Fuel Shortage a Risk to Near-Term Earnings, but Transurban's Long-Term Outlook Is Solid

Transurban is a major toll road investor with concessions to operate motorways in Australia and North America. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.