China Infrastructure Investment Corp now trading on NASDAQ
By Peter Samuel
China Infrastructure Investment Corporation one of hundreds of investor-owned toll road companies in China is different in that it is now traded on the NASDAQ in New York (trading symbol CIIC). Incorporated in Nevada, it is headquartered in Henan province in China.
The company operates the Pinglin Expressway, a 106km (66 mile) four-lane toll road in the central province of Henan. It helps connect the northwest to the southeast coastal region of China. The tollroad opened in the first half of 2006 and is a component of the larger Luoyang-Nanjing expressway.
The expressway has six toll plazas.
Traffic is now running at the very modest figure of about 17k veh/day - about the volume of one of the smaller rural tollroads in Oklahoma. But it is growing by 40% or so a year which if sustained for 5 or 6 years will give it a respectable volume of traffic by US standards.
CIIC is actively pursuing acquisitions and hopes the US listing will enable it to raise capital and improve its standing with global investors generally.
Hong Kong is the most common listing exchange for Chinese tollroad companies.
Investor concessions generate highway program that dwarfs US xyzTEA tax funding
China has an enormous highway building program - soon to out run the US interstate system in mileage - financed almost entirely by investors in toll concessions.
In recent years more than 8,000km (5,000 miles) of new tollroad has been built each year - approximately the accumulated length of US tollroads in 70 years of toll financing and bigger than the annual construction of the US interstate system at its peak.
Of course they don't have any 14 lane four roadway tollroads like the NJ Turnpike or Garden State Parkway - not yet anyway.