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Carretera D.F. - Acapulco

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Alvar Gutierrez

on 23 September 2014

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Transcript of Carretera D.F. - Acapulco

Who owns the highway?
Grupo Mexicano de Desarrollo & Grupo Pinfra: Owners of the concession.
Who receives the revenue?
The owners, GMD & Grupo Pinfra receive it through the billing company I + D México also known as IAVE, which is owned by Carlos Slim
Road trip budget
Bus budget
A bus pays $581 pesos in highway tolls

Bus ticket D.F.- Acapulco: $470 pesos with Estrella de Oro & ADO (second class / most common)
Why do people go from DF to Acapulco?
Most automobiles use the road to visit Acapulco for leisure

Automobile demand for the highway is highly seasonal.
Why do some people travel by bus?
Because they don't own a car

Because it is less of a worry to rely on the bus than in your own car

To save the expenses of the car

Tourists don't know the roads and orientation
Why do some people take their own cars?
Because it is more comfortable and flexible

Because of the schedule commodity

To have independency of movement and timing

To be able to share the gasoline cost with friends or family.
Economic Features: Price Elasticity
Demand from Automobiles:
Estimated elasticity is -0.67 (inelastic)
Automobile demand for toll highways is usually inelastic
Touristic highways tend to be inelastic (vs. commuters)
Longer highways tend to be elastic

Demand from Cargo Trucks:
Estimated elasticity is -0.43 (inelastic) !
Cargo truck demand for highways is usually more elastic than automobile's
Thank you!
C.F. 95: Carretera México-Acapulco
Business Strategy II

For the whole trip (D.F. - Acapulco):

$343 pesos in highway tolls

$424 pesos estimated cost of gasoline in a 4 cylinder car
Brief History
December 1927: First available road from México City to Acapulco for cars.

1952: Highway construction from México City to Cuernavaca.

1989-1993: Construction and inauguration of Federal 95D Highway, otherwise known as Autopista del Sol
Brief History
It was financed by private funds and constructors, with an estimated cost of $1.7 billion pesos.

Saved by the federal government in 1997 but still managed by private investment.
Reference: Tesis, Francisco Chávez Martínez
Source: Secretaría de Comunicaciones y Transportes
Economic Features: Costs & Investment

Marginal cost for pavement wear comes mainly from trucks. (Damage increases exponentially with load).

Fixed Costs on weather damage

Economies of scale:
+ Strong EoS on durability. (thickness)
+ Slight EoS on capacity. (lanes)
- Diseconomies of Scope on producing both jointly
= No EoS on highway production
Source: Chávez Martínez, F., Tesis: Estimación Econométrica de la Demanda por Autopistas Concesionadas en México
Source: Winston, C., Efficient Transportation Infrastructure Policy
The toll highway as a product
The possibility of transporting goods and people from A to B within a certain time.

The highway offers this possibility with security standards. (number of lanes, thickness, cross slope at curves)

Complementary services (emergency services, insurance, repairmen, restaurants) differentiate it from the public road.

Highways offer:
Capacity (number of lanes) for traffic volume
Durability (pavement thickness) for cargo loads
Full transcript