This report examines current practices by state road agencies in Australia and by Transit New Zealand in valuation of road infrastructure assets. Areas of consistency and inconsistency are identified. The report focuses on the potential for infrastructure valuation to assist road agencies in formulating asset management strategies which will meet the needs of road users while minimising the long term costs of providing and maintaining the road networks. Valuation information is described from an asset management perspective, complementing the traditional accounting perspective on capitalisation. The potential benefits to a road agency from both the valuation process and the resulting information are articulated. Further study is necessary of the relative potential for condition based and age based depreciation of road pavement assets to be an effective input to road asset management decisions. A number of other directions for future action are identified for consideration as part of the intended Austroads review of valuation methods for road infrastructure elements. (Author/publisher)
Abstract