KPMG survey on operating margins of Russian toll roads

KPMG survey on operating margins of Russian toll roads

KPMG presents its survey "Operating margins of toll roads" where the firm’s experts analyze the activities of 43 operators from all over the world and compare their business performance with that of relevant Russian companies.

Sabina Kasparova

Head of PR and Communications

KPMG in the CIS


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  • In Russia, they have selected for analysis 19 first-category toll roads in 7 regions already put into operation or just planned to be constructed, with the total construction costs exceeding RUB1.5 trillion (in 2016 prices).
  • The average margin of Russian toll roads which have been already put into operation is 22% compared to the world’s average of 70%. This is in part due to differences in the cost structure of operators, as well as the early stages of development of such activities in Russia.
  • At the same time, the average costs per transaction (i.e. one passage of a vehicle) in Russia are also above the global benchmarks: USD0.74 versus USD0.43.
According to KPMG experts, the operators’ costs related to the toll collection account for 13–60% of their revenues. Companies using electronic payment systems have the highest margins, however costs related to the processing of non-cash payments are among top 5 costs incurred by the operators.

Another issue most operators are facing is the lack of regulations governing costs related to the use of payment systems. Mostly these are determined by internal divisions (58%) or in some cases by the Board of Directors or executives (37%).

‘Currently, the number of toll roads in operation in Russia is relatively small compared to the rest of the world. On the one hand, it makes it difficult to analyze and compare them, but on the other it prevents Russian companies from repeating mistakes made by their predecessors. The operators all over the world are basically facing the same issues such as weak regulation, high maintenance costs, ineffective monitoring and control over operating expenses. We hope that our survey helps Russian projects become way more effective and efficient,’ says Stepan Svetankov, Partner, Infrastructure and PPP Projects, KPMG in Russia and the CIS.

The survey participants view payment processing expenses (68% or responses), the number of transactions broken down by vehicle categories (68%) and toll payment methods (application of various technologies) (56%) as key drivers impacting the operating expenses. Apart from expenses directly related to toll booths, operators in most cases also include in their expenses costs related to call center maintenance (93% of respondents), processing of photographs and videos (81%), processing of non-cash payments (81%) and utilities (81%).

A major issue for operators is vehicles registered outside their jurisdiction (foreign vehicles, vehicles from other regions or hired ones). Only 13% of the companies surveyed are able to identify the owner of a foreign car, with 85% out of them being unable to enforce penalties for offences.

The full survey Operating margins of toll roads for 2017 is available here (only in Russian). 

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