Optimal and dynamic asset management in infrastructure sector

Road, rail, and water/sewerage networks are vital to the national economy. Reduction in public financing together with increasing use of networks, urge infrastructure managers to optimize their networks focusing on overall cost-effectiveness of their operations. Decision-making in asset management should be able to ensure long-term economic efficiency and optimal service levels. However, often decision-making in infrastructure management under uncertainty is far from optimal, reliable, and flexible. This is why a simplified asset management decision-making method was developed for the infrastructure sector. The method aims at assisting infrastructure managers in optimising the life cycle profiles of their assets through selection of an optimal maintenance, repair and rehabilitations project portfolio. The method applies the analytical hierarchy process and real option ideology. The developed systematic and easy-to-apply method fills the void between strategic and operative decision-making methods facilitating management of multiple investments at the local network management level.