Transportation Asset Management and Stewardship


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Transportation Asset Management and Stewardship

  1. 1. Transportation Asset Management and Stewardship Designing Public Private Partnerships to Achieve High Performance Corridors and Plans Michael Replogle, Transportation Director 19 April 2006 What is Transportation Asset Management? A strategic approach for getting the best return on dollars spent on transportation Fix-It-First approach that looks for cost- effective maintenance, operations and incremental improvements to existing infrastructure before investing in new facilities and capacity System management options that unlock trapped asset values for other needs Set of tools for sustainable transportation development and stewardship
  2. 2. Better Asset Management Could Boost Rate of Return on Highway Capital Improving Asset Management: A Competitive Edge for PPPs? PPPs sold for cost-savings and better performance Many public agencies adopting asset management How could emerging asset management practices add new competitive business angles for PPPs? Source:
  3. 3. Engaging the Private Sector in Asset Management Quantity-based maintenance contracts Performance based requirements Management contracts Operation and management concessions Build-Operate-Transfer concessions Toll road corporations Source: O&M and BOT Concessions Operation and maintenance of road by private firm charging user fees to help finance costs Build-Operate-Transfer concessionaire constructs, upgrades, or rehabilitates road, often with major role in financing Asset management is key to ensuring performance during concession and sound asset quality at conclusion of contract period What are the performance incentives?
  4. 4. Asset Management Basics Preserving, upgrading, replacing assets with effective planning and resource allocation Pavement Condition vs. Age Pavement Condition Age of Pavement in Years
  5. 5. Pavement Management Systems Regularly measure road conditions Assemble and maintain database Evaluate repair/preservation Source: Travis Gilbertson, Geoplan Opus strategies and engineering to maintain highway conditions Evaluate in context of overall system needs and policies Develop investment program Source: Travis Gilbertson, Geoplan Opus Preventative Maintenance Pays Off For every $1 spent on preventive maintenance, $4 to $10 saved on rehabilitation Source: Larry Galehouse, Strategic Planning for Pavement Effectiveness of the Capital Preventive Preventative Maintenance, TR News 219, 2002, TRB Maintenance Program, prepared for the Michigan Department of Transportation by B.T. Bellner & Associates, November 2001
  6. 6. Current Practice in Engineering and Economic Analysis Identify cost-effective investments and operations strategies FHWA: Highway Economic Requirement System (HERS-ST) World Bank: Highway Development and Management (HDM-4) Source: Travis Gilbertson, Geoplan Opus Engineering and Economic Analysis with HERS-ST Links Engineering Economics Determining Calculate benefits deficiencies Evaluate Input to impact improvements calculations Select improvements But HERS and HDM do not include analysis of environmental impacts, intermodal options, or effects of investments on travel Source: Travis Gilbertson, Geoplan Opus demand
  7. 7. Growing State DOT Interest in HERS Asset Management Tools Linking Transportation and Environmental Management Systems Fix-it-First approach: avoiding widespread bias favoring new capacity Oregon DOT linking HERS to transportation models to account for induced travel & behavior impacts Enables consideration of land-use, environmental, and statewide planning goals and laws
  8. 8. Transportation Asset Management is Far More Than Pavement Management Safety management Congestion management Performance monitoring Environmental management Intermodal system planning, operations, management State and metropolitan transportation planning This Requires Taking Asset Management to the Next Level
  9. 9. PPP Payment Mechanisms: Aligned With System Management Goals? Real Tolls (increasing use of electronic tolling) Shadow Tolls (based on usage) Availability Payments Congestion Management Payments Performance Payments (or deductions) Revenue from service areas, side-concessions Combinations of grants, user fees, guarantees Concessionaire Keeps Toll Revenue Real Tolls: payment to concessionaire is based on actual tolls collected Incentive to maximize traffic volume Traffic risk for concessionaire Non-compete agreements and profiteering issues
