Service Performance Indicators for Infrastructure Investment

© 2014 Arup and The CIE

Presented by Dr Richard Sharp

Authors:

Richard Sharp - Principal, Arup Pty Ltd

Phil Manners - Director, The Centre for International Economics

Brenna Moore - Economist, The Centre for International Economics

Dean Rodrigues - Consultant, Arup Pty Ltd

Service Performance Indicators for Infrastructure Investment

© 2014 Arup and The CIE 3

The Problem – urbanisation, high investment but a large infrastructure “deficit”

Source: Department of Infrastructure, Transport and Regional Economics,

Australian Infrastructure Statistics Yearbook 2013


Its importance – prioritising scarce investment

Source: Engineers Australia, Analysing Australia’s Infrastructure Trends, 2013.

Note: ‘Work commenced’ refers to existing projects where work is ongoing, whereas ‘work yet to be completed’

refers to new projects about to commence


Previous approaches – scorecards and ratings –challenges


A different focus - outcomes


Cross-sector approach and categorisation

Electricity

ENERGY WATER

Potable

COMMUNICATIONS

Data Voice

Freight Commuter

TRANSPORT

Rail Road

Source: Arup and the CIE


Focus on end user

• reliability: the ability of the infrastructure to meet normal or current demand

• stability: the consistency of the infrastructure service provided

• safety: the safeness of the infrastructure for those who use it

• resilience: the ability of the infrastructure to respond in the event of unusual demand

For example….

• reliability: interruptions to water or electricity supply, proportion of trains running on time,

road congestion in response to normal traffic demand

• stability: drops in water pressure, surges in electricity

• safety: compliance with drinking water standards, frequency of road accidents

• resilience: road congestion in response to an unusual event, internet download speeds


Clear terminology, simple framework

‘performance metric’?

‘benchmark’?

‘performance indicators’


‘SMART’ indicators (adapted from Drucker and others)

• specific: unambiguous, and a direct measure of performance that cannot be confounded by other factors

• measurable: a quantitative (not qualitative) measure of performance, that is ideally already collected (and public)

• attributable: measures performance that is, ideally, directly attributable to the specific infrastructure network

• results-oriented: measures infrastructure outcomes, not inputs or outputs

• trackable: can be expected to change over time as performance improves or worsens.


Sectors and previous studies

• Bureau of Industry Economics (Australia), International Benchmarking Overview (1995)

• US Chamber of Commerce, Transportation Performance Index (2010)

• OECD, Options for Benchmarking Infrastructure Performance (2012)

• New Zealand Treasury, Infrastructure Performance Indicator Framework Development (2013)



Water Supply – What’s important (to end users) ?

• quality of water supply — that it is clean and drinkable

• reliability of water supply — water ‘always comes out of the tap’ without

interruption

• communications between water businesses and their customers —bills that are

easy to understand and pay

• usage patterns — for households to benchmark their own personal water

saving/usage performance

• price trends — how a household’s water bill compares with those of other

households of similar composition or in the area

• customer service — that is responsive to needs, and

• water business spend and investment — including investment in

environmental conservation and sustainable water use.


Water Supply – Recommended Indicators

Outcomes area Indicator

SafetyIncidences of non-compliance with State/Territory legislation on drinking water quality per

1 000 properties

Reliability Number of unplanned interruptions per 1 000 properties

Reliability Average duration of unplanned interruptions

Resilience Indicator on water security — not currently publicly reported



Energy and Communications


Reliability Frequency of supply interruptions (SAIFI)

Reliability Duration of unplanned supply interruptions (SAIDI)

StabilityIndicator for electricity supply quality based on aggregate score from frequency of voltage

fluctuations, waveform distortions and voltage unbalances



Energy

Communications


Roads


Reliability Variability of travel times (for a given time of day)

Reliability Congestion indicator (delay compared to free flow traffic)

Stability

Travel comfort indicator (Based on aggregated score from: Ride Comfort (RCI),

Surface distress (SDI), Structural adequacy (SAI), Pavement condition (PCI),

Roughness (IRI) and Pavement quality (PQI))

Safety Fatality/serious casualty crashes per vehicle kilometre travelled


Rail – Freight and Commuter

Outcomes area Performance indicator (Freight Rail)

Reliability Actual travel speed

Reliability Measure of travel delays incurred (minutes per tonne transported)

Stability Track Quality Index

Resilience Dwell time (as a percentage of scheduled intermodal transit time)


Outcomes area Performance indicator (Commuter Rail)

