Europe

ROADIS operates in two countries in Europe

In Portugal, ROADIS manages 272 km of highways in 2 concessions that connect major cities in the country; linking important tourist areas and facilitating connections between several main roads. In Spain, we manage a 64-km concession on the A-4, a key highway that connects the centre and the south of the country. We are responsible for managing, maintaining and operating this asset.

336

Km of highway managed

10.4021

vehicles per day in 2019

1.5

% Traffic increase

Projects

ROADIS has analysed interesting opportunities with special attention paid to strategic countries such as Portugal, Spain and Greece.

A4: Madrid – Ocaña

The company is responsible for maintaining and operating a stretch of the A-4, one of the main highways in Spain and the main transport artery between the centre and the south of the country. The concession started operating partially in 2010; and was fully operational as of 31 December 2011.

The highway is one of the main transport routes in the country and the Trans-European Transport Network which links Madrid with Castilla-La Mancha and Andalusia.

Autoestradas do Atlántico
A8: Lisboa – Leiria
A15: Caldas de Rainha-Santarem

170 km of road, made up of 2 direct toll highways (A8 and A15); in the most important economic development corridor in Portugal, between Lisbon and Oporto. This concession manages one of the main access routes for drivers who enter the country's capital each day.

The concession contract includes the construction, financing, operation and maintenance of the A8 (Lisbon-Leiria) and the A15(Caldas de Rainha-Santarem). The concession was awarded in 1998. The project was progressively implemented, completing an existing network with new segments built until 2007.

Autoestradas do Litoral Oeste
Nazaré – Fátima y Ourém

102 km of different sections connecting the coast (Nazaré) with Portugal’s interior (Fátima and Ourém). Stretches of highways that connect one of the most important tourist areas in Portugal and facilitate the region’s connections with Portugal’s main north-south routes.

This is our first full year of managing assets in Portugal, which has helped give us a better understanding of the market and highways. ROADIS believes that this strengthens our position for future acquisitions in the country.

The A-4 Madrid-Ocaña motorway has finished its twelfth year of operation. During this year, the concession holder's efforts have focused on maximising asset efficiency and improving health and safety. This was also the first year the asset was associated with Waze to share, gather and process traffic data in real time.

With regards to business development activities, ROADIS has analysed interesting opportunities; with special attention paid to strategic countries such as Portugal, Spain and Greece. All this work will help establish the path to growth in these countries in the next few years, to balance our portfolio between developed and emerging markets.
In 2019, a Connected Citizen Programme partnership agreement was signed with Waze, through which the A-4 Concession Holder shares, accesses and uses data in real time on the road's condition. Considering the information shared by Waze users, the A-4 has been working on a digital platform to improve surveillance.
The European economy declined in 2019 . Foreign demand and industrial production lowered, affecting other economic sectors. However strong results in the employment market helped sustain private consumption and domestic demand.

Few new investments are expected under partnerships between the public and private sectors in the region. Only Greece and Germany have shown significant interest in developing new infrastructure under public-private partnerships. Most of the opportunities for growth are expected to arise in the secondary

Spain has experienced an economic recovery in recent years, with average growth of 2.8% between 2015 and 2018. In 2019, the Spanish National Statistics Institute (INE) reported 2% growth in a context of slower net exports and private consumption.

Despite an increase in real wages, private consumption has grown at the slowest rate since 2014, as households have increased their level of savings.

With regards to public finances, the budget benefited from increased income from income tax and social security contributions. The debt to GDP ratio fell to 96.4% in 2019. Private debt and outstanding credit are still at high levels, but they continued to decline during 2019.

Structural reforms to give autonomous regions greater budgetary and financial stability remain the most important areas for the Government. Other pending reforms include technological innovation to diversify the Spanish economy, promoting better employment conditions, an improved R&D ecosystem and social programs based on the European Pillar of Social Rights.

The unemployment rate in Spain has decreased, but is still very high at 13.9%. Another problem facing the Spanish labour market is the low level of the working population compared to the potential labour force, which indicates that many people abandoned the search for work.

