Asset Management and Its Importance to the Transportation Sector

The Definition of Asset Management

In order to fully understand the rest of the discussion in this paper, one must first understand what asset management really is. Depending on the source that is asked the question, there are several different definitions of asset management. Several will be presented here for consideration. Asset management has been defined by some as "A systematic process of maintaining, upgrading, and operating physical assets cost- effectively. It combines engineering principles with sound business practices and economic theory, and it provides tools to facilitate a more organized, logical approach to decision-making" (Hamilton, 2001, p.2).

However, there are more specific ways to define asset management as well. The focus of this paper is on asset management in transportation, and The Federal Highway Administration Office of Asset Management defines asset management as: "A business process and decision-making framework that...
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