Cutting back on road spending may not be wise

In an article today, the Norwegian newspaper Dagbladet revealed that Statens Vegvesen (or the Norwegian Public Road Administration in English), which oversees the planning, construction and operation of the  national and county road networks, is going to make major cuts to their budget, thus halting or severely delaying major infrastructure projects.

To invest or not to invest

Although this may not have much impact and/or increase supply chain disruptions, it should be clear that improving roads standards is not just a traffic safety issue (which the article makes a big point of), but is also a major contributor towards reducing transportation costs and improving overall supply chain quality.

Transportation networks and roads in particular, are the main backbone of modern society, especially in Norway, which lacks the vast rail network that is seen in many European countries. Here, road transport IS the major component in moving goods and people from A to B. Both the sender, the recipient, the freight  hauler, or society at large, experience additional costs when goods or people cannot reach their destinations in time or in space, a fact often overlooked by the authorities in charge of building the infrastructure.



It should hence be paramount to increase, rather than cut back on road spending, and as already mentioned, this is not just a traffic safety issue, it is a simply a question of reliability, as one of my previous articles points out.

Simply cutting back on road spending in today’s transport-dependent society is not a good idea, and there are many reasons for that. I have mine.

Related

Posted in THIS and THAT
Tags: , , ,

ARTICLES and PAPERS
Supply Chain Flexibility in Strategic Networks
A supply chain as a virtual enterprise network. That is the underlying reasoning in the 2009 paper H[...]
Cry Wolf?
Resilience Adviser or Scaremonger? What am I really? That is what started to ask myself after I[...]
BOOKS and BOOK CHAPTERS
The Handbook of Business Continuity Management
As I said in my post yesterday, Supply Chain Risk Management (SCRM) has many similarities with Busin[...]
Risk and resilience in maritime logistics
This week's focus are risks in the maritime supply chain and today's paper sets out a framework for [...]
REPORTS and WHITEPAPERS
Stemming the rising tide
Are you are taking radically different actions than your peers when it comes to supply chain risk ma[...]
Analysing road vulnerability in Norway
How does the Norwegian Public Roads Administration NRPA assess the vulnerability of the Norwegian ro[...]