Asset Management for the Roads Sector

1 ISBN 92-64-18697-277 2001 03 1 PAsset Management for the Roads SectorTRANSPORTA sset Management for the Roads SectorAssetManagement forthe Roads SectorWhat is Asset Management ? How do road administrations achieve an integrated approachto Asset Management ? How does this differ from the Management of individual assets?What are the implications for data collection and Management ? What does it mean for roadadministrations and road Sector policy? This report examines the requirements of Asset Management systems, the integration ofexisting component systems into a comprehensive approach to Asset Management , theincorporation of a business-like approach, performance monitoring and the implementationof such systems.

2 :HSTCQE=V][^\W:All OECD books and periodicals are now available on OECD, 2001. Software: 1987-1996, Acrobat is a trademark of rights reserved. OECD grants you the right to use one copy of this Program for your personal use only. Unauthorised reproduction,lending, hiring, transmission or distribution of any data or software is prohibited. You must treat the Program and associated materialsand any elements thereof like any other copyrighted requests should be made to:Head of Publications Service,OECD Publications Service,2, rue Andr -Pascal, 75775 Paris Cedex 16, Management for the Roads SectorORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENTORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came intoforce on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD)shall promote policies designed.

3 To achieve the highest sustainable economic growth and employment and a rising standard ofliving in Member countries, while maintaining financial stability, and thus to contribute to thedevelopment of the world economy; to contribute to sound economic expansion in Member as well as non-member countries in theprocess of economic development; and to contribute to the expansion of world trade on a multilateral, non-discriminatory basis inaccordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France,Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain,Sweden, Switzerland, Turkey, the United Kingdom and the United States.

4 The following countriesbecame Members subsequently through accession at the dates indicated hereafter: Japan(28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973),Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland(22nd November 1996), Korea (12th December 1996) and the Slovak Republic (14th December 2000). TheCommission of the European Communities takes part in the work of the OECD (Article 13 of the OECDC onvention).Publi en fran ais sous le titre :GESTION DU PATRIMOINE D INFRASTRUCTURE DANS LE SECTEUR ROUTIER OECD 2001 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtainedthrough the Centre fran ais d exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris,France, tel.

5 (33-1) 44 07 47 70, fax (33-1) 46 34 67 19, for every country except the United States. In the United Statespermission should be obtained through the Copyright Clearance Center, Customer Service, (508)750-8400,222 Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: All other applications forpermission to reproduce or translate all or part of this book should be made to OECD Publications, 2, rue Andr -Pascal,75775 Paris Cedex 16, France. 3 OECD 2001 FOREWORDThe OECD s road Transport and Intermodal Linkage (RTR) Research Programme for the 1998-2000period included a mandate for the establishment of an Asset Management Working Group. The terms ofreference set for the Group included: Develop a common definition and identify the appropriate components for an assetmanagement system.

6 Document the state of implementation of Asset Management practices and programmes in OECDM ember countries, including the identification and measurement of benefits of applying assetmanagement systems. Review the data and analysis requirements, including accounting principles and capitalisationmethods, used in successful Asset Management systems. Consider the type of indicators that areused to measure the performance of a road network/transport system in the implementation ofan Asset Management system and suggest options that range from essential measures to thosethat can provide some benefit. Strategies to facilitate the implementation of Asset Management systems skills forpersonnel, new thinking for all levels of Management , public involvement, newly orientedgoals, Asset Management Working Group was chaired by Mr.

7 Neville Potter (Australia) and alsoincluded representatives from Belgium, Canada, Czech Republic, Finland, France, Hungary, Italy, Japan,Mexico, the Netherlands, Poland, Sweden, Switzerland, the United Kingdom, the United States. 5 OECD 2001 ABSTRACTITRD NUMBER: E108508In most OECD Member countries, the road network constitutes one of the largest community assetsand is predominately government-owned. road administrations must maintain, operate, improve,replace and preserve this Asset while, at the same time, carefully managing the scarce financial andhuman resources needed to achieve these objectives. All of this is accomplished under the closescrutiny of the public who pay for and are regular users of the road network, and who increasinglydemand improved levels of service in terms of safety, reliability, environmental impact and Management as applied to the Roads Sector represents a systematic process of maintaining,upgrading and operating assets, combining engineering principles with sound business practice andeconomic rationale, and providing tools to facilitate a more organised and flexible approach to makingthe decisions necessary to achieve the public s expectations.

8 Governments are placing greater pressures on road administrations to improve the efficiency of,and accountability for, the Management of the road network. Indeed, in many countries, local highwayauthorities face formal accountability and reporting requirements on how they manage their Management systems offer the prospect of significantly improving road network managementoutcomes. This report is a review of Asset Management systems as applied to the Roads Sector and ananalysis of the responses to a survey conducted among those countries represented on an OECDW orking Group on Asset Management Classifications:Economics and Administration, Maintenance, Traffic and Transport Codes:10, 60, :Administration, Cost, Economics, Efficiency, Level of Service, Maintenance,OECD, Operating Costs, Policy, road Network, road User, Safety.

9 7 OECD 2001 TABLE OF CONTENTSE xecutive 11 Chapter Management : Introduction and 13 What is Asset Management ? .. 13 What can be included in an Asset Management system?.. 13 What are the requirements of an Asset Management system?.. 14 How do existing systems fit into an Asset Management system?.. 14 How does Asset Management encourage a more business-like approach to managing resources? .. 15 How do Asset Management systems assist in monitoring performance?.. 15 How should Asset Management systems be implemented? .. 15 Chapter of an Asset Management 17 Development of an Asset Management 17 Asset Management procedures .. 18 Chapter Requirements and Analysis 21 Data administration.

10 22 Data 22 Data 22 Management systems .. 22 Data 23 Chapter for the Capitalisation of 25 Valuing the road infrastructure assets .. 25 Depreciating the road infrastructure assets .. 26 Chapter 27 Chapter of Asset Management 29 Potential benefits from implementing an Asset Management system .. 29 Benefits realisation .. 31 Chapter of Asset Management Systems in OECD Member 33 Chapter and 35 Appendix of Asset Management Systems in OECD Member Countries .. 37 Appendix and Capitalisation Methods Used by OECD Member 42 Appendix Indicators Used by OECD Member countries .. 49 Appendix of Specific Benefits Achieved by OECD Member 57 Appendix of Asset Management Systems in OECD Member Countries.