  10. 10. Shadow Tolls: Impact Dependent on Performance Objectives Shadow Tolls: typically based on traffic count, toll rate per vehicle, length of road Often used on non-tolled facilities, transferring traffic forecast risk to concessionaire, encouraging higher traffic growth For tolled facilities could insulate toll rate- setting from concerns about excess profits Could be designed to reward delivering mobility for more people & goods while reducing congestion, minimizing emissions & fuel use Payment Based on Availability of Facility and Performance Availability Payment: based on available lane-miles, impact of maintenance closures, specified performance outputs Often used on non-tolled facility, encouraging effective facility maintenance while maximizing traffic growth For tolled facility, could insulate toll rate setting from concern about excess profits Design payment to reward minimized congestion, emissions & fuel use and maximized facility availability, reliability
  11. 11. Congestion Management Payment: Rewarding Traffic Management Payment to concessionaire based on measured actual hourly traffic speeds and flows by 2km road segment Congestion Management Payment Contract Darrington to Dishforth A1 Highway in Yorkshire, UK Source: Reliability Measurements for Road Segments Multi-Modal Traveler Information System cell probe data make it possible to assess any road segments over any time interval Source: Dr.Richard Mudge, Delcan-NET
  12. 12. Concessionaire Compensation Adjusted With Performance Payments or Deductions Facility condition, safety, person-miles & ton- miles moved without congestion, pollution hot spot violations, noise, or community impacts Accrual of penalty points exceeding threshold gives rise to default and remedy period Failure to remedy means contract termination For example, BC Sea-to-Sky Highway PPP deal total payment = (Availability payment) + (Vehicle usage payment ) +/- (Performance Incentive payments) + (End Payments) PPPs Could Help Agencies Better Manage Overall System Assets Move PPPs from facility asset management to corridor and system asset management But will agencies & concession advisors spot opportunities? Will PPPs deploy all the tools for comprehensive corridor and system management? Fluor Corporation proposes to dedicate $500m to better transit in Virginia’s I-95/395 corridor PPP concession
  13. 13. PPPs Could Help Transportation Plans Meet New U.S. Federal Objectives New duty to adopt state and regional transportation plans that accomplish the planning objectives in SAFETEA-LU: increase mobility promote economic development minimize fuel use, and minimize air emissions This is a major new asset management challenge Planning Strategies Likely Capable of Achieving All Objectives Include Real time traffic ops management, monitoring Ramp metering Peak period tolls on existing lanes to manage congestion Bus Rapid Transit (BRT) Truck toll lanes & intermodal freight projects Safe routes to schools & transit, complete streets Dynamic ridesharing Contracting for performance
  14. 14. Proposed Variable Priced Toll Lane Network for Metro Washington, DC Adopted by Metropolitan Washington Transportation Planning Board for Testing in 2005 Putting Express Buses on HOT Lanes Can Cut Congestion, Boost Choices Northern Virginia study shows potential for 7,700 net new 2010 transit riders: 79% from Single Occupant Vehicles; 21% from HOV * Net new transit trip origins Net new transit trip destinations < 1% < 1% 1-2% 1-2% 2-3% 2-3% 3-4% 3-4% 4-5% 4-5% >5% >5% * Environmental Defense/Breakthrough Technology Institute,
  15. 15. HOT Lanes: Showing New Ways to Create Higher Performance Corridors I-15 San Diego Courtesy Dave Schumacher, SANDAG San Diego’s I-15 Toll Managed Lanes Current Future •20-mile Managed Lane facility •Direct access ramps to stations •State-of-the-art highway coaches •$700 million capital investment Courtesy Dave Schumacher, SANDAG
  16. 16. 30 Expanding I-15 Travel Options Add managed lanes, movable barrier Direct access ramps and bus stations Courtesy Dave Schumacher, SANDAG Escondido I-15 Service Strategy Del Lago/South For Bus Rapid Escondido Transit (BRT) Rancho Bernardo Sabre Springs/ Penasquitos Mira Mesa All Day Trunk Service Point to Point BRT Stations Kearny Mesa/Downtown Remote Stations/Park & Ride North Courtesy Dave Schumacher, SANDAG
