Getting the best out of billion-dollar infrastructure assets*

Abstract

What are infrastructure assets (IAs)? How can they best be managed? How can IA policy, strategy, tactics, and operational execution ensure best commercial advantage through the entire life of the IA? These questions and others are addressed in this paper.

The way leaders direct IAs through their lifecycle is vital for optimising IA performance. This includes managing embedded cost in design and acquisition and applying appropriate business solutions through the productive (beneficial life) phases.

In a venture employing capital IAs, the design, engineering, procurement, and construction may cost millions of dollars over several years. The production, operational, or beneficial life phase could cost billions in operations, maintenance, and renewals over decades.

Being mindful of business imperatives, how can IA lifecycles be synergised to promote a seamless transition between phases? How can overall service delivery, safety, efficacy, risk, quality, volume, sustainability, longevity, and cost performance be optimally managed during each phase?

Different categories of IAs—fixed and movable—comprise different service lives, lifecycle cost distributions, risks, and physical and functional characteristics; therefore, tailored approaches to optimising performance are required.

Understanding the mix of infrastructure assets is important.

For example, it is important to understand:

1. dynamic-active-productive-point infrastructure—which usually contains moving components and generally consumes energy and is subject to wear and tear;

2. static-passive-linear infrastructure—which is usually structural in nature and may be buried or submersed;

3. instrumentation-control-automation equipment; and,

4. movable assets.

This understanding will guide the development of policy, strategy, and tactics to help ensure optimum operational performance of complex IAs.