The Transurban Group (ASX: TCL) share price is defying the market weakness and edging higher today.
In afternoon trade the toll road operator's shares are up slightly to $12.65.
This compares to a disappointing 1.1% decline by the S&P/ASX 200 Index (ASX: XJO).
Why is the Transurban share price trading higher?
Investors have been buying Transurban shares today following the release of announcement in relation to its US operations.
According to the release, Accelerate Maryland Partners (AM Partners), led by Transurban and Macquarie Group Ltd (ASX: MQG), has been selected as the developer to deliver the American Legion Bridge I-270 to I-70 Relief Plan in the Greater Washington Area.
Transurban holds 60% of AM Partners, with the remaining 40% held by Macquarie.
The release explains that with exclusive rights of negotiation, the selection of AM Partners represents the first step in the predevelopment process to establish a project plan and concession agreement in partnership with the Maryland Department of Transportation State Highway Administration, its stakeholders, and communities.
A final concession agreement and financial close is expected in late 2022. This agreement is pending approvals by the Maryland Transportation Authority Board and the Maryland Board of Public, which are expected by the end of FY 2021.
What is the plan?
The American Legion Bridge I-270 to I-70 Relief Plan is expected to deliver High Occupancy Toll (HOT) lanes to approximately 60 kilometres of highway connecting Northern Virginia with key business and residential centres in Maryland. These HOT lanes will be similar to Transurban's Virginia Express Lanes.
The Plan involves express lanes to be added from the George Washington Memorial Parkway in Virginia, across and including the American Legion Bridge, and on the I-270 to the I-70 in Maryland.
The American Legion Bridge I-270 to I-70 Relief Plan is expected to cost US$3 billion to US$4 billion. Whereas the overall Maryland Express Lanes project is expected to cost over US$9 billion.
"Delighted"
Transurban's Chief Executive Officer, Scott Charlton, said: "We are delighted that Accelerate Maryland Partners has been selected as the developer of this project following a highly competitive process. Expansion into Maryland has been our ambition for some time given the strong regional demographics and large number of motorists who are travelling between Virginia and Maryland. We are ready to begin to develop a project that delivers value for Maryland, its communities and motorists."
"Our business has commenced its next phase of growth in North America with three projects in delivery or development in Virginia, this our first project in Maryland, and the recent introduction of strategically aligned partners which are committed to growing alongside Transurban in the region," he commented.
Mr Charlton added: "In parallel, we are exploring asset enhancement opportunities across the Greater Washington Area assets, with additional expansion opportunities and potential for third-party asset divestments."
