Value-Focused Inland Waterway Infrastructure Investment Decisions

Abstract

Abstract The United States inland waterway transportation system is comprised of 12,000 miles of navigable waterways that connect and move freight between 38 states and the global supply chain. When investing in inland waterway infrastructure, engineering managers should aim to maximize all benefits associated with the investment, including flood protection, water supply, hydropower generation, recreation, and environmental impact benefits. In this article, we formulate an initial qualitative value model for inland waterway infrastructure investment decisions, based on a value-focused thinking approach that enables engineering managers to holistically evaluate project investment alternatives. For circumstances involving limited resources, a portfolio optimization model is formulated to maximize the total value associated with project investments, while considering budget and minimally acceptable benefit constraints. To demonstrate an application of our approach, we present a case study based on the McClellan Kerr Arkansas River Navigation System.