Methodological development of strategy analysis for a nationwide road network: Option evaluation systems with dynamic sectioning

186.46 38.50 341.30 
3 116.34 117.40 107.56 341.30 500% 
341.30 
 4 116.34 117.40 45.77 279.51 5121.400 428.660 62.190 5612.250 5612.239 0.00 
1 140.32 82.41 50.31 273.04 
2 116.34 118.20 38.50 273.04 400% 
273.04 
 3 116.34 117.40 39.30 273.04 5121.400 428.660 61.920 5611.980 5612.140 0.00 
300% 204.78 1 109.14 60.69 34.95 204.78 5118.290 423.840 61.820 5603.950 5608.652 0.08 
200% 136.52 1 77.95 38.97 19.60 136.52 5115.810 413.750 61.330 5590.890 5597.726 0.12 
175% 119.46 1 70.16 33.54 15.76 119.46 5107.260 425.830 60.450 5593.540 5588.517 -0.09 
150% 102.39 1 62.36 28.11 11.92 102.39 5092.520 406.690 59.300 5558.510 5579.002 0.37 
125% 85.33 1 54.57 22.68 8.08 85.33 5073.130 401.700 55.000 5529.830 5557.688 0.50 
100% 68.26 1 46.77 17.24 4.25 68.26 4995.710 379.470 32.780 5407.960 5500.331 1.68 
75% 51.20 1 38.97 11.82 0.41 51.20 4884.990 336.030 2.500 5223.520 5353.738 2.43 
1 31.18 6.38 -3.43 34.13 
50% 
34.13 2 29.15 4.98 0.00 34.13 4545.260 198.720 0 4743.980 4965.352 4.46 
 AHMED/EBMc) HDM-4d) 
a)A0 is calculated as A0 = B0/T, where B0 is the total budget over T-year analysis period under unconstrained mode. b)“Diff.” is calculated as 
%100
)(
)()(
x
NetworkNPV
networkSubNPVNetworkNPV i∑ −− . c) AHMED is a “heuristic” optimization method used in EBM. d)HDM-4 uses a “heuristic” 
optimization method called NPV/Cost method when the number of road sections is larger than 400, which is the case with the present case 
study. 
. 
5.00
5.50
6.00
6.50
20
08
20
10
20
12
20
14
20
16
Time (year)
A
ve
ra
ge
 IR
I (
m
/k
m
)
The nationwide network
Integrated sub-networks
Figure 5. Comparison of annual capital 
expenditures between the nationwide network 
and integrated sub-networks (A = 125%A0)
Figure 6. Comparison of network average 
IRI’s between the nationwide network and 
integrated sub-networks (A = 125%A0) 
84.00
84.50
85.00
85.50
86.00
20
08
20
10
20
12
20
14
20
16
Time (year)
A
nn
ua
l E
xp
en
di
tu
re
 ($
 m
il
The whole nationwide network
Integrated sub-networks
Journal of the Eastern Asia Society for Transportation Studies, Vol.7, 2009 
 15
4. ANALYSIS RESULTS 
The road network was grouped in three sub-networks based on traffic loadings (i.e., high/very 
high, medium, and low traffic sub-networks). The HDM-4/EBM model is used as an OES for 
carrying out the SDS for these sub-networks. A twenty-year analysis period and a 12% social 
discount rate are used in the case study. The planning period is ten years. The NPV functions 
constructed for these sub-networks are shown in Table 11. It was found that the proposed 
specification of NPV function is reasonable in the modified NPVF as shown by the very high 
R-square values. Table 11 also shows the feasibility range of annual budget for each sub-
network. The upper bounds of these ranges were found by running the HDM-4/EBM in the 
unconstrained budget mode and using Eq. (3). Table 12 shows the results of the optimal 
budget allocation over these sub-networks for different nationwide budgets. Most budget 
levels required two to three iterations until all feasibility requirements were satisfied. To 
evaluate the accuracy of the NPVF modified for the uniform annual budget distribution, the 
HDM-4 with the incremental NPV/Cost method was run separately using the entire road 
network with the same nationwide budgets. The last column in Table 12 shows that the sum 
of the NPVs of three sub-networks under optimal budget allocations are very close to those 
obtained by running the whole network, indicating a very high accuracy of the modified 
NPVF. 
Figures 4 and 5 present comparisons for annual capital expenditures and average network 
conditions (for the case with the total budget A equals to 125%A0) between the analyses with 
the whole network and the integrated sub-networks applying the modified NPVF. These 
results are very similar and imply that the budget allocation methodology proposed is feasible 
and applicable when considering the case of uniform annual budget distribution over the 
planning period. 
5. CONCLUSIONS 
The paper has presented a comprehensive procedure to carry out the strategy analysis using 
OESs with dynamic sectioning (SDS ) for a nationwide road network including the sound 
trade-off analysis of all road sub-networks. Generation of appropriate maintenance 
alternatives for the use of SDS was presented in a systematic manner along with the 
application of GSOE. The NPVF approach has been expanded to more general applications 
when considering uniform distribution of annual budgets over the planning period. The 
procedure can be used as a guideline to assist a road agency when conducting the strategy 
analysis, or program analysis, of a nationwide road network using OESs to prepare 
expenditures of the entire network or sub-networks under various budget policies and 
economic scenarios. 
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