Steer played a central advisory role in John Laing Group’s acquisition of American Roads, a four-asset US toll platform including the Detroit–Windsor Tunnel and three Alabama toll bridges.
Our integrated Traffic & Revenue, Technical and Environmental, Social and Governance Due Diligence advisory helped John Laing make evidence-based investment decisions across assets with diverse traffic patterns, market contexts, macroeconomic exposure, operations and maintenance requirements, technology risks, and ESG risks. This engagement highlights Steer’s ability to combine rigorous technical analysis with transaction-focused insight, enabling investors to quantify revenue potential, assess risk, and evaluate competitive positioning across complex infrastructure platforms.
Traffic & Revenue Advisory
Steer provided comprehensive Traffic & Revenue advisory services across the portfolio, delivering insights that informed the investment case and supported risk-calibrated decision-making. Key areas of work included:
- Econometric demand modelling – Developed and refined models for each asset, incorporating toll sensitivity, income trends, exchange rate exposure, structural travel shifts, and event-based shocks.
- Cross-border and local market analysis – Assessed U.S.–Canada travel patterns for the Detroit–Windsor Tunnel and evaluated commuter and freight behaviour for the Alabama bridges.
- Revenue and elasticity testing – Evaluated toll elasticities to understand user response and assessed long-term revenue resilience under alternative pricing scenarios.
- Travel time and competitive positioning – Measured real-world congestion, speed, and reliability differences versus competing free routes, including peak vs. off-peak dynamics and diversion impacts.
- Scenario-based forecasting – Integrated macroeconomic, demographic, and asset-specific drivers to estimate future growth trajectories under alternative scenarios.
This analysis provided John Laing with actionable insights into demand dynamics, revenue potential, and the competitive positioning of each asset.
Technical Due Diligence Advisory
Steer provided comprehensive Technical Due Diligence advisory services across the portfolio, delivering a robust, investment‑grade assessment of technical, operational, lifecycle, and technology risks, supporting informed valuation, deal structuring, and long‑term asset stewardship.
Steer delivered full‑spectrum Technical and ESG Due Diligence, integrating engineering, operations, tolling systems, IT, lifecycle costing, and organizational review. The work was structured to identify material risks with potential commercial impact, assess their likelihood and severity, and define clear mitigation strategies aligned with the Buyer’s investment horizon and value‑creation objectives.
Key areas of work included:
- Asset Condition and Engineering Due Diligence:
- Reviewed detailed inspection and asset condition reports across all assets, covering pavements, structures, buildings, and mechanical & electrical (M&E) systems.
- Undertook site visits and management meetings, including a Coarse Visual Inspection of the Detroit–Windsor Tunnel and associated facilities, to validate reported conditions against on‑site observations.
- Assessed the structural integrity and remaining life of critical tunnel components, including tunnel ceilings, ventilation ducts, and ancillary structures, identifying areas requiring enhanced intervention or contingency planning.
- Operations & Maintenance Review
- Evaluated existing O&M strategies, organizational structures, staffing levels, and reliance on in‑house versus outsourced capabilities.
- Assessed the adequacy of current and future staffing models, including planned workforce optimization following the introduction of cashless tolling and the expiration of the Detroit–Windsor Tunnel concession.
- Benchmarked O&M practices and costs against comparable U.S. and international assets, adjusting for asset complexity and scale.
- Tolling, ITS, and Technology Due Diligence
- Conducted an in‑depth review of electronic tolling systems, back‑office platforms, customer apps, and IT infrastructure, with particular focus on the Detroit–Windsor Tunnel’s proprietary tolling environment.
- Assessed system age, maintainability, cybersecurity posture, and upgrade pathways, including risks associated with legacy platforms and reliance on in‑house software development teams.
- Reviewed interoperability, customer experience, and revenue protection, identifying opportunities to enhance system resilience and operational efficiency.
- Lifecycle, CAPEX, and OPEX Assessment
- Reviewed historic and forecast OPEX and CAPEX, reconciling Vendor financial models with asset condition, lifecycle plans, and industry benchmarks.
- Developed an independent Steer‑adjusted lifecycle forecast, identifying underprovided areas and quantifying additional allowances required to sustain asset performance through the end of concession and beyond.
- Provided a transparent reconciliation between Vendor and Steer forecasts, enabling the Buyer to clearly understand value drivers, downside risks, and funding requirements.
- Risk Identification and Mitigation
- Produced a structured risk matrix, categorizing technical, operational, and systems risks using a Green–Amber–Red framework aligned with transaction best practice.
- Defined practical mitigation measures for high and medium risks, including targeted CAPEX, organizational strengthening, technology upgrades, and enhanced asset management practices.
- Highlighted strategic transition risks, including concession expiry, system handover requirements, and knowledge retention for proprietary platforms.
Through this engagement, Steer provided the Buyer with:
- A clear view of asset condition and lifecycle liabilities, supporting price confirmation and investment planning.
- Enhanced confidence in future OPEX and CAPEX assumptions, reducing downside risk and improving long‑term financial resilience.
- Early identification of technology and systems risks, enabling proactive mitigation and future‑proofing of tolling and IT platforms.
- Actionable insights into operational optimization and organizational resilience, supporting post‑acquisition integration and value creation.
This assignment demonstrates Steer’s capability to act as a trusted Technical Due Diligence Advisor on complex transport infrastructure M&A transactions, combining deep engineering expertise with operational, technological, and commercial insight. Our integrated approach ensured that technical findings were directly translated into investment‑relevant conclusions tailored to the Buyer’s strategic objectives and holding period.
ESG Due Diligence Advisory
Steer provided comprehensive Environmental, Social and Governance (ESG) Due Diligence advisory services across the portfolio. Our role was to provide a clear, risk‑focused and transaction‑relevant assessment of ESG matters that could materially affect value, liabilities, and long‑term asset performance, and to translate these findings into actionable protections and recommendations for the Buyer.
Our ESG Due Diligence covered the full spectrum of environmental, social and governance risks relevant to mature road and tunnel assets in the US context. The assessment focused on identifying material ESG risks with potential commercial, legal, or reputational implications, rather than compliance‑only considerations, ensuring direct relevance to the transaction.
We assessed environmental risk exposure across all assets, including:
- environmental permitting and compliance.
- contaminated land and legacy liabilities.
- hazardous materials (including asbestos and lead paint).
- water supply, wastewater and stormwater management.
- biodiversity and ecological obligations.
- air quality and noise; and
- physical climate‑change risks.
Our social assessment examined issues with direct implications for operational continuity and reputation, including:
- occupational health and safety systems and performance.
- incident reporting and regulatory consistency.
- workforce structure, unionization and labor relations.
- employment policies and practices.
- community and stakeholder engagement; and
- grievance and whistleblowing mechanisms.
We evaluated the governance framework underpinning ESG management, including:
- Board‑level ESG oversight.
- committee structures and mandates.
- risk‑management processes.
- business ethics and anti‑corruption controls; and
- ESG policies, disclosures and performance monitoring.
This engagement demonstrates Steer’s ability to deliver integrated, transaction-focused advisory across complex infrastructure projects. By combining technical modelling, market insight, and financial analysis, Steer enables investors to make confident, evidence-based decisions in high-value transport transactions.
As US transportation infrastructure continues to attract institutional capital, Steer remains committed to supporting investors in unlocking value across toll roads, managed lanes, and other transport platforms.
