Public Transport Asset Management
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1 Public Transport Asset Management 17 maintenance shops Bank 885 miles of track Workshop and Training on Urban Transport Planning and Reform. Baku, April 14-16, 2009
2 Key Public Transport Activities Service Planning Daily Service Transportation Maintenance Capital Planning New Equipment New Facilities Construction Asset Management Often given minimal attention Bank 2
3 PT Assets Often Are Complex Visible to Public Visible to Public Invisible to Public Over 2000 revenue vehicles 275 stations 885 miles of track 478 bridges Invisible to Public 20 miles of tunnels Invisible to Public 17 maintenance shops Invisible to Public Bank 3
4 Asset Management Control of assets Assignment of responsibility Maintenance of inventory Disposition Maintenance in a State-of-Good Repair (SGR) Ensure that assets used economically throughout their useful life Bank 4
5 ? What is SGR? Assets renewed/replaced when needed Bank 5 Renewed at critical midlife points to ensure full useful life e.g., Buses Busways Roofs Track 8 years 8 years 20 years 25 years Replaced at the end of their useful lives e.g., Buses Rail cars Bridges 15 years 35 years 50 years
6 Importance of Renewal Reactive Maintenance Deterioration Curve Preventive Maintenance Deterioration Curve Bank 6
7 SGR Database Is Needed Identify renewal/replacement activities Important for often-forgotten renewals Demonstrate ongoing funding needs and consequences Engineering assessment of current assets Support long-range capital planning Project programming under constrained funding Bank 7
8 Boston MBTA Case Study Multi-modal Ages of assets range up to 100 years Service expansion continues BRT Commuter Rail Bank 8
9 Key Infrastructure Statistics Over 2000 revenue vehicles 275 stations 885 miles of track 478 bridges 20 miles of tunnels 17 maintenance shops Bank 9
10 Capital Spending Trends 80 $ $700 Revenue Vehicle Miles (millions) Revenue Vehicle Miles Straight Line Capital Trend Straight Line Trend Total Capital Expenditures $600 $500 $400 $300 $200 millions of dollars ($1999) 10 $100 0 $0 Bank 10
11 Boston SGR Model Approach Focus on high-cost assets Not a maintenance database of all assets Support periodic data updates A dynamic, not static problem However, staff and resources limited Provide objective analysis Uniform criteria and process Report consequences Bank 11
12 SGR Model Inputs Assets Table Annual Budgets Prioritization Weights Bank 12
13 SGR Database Assets Table Stores information about all key MBTA assets Vehicles Facilities Systems Bank 13
14 Asset Table Attributes Condition Measures Age Life Project Action Costs Replacement/Renewal Contingency Factors Cash flow years Ranking Measures Condition measures Operational importance Affected ridership Bank 14
15 Scoring Candidate Actions Operational Impact 20% Cost Effectiveness 20% Default Weighting Age 60% Age Age as % of Service Life Operational Impact Yes/No Selected assets are essential to system operations Cost-Effectiveness Cost of Action/Ridership Reflects impact on users Bank 15
16 Score Age Scoring Score = [(Asset Age) / (Service Life)-1] * 180 Subject to Maximum Score = 60 (Reach Max at 133%) Asset Age/Service Life (Percent) Bank 16
17 Age Scoring Examples Asset Age Service Life Percent Score Bus Bus Bridge Bank 17
18 Operational Impact Scoring 0/1 Scoring Depending on Operations Criticality Examples of Critical Projects (Score = 20) Buses, Track, Signals, Power Examples of Non-Critical Projects (Score = 0) Stations, Parking Bank 18
19 Cost-Effectiveness Scoring Cost-Effectiveness (CE) = Daily Riders/Project Cost Project Cost = Remaining Cost for Multiple-Year Funded Projects Project Score = (Project CE / Ave CE (All Projects) * 10 Subject to Maximum Score = 20 Bank 19
