BCS - BrisConnections Unit Trusts

[GreatPig]

Re: Brisconnections shareholders - financial ruin

You obviously don't like my suggestion

It's not that I don't like it, just that I don't think it would be terribly effective. Unless the person actually has to sit a knowledge test and get a certain percentage correct, similar to a written driving test, I think most will just do what they do with licence agreements: yeah, yeah, blah, blah - tick.

I remember when I first signed up with HSBC (who later shuffled us off to Etrade), there was so much paperwork to fill in with regard to personal details, 100 point identity check, interbank transfer authorisation, etc, etc that the "tick this box if you've read the warrants booklet" was the easy bit - took all of two seconds!

I did in fact read it later, along with a lot of other info on warrants, but that's not to say everyone would.

GP

 

[sails]

Re: Brisconnections shareholders - financial ruin

It's not that I don't like it, just that I don't think it would be terribly effective. Unless the person actually has to sit a knowledge test and get a certain percentage correct, similar to a written driving test, I think most will just do what they do with licence agreements: yeah, yeah, blah, blah - tick.

I remember when I first signed up with HSBC (who later shuffled us off to Etrade), there was so much paperwork to fill in with regard to personal details, 100 point identity check, interbank transfer authorisation, etc, etc that the "tick this box if you've read the warrants booklet" was the easy bit - took all of two seconds!

I did in fact read it later, along with a lot of other info on warrants, but that's not to say everyone would.

GP

Fair enough, GP However, from my own experience, when signing that you have actually read a required booklet prior to gaining trading permissions reinforces that you are totally responsible for the inherent risks of trading those derivatives, or in this case, instalment shares.

With the potential horrendous levels of debt vs. investment in the likes of bcsca, it seems reasonable to have another safety net in place. If people sign without gaining the basic education, then they really only have themselves to blame if/when things go wrong, IMO.

 

[Jam]

Re: Brisconnections shareholders - financial ruin

I've just come into this whole debate and I'm confused as to why anyone would want to buy these shares NOW? apparently there is someone out there who is willing to? what possible motive could they have?

 

[Julia]

Re: Brisconnections shareholders - financial ruin

I've just come into this whole debate and I'm confused as to why anyone would want to buy these shares NOW? apparently there is someone out there who is willing to? what possible motive could they have?

Presumably the same reason offered by the original purchasers, i.e. they fail to see the $2 still to pay and consider they are snaffling a bargain.

 

[Sunder]

Re: Brisconnections shareholders - financial ruin

I'd be keen to see which brokers are being used to transact these sales. If one broker is disproportionately represented, it would say something about the effectiveness of disclosure or otherwise.

 

[Shine]

Re: Brisconnections shareholders - financial ruin

There would be a few hundred of us. Check your private messages then email me if you want to join in.

Any more news? I'm another of the scared people involved. There seems to be a few of us.

 

[bigdog]

Re: Brisconnections shareholders - financial ruin

TWO ASX Feb 3 2009 ANN
03/02/2009 Half Yearly Report and Accounts

03/02/2009 Financial Results Release
http://media.wotnews.com.au/asxann/00924366.pdf
3 February 2009

BrisConnections announces financial results for the period ended 31 December 2008 and confirms project construction is on‐time and on‐budget BrisConnections (ASX: BCSCA) today announced financial results for the seven‐month period from 29 May to 31 December 2008.

This is BrisConnections’ first financial results announcement following its listing on the Australian Securities Exchange on 31 July 2008. The financial results were as expected and reflect the progress BrisConnections has made in constructing the Airport Link toll road in Brisbane, which officially commenced on 6 November 2008.

BrisConnections Chairman Mr Trevor Rowe AM said the project is proceeding to plan and excellent progress had been made in the design and construction of the largest road infrastructure project in Australian history.

“It is pleasing to see such a great start to this exciting and essential project. Construction is well underway: more than 1000 people are now working on the project and all four sites are well established. We are moving at a rapid rate physically with major tunnelling equipment arriving and site clearances underway.

“When completed Airport Link will provide a compelling solution to serious traffic issues in the Brisbane metropolitan area. It will be the longest road tunnel in Australia of more than 5.7 kilometres, with the total project extending over 8 kilometres including the Airport Roundabout Upgrade. Airport Link will reduce travel times by up to 50% and avoid up to 18 sets of traffic lights.

“BrisConnections is fully funded and we are well positioned to continue delivering on the construction phase of the project. We have syndicated debt facilities in place, which we began drawing on recently. Also the two remaining instalments are fully underwritten by Macquarie Capital Advisers and Deutsche BanK.

