Evaluation of Private-Sector Asset Management Practices

Abstract

The focus of the transportation industry, in both the public and private sectors, has slowly been changing from construction and expansion to that of preservation, as a result of various factors. Private-sector industries have made strides in asset management that could be beneficial to the public sector. Private-sector asset management principles and concepts that would form an integral part of any asset management program employed by state transportation agencies and that are transferable to the public sector, especially state departments of transportation, are identified. An overview of best practices in asset management in the private sector is presented. Thus, lessons learned are identified based on a synthesis of case studies. The analysis has been done by carefully examining asset management practices of seven near-transportation private-sector companies. Included are case studies from two railroads, two airlines, two energy companies, and one railcar leasing company. The case studies highlight the need for communication, tools, and education as well as an information technology foundation from which asset management can be practiced effectively.