20 Sequential Programming Process Identify candidate projects Actions come due Delayed projects from prior years Score and rank projects Fund projects in rank order until: Cost (project i) > Funds remaining Mark unfunded projects as candidates for next year Carryover remaining funds to next year Bank 20
21 Analysis Questions What is the funding needed to bring and maintain system at SGR? Lives of all assets < services lives All renewals performed on-time What are the consequences of providing less than required SGR funding? Replacements/Renewals performed on-time Replacements/Renewals delayed Replacements/Renewals not performed Bank 21
22 Unconstrained Funding Analysis Simulates effect of unlimited funds applied to capital needs Determines: Minimum time and funds needed to achieve SGR Reduce the Backlog Funds required to maintain the system at SGR Baseline comparison for other funding scenarios Bank 22
23 Unconstrained Funding: Backlog $2,500,000, $2,000,000, $1,500,000, Initial SGR Need: $2.7 billion Needs $1,000,000, $500,000, $ Year Unconstrained Seven years for procurements At SGR after 2007 Bank 23
24 Unconstrained Funding: Backlog $2,500,000, $2,000,000, Spending $1,500,000, $1,000,000, $500,000, $ Year Unconstrained Seven years for procurements At SGR after 2007 Bank 24
25 Constrained Funding Analysis Simulates effect of limited funds applied to capital needs Limited funds < Funds needed to achieve SGR Determines: Beginning/Ending Period Comparisons Changes in Backlog Percent of Assets > Service Life by Asset Type 20-Year Totals SGR Needs Funded On-time, Late, Not at All Spending by Asset Type Bank 25
26 Current Annual Funding: $350M Backlog Unconstrained $350M $4,500,000, $4,000,000, $3,500,000, $3,000,000, $2,500,000, $2,000,000, $1,500,000, $1,000,000, $500,000, $ $350 Year Uncons $0 $200 $400 $600 $800 Bank 26
27 Funding by Asset $5,000,000,000 Asset Spending $350M Annual Funding $4,500,000,000 $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 Unconstrained $350M $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 Bank 27 $- Administration Bridges Communications Elevators & Escalators Facilities Fare Equipment Non-Revenue Vehicles Parking Power Revenue Vehicles Signals Stations Track Tunnels Yard & Shop
28 Assets Exceeding Service Lives 70% 60% 50% Percent Assets Exceeding Useful Life $350M Annual Funding 2002 and Unconstrained 2022 $350M 40% 30% 20% 10% 0% Bank 28 Administration Bridges Communications Elevators & Escalators Facilities Fare Equipment Non-Revenue Vehicles Parking Power Revenue Vehicles Signals Stations Track Tunnels
29 On-Time Funding Impact 20-Year Funding Impact $350M Annual Funding $9,000,000,000 $8,000,000,000 $7,000,000,000 Unconstrained $350M $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 SGR Needs Funded On Time SGR Needs Funded Late SGR Needs Unfunded Bank 29
30 Maintain Current Backlog: $450M Unconstrained $450M $3,000,000, $2,500,000, $2,000,000, $1,500,000, $1,000,000, $500,000, $ Year Uncons $450 $0 $200 $400 $600 $800 Bank 30
31 Eliminate Backlog (20 yrs): $570M $2,500,000, $2,000,000, Unconstrained $570M $1,500,000, $1,000,000, $500,000, $ Year Uncons $570 $0 $200 $400 $600 $800 Bank 31
32 Time for a Reality Check! Show me the money!! Bank 32
33 The SGR Database Has Been Used in Several Ways Discussions with Policy Makers Internal Management Bank 33
34 Discussions with Policy Makers Briefing the Board of Directors on SGR Convincing the Chairman to pursue SGR Persuading the Legislature of need for SGR capital funding Bank 34
35 Internal Management Uses Implications of Current Investment Patterns Where are we headed? MBTA SGR Goal Setting Where would we like to go? Yard Stick to Measure Progress Towards SGR Bank 35 Are we getting closer to our goals?
36 Conclusions Most transport systems have not addressed longterm asset management issues The SGR approach can help make the funding case to policy makers. It also can help managers: Make more effective decisions Optimize Public Transport investments Bank 36
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