  17. 17. More HOT/BRT Lanes on the Way in San Diego Additional toll managed – BRT corridors recently I-15 added to 2030 San I-5 Diego Regional Transportation SR 52 Plan I-805 Courtesy Dave Schumacher, SANDAG Bus Rapid Transit Can Cut Congestion Vehicles Running Ways Stations & Terminals Systems Service Plan Courtesy of Sam Zimmerman, DMJM+HARRIS
  18. 18. But Buses on Motorways Face Challenges Most successful BRT is on arterial roads serving transit oriented land uses – not motorways 35 Arterial vs. HOT Lane BRT Arterial BRT HOT Lane BRT Short inter-stop Long inter-stop spacing spacing Longer distance travel Shorter distance travel More dependent on Easy to serve with costly park-and-ride cheap walk/bike access access More likely to spur Harder to site park- sprawl, inequitable and-ride space access to jobs More opportunity for May worsen unhealthful transit oriented pollution hot spot development exposure
  19. 19. Los Angeles I-110 Freeway Median Bus Stops Poor pedestrian and bicycle access to freeway bus stops and pedestrian-unfriendly neighborhood design constrains ridership Source: Tridib Banerjee,, Highway Oriented Transit System: A Comprehensive Land Use/Transportation Strategy to Improve Transit Service Delivery A Case Study of (I-110) Harbor Transitway Stations, University of Southern California, April 2001. Can BRT Fit In Central Median Motorway Environment? Source: Minnesota DOT
  20. 20. Motorway Median BRT Stations: Worth the Effort? Source: Minnesota DOT 39 Design for Noise, Pollution Trade off of in-line station speed vs. noise and pollution exposure in motorway medians Doorway screening, grade separation, barrier treatments, other options, dependent on ROW
  21. 21. The Way to Stations & Stops Matters Transit utility maximized by: Network of safe walk/bike routes connecting homes, transit, activity centers: traffic calming, medians at crossings, bikestations Information infrastructure Bicycle Access to Transit Can Make a Difference Cut Congestion Expands transit catchment area 35- fold over walking at both trip ends Bikestations: cheaper, less polluting than park-and-ride lots Successful in California, Holland, Germany, around the world
  22. 22. Opportunities to Expand Use of Federal, State Commuter Tax Incentives Pre-tax transit/vanpool commute benefits Cash-in-lieu-of-parking: 6 to 25% of employees take the money and leave their car at home Dynamic Ridematching: New Markets Where Transit Does Not Reach Pay-me-not-to-drive systems (
  23. 23. Congestion Management: Key to High Performance Corridors If congestion reaches critical point, speeds drop, vehicles bunch up, and per lane throughput plummets Source: Doug MacDonald, Highway Congestion: What Is To Be Done? WS DOT, 45 Congestion Management: Potential to Reclaim Lost Peak Period Road Capacity Lost Peak Period Highway Productivity in Central Puget Underused congestion Sound Region management tools: •Incident clearance •Ramp metering •Signal retiming •Congestion charges •Bus rapid transit •Rideshare options •Bike-transit linkage •Commute incentives •Access management Source: Doug MacDonald, Highway Congestion: What Is To Be Done? WS DOT,
  24. 24. Rapid Incident Management Can Cut Congestion Potential impact of incidents on vehicle throughput capacity of 3-lane divided freeway: Car out of gas on shoulder: -20% Disabled car blocking 1 lane: -50% Accident blocking 2 lanes: -85% Source: Doug MacDonald, Highway Congestion: What Is To Be Done? WS DOT, Ramp Metering Can Cut Congestion Ramp Meters Improve Traffic Flow Source: Doug MacDonald, Highway Congestion: What Is To Be Done? WS DOT,
  25. 25. 48 Signal Retiming Can Cut Congestion Effect of Signal Retiming on Peak Road Travel Time Source: Doug MacDonald, Highway Congestion: What Is To Be Done? WS DOT, Conversion of HOV lanes to HOT Lanes Can Cut Congestion Potential peak period percent delay reduction and gain in effective peak road capacity with HOT lanes, Central Puget Sound Region
