Deciding whether to maintain or rebuild an asset is a complicated process that requires detailed knowledge and analysis. Across Australia, the situation is complicated by a history of underspending on infrastructure maintenance. In 2020 there was a $1.7bn underspend on infrastructure federally, with individual states also failing to sufficiently invest.
The mounting backlog of work needed makes it much harder to make the right decisions. Should an existing asset be optimised, or is it time to replace it entirely? As infrastructure expert Marion Terrill puts it, "Clearing the maintenance backlog is a productivity opportunity neglected because politicians prefer to cut ribbons on major infrastructure initiatives".
This backlog also erodes the condition of existing assets, leading to higher costs for future maintenance as well as higher chances of critical failure.
Making the most of what you’ve got
Building new assets is a lengthy and difficult process. It’s expensive. It involves immense disruption with access issues for surrounding entities. ROI is very long-term. Existing assets still need to be maintained until new assets are ready to replace them.
As such, making the most of existing assets may be desirable. The State Infrastructure Plan (SIP) for Queensland notes that: "State infrastructure Plan (SIP) QLD - says that “Building or expanding existing infrastructure will not always be the best solution, so the SIP looks at ways to use infrastructure better, smarter and differently. If we can reuse, refit and share infrastructure, we can do more with less, be innovative and agile and better plan for disruption."
In New South Wales, the State Infrastructure Strategy 2018-2038 is also focusing on getting the basics right, not solely on new, big projects. It adopts a place-based approach to infrastructure planning and delivery, in which resilience, better asset management, partnerships and shared uses, innovative service delivery models and the impact of new technology all play key roles. Strategies include making more efficient use of existing and new assets, and deploying digital technologies to "optimise efficiency, reduce maintenance and manage peak demand while delivering essential infrastructure in the most cost-efficient way".
What have we learnt from COVID?
Travel bans, lockdowns and social distancing during the COVID-19 pandemic have prompted profound changes to patterns of infrastructure use. In a national study on the impacts of the pandemic on Australia, Infrastructure Australia identifies "a continued redistribution of existing demand, a mode or channel switch, or an acceleration of an existing longer term shift".
The urgency of the crisis meant that infrastructure had to be better utilised, as there was no time to build new infrastructure. Significant repurposing took place, with spaces adapted for other uses such as COVID testing facilities. Transport stations were cleaned more frequently. Service providers were given extra broadband capacity, with the NBN releasing latent capacity to address network congestion. Health infrastructure was repurposed to create 4,600 new ICU beds, representing a 291% increase in capacity. There was also a 23% increase in the use of national parks and green spaces nationally.
Why better infrastructure asset data is needed
Data is key to making this shift successfully. If we don’t know how an asset is used, where it sits within its lifecycle and what change there has been in its usage patterns, how can spare capacity or increased demand be identified, which may require more urgent attention? Data drives understanding of the investment needs of an asset. But this is an area where the public sector is worryingly lacking.
The Infrastructure Australia report identified that private sector data has generally "been more current, granular and insightful in revealing the real-time impacts of COVID-19 and the distribution of those impacts across the country".
In contrast, public and national datasets are often slow to be released, sometimes years after their reporting timeframe, making their information redundant and of little relevance or use for managing in a crisis. Public data needs to improve in order to drive better informed decisions and to enable swifter, more effective pivoting.
How uncertainty creates further risk
Uncertainty about the timing and shape of economic and health recovery risks deferral and indecision on critical infrastructure projects. If the right data isn’t available to inform strategic planning decisions, future needs may go unmet, with service and infrastructure capacity not available when required.
Maintaining a long-term investment generally delivers better value. But the optimal strategy for all assets can only be derived from good data. If a decision is taken to build a new asset, the future maintenance needs for its subsequent lifecycle also needs to be understood, for it to be fit-for-purpose.
This is where AssetFuture’s technology can play a key role. By creating an Asset Intelligence Strategy, and capturing the right data through innovative, mobile technology, it’s easier to make the right decisions and navigate from a current position to a desired state. Good asset data enables you to set up asset performance parameters (key levers in managing cost, risk and performance), forecast lifecycle costs, identify risks and plan alternative scenarios, and measure risk exposure. All of which is vital in the volatile and uncertain times we are all living through.