04 Feb 2019
Population growth and rapid urbanisation, combined with the rise of the digital economy, has changed our patterns of work and play, while advances in data gathering and analytics has made ‘mass personalisation’ a reality.
This has significant implications for the provision of infrastructure, utilities and services like public transport. Significantly, it is now possible to integrate digital information into physical operations – for example by using mobile apps and live data feeds to provide personalised services.
Demand for public transport is growing – and changing
Overall demand for public transport is growing as urban populations expand. For example, Infrastructure Australia has predicted that in Melbourne, daily trips on public transport will more than double from 2018 to 2030, while by 2031 containerised freight will grow some 165% from 2015 levels.
But this isn’t the whole story. Set against this population growth are digital trends that are changing the way populations work and move. These include telecommuting, working from home, