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

  • New Roadmap Shows Industry and Agencies How to Decarbonize Asphalt Pavements
    August 14, 2024

    In a detailed follow-up to its 2022 GHG Emissions Inventory for Asphalt Mix Production in the United States (SIP 106), the National Asphalt Pavement Association (NAPA) is providing a comprehensive roadmap for reducing greenhouse gas (GHG) emissions associated with asphalt pavements.  

    Read More
  • Road safety: time for results on reducing crashes
    May 8, 2019
    The World Health Organization’s 2018 Global Road Safety Status Report – the definitive international road safety performance benchmark – paints an alarming picture, just two years from the United Nations’ target to cut fatal traffic injuries by 2020, and confirms that road fatalities represent one of the worst public health epidemics in history. “Think about it. In the Plague of Justinian in 541 and 542 AD, approximately 100,000,000 people died, making this event recognised as the worst epidemic in hist
    Read More
  • 16th IRF World Meeting
    February 14, 2012
    International Road Community Rises to the Challenge of Safe, Smart and Sustainable Mobility. Songs are like roads - highways to the heart - opening new vistas, new challenges and new opportunities." Singer, Mafalda Arnault's words during a splendidly moving opening ceremony were an apt introduction to the spirit and achievements of what proved a highly successful 16th IRF World Meeting in Lisbon. A capacity audience clapping in unison to the soulful sounds of Fado was symbolic of an industry showing it can
    Read More
  • Transport under the spotlight
    February 13, 2012
    A round-up of some of the major transport-related meetings that have been held in Europe. Compiled by Patrick Smith. Europe has hosted a number of annual events over the last few weeks, where important matters of transport were discussed, reports produced, and decisions taken. ASECAP (the European Association of Tolled Motorways, Bridges and Tunnels Infrastructures Operators); International Transport Forum (ITF); Arena (TRA); International Road Federation (IRF), and the European Construction Industry Federa
    Read More

Highlighted Content