“While we are naturally disappointed with our security price performance in the current market, I firmly believe Airport Link is a high quality infrastructure project that will deliver significant benefits to the community and the Queensland economy once completed. The success of this project, I believe, will provide significant value and future returns to our security holders,” Mr Rowe said.

For the financial period, BrisConnections incurred approximately $690 million associated with project funding, design and development, acquisition of plant and equipment, and initial construction costs. This is in line with its budget. Once Airport Link is complete, total project costs are expected to be approximately $4.8 billion.

In accordance with its accounting policies, BrisConnections has capitalised as future tolling rights approximately $445 million associated with the design and construction phase of the project.

Since listing on the ASX, BrisConnections has achieved a number of important project milestones including establishment of a highly experienced management team and project workforce; the signing of a $90 million contract to acquire two tunnel boring machines; commencement of construction in November 2008; and the drawing down of the fully committed finance facilities to fund the project. In addition, the first two roadheaders are ready to commence operations shortly with another three starting over the next 4 months and a further six over the balance of the project.

“We are preparing for busy times ahead and are confident that Airport Link, Northern Busway (Windsor to Kedron) and the Airport Roundabout Upgrades will be completed and operational on‐time and on‐budget, in accordance with construction contract timetable of June 2012” Mr Rowe said.

Second Instalment – updated timetable

BrisConnections confirms the second instalment of $1.00 on BrisConnections partly paid stapled units is due on Wednesday 29 April 2009. A Call Notice, setting out the total amount payable and details of how that amount should be paid, is expected to be despatched to unitholders on or around Monday 2 March 2009.

 

[bigdog]

Re: Brisconnections shareholders - financial ruin

03/02/2009 Financial Results Release
http://media.wotnews.com.au/asxann/00924366.pdf

Relevant dates relating to the payment of the final instalment are:
Mail Call Notice to Unitholders Monday 2 March 2009

Last day of partly paid trading Wednesday 15 April 2009

Commencement of call paid trading on a deferred settlement basis Thursday 16 April 2009

Last day for settlement of partly paid “call unpaid” trades Monday 20 April 2009

Last day for accepting transfers without call money attached Wednesday 22 April 2009

Call payment due date for second instalment Wednesday 29 April 2009

Despatch date, last day to enter instalment paid securities into the register Wednesday 6 May 2009

Normal T+3 settlement trading on ASX Thursday 7 May 2009

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

TWO ASX Feb 3 2009 ANN
03/02/2009 Half Yearly Report and Accounts

03/02/2009 Financial Results Release
http://media.wotnews.com.au/asxann/00924366.pdf
3 February 2009

BrisConnections Chairman Mr Trevor Rowe AM said the project is proceeding to plan and excellent progress had been made in the design and construction of the largest road infrastructure project in Australian history.

It will be the longest road tunnel in Australia of more than 5.7 kilometres, with the total project extending over 8 kilometres including the Airport Roundabout Upgrade.

So, a road of total length of 8 kilometres is "the largest road infrastructure project in Australian history". Could have fooled me. What about the other 800,000 odd kilometres of roads built in Australia, they obviously dont rate a mention.

"Total project costs are expected to be approximately $4.8 billion".
$4.8 billion / 8 kilometres = $600 million per kilometre, or $600,000 per lineal metre.

Thank God that Macquarie Group were not responsible for building all the roads in Australia, otherwise we would still have dirt tracks.

 

[JimBob]

Re: Brisconnections shareholders - financial ruin

Maybe when he says largest, what he means is most expensive. $4.8billion must be right up there.

 

[Absolutely]

Re: Brisconnections shareholders - financial ruin

So, a road of total length of 8 kilometres is "the largest road infrastructure project in Australian history". Could have fooled me. What about the other 800,000 odd kilometres of roads built in Australia, they obviously dont rate a mention.

"Total project costs are expected to be approximately $4.8 billion".
$4.8 billion / 8 kilometres = $600 million per kilometre, or $600,000 per lineal metre.

Thank God that Macquarie Group were not responsible for building all the roads in Australia, otherwise we would still have dirt tracks.

I'm close to the project through my own work. It's a big job. A lot of the road is going to be tunnels - that makes it very expensive.

Without a doubt it is one of the largest infrastructure projects in the country right now. And Brisbane has got some other big ones underway such at Gateway Bridge duplication.

The project is going forward. From where I sit there is no qestion that things are now ramping up to full construction. Eventually these shares are going to be worth something.

 

[Prospector]

Re: Brisconnections shareholders - financial ruin

Eventually these shares are going to be worth something.

