01662737

Component

In recent work at the Colorado Department of Transportation (CDOT), an approach to asset valuation has been developed for nine of its asset classes. The approach includes a process for estimating the current monetary value of the agency’s assets and as a result provides useful, effective capabilities for asset, risk, and performance management. These capabilities support robust investment decisions and cross-asset trade-off analyses, with improved savings over the long-term, and they enable better evaluations of risk and resilience options. This approach to asset valuation also informs economic analysis of highway system/investments, shows good stewardship of public assets, and justifies additional investment in assets. The development of this approach involved multiple perspectives and ground rules. One is that the approach utilizes existing data and systems at CDOT to the maximum extent possible. Also, the approach was developed through a collaborative, consensus-based approach, by working closely with program managers and subject matter experts, to ensure the credibility and utility of the end product. As a result, the methodology is able to produce both current value and replacement value of each single asset of the asset classes included in the study. By developing this approach, the results will inform a variety of business decisions with key insight, per the valuation objectives that were originally identified. In summary, this paper explores several important aspects of transportation asset valuation and describes the recommended method from the research. The method is ready to be utilized by a variety of transportation agencies.

This paper was sponsored by TRB committee ABC40 Standing Committee on Transportation Asset Management.

18-03087

English

16p

2018

Transportation Research Board 97th Annual Meeting

Digital/other

Figures; References; Tables

Asset management; Assets; Infrastructure; Life cycle analysis; Life cycle costing; Optimization; Present value; Value engineering

Colorado Department of Transportation

Colorado

Economics; Highways; Maintenance and Preservation

Transportation Research Board Annual Meeting 2018 Paper #18-03087

TRIS, TRB, ATRI

Jan 8 2018 10:44AM