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

advisor to road authorities for technical input and solutions The circumstances….in a rural context

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

advisor to road authorities for technical input and solutions 4 The What & How - Integrated AM Framework Phase 1 Define objectives Phase 2 Form strategies Phase 3 Develop program Phase 5 Implement program Phase 4 Identify needs Phase 6 Audit work Phase 7 Review Strategic planning processActionsEvaluation Feedback Review

advisor to road authorities for technical input and solutions 5 Phase 1: Example Objectives & AM KPI’s 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

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

advisor to road authorities for technical input and solutions 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)

advisor to road authorities for technical input and solutions 8 Total transport costs Austroads Asset Management Guidelines, 2006 What really happens to RACs?

advisor to road authorities for technical input and solutions 9 Typical benefits: Australian examples Simple drainage measuresDeterioration reduced by factor of Optimum maintenance (sealed) $2 - $3 net benefits per $RAC Safe System programs 0.5 lives saved per yr per $10million Desirable standards (sealed) Marginal to moderately positive General infrastructure 2 lives saved per annum per $100million MeasuresTypical Benefits Blackspot programs 1.5 lives saved per yr per $10million

advisor to road authorities for technical input and solutions 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

advisor to road authorities for technical input and solutions 11 A sample of knowledge

advisor to road authorities for technical input and solutions 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