A systematic approach to reduce operation and maintenance costs of private highway projects in Malaysia

Abstract

A systematic approach in managing operation and maintenance costs of private highways is crucial to obtain sustainable long-term profit of private highways development in Malaysia. Operating and maintenance costs in road projects are a real challenge and form an significant part of the total cost of road growth. This paper is start with examining the process of private highway developments in Malaysia includes all associated funding received from Government of Malaysia since 1982. Cost data from twenty-nine private highway projects are collated and analyzed. The outcome of the research shows that majority of the highways were built with no systematic approach to managing operating and maintenance costs during the concession period agreement. A literature analysis identified five main components and twenty-two elements are contributed to the escalating of operation and maintenance costs. This paper uses a qualitative approach by analyzing secondary data from various industrial report to provide systematic breakdown of highway assets to develop a sustainable cost model. This study has clearly demonstrated the need to develop a sustainable cost model for the management of operations and maintenance of private highways in Malaysia.