A better road to the future for efficiency – improving performance

Report by IRF Global & McKinsey identifies pathways to efficiency gain A report released jointly by the International Road Federation and McKinsey & Company will help transport decision-makers and international financial institutions identify and leverage efficiency gains in road project design and delivery. This will potentially save billions of dollars each year. The report, titled “A better road to the future,” illustrates the complexity of the challenge in designing and delivering road infrastructu
September 10, 2018 Read time: 2 mins
Report by the Washington-based 8738 IRF Global & McKinsey identifies pathways to efficiency gain


A report released jointly by the International Road Federation and 7505 McKinsey & Company will help transport decision-makers and international financial institutions identify and leverage efficiency gains in road project design and delivery. This will potentially save billions of dollars each year.

The report, titled “A better road to the future,” illustrates the complexity of the challenge in designing and delivering road infrastructure. The diagnostic approach to assess the performance of road infrastructure delivery systems outlined in this report illustrates that each country could build an improvement journey based on its individual starting point.

Research shows that road-sector investment needs to be approximately US$900 billion/year to keep pace with projected growth - currently, it falls short by $180 billion/year. Additionally, experience shows that to improve a country’s road network significantly and sustainably, the whole delivery system must be taken into consideration. It is not enough simply to increase funding.

A study of more than 20 road infrastructure delivery systems across the world enabled the project partners to identify a number of root causes and potential improvements. Many road infrastructure tenders receive too few bids and there are often significant cost variations. There is a lack of value assurance processes and there are significant challenges to scaling innovation.

The report focuses on what can be done to enhance the whole delivery system, ensuring that the spend results in the best possible road network – defined as the road network that best fulfills the transportation needs of the economy.

Commenting on the report, IRF president & CEO C Patrick Sankey noted “many authoritative studies have underscored the growing gap between investment needs on the one hand, and the combined spending on road construction and upkeep on the other. Less attention has been paid to the policies and mechanisms required to stretch available funds through better project selection, efficient procurement strategies, and effective delivery practices. Thanks to this collaboration between the IRF and McKinsey, transportation decision-makers now have a new comparative study on the cost-effectiveness of productivity-enhancing practices.”

For more information on companies in this article

Related Content

  • IRF launches global road diagnostic initiative
    March 8, 2016
    Transportation decision-makers will soon benefit from a new comparative study on the cost-effectiveness of road programme delivery. This will be thanks to the launch of a global benchmarking initiative by the International Road Federation using a methodology developed by McKinsey & Co. Globally, US$1.4 trillion is invested every year on transportation assets — including $700 billion for roads - as the world’s economies develop and respond to emerging mobility patterns. Delivering these road programmes
    Read More
  • The industry’s most trusted brand in continuing education
    September 4, 2019
    With the release of an update catalogue of training and credential programmes available to road professionals worldwide, IRF has affirmed its role at the road industry’s most trusted brand in continuing education. For 70 years, an essential part of IRF’s mission has been the organisation and delivery of continuing education services that help strengthen human skills and contribute to the dissemination of knowledge and field expertise. Today, IRF’s curriculum of 40 certified courses provides technica
    Read More
  • Highway Procurement: IRF Steps up to the plate to leverage long term value
    May 15, 2019
    Public procurement can be leveraged to deliver long-term value for money, and promote innovation and sustainability, according to a new White Paper published by the International Road Federation in consultation with key international specialists. “When procurement guidelines are not enforced with a high degree of professionalism, there is a much higher risk of sub-optimal delivery,” noted Eric Cook, co-chair of the IRF Committee on Alternative Financing & Procurement, who convened the stakeholders for a h
    Read More
  • Transport corridors to help deliver shared prosperity
    September 28, 2018
    Leading actors set the stage at the European Road Conference, October 22nd -24th in Dubrovnik, Croatia South East Europe is at an important crossroads in the development of its transport connectivity programs, securing a critical role as a gateway for international trade routes. At a time of growing motorisation, the region’s network of roads and highways is currently its largest public asset. However, significant challenges remain to enhance the safety, efficiency, environmental sustainability and re
    Read More

Highlighted Content