POLITICS & INSTITUTIONS - POLITICS

Concession contracts

Motorway service stations earned the state €64.5 million in 2020



Fuel sales account for 83% of the revenue generated  for the state at Luxembourg’s motorway service stations. (Photo: Matic Zorman/Maison Moderne)

Fuel sales account for 83% of the revenue generated  for the state at Luxembourg’s motorway service stations. (Photo: Matic Zorman/Maison Moderne)

The concession contracts signed with the operators of Luxembourg's seven motorway service areas each bring in annual revenue of around €10 million for the state coffers.

Even  though  Luxembourg's motorway service stations generated some €64.5 million in revenue for the state in 2020, that compared to €71.7 million the previous year. The decline in revenue can be blamed on the covid-19 pandemic restrictions on travel, but even so the state is a big winner in financial terms, as mobility minister François Bausch (déi Gréng) pointed out in response to a parliamentary question from Pirate MP Marc Goergen

Over the last five years, the seven motorway areas in the grand duchy have generated €347.5 million in revenue for the state. Fuel is the main source of revenue (83.6%), way ahead of sales in shops (15.2%), even if the relatively low price of alcohol and cigarettes, as well as coffee near the German border, are often cited as major attractions for visitors and transit travellers.  Catering accounts for just 1.3% of revenue.

Maintenance costs less than 1% of revenue

Luxembourg’s seven motorway service stations on its motorways are operated under a concession contract. In concrete terms, the state pockets an average of €10 million per year in revenue per station, while it finances their maintenance. In 2020, the maintenance bill amounted to €554,996, barely 0.9% of the earnings generated.

An eighth motorway service area, run by Total near Pontpierre on the A4 towards Esch-sur-Alzette is scheduled to open later this year at a cost of €5 million. The new service station will be equipped with fast electric charging stations.