Despite a reduction in traffic volume leading to decreased revenues, Directroute, the operators of the Rathcormac-Fermoy bypass managed to record a modest increase in its pre-tax profits for last year, putting it over the €1M mark.

Their pre-tax profits increased from €964,909 to €1.04M in the 12 months to the end of December 2012. Revenue was down by 2%, from €15.8M to €15.5M, according to figures filed recently with the Companies Office. Reduced NRA operational payments along with a drop in traffic was blamed, as well as charges of €6M paid on the company’s loans of €85.5.

The company’s operating profits meanwhile dropped from €7.2M to €6.8M. Non-cash depreciation costs of €7M were factored into the profit recorded.

Directroute is owned by Irish companies Sisk, Lagan and Roadbridge, overseas partners, the Bank of Scotland and the First Irish Infrastructure Fund, owned by the AIB and European Investment Bank. It will hold the contract to operate the Rathcormac-Fermoy bypass for another 21 years before it will be handed over to the NRA.

Meanwhile the Minister for Transport, Leo Varadkar has proposed a one-month toll ‘holiday’ for the month of November for heavy goods vehicles. The State will cover the estimated €3M shortfall in revenue. The action has been brought about by concern over low traffic levels on some tolled motorways and concern about heavy goods vehicles driving through towns and villages in order to avoid paying tolls. The NRA has written to all public-private partnership toll road operators, of which the Rathcormac-Fermoy bypass is one, informing them of the proposal and seeking their agreement.