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Asset Management Strategies: Moving from costs to outcomes

Asset Management Strategies: Moving from costs to outcomes. Tyrone Toole, ARRB Group Ltd South East Australian Transport Strategy Inc, Ordinary General Meeting, 17 th August 2012, Wantirna. The circumstances….in a rural context. Onwards to. Total Transport System Management

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Asset Management Strategies: Moving from costs to outcomes

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  1. Asset Management Strategies:Moving from costs to outcomes Tyrone Toole, ARRB Group Ltd South East Australian Transport Strategy Inc, Ordinary General Meeting, 17th August 2012, Wantirna

  2. The circumstances….in a rural context

  3. Onwards to .. Total Transport System Management (to meet demand/priority outcomes) More forgiving roads and roadsides Integrated system Regional development Building communities Mobility Environment The Safe System Preservation & renewal of existing assets Accessibility Economic Safety Safe speeds

  4. The What & How - Integrated AM Framework Strategic planning process Actions Evaluation Phase 1 Define objectives Phase 2 Form strategies Phase 3 Develop program Phase 4 Identify needs Phase 5 Implement program Phase 6 Audit work Phase 7 Review Review Feedback

  5. Pavement condition - % network less than specified roughness value Achievement of specified STANDARDS Achievement of agreed treatment programs Implementation of ‘best practice’ Customer satisfaction Reduction in crashes & cost of road trauma Assist economic & regional development Develop a more integrated & sustainable road transport system Minimise impacts on the community & the environment Build effective access to services Phase 1: Example Objectives & AM KPI’s

  6. What should we be doing? An audit framework 1. What condition should State roads be in? 4. What level of funding would be required to address findings? Performance criteria & condition Data issues Program management Project selection Outcomes Engagement Safety Efficiency Retained value 2. What is the actual condition of State Roads? 3. What is being done to address any gap? Pavements, Configuration & Bridges

  7. Getting it right • ‘Needs’ analysis • Identification of risks • Prioritisation • ‘Must do’ • ‘Should do’ • ‘Could do’ • Option selection Importance of simple measures Slow response (3 – 6 months) Fast response (4 – 6 weeks)

  8. Total transport costs What really happens to RACs? Austroads Asset Management Guidelines, 2006

  9. Simple drainage measures Deterioration reduced by factor of 2 - 4 Typical benefits: Australian examples MeasuresTypical Benefits Optimum maintenance (sealed) • $2 - $3 net benefits per $RAC Desirable standards (sealed) • Marginal to moderately positive Blackspot programs • 1.5 lives saved per yr per $10million Safe System programs • 0.5 lives saved per yr per $10million • 2 lives saved per annum per $100million General infrastructure

  10. Impact of current and optimum funding Scenario A – Current Scenario B – Optimum • Costs • 5 year needs between 3.6 (Minimum desirable) and 4.8 (Moderate standards) times current budget • Proposed future rates of coverage similar to other states • Benefits • $2 to $3 net benefits per $ investment above current funding level • Realisation depends on what is available • Corresponding road user savings between $3 billion and $3.5 billion in 20 years

  11. Asample of knowledge

  12. The way ahead • Understand stakeholder needs • Calculate and sell the benefits and outcomes as normal business • Adopt appropriate and affordable standards • Apply and invest in knowledge • Understand your strengths and challenges • Teamwork

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