Road Investment Decision Framework Neil Robertson PIARC ISOHDM Project Coordinator

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

Road System Management Planning Programming Preparation Operations Policy Research

Planning Analysing the road system as a whole Outputs: 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

Programming Tactical Planning Outputs: 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

Preparation Evaluating road projects or investment options Outputs: 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

Operations Ongoing works and traffic management operations Outputs 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

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

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

Road Management Cycle Planning Policy Research Policies Highway Management Information Inventory Condition Resources Treatments Productivity Unit Costs Economic parameters Classification and Standards Performance Monitoring Needs Assessment Implementation Programming Finance and Resources Operations Project Preparation

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

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

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

Road Asset Management System

Road Asset Management System Road Asset Data Decision Support Tools Reporting Tools Investment Studies location reference inventory condition traffic Data Access Asset reports tabular distance charts time charts summary graphs maps Policy studies financial data geospatial data Strategic analysis Policy research Network strategies Investment Analysis reports summary detail graphical map-based Research Studies planning data network policies works standards Works Programming Works programs Custom queries model default data model calibration Project Evaluation Project evaluations Performance reports asset state financial user impact value for money Asset performance feedback investment study results Network Performance Analysis

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

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

HDM-4 in the Decision Framework Road Asset Data Decision Support Tools Reporting Tools Investment Studies location reference inventory condition traffic Data Access Asset reports tabular distance charts time charts summary graphs maps Policy studies financial data geospatial data Strategic analysis Policy research Network strategies Investment Analysis reports summary detail graphical map-based Research Studies planning data network policies works standards Works Programming Works programs Custom queries model default data model calibration Project Evaluation Project evaluations Performance reports asset state financial user impact value for money Asset performance feedback investment study results Network Performance Analysis

Purpose of HDM-4 The Highway Development and Management System is a decision tool to help you investigate your road investment choices.

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. * We can use HDM-4 to study these dimensions ......... * REVEAL POINTS

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

HDM-4 Applications

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 * Let's look at some examples of applications * REVEAL POINTS

Example Applications Project preparation analysis Research Studies 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 * At the more detailed level ... * REVEAL POINTS

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