Cintra
Encyclopedia
Cintra, S.A. is one of the largest private developers of transport infrastructure in the world. Its assets are fundamentally toll road
s and car parks, in which it has a total investment of €16billion. Formerly traded on the Madrid Stock Exchange
and part of the Spanish benchmark IBEX 35
stock index, Cintra was reacquired by its former owner Ferrovial
in December 2009.
Toll road
A toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
s and car parks, in which it has a total investment of €16billion. Formerly traded on the Madrid Stock Exchange
Bolsa de Madrid
Bolsa de Madrid is the largest and most international of Spain's four regional stock exchanges that trade shares and convertible bonds and fixed income securities, and both government and private-sector debt...
and part of the Spanish benchmark IBEX 35
IBEX 35
The IBEX 35 is the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange. Initiated in 1992, the index is administered and calculated by Sociedad de Bolsas, a subsidiary of Bolsas y Mercados Españoles , the company which runs Spain's securities markets...
stock index, Cintra was reacquired by its former owner Ferrovial
Ferrovial
Ferrovial, S.A. is a Spanish multinational company involved in the design, build, financing, operation and maintenance of transport, urban and services infrastructure. It is a publicly-traded company and is part of the IBEX 35 market value-weighted stock market index...
in December 2009.
Introduction
- The Company was founded in 1998 as a spin offSpin outA spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business....
from Ferrovial Group with the objective of focusing on FerrovialFerrovialFerrovial, S.A. is a Spanish multinational company involved in the design, build, financing, operation and maintenance of transport, urban and services infrastructure. It is a publicly-traded company and is part of the IBEX 35 market value-weighted stock market index...
's infrastructure development business. Initially FerrovialFerrovialFerrovial, S.A. is a Spanish multinational company involved in the design, build, financing, operation and maintenance of transport, urban and services infrastructure. It is a publicly-traded company and is part of the IBEX 35 market value-weighted stock market index...
's toll road assets were transferred to the new company and, subsequently, its car park assets were also transferred. A controlling stake continued to be owned by Ferrovial, which maintained a 66.88% shareholding. Cintra was reacquired in full by Ferrovial in December 2009. The deal was structured as a reverse takeoverReverse takeoverA reverse takeover or reverse merger is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public...
(despite both companies being publicly traded), resulting in Ferrovial taking Cintra's stock market listing and ISIN code.
- Operating in CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, ChileChileChile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, GreeceGreeceGreece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, IrelandIrelandIreland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, PortugalPortugalPortugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and the USA, the company currently operates 23 highways (set to rise to 25: see 'recent developments' below) totaling 2,841 km. Its asset portfolio includes 3 North American highway concessions: majority stakes in the 407 Express Toll Route (407 ETR) in Ontario, the Chicago SkywayChicago SkywayThe Chicago Skyway, also known as Chicago Skyway Toll Bridge System, is a toll road in Chicago, Illinois, United States, carrying Interstate 90 from the Indiana Toll Road to the Dan Ryan Expressway on Chicago's South Side leading into the Chicago Loop....
, the Indiana Toll RoadIndiana Toll RoadThe Indiana Toll Road, officially the Indiana East–West Toll Road, is a toll road that runs for east–west across northern Indiana from the Illinois state line to the Ohio state line...
; as well as various highways on the Spanish peninsulaSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, such as Madrid’s M45, the Autema, Ausol 1 & II highways, and the Radial 4.
- In 2005, Cintra was named strategic partner of the State of Texas for the subsequent 50 years, in order to help develop the Trans-Texas CorridorTrans-Texas CorridorThe Trans-Texas Corridor was a transportation network that was discontinued in the planning and early construction stages in the U.S. State of Texas. The network, as originally envisioned, would have been composed of a network of supercorridors up to wide to carry parallel links of tollways,...
. It was to be operated in a partnership with San Antonio, TexasSan Antonio, TexasSan Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
based Zachry Construction Company. Widely seen as one of the most ambitious infrastructure projects in the USA, the project was eliminated as the scope and invasive nature of the project was exposed. Cintra continues working with the local administration to deliver infrastructure.
Business model
- The nature of Cintra’s business has been to create value through effective management of its infrastructure assets. These assets, especially its toll roadToll roadA toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
concessions, typically require a large initial investment, yet then generate stable incomes over long periods of time. The weighted average lifespan of its infrastructure assets is reported to be close to 75 years.
- Cintra derives around 70% of its revenues from its business activities outside of Spain. Canada, which reported €354m or 33% of Cintra’s total revenues in the first three quarters of 2008, is the country which contributes most in this regard.
- Cintra's Car Parks business currently manages over 300,000 parking spaces in close to 140 cities in Spain and Andorra. It is the largest Spanish company, according to the number of spaces under management, and offers a varied and complete range of management services, including: underground parking, parking on public roads, residential parking and vehicle removal.
Recent developments
- In Jan 2009, Cintra was awarded two new significant projects: the A1 in Poland, and two segments of the regional corridor ‘North Tarrant Express’ located in the Dallas / Fort Worth area of Texas:
- - The former concession was commissioned by the Polish infrastructure ministry to build, finance and operate three sections of the 180km A1 toll road between Strykow and Pyrzowice. It will require a total investment of approx. €2.1bn
- - The latter concession, in which Cintra owns 75% of the winning consortium company (the other 25% is held by Meridium), is for 52 years and will measure 21.4km. Assuming financing and other pending requirements are fulfilled as planned, the company’s total number of highways will increase to 25.
- The company has recently expressed an interest in possible divestments of both its Car park and Chilean toll road businesses.
- Cintra is a sponsor of the M3 Motorway being built in Ireland, through the Hill of TaraHill of TaraThe Hill of Tara , located near the River Boyne, is an archaeological complex that runs between Navan and Dunshaughlin in County Meath, Leinster, Ireland...
archaeological complex. The Irish Justice ruled in 2007 in favor of the project, which is supported by the Irish Green Party and local communities, citing a substantial boost to trade and communications.
Cintra's toll roads
- Europistas - Europistas
- Ausol - Ausol
- Autema - Autema
- Autopista M-45 - Autopista M-45
- Autopista R-4
- Autopista Madrid-LevanteAutopista AP-36The Autopista AP-36 is a highway in Spain south of Madrid.It connects the N-400, Autovía A-4 and Autovía R-4 at Ocaña to the Autovía A-31 at La Roda. It follows the route of the N-301. There are junctions with the N-420 and N-310. The AP-36 was opened in July 2006.- External links:*...
- Autopista M-203 but this one is closed because problems with the government of MadridMadridMadrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
State - Eurolink M4
- 407 ETR
- Euroscut Algarve
- Euroscut Norte Litoral
- Chicago SkywayChicago SkywayThe Chicago Skyway, also known as Chicago Skyway Toll Bridge System, is a toll road in Chicago, Illinois, United States, carrying Interstate 90 from the Indiana Toll Road to the Dan Ryan Expressway on Chicago's South Side leading into the Chicago Loop....
- Indiana East-West Toll RoadIndiana Toll RoadThe Indiana Toll Road, officially the Indiana East–West Toll Road, is a toll road that runs for east–west across northern Indiana from the Illinois state line to the Ohio state line...
- Texas State Highway 130 Segments 5 & 6 only (joint venture with Zachry American Infrastructure)