The Tasmanian Government’s streetlight replacement program is well underway, with more than half of their lights being replaced so far and Traffic Technologies Ltd (ASX: TTI) being at the helm of the operation. More than 1,000 lights on the road network have been swapped out so far,  from old mercury vapour globes to new LED lights that use 82% less energy and have a 10-year life cycle.

TTI was awarded the contract in July of this year, which is worth up to $3 million in the first year and is for an initial term of three years. TTI is providing a complete turnkey solution to Tasmania’s carbon emission reduction ambitions.This extends the company’s existing role as a designer, manufacturer and supplier of LED streetlights for TasNetworks – making them a logistical hub for installation of the Company’s proprietary, highly energy efficient LED technology.

The progress was spotlighted in 7 News last week, and was welcomed by the company as they look to expand this offering into other states that are keen to invest in a future that is conducive of net zero targets.

TTI recently released their FY23 results, where they revealed operating revenue of $58 million and EBITDA of $2.1 million. They also managed to reduce their interest costs by 18% after repayment of some of their expensive debt.

Traffic Technologies provides traffic hardware and a software platform for smart city and Internet of Things (IoT) networks. It specialises in advanced traffic management systems for governments, councils and infrastructure projects across Australia and overseas.

Unlike those of its competitors, TTI’s products and services address the combined requirements of road authorities, councils and power companies – helping improve road safety, and energy efficiency while reducing maintenance costs. 

TTI’s technology is approved for use by all 537 Australian local councils,. This cements the company’s position in the industry, limits its competition because of barriers to entry, and makes it a frontrunner in landing contracts for Australia’s $2.5 billion local roads and community infrastructure program.

Last year, the company provided Smart City software for the Qatar FIFA World Cup to boost traffic efficiency. This represented a significant opportunity to deploy next generation Smart City technology in an expanding overseas market. The company has pointed to increasing demand for traffic technologies in key export markets, including China, Singapore and Ecuador.

With the applications of big data and IoT becoming increasingly relevant to governments, road authorities and councils,, TTI’s state-of-the-art smart city IoT platform is a solid base for the company to build more revenue streams.

TTI is positioned for the push towards IoT and digitisation in traffic technology as well as for Australia’s race towards net zero carbon emissions.

To stay up-to-date on Traffic Technologies’ news and announcements, register your details on their investor centre.

Reach Markets have been engaged to help manage TTI’s investor communications and may receive fees for its service.