Asset valuation of low-volume road networks - Application to Chilean unpaved roads

Asset management is a systematic process of maintenance, modernization, and operation of infrastructure assets in an economically efficient way. For these reasons, asset management has been considered as an emerging concept applied in the area of transport management. Many countries have developed procedures to evaluate pavement infrastructure assets; however, these applications generally have focused on main interurban and urban roads. The objective of this paper is to present a methodology to determine the asset value of low-volume roads and to quantify the impact of maintenance policies on such asset value. As a case study, the proposed methodology was applied to the unpaved road network of Chile, considering different maintenance policies and their impact on the evolution of the road network asset value. A complete analysis that considered the impact of maintenance policies under different budgetary conditions was performed. The analysis was done by using the HDM-4 program, since it performs technical and economic valuations considering a reposition value method. Relationships close to linear were found between final asset value of the unpaved road network under a 20-year valuation. Results showed that medium levels of investment are needed to maintain the network asset value. A small increase of the initial asset value of a network is obtained with high levels of investment. Asset valuation is a good and simple tool that helps agencies during a first-level management process. However, it is not recommended on its own as an optimization tool for the allocation of resources, as social costs and benefits associated with each investment strategy need to be considered.