  26. 26. Converting Free Lanes to Toll Managed Lanes Could Recover Lost Capacity 2 toll managed lanes carry as much peak hour traffic – at 3 times the speed - as moved in 4 free, but congested lanes Traffic in Peak Hours on Eastbound Average Traffic Speed Peak Hours Eastbound SR91 Friday Afternoons 2004 SR 91 Friday Afternoons 2004 Vehicles Per Hour Per Lane 1800 70 1600 60 M ile s P e r H o u r 1400 50 1200 40 1000 30 800 600 20 400 10 200 0 0 Congested Toll Managed Congested Toll Managed General Lanes General Purpose Lanes Purpose Lanes Lanes Report to Congress on the Value Pricing Pilot Program Through March 2004, US Federal Highway Administration (2004), available at:$FILE/March%202004%20Report%20of%20Congress.pdf 51 If Only New Lanes Get Tolled: Where’s the Money for Transit and Impact Mitigation? Surplus toll revenue for transit: easy if converting HOV to HOT lanes at low cost Surplus revenue scarce if only new lanes tolled To cut costs and boost revenues: convert shoulders to rush hour lanes while managing general purpose lanes with rush hour tolls Copyright© 1999 Eagle-Tribune Publishing Copyright© Eagle-
  27. 27. A Strategy for Upgrading Existing Free Lanes to Toll Managed Lanes The Operate-Design-Build-Operate (OBDO) concession model * 1. Add new bus/van services, rush hour shoulder lanes, and contract for toll-based road traffic management services in congested corridor * See: Pat DeCorla Souza, A New Financing Approach for Transportation Infrastructure Expansion, Transportation Research Board 2006 OBDO: Upgrading Existing Lanes With Toll Traffic Management Operate-Design-Build-Operate concession model 1. Add new bus/van services, rush hour shoulder lanes, contract for toll- based road traffic management services in congested corridor 2. Tolls only on congested road sections, only in peak, set by private operator to manage demand and keep congestion from degrading peak road capacity
  28. 28. OBDO: Enhancing Corridor Capacity and Choices 1. Add new bus/van services, rush hour shoulder lanes, contract for toll-based road traffic management services in congested corridor 2. Tolls only on congested road sections, only in peak, set by private operator to manage demand and keep congestion from degrading peak road capacity 3. Tolls revenues dedicated to corridor improvement: road, transit, walk/bike access, impact mitigation OBDO: Performance Incentives Set to Meet Planning Objectives 1. Add new bus/van services, rush hour shoulder lanes, contract for toll-based road traffic management services in congested corridor 2. Tolls only on congested road sections, only in peak, set by private operator to manage demand and keep congestion from degrading peak road capacity 3. Tolls revenues dedicated to corridor improvement: road, transit, walk/bike access, impact mitigation 4. Concurrent Real and Shadow Tolling: private operator fee based on persons moved without congestion, independent of congestion toll revenues DeCorla Souza, A New Financing Approach for Transportation Infrastructure Expansion, Transportation Research Board 2006
  29. 29. Tolling Existing Lanes: Acceptable When It Boosts Performance, Choices New tolls on formerly free roads: London Singapore Oslo Trondheim Bergen Stockholm Source: Kristian Wærst, Norwegian Public Roads Administration Oslo Toll Ring Experience Reduced regional traffic 3-5% Growth in public transport: 6-9% Situation back to “normal” after few months Tolls pay for roads, public transport, parks City Hall Street, Oslo, before and after toll ring Source: Kristian Wærst, Norwegian Public Roads Administration
  30. 30. Oslo Uses Road Pricing to Improve Traffic, Public Transport, Walking Daily traffic in central square cut from 90,000 to zero New tram line opened A new plaza for walking, festivals and exhibitions Traffic cut & moved 45 m underground Source: Kristian Wærst, Norwegian Public Roads Administration 59 What Roles for PPP Toll Roads? 1. Building new roads 2. Adding managed lanes to existing roads 3. Converting HOV lanes to HOT or TOT lanes 4. Operating existing toll roads 5. Managing high performance corridors & networks Copyright© 1999 Eagle-Tribune Publishing Copyright© Eagle-
  31. 31. Building New PPP Toll Roads Usually spurs more sprawl, traffic, and pollution Pocahontas Parkway (VA) o E-470 (CO) Dulles Greenway (VA) o IH-35 (TX) SR-125, San Joaquin Hills, Foothill Toll Roads (CA) Adding Managed Lanes With PPPs Often spurs more traffic and pollution unless existing lanes are also managed SR-91 (CA) I-495 (VA) I-81 (VA) I-10 Katy Freeway (TX) US-281 (TX)
  32. 32. HOV Lane Conversion to HOT or Truck Only Toll (TOT) Lanes Lower capital cost expands opportunity to use toll revenues to boost transit services and improve transit connections I-15 (CA) I-10 (TX) I-394 (MN) Atlanta HOT or TOT? 63 PPPs Operating Existing Toll Roads Opens door to fiscal relief, road expansion and/or high performance corridor management Key asset management question: where does the money go? Chicago Skyway Indiana Toll Road NJ Turnpike? DE Turnpike?
