Improving the capital deployment efficiency: An infrastructure investment planning process in transportation project

Abstract

Transport infrastructure investments constitute 31% of the world's capital investments. However, there is a significant gap between the demand for large-scale transport infrastructure and investments in such infrastructure. An investigation into the causes of the above gap brings to light the inefficiencies of the current capital deployment practices throughout the project life cycle that result in additional expenditure over the optimal investments. This paper aims to review the existing body of knowledge on capital deployment efficiencies of large-scale transport infrastructure investments. The review looks into the causes of inefficiencies and practices applied for efficiency enhancement. Pareto analysis is used to prioritise the causes, and a cause and effect diagram is drawn to identify the root causes for inefficiencies. Finally, practices applied in different stages of the project life cycle are discussed. Based on these findings, a decision support outline is suggested to enhance the efficiency of each identified cause. The findings of this study provide an important foundation to set up a strategic approach to improve capital deployment efficiency of large-scale transport infrastructure investments. Accordingly, a strategic approach is proposed in policy, organisation, and project level activities to improve the capital deployment efficiency of large-scale transportation infrastructure investments in developing countries. Existing studies primarily focus on the technological advancements, without focusing on healthier governance practices. Therefore, it is essential to address the technical advancement and better governance practices to get the best value for investments. Further research is suggested on the application of a strategic approach in different types of projects.