Like other countries, Spain will have to tackle the consequences of the crisis caused by the COVID-19 pandemic in the next few years.
The European economy declined in 2019 . Foreign demand and industrial production lowered, affecting other economic sectors. However strong results in the employment market helped sustain private consumption and domestic demand.

Few new investments are expected under partnerships between the public and private sectors in the region. Only Greece and Germany have shown significant interest in developing new infrastructure under public-private partnerships. Most of the opportunities for growth are expected to arise in the secondary

After achieving its strongest growth of the century in 2017, the Portuguese economy continued to expand, and it is believed that it grew 1.9% of GDP in 2019 (compared to 2.4% in the previous year). Growth was driven mainly by strong domestic demand. Slower growth was already expected prior to the COVID-19 crisis in March 2020.

This recent prosperity has allowed the country to significantly reduce its budget deficit: it stood at -0.1% of GDP in 2019, aided by higher revenues relating to the cycle, lower interest expenditure and fewer public investments than originally budgeted.

The gross public debt to GDP ratio remains one of the highest in the EU. However, the European Commission has praised the Portuguese Government for its efforts to respect European rules while pursuing an ambitious policy to support growth and social justice.

Despite the improvement in the economic situation, the banking system remains fragile due to the high numbers of unpaid loans. Lower prices for energy, public transport and telecommunications reduced inflation, from 1.2% in 2018 to 0.9% in 2019 (during Q3, the country even recorded deflation of -0.3%).

The unemployment rate fell to 6.1% in 2019 (down from 7% the previous year). Services and construction have made the greatest contribution to job creation. Although prospects for 2020 were positive, changes to unemployment and salaries will obviously be affected by the rate of recovery after the COVID-19 crisis
Few new investments are expected under partnerships between the public and private sectors in the region. Only Greece and Germany have shown significant interest in developing new infrastructure under public-private partnerships. Most of the opportunities for growth are expected to arise in the secondary market, characterized by fierce competition for good quality assets.

In Spain, toll highway traffic across the network grew by 3.88%, driven by the growth of GDP and additional traffic from free parallel roads. The entire AADT toll highway recorded 20,712 vehicles/day.

In Portugal, there is no official data for the entire network, but based on the growth of ROADIS's assets and some other major operators, growth was more than xx%.

2019 was characterised by more M&A transactions in the European market in Spain and Portugal. They have been medium or large operations, able to generate strong market interest, which has resulted in downward pressure on expected returns.

In relation to the primary market, in Spain, during 2019 and due to political instability, there has been stagnation in road investment and, in particular, in the Road Investment Plan (PIC). There has also been no significant primary activity in Portugal.

With regards to the rest of Europe, Greece is currently one of the most active primary markets, with projects such as Egnatia and the country's first two availability payment roads, the Peloponnese PPP and the Crete highway PPP. Other countries active in the primary market during 2019 were: Germany, with the launch of three new projects during 2019; and the Netherlands with the financial closure of the A9 APP and the ViA15 (A15/A12) APP.

How does ROADIS create value in the communities?

For another year, the A-4 concession holder has been working together with local communities on actions to improve mobility in urban centres along the A-4, performing actions in coordination with the Guardia Civil or various local police forces.

Several road safety training actions have been promoted in Portugal with local fire departments. In addition, the maintenance of our assets, including the conservation of vegetation, contributes to the creation of sustainable surroundings that respect the environment.

Know our CR projects

Recognition

received by the SBU

AEA

EN 9001:2015

A-4 Madrid-Ocaña

UNE-EN ISO 14001:2015

A-4 Madrid-Ocaña

UNE-ISO 39001:2013

A-4 Madrid-Ocaña

UNE-EN ISO 9001:2015

A-4 Madrid-Ocaña

OHSAS 18001:2007

Associations

to which the SBU belongs

SEOPAN Asociación de Empresas Constructoras y Concesionarias de Infraestructuras

CEOE Confederación Española de Organizaciones Empresariales

ASECAP

Europe

ROADIS operates in two countries in Europe

336

10.4021

1.5

Projects

How does ROADIS create value in the communities?

See another ROADIS Projects

Brazil

Brazil

India

India

Mexico

Mexico

Europe

Europe

USA

USA

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Annual Reports

Directors' Report