Ensuring an Appropriate Level of Expressway Management by Using Outcome Indicators. Katsuhiko NAKAMURA
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1 Ensuring an Appropriate Level of Expressway Management by Using Outcome Indicators Role of JEHDRA after Privatization of Highway Public Corporations in Japan 29 September 2011 XXIV th World Road Congress Mexico 2011 Katsuhiko NAKAMURA JEHDRA (Japan Expressway Holding and Debt Repayment Agency) JEHDRA 1
2 OVERVIEW 1. Road Classes and Length 2. Privatisation of Expressway Corporation (2005) 3. Introduction of Outcome Indicators 4. Outcome Indicators for Expressways 5. Issues 6. Conclusion 2
3 1. Road Classes and Length in Japan Road Classes National Expressways National Highways National Highways Prefectural Roads Municipal Roads Road Administrators (Highway Authorities) Six Expressway Companies* on behalf of the Government (MLIT) Government (MLIT) Length (roughly) %of total length % of total Vehicle km 7,400km 0.6% 9% 22,400km 1.9% 19% Prefectures 32,000km 2.7% 13% Prefectures 129,300km 10.8% 33% Local Governments 1,006,000km 84.1% 27% note Mostly tolled Partially tolled Partially tolled Total 1,197,000km 100.0% 100% 3
4 2. PRIVATISATION OF EXPRESSWAY CORPORATIONS (2005) 2-1. Privatisation of Expressway Corporations 3 Purposes To ensure repaying the interest-bearing t i debts of 40trillion yen To expedite construction of necessary roads with minimum cost while respecting companies own decisions To provide various and flexible toll rates and services utilizing know-how of private companies USD 500b Japan Highway Public Corporation Metropolitan Expressway Public Corporation Hanshin Expressway Public Corporation Honshu-Shikoku Bridge Authority 6 Companies: Construction and management of expressways, including collection of tolls East Nippon Expressway Co., Ltd. Central Nippon Expressway Co., Ltd West Nippon Expressway Co., Ltd Metropolitan Expressway Co., Ltd Hanshin Expressway Co., Ltd Honshu-Shikoku Bridge Expressway Co., Ltd The Agency (JEHDRA): Holding of expressways and repayment of debts Japan Expressway Holding and Debt Repayment Agency (JEHDRA) 4 4
5 2. PRIVATISATION OF EXPRESSWAY CORPORATIONS 2-2. Expressway Network in Japan 5
6 2. PRIVATISATION OF EXPRESSWAY CORPORATIONS 2-3. Expressway Business Framework JEHDRA (Secure repayment of debts within 45 years) Holding of expwys Repayment of debts (inherited debts and acquired debts) Transfer of Expwy assets and acceptance of debts Leasing of Expwy assets Payment of lease fees Agreements 6 Companies (Efficient implementation of business activities) Expwy construction ti Funds Expwy management Toll collection raised Approval by the Minister of Land, Infrastructure, and Transport and Tourism Approval by the Minister of Land, Infrastructure, and Transport and Tourism This framework is specified in legislation. 6
7 3. INTRODUCTION OF OUTCOME INDICATORS 3-1. BACKGROUND OF INTRODUCTION Around 2003, there were critics about public spending especially for road investment. t In 2003 MLIT # (government) introduced new road administration management (performance management of road administration) to the road sector to meet the public needs against road administration. - to expressways as well #MLIT = Ministry of Land, Infrastructure, Transport and Tourism 7
8 3. INTRODUCTION OF OUTCOME INDICATORS 3-2. Purposes Purposes: To establish a framework to distribute limited resources to appropriate places and objects To raise staff consciousness for change so that t they can contribute to efficient operations. To enhance transparency of the road business To rebuild relationships between road users and governments. 8
9 3. INTRODUCTION OF OUTCOME INDICATORS 3-3. Road Administration Management (4) Reflection in budget & personnel system (1) Target setting & Clarification of process Plan Citizen Report (3) Achievement of measurement & evaluation Participation (2) Implementation of performance-oriented measures/operations Administration Management System Ensuring administrative transparency Ensuring administrative efficiency 9
10 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-1. Outcome Indicators and the Agreements SIX COMPANIES NEXCO EAST NEXCO CENTRAL NEXCO WEST METRO POLITAN EXPWAY HONSHU HANSHIN SHIKOKU EXPWAY BRIDGE REPORT REPORT REPORT REPORT REPORT REPORT with indicators with indicators JEHDRA with indicators with indicators Picks up indicators Summarises as a table with indicators with indicators Based on the AGREEMENTS (Once every year) Open to Public 10
11 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-2. Grouping of Seven Outcome Indicators Comfort Safety Rate of Good Road Structure Conditions Rate of ETC (Pavement) Rate of fanti-seismic i i Payment Reinforced Bridges Total Customer Satisfaction Travel Time Lost Due to Congestion Rate of Traffic Accidents Roadwork Time Punctuality 11
12 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-3. [Outcome 1]: Time Lost Due to Congestion 12
13 4. OUTCOME INDICATORS FOR EXPRESSWAYS Example of Improving Outcome Indicator (congestion) Mitigating Congestion in a Sag Section by Temporary Signboards End 13
14 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-5. [Outcome 2] Roadwork Time 14
15 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-6. [Outcome 3] Rate of ETC Usage (Electronic Toll Collection System) 15
16 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-7 [Outcome 4] Rate of Fatal and Injurious Accidents 16
17 4. OUTCOME INDICATORS FOR EXPRESSWAYS Examples Of Improving Outcome Indicator (safety) Old type pavement High Performance Pavement High-Performance Pavement Safety Devices in a Sharp- Curve Section 17
18 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-9 [Outcome 5] Rate of Road Structure Maintenance (pavement) 18
19 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-10 [Outcome 6] Rate of completion of bridge reinforcement Reinforcement almost completion by 2011 Reinforcing rod Concrete 19
20 4. OUTCOME INDICATORS FOR EXPRESSWAYS 4-11 [Outcome 7] Degree of Overall Customer Satisfaction Changes in the Degree of overall customer satisfaction 20
21 5. ISSUES 1. Definitions of indicators are different among companies - regional characteristics, - management policies, and - continuity from the past. Standardisation of Indicators 2. Seven indicators are not enough to evaluate all of expressway businesses Additional Indicators 21
22 6. CONCLUSIONS JEHDRA puts together outcome indicators set by expressway companies and discloses them. Comparing outcome indicators over years and among companies helps improve performances with the PDCA system. Publication of outcome indicators helps to rebuild relationships between users and highway authorities Outcome indicators change the consciousness of staff, which enables to ensure the appropriate level of expressway management. As the seven outcome indicators are not absolute, they need to be reviewed ed occasionally. 22
23 Thank You For Listening Questions? JEHDRA Brochure with outcome indicators (pdf): 23
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