Small comfort to those who might be declared bankrupt in April because they cant meet the first instalment!

 

[tigerboi]

Re:$4.8B FOR 8KM TUNNEL?MASSIVE BACKHANDERS TO?

Is someone taking the piss?or is it true that the tunnel in brisbane is worth $4.8b for 8kms?

As a professional heavy vehicle operator that has driven on every highway & tunnel between sydney-brisbane-melbourne-adelaide i can say without hesitation that there must be some massive backhanders going on.

harbour tunnel(yes shorter) cost about $550m in 1992

m5 east 10 kms cost $794m in 2001

no way this is worth $4.8b(6 times the M5 EAST...please)

plus brisbane tipper drivers are on crap money...TB


http://www.jameshardiefrcpipes.com.au/solutions/infrastructure_projects/project_info

http://www.ats.org.au/index.php?option=com_content&task=view&id=356&Itemid=8(5KM SPIT TUNNEL ONLY WORTH $1B)

 

[Macquack]

Re: $4.8B FOR 8KM TUNNEL?MASSIVE BACKHANDERS TO?

i can say without hesitation that there must be some massive backhanders going on.

An example of one backhander as posted by Enzyme#774

TWO influential Labor figures shared a "success fee" after their consulting effort helped a consortium win the Government Airport link contract.

Former politicians Terry Mackenroth and Con Sciacca pocketed a huge windfall, believed to be about $500,000, after the BrisConnections consortium won the tunnel tender.

Ironically, this single backhander is now worth more than the whole company.

 

[tigerboi]

Re:THEY WILL GO BANKRUPT LIKE THE SYDNEY TUNNEL

I visited their website after my post to have a decent look at the project,so i believe the tunnel itself is 6.7 kms long with another 1.3km link to make it 8kms.

When i run a few quick numbers on this I CANNOT SEE HOW THEY WONT GO BANKRUPT!

gross cost is $4.8b(so far),they intend to charge $4.85 to use the road.

so correct me someone if im wrong,on the gross re:without wages etc of the operators.this mob will need 1b vehicles to break even?

Does anyone know what the vehicle projections were?

I still cannot get over the cost of this as there is no way people in brisbane will pay $4.85 atm(that will be $6.00 when it opens)

so my first thoughts about massive backhanders was correct.

has work started on it yet? i only usually run into rocklea,archerfield freight areas so havent seen that area,i was over at tingalpa before xmas & got to see the work on the gateway close up, sheesh worse than peak hour m5/m4.

tried but cant find projected numbers on traffic...tb

 

[drsmith]

Re: THEY WILL GO BANKRUPT LIKE THE SYDNEY TUNNEL

I have not studied the financials of this project in detail but make the following general comments.

If the project was financed on the basis of generating a 5% annual income return (for example's sake) on the capital investment (ignoring operating and maintainance costs) then ~50m vehicles per year (~134000 vehicles per day) are required with a toll of $4.85.

Whether or not it goes broke will depend somewhat on the level of any debt financing and hence whether the tolls will cover costs + loan interest.

 

[Sunder]

Re: THEY WILL GO BANKRUPT LIKE THE SYDNEY TUNNEL

so correct me someone if im wrong,on the gross re:without wages etc of the operators.this mob will need 1b vehicles to break even?

Does anyone know what the vehicle projections were?

I recall the Sydney Harbour Bridge (excluding Tunnel) was about 300,000 cars a day.

5 days a week = 1.5 million cars

52 weeks a year = 78 million cars.

10 years = 780 million cars.

Not far from your 1b figure.

That doesn't even count the weekends, which although nothing like 300,000 a day, would add something. I have no idea how long they have the tolling rights for, but 20 years, and they stand to make a nice tidy profit.

 

[Nervous]

Re: Brisconnections shareholders - financial ruin

Any more news? I'm another of the scared people involved. There seems to be a few of us.

Shine, I too am another scared investor. I am unsure how to proceed other than getting my own legal advice, which does not appear to look promising.

Any suggestions or others in the same boat? If you don't want to post anything, PM me instead.

 

[alphaman]

Re: THEY WILL GO BANKRUPT LIKE THE SYDNEY TUNNEL

I recall the Sydney Harbour Bridge (excluding Tunnel) was about 300,000 cars a day.

I would imagine Sydney has far greater traffic than Brisbane.

 

[JimBob]

Re: Brisconnections shareholders - financial ruin

The Gateway Bridge in Brisbane gets a bit over 100,000 vehicles per day on average (from Gateway Upgrade Project website),growing at about 6-7% per year (for a comparison). Im not sure how many would be going to the airport, but a lot less than 100,000.