Traffic forecasting risk study update 2005: through ramp-up and beyond.

Over the past three years the credit rating agency Standard & Poor's has published a series of reports reflecting on the performance of traffic forecasts. The original study concentrated on toll roads however, in 2004, data became available to allow for a comparative analysis of the traffic forecasting performance of toll roads with that from toll-free roads. Standard & Poor's 2005 traffic risk study ('Through Ramp-Up and Beyond') further extends our analysis. Until now, our focus has been on the first year of operations - typically a very sensitive time in terms of the generation of project cash flows robust enough to meet construction-related debt repayment obligations. Our 2005 study looks beyond this first year, at forecasting performance in years 2, 3, 4 etc. Some industry observers have commented that our earlier focus on Year 1 of highway operations may have generated results that failed to represent project performance over the longer term. Our 2005 study addresses this issue head-on, with results that may surprise some readers. For the covering abstract please see ITRD E135207.