Link Expressway (CCLEX), Cebu’s first toll road, is looking to expand its reach.

Metro Pacific Tollways Corp. (MPTC), the operator of CCLEX, is seeking strategic investors to help fund the project’s growth. This move comes as CCLEX struggles to meet its projected traffic volume, prompting a reevaluation of its initial strategy.

MPTC president and CEO Rogelio L. Singson acknowledges the current slump in CCLEX traffic.

The expressway, which was anticipated to handle around 65,000 vehicles daily, currently sees only around 17,000. To address this shortfall and ensure the project’s long-term viability, MPTC is looking to raise at least P7 billion through strategic partnerships.

“We are doing it in earnest. We are doing everything to make it viable,” Singson said in a recent interview. “We are looking for a strategic investor that whatever they put in will all go to project expansion. We are in talks with a foreign company.”

The potential expansion plans include extending the expressway on both sides, reaching Bacalso in Mactan Island and Lapu-Lapu City. MPTC is currently in talks with local government officials to iron out the specifics of these proposed extensions.

Expansion sans toll hikes

One of the key assurances from MPTC is that the planned expansion will not lead to toll increases for CCLEX users. Singson emphasized that any investments from strategic partners will be solely directed towards expansion, and toll rates will remain unaffected.

This commitment aims to address potential concerns from motorists who might be hesitant to utilize the expressway due to perceived high costs. By maintaining current toll rates while expanding the service area, MPTC hopes to attract more users and improve CCLEX’s overall financial performance.

Opened in 2022, CCLEX serves as a vital link between Cebu City on mainland Cebu and Mactan Island, aiming to decongest existing bridges and provide a faster travel option. However, the initial ridership projections appear to have been overly optimistic.

Road ahead

Several factors could be contributing to the lower-than-expected traffic volume. The economic impact of the pandemic might have deterred some motorists from using toll roads. Additionally, alternative routes, though potentially congested, might offer a more cost-effective option for shorter trips.

MPTC’s decision to seek investor partnerships highlights the current challenges faced by CCLEX. However, it also signifies a proactive approach to navigate these hurdles and ensure the project’s long-term success.

The expansion plans, if materialized, could significantly benefit Cebu’s infrastructure landscape. Improved connectivity between Cebu City, Mactan Island, and Lapu-Lapu City could stimulate economic activity in these areas. Businesses and residents alike could stand to gain from faster travel times and reduced congestion on existing routes.

Risks, opportunities

The success of MPTC’s investor partnership strategy hinges on attracting the right partners who share a vision for CCLEX’s role in Cebu’s development. The chosen investor’s expertise and experience in the infrastructure sector will be crucial in navigating the complexities of the expansion project.

Furthermore, a comprehensive study on CCLEX’s current ridership patterns and user demographics would be beneficial. Understanding why motorists are not utilizing the expressway to its full capacity can help MPTC refine its marketing strategy and identify opportunities to attract new users.

Catalyst for Cebu’s growth

Despite the challenges, CCLEX remains a significant infrastructure project for Cebu. MPTC’s commitment to expansion through strategic partnerships demonstrates a long-term vision for the project’s role in the region’s economic development.