Formulating and solving the network design problem by decomposition

The optimal transportation network design problem is formulated as a convex nonlinear programming problem and a solution method based on standard traffic assignment algorithms is presented. The technique can deal with network improvements which introduce new links, which increase the capacity of existing links, or which decrease the free-flow (uncongested) travel time on existing links (with or without simultaneously increasing link capacity). Preliminary computational experience with the method demonstrates that it is capable of solving very large problems with reasonable amounts of computer time.