Optimal resource allocation among transit agencies for fleet management

Most transit agencies require government support for the replacement of their aging fleet. A procedure for equitable resource allocation among competing transit agencies for the purpose of transit fleet management is presented in this study. The proposed procedure is a 3-dimensional model that includes the choice of a fleet improvement program, agencies that may receive them, and the timing of investments. Earlier efforts to solve this problem involved the application of 1- or 2-dimensional models for each year of the planning period. These may have resulted in suboptimal solution as the models are blind to the impact of the fleet management program of the subsequent years. Therefore, a new model to address a long-term planning horizon is proposed. The model is formulated as a non-linear optimization problem of maximizing the total weighted average remaining life of the fleet subjected to improvement program and budgetary constraints. Two variants of the problem, one with an annual budget constraint and the other with a single budget constraint for the entire planning period, are formulated. Two independent approaches, namely, branch and bound algorithm and genetic algorithm are used to obtain the solution. An example problem is solved and results are discussed in details. Finally, the model is applied to a large scale real-world problem and a detailed analysis of the results is presented.     

A simulation approach for estimating value at risk in transportation infrastructure investment decisions

Traditional economic analysis techniques used in the assessment of Public Private Partnership (PPP) projects are based upon the assumption that future cash flows are fully deterministic in nature and are not designed to account for risks involved in the assessment of future returns. In reality, many of these infrastructure projects are associated with significant risks stemming from the lack of knowledge about future cost and benefit streams. The fundamental premise of the PPP concept is to efficiently allocate risks between the public and the private partner. The return based on deterministic analysis may not depict a true picture of future economic outcomes of a PPP project for the multiple agencies involved. This deficiency underscores the importance of risk-based economic analysis for such projects. In this paper, the authors present the concept of Value-at-Risk (VaR) as a measure of effectiveness (MOE) to assess the risk share for the public and private entity in a PPP project. Bootstrap simulation is used to generate the risk profile savings in vehicle operating cost, and in travel time resulting from demand-responsive traffic. The VaR for Internal Rate of Return (IRR) is determined for public and private entity. The methodology is applied to a case study involving such a joint venture in India, the Mumbai Pune Expressway/National Highway 4 (MPEW/NH4), and fiscal implications from the perspective of the public and the private entities are examined. A comparison between deterministic and risk based economic analysis for MPEW/NH4 is presented. Risk analysis provides insightful results on the economic and financial implications from each participant's viewpoint.     

Bus garage location planning with dynamic vehicle assignments: A methodology

A simultaneous vehicle scheduling and bus garage location and sizing optimization is described. The methodology's importance lies in its treating garage locations and sizes and vehicle schedules as dynamic. In other bus garage planning methodologies, vehicle schedules are assumed fixed.     

Incorporating uncertainty and risk in transportation investment decision-making

This paper presents a framework for addressing uncertainty and risk for large-scale transportation investments involving public–private participation. Demand, fare/toll and demand responsive costs are considered in the uncertainty analysis. Uncertainty analysis provides information on economic feasibility of the project. A set of relaxation policies is proposed to form various Ownership, Tenure and Governance (OTG) strategies reflecting the nature and level of participation by the public and private entity. A Monte Carlo Simulation-based Value at Risk is used to quantify risk. Finally, a methodology is proposed to integrate uncertainty and risk. The framework is tested on the proposed multibillion dollar Detroit River International Crossing connecting the cities of Detroit in the USA with Windsor in Canada. The analysis provides insights to probable outcomes for this transportation infrastructure investment under different OTG scenarios.