Changes to Citylink Toll Charges
Earlier this year the Andrews Government announced a dramatic increase in commercial toll road charges, raising revenue to contribute to the $1.28 billion Citylink Tullamarine Freeway Widening Project.
The move was widely condemned by commercial transport operators.
These changes came into effect on Saturday, April 1 2017.
For commercial vehicles during daytime travel (when over 90% of M&S Transport vehicles run):
- The charge for individual toll points increased from 1.9 times the cost of a car toll to 3 times the cost of a car toll,
- The charge for the per trip cap increased from 1.33 times the cost of a car trip to 3 times the cost of a car trip.
These are very significant toll increases which will have a massive net impact on the bottom line of M&S. In real terms, this projected cost blowout of several hundred thousand dollars is a cost increase we simply cannot absorb.
As such, we are reluctantly forced to pass on these costs. Effective from April 1, 2017, M&S Transport will amend its toll charges to clients to reflect the higher charges.
If you do not currently pay a per toll charge, you will notice a new toll surcharge appearing on your account. If you already pay the toll surcharge, the amount will increase. You will also notice all basic charges will rise marginally to offset increased administration costs.
Since the Andrews Government announcement, M&S has trialled a myriad of alternative options, all designed to cut costs and reduce our reliance upon the toll roads. Unfortunately, all of our trials resulted in increased travel times, unpredictable delivery schedules and poor customer outcomes.
We will continue to research, review and refine our transport offerings to keep costs down. We will continue to invest in best-of-breed systems to drive efficiency. And of course, wherever possible, when we identify opportunities to provide our customers with cheaper or more efficient transport options, we will pass these savings on.