  33. 33. Chicago Skyway PPP Unlocked $1.83b in Trapped Asset Value for Residents $463m to pay-off Skyway debt $392m to pay-off city government debt $875m for city government budget reserves $100m to improve quality of life over 5 years: •Plan to End Homelessness •Home heating assistance •Home modifications for disabled •Affordable housing programs •Job training for ex-offenders •Small Business Development Fund •Programs for children and seniors Environmental and Community Performance Agreements o Key way to cut political and regulatory risk o Ensure PPP toll roads comply with state & federal requirements o Streamline compliance through community and environmental agreements with dedicated funding for monitoring and mitigation?
  34. 34. 66 Many Dimensions of Environmental and Community Performance o Public health impacts o Water quality impacts o Equity of access to jobs, public facilities o Impacts on historic resources, open space, parks, habitat o Protections for labor and minorities o Impacts on energy & climate Environmental Asset Management: Pollution Hot Spots Health cost of road air pollution: $40+ billion/year ($600/household) Particulate and mobile source air toxic (MSAT) pollution hotspots cause serious health problems for those close to big roads Impact avoidance and mitigation required
  35. 35. Particulate & MSAT Pollution Hotspots: Measure, Monitor, Mitigate, Eliminate New EPA rules require attention Current monitoring inadequate Regional, corridor, local strategies can cut PM, VOC, NOx Diesel retrofits/cleanup Traffic & freight management, truck tolls, truck lanes Tunnel air filters Exposure management Link level benzine emissions Philadelphia Source: Richard Cook, US EPA 69 Building Better PPPs and Broadening Public Support Assess indirect & cumulative social, economic, and environmental impacts Analyze wider array of alternatives to avoid, minimize, mitigate adverse impact Encourage interagency coordination, public and local participation, with full documentation and disclosure Set asset management incentives in PPP contracts that enable transport plans to achieve objectives with high performance
  36. 36. Acknowledgements The author wishes to thank the Surdna Foundation, Breakthrough Technologies Institute, Arthur Roswell Foundation, Serendipity Foundation, and other generous supporters who helped make this work possible. The author gratefully acknowledges the work of other professionals from whom selected photos and graphical materials have been adapted for parts of this presentation, in particular thanking Doug McDonald of Washington State DOT, Samuel Zimmerman, now of the World Bank, Tridib Banerjee, now of SCAG in Los Angeles, Dave Schumacher of SANDAG, Kristian Wærst of the Norwegian Public Roads Administration, Pat Decorla-Souza of the Federal Highway Administration, Richard Cook of US EPA, Travis Gilbertson of Geoplan Opus, and Ken Buckeye of MnDOT. For further information: Any errors are those solely of the author, who can be reached at: Michael Replogle Transportation Director Environmental Defense 1875 Connecticut Ave. NW Washington, DC 20009 202-387-3500