SWUTC Research Project Description

Title of Project:  Quantifying the Effects of Network Improvement Actions on the Value of New and Existing Toll Road Projects

Project Number: 0-5881

Principal Investigator:
Ivan Damnjanovic
(979) 862-6616
P.I. Affiliation:  Texas A&M University

Travis Waller
(512) 471-4539
P.I. Affiliation: University of Texas at Austin

Project Monitor:
Matthew MacGregor
Texas Department of Transportation
(512) 463-8585

Project Status:  Active

Date Started:  9/1/07

Estimation Completion Date:  8/31/09

Estimated Cost - Current Fiscal:  $138,000

Estimated Cost - Total Planned:  $138,000

Project Summary:
Project Abstract:
As population in Texas continues to increase at the rate considered to be one of the highest in the US, the transportation system is facing great challenges. Without installing additional capacity, the transportation system will experience congestion that can ultimately hinder further economic development. Revenue-generating roadway projects (toll roads) represent a type of project delivery methods that can complement the existing tax-supported projects to bridge the gap between the needed and available funds for reconstruction and enhancement of the roadway network. Valuation of such toll road projects is inherently tied to the analysis of the supporting transportation network. The cost, capacity and condition of feeder, complementing (quasi-feeder) and competing routes in the supporting transportation network can significantly determine the project's performance. In such settings, certain aspects of long-term transportation planning (such as quantifying long-term uncertainty, risk, and link correlation) which were not as critical to the traditional analysis become absolutely paramount. By considering the effects of network actions (put simply, the effects of actions on competing versus the effects of improvement actions on feeder routes), Texas Department of Transportation (TxDOT) gains tools to judge which network improvements will add the most value to the existing and planned toll road projects. Such analysis will allow TxDOT to properly assess the value of its own non-tolled assets as well as plan for future toll roads in an optimal manner.

Project Objectives:
To develop a strategic network-based valuation process that would allow TxDOT to improve transportation planning practices thereby maximizing the value of existing and/or planned toll road projects.

Task Descriptions:
Task 1:  Conduct Literature Review

Task 2:  Identification: Risks in Development and Management of Toll Roads

Task 3:  Identification: Competing/Companion and Feeder Routes

Task 4:  Identification: Current and Potential Practices and Software

Task 5:  Quantification: Risk-dependent Project Valuation Measures

Task 6:  Quantification:  Defining the Network Model Methodology

Task 7:  Quantification:  Implementing Network Evaluation Model

Task 8:  Specification:  Select and Examine Risk-dependent Project Value Measures and Network Options

Task 9:  Optimization:  Develop a Decision-Support Process

Task 10:  Provide Case Study Workshop

Task 11:  Prepare Reports

Index Terms:
Transportation Networks, Toll Roads, Improvements, Asset Management, Road Pricing, Value Engineering, Transportation Planning, Research Projects