Impacts of pavement deterioration and maintenance cost on Pareto-efficient contracts for highway franchising

In a build-operate-transfer (BOT) highway project, pavement roughness progression generally has a direct impact on the highway maintenance cost and user costs. Given two common rehabilitation strategies, this study respectively investigates the optimally designed highway capacity and tolls of multi-type vehicles in Pareto-efficient contracts. Under supplementary conditions, it proves that the optimal toll revenue could fully cover the highway construction and maintenance cost in these contracts, no matter with or without the regulated traffic composition. Further extensions are made to evaluate and identify properties of the highway v/c ratio, rehabilitation period or critical roughness under the two rehabilitation strategies, respectively.

[1]  A. Spence.  Monopoly, Quality, and Regulation , 1975 .

[2]  H. Mohring,et al.  Highway Benefits: An Analytical Framework , 2012 .

[3]  E. J. Yoder.  Principles of Pavement Design , 1959 .

[4]  C. Winston,et al.  Road Work: A New Highway Pricing and Investment Policy , 1989 .

[5]  Kenneth A. Small,et al.  Optimal Peak-Load Pricing, Investment, and Service Levels on Urban Expressways , 1977, Journal of Political Economy.

[6]  Xiaolei Guo,et al.  Profit maximization by a private toll road with cars and trucks , 2016 .

[7]  Qiang Meng,et al.  Analysis of optimal BOT highway capacity and economic toll adjustment provisions under traffic demand uncertainty , 2017 .

[8]  Zhaoyang Lu,et al.  Quantitative analyses of highway franchising under build-operate-transfer scheme: Critical review and future research directions , 2017 .

[9]  Arthur M. Geoffrion,et al.  Solving Bicriterion Mathematical Programs , 1967, Oper. Res..

[10]  Hai Yang,et al.  Build-operate-transfer Schemes for Road Franchising with Road Deterioration and Maintenance Effects , 2009 .

[11]  Samer Madanat,et al.  Joint optimization of pavement design, resurfacing and maintenance strategies with history-dependent deterioration models , 2014 .

[12]  Jie Zhang,et al.  Price, Capacity and Concession Period Decisions of Pareto-Efficient BOT Contracts with Demand Uncertainty. , 2013 .

[13]  Michael J Markow,et al.  OPTIMAL REHABILITATION FREQUENCIES FOR HIGHWAY PAVEMENTS , 1985 .

[14]  David Watling,et al.  Modelling planner-carrier interactions in road freight transport: Optimisation of road maintenance costs via overloading control , 2013 .

[15]  Hai Yang,et al.  The Impact of User Heterogeneity on Road Franchising , 2012 .

[16]  Hai Yang,et al.  Analysis of a Build–Operate–Transfer Scheme for Road Franchising , 2009 .

[17]  Joseph L. Schofer,et al.  Trend curve optimal control model for highway pavement maintenance: Case study and evaluation , 1994 .

[18]  Hai Yang,et al.  HIGHWAY PRICING AND CAPACITY CHOICE IN A ROAD NETWORK UNDER A BUILD-OPERATE-TRANSFER SCHEME , 2000 .

[19]  Ashok M. Dhareshwar,et al.  Vehicle Speeds and Operating Costs: Models for Road Planning and Management , 1988 .

[20]  Hai Yang,et al.  User heterogeneity and bi-criteria system optimum , 2009 .

[21]  André de Palma,et al.  Maintenance, Service Quality and Congestion Pricing with Competing Roads , 2007 .

[22]  Zhaoyang Lu,et al.  Estimating link travel time functions for heterogeneous traffic flows on freeways , 2016 .

[23]  Yanfeng Ouyang,et al.  Joint Optimization of Pavement Maintenance and Resurfacing Planning , 2012 .

[24]  William D. O. Paterson.  Road Deterioration and Maintenance Effects: Models for Planning and Management , 1988 .

[25]  José Holguín-Veras,et al.  Optimal tolls for multi-class traffic: Analytical formulations and policy implications , 2009 .

[26]  D. Newbery,et al.  ROAD DAMAGE EXTERNALITIES AND ROAD USER CHARGES , 1988 .

[27]  Zhi-Chun Li,et al.  Pavement rehabilitation scheduling and toll pricing under different regulatory regimes , 2014, Ann. Oper. Res..

[28]  Yafeng Yin,et al.  Estimating investment requirement for maintaining and improving highway systems , 2008 .

[29]  Samer Madanat,et al.  A steady-state solution for the optimal pavement resurfacing problem , 2002 .

[30]  D. Newbery,et al.  Cost Recovery from Optimally Designed Roads , 1989 .

[31]  Tien Fang Fwa,et al.  PAVEMENT PERFORMANCE AND LIFE-CYCLE COST ANALYSIS , 1991 .

[32]  Y. Ouyang,et al.  Optimal scheduling of rehabilitation activities for multiple pavement facilities: exact and approximate solutions , 2004 .

[33]  Mohammad Mamunur Rashid,et al.  Trend Curve Optimal Control Model for Optimizing Pavement Maintenance Strategies Consisting of Various Treatments , 2012, Comput. Aided Civ. Infrastructure Eng..

[34]  Hai Yang,et al.  Competition and efficiency of private toll roads , 2007 .

[35]  José Holguín-Veras,et al.  A comparative analysis of US toll policy , 2006 .

[36]  T. Friesz,et al.  A model of optimal transport maintenance with demand responsiveness , 1979 .

[37]  Tien Fang Fwa,et al.  The Handbook of Highway Engineering , 2005 .

[38]  Erik T. Verhoef,et al.  Self-Financing Roads , 2009 .

[39]  Kaisa Miettinen,et al.  Nonlinear multiobjective optimization , 1998, International series in operations research and management science.

[40]  Erik T. Verhoef,et al.  Second-best road pricing through highway franchising☆ , 2007 .

[41]  Yafeng Yin,et al.  Optimal selection of build–operate-transfer projects on transportation networks , 2011 .

[42]  Hai Yang,et al.  Properties of Pareto-efficient contracts and regulations for road franchising , 2010 .