ReliabilityPercentage of timetabled services that actually run — ideally, could use

percentage of scheduled kilometres operated

ReliabilityTrains on time as percentage of scheduled trains (peak and off-peak) —

ideally, could use passenger hours lost due to delay

Reliability Average train speed (not currently reported publicly)

Safety Fatalities and serious personal injuries per million km travelled

Resilience Train loading — ideally, could use passenger hours spent standing



Overall picture and gaps

Safety Reliability Stability Resilience

Water Incidences of non-compliant

drinking water quality per 1 000

properties

Unplanned interruptions per 1 000

properties

Average duration of unplanned

interruptions

Indicator on water security — not

currently publicly reported

Energy Frequency of supply interruptions

(SAIFI)

Duration of unplanned supply

interruptions (SAIDI)

Indicator based on aggregate score

from frequency of voltage

fluctuations, waveform distortions

and voltage unbalances

Communications Fixed line – Percentage of Customer

Service Guarantee (CSG) fault free

during the month

Internet – Percentage of Distribution

Areas in different broadband quality

profiles.

Internet – Indicator on internet

stability e.g. jitter or package loss

(see Box 1) – not currently publicly

reported

Internet – Indicator on average

speeds and peak vs off-peak speeds

– not currently publicly reported;

ideally move to measure of degraded

minutes

Roads Fatality/serious casualty crashes

per vehicle kilometre travelled

Variability of travel times (for a

given time of day)

Congestion indicator (delay

compared to free flow traffic)

Travel comfort indicator based on

Ride Comfort, Surface distress ,

Structural adequacy, Pavement

condition , Roughness and

Pavement quality

Rail (Freight) Fatalities and serious personal

injuries per million kilometres

travelled

Actual travel speed

Travel delays incurred (minutes per

tonne transported)

Track Quality Index Dwell time (as percentage of

scheduled intermodal transit time)

Rail (Commuter) Fatalities and serious personal

injuries per million kilometres

travelled

Percentage of timetabled services that

actually run — % of scheduled

kilometres operated?

Trains on time as percentage of

scheduled trains (peak and off-peak)

— ideally, could use passenger hours

lost due to delay

Average train speed (not currently

reported publicly)

Train loading — ideally, could use

passenger hours spent standing


Actual performance against indicators?

Safety Reliability Stability Resilience

Water Reported at State level National Water

Commission National

Performance Report

NO INDICATOR? INDICATOR PROPOSED

BUT NO DATA?

Energy NO INDICATOR? Network Service Provider

Performance Reports

Network Service

Provider reports

NO INDICATOR?

(Capacity v peak demand?)

Communications NO INDICATOR? ACMA Communications

Report

Dept of Communications

Broadband Availability and

Quality Report

Dept of Communications

Broadband Availability

and Quality Report

INDICATOR PROPOSED

BUT NO DATA?

Roads Reported at State level Reported at State level Austroads reports

Roughness Index

NO INDICATOR?

(Impact of loss of key link?)

Rail (Freight) Reported in aggregate

across freight and commuterARA and BITRE report

average speed by major

corridor

TrainLine reports, but

variable basis

ARA and BITRE report

dwell time by major

corridor

Rail (Commuter) Reported in aggregate

across freight and

commuter

States report % actual

running for Metro areas

only

States report on-time

running for Metro areas, but

basis is variable

NO INDICATOR? INDICATOR PROPOSED

BUT NO DATA?


Valuing performance and prioritising

Performance

Indicators (this study)

Benchmarks

Cost of

underperformance (“willingness to pay”)

Prioritisation

Actual

performance (by jurisdiction

and sector)

Shortfalls(needs &

opportunities)


Visualisation Tools


Next Steps

What now? Why?

CorrelationIdentify existing data at ‘network segment’ level

across jurisdictions & sectors

ConsultationFor shared commitment, agreed optimum set of

indicators, and access to data

Cost of under-performance Monetary valuation across sectors

VisualisationOf relative performance at sufficiently granular

level

Prioritisation frameworkTo address relative under-performance where most

valued by end users


For further information contact……..

Dr Richard Sharp

Principal

Arup Pty Ltd

Bus: +61 2 9320 9575

Mobile: +61 414 385 541

E-mail: [email protected]

Phil Manners

Director

The Centre for International Economics

Bus: +61 2 9250 0800

Mobile: +61 439 482 728

E-mail: [email protected]

mailto:[email protected]

mailto:[email protected]

Government & Nonprofit

Service Performance Indicators for Infrastructure Investment