Road Investment Decision Framework

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Road Investment Decision Framework

• Neil Robertson
• PIARC ISOHDM Project Coordinator

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Outline

• Road system management concepts
• Investment decision support framework
• Road Management System role
• HDM-4 capabilities and applications

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Road System Management

• Planning
• Programming
• Preparation
• Operations
• Policy Research

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Planning

• Analysing the road system as a whole
• long term expenditure planning estimates
• road development and maintenance
• various budgetary and economic scenarios
• Outputs
• medium - long term budget estimates
• forecasts of system performance
• forecasts of road user effects

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Programming

• Tactical Planning
• multi-year road works and expenditure programs
• identifying and prioritising works candidates
  (maintenance, improvement, new)
• optimised under budget constraints
• Outputs
• short to medium term expenditure estimates under
  budget heads
• candidate works programs locations and types of
  work in each budget period

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Preparation

• Evaluating road projects or investment options
• economic or engineering viability of projects
• life-cycle analysis
• pavement performance, effects of works, road user
  effects
• Outputs
• annual pavement performance predictions
• traffic predictions
• maintenance and improvement effects
• road user costs and benefits
• environmental effects
• standard economic indicators NPV, EIRR, BCR etc

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Operations

• Ongoing works and traffic management operations
• daily or weekly decisions
• focus on detail, on road sections and subsections
• Outputs
• work orders and schedules
• monitoring labour, equipment and materials
• details of work completed

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Policy Research Studies

• Fund allocation policies
• Road user charges for Road Funds
• Impacts on energy consumption of policy changes
• Impact of axle load limits
• Pavement maintenance and rehabilitation standards

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Investment Decision Framework

• Road system is an important economic asset
• Assets require sustainable business management
• Investment decisions will consider future
  performance of the investment
• Performance
• of the infrastructure (physical economic)
• of the vehicle fleet
• effect (benefits) to road users
• value for money
• Costs and benefits
• to the agency
• to the road users
• effective decision making requires a network of
  knowledge and decision support skills

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Road Management Cycle
Planning
Policy Research
Policies
Classification and Standards

• Highway Management Information
• Inventory
• Condition
• Resources
• Treatments
• Productivity
• Unit Costs
• Economic parameters

Performance Monitoring
Needs Assessment
Implementation
Programming
Finance and Resources
Project Preparation
Operations
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Investment Information

• Identifying deficiencies in the road system
• Predicting future trends in deficiencies
• Developing strategic plans and policies
• developing forward plans for improvement and
  upkeep works
• Programming works into budget years

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Investment Information

• Conducting appraisals of project proposals
• Predicting impact and consequences of investment
  options
• Researching local road transportation needs
• Researching future impacts of operational or
  technological options

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Road Asset Management System

• Serves these investment information requirements
• consists of many information components
• road network
• vehicle fleet and traffic
• policies and standards
• system deficiencies
• financial
• works programs
• works performance, asset performance
• includes an investment decision support capability

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Road Asset Management System
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Road Asset Management System
Road Asset Data
Decision Support Tools
Reporting Tools
Investment Studies

• Asset reports
• tabular
• distance charts
• time charts
• summary graphs
• maps

Policy studies
Network strategies

• Investment
• Analysis reports
• summary
• detail
• graphical
• map-based

Research Studies
Works programs
Custom queries
Project evaluations

• Performance
• reports
• asset state
• financial
• user impact
• value for money

Asset performance feedback
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Road Asset Management System

• The decision support system should
• support Planning, Programming, Preparation and
  Policy Research functions
• present relevant, reliable, up to date
  information
• predict future impacts on the transport system
  and its users
• compare competing investment or policy choices
• consider both the infrastructure and the community

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Road Asset Management System

• The decision support system should
• allow for new work, maintenance and upgrading
• provide a reliable calibrated modeling capability
• assess investment impacts over life cycles
• provide monetary and non-monetary measures of
  investment effectiveness
• prioritise investment candidates
• identify optimum choices between alternative
  investments

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HDM-4 in the Decision Framework
Road Asset Data
Decision Support Tools
Reporting Tools
Investment Studies

• Asset reports
• tabular
• distance charts
• time charts
• summary graphs
• maps

Policy studies
Network strategies

• Investment
• Analysis reports
• summary
• detail
• graphical
• map-based

Research Studies
Works programs
Custom queries
Project evaluations

• Performance
• reports
• asset state
• financial
• user impact
• value for money

Asset performance feedback
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Purpose of HDM-4

• The Highway Development and Management System is
  a decision tool to help you investigate your road
  investment choices.

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Scope of HDM-4

• providing, maintaining and upgrading urban and
  rural roads and highways
• investigating the effect of vehicles, traffic
  characteristics, road user costs
• investigating the social and environmental
  effects of investments
• investigating long term issues which arise over
  asset life cycles.

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Analytical Framework

• Predicts road network performance as a function
  of
• road asset characteristics
• vehicle fleet, traffic volumes and loading
• road condition and pavement strength
• maintenance and improvement standards
• Quantifies community benefits to road users from
• savings in costs of works
• savings in vehicle operating costs (VOC)
• reduced road user travel times
• decrease in number of accidents
• environmental effects

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HDM-4 Applications
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Example Applications

• Policy strategy studies
• Strategic planning for development and
  maintenance
• Budget effects of minimum network standards
• Allocation for competing needs (eg road classes)
• Road use charging for establishing Road Funds
• Impact of transport policy on energy consumption
• Works programming options
• applying fixed work standards
• economic optimum constrained by budget
• program optimised to a network performance
  standard

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Example Applications

• Project preparation analysis
• Selection from design alternatives on life cycle
  cost
• maintenance and rehabilitation options
• widening and geometric improvement options
• pavement upgrading and new construction
• economic justification of project proposal
• Research Studies
• Network implications of new vehicles
• Network impact of axle load limits
• Effectiveness of alternative road maintenance
  practices
• Impact of maintenance and rehabilitation standards

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Integrating HDM-4 into Road Management Systems

• Data links to the Road Asset Database
• Vehicle fleet characteristics
• Work standards reflecting management policies,
  standards
• Unit costs for works and user operations
• Model configuration data
• Reliable local model calibrations
• Links to query, presentation and reporting tools

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