Maximise levels of service using cross-asset portfolio renewals management

Abstract

Auckland Transport is tasked with managing its road and public transport assets in the most cost-efficient manner to deliver levels of service and manage risk across the asset portfolio. The renewals approach outlined in this paper is part of an optimized decision-making methodology that is helping improve customer satisfaction through a more robust, consistent and equitable approach to the management of transport assets and their levels of service across the region. Auckland Transport asset management has been developing a renewals optimization model (ROM) to help optimize the condition profile of the portfolio and provide investment options to balance levels of service, cost and risk for each asset class. It identifies the investment required to change the current condition profile of each asset class to a more cost-efficient state while having regard for funding constraints, levels of service, risk and whole of life cost. It uses accepted depreciation curves for each asset group, an interactive process of allocating investment for renewals by insuring the investment for each asset class achieves the desired level of service in a balanced manner. The tool also enables the development of portfolio investment options for renewals scenario decision making based on the specific requirements of each asset class. It achieves this by identifying the consequences of trade-offs between: - steady condition state to be achieved. - level of service required. - number of years allowed to achieve desired levels of service. - level of backlog that can be accepted based on risk, criticality, movement and public perception considerations. The outcome of this approach is a balanced long-term renewals programme that will help resolve inherited variations in the condition state of transport assets and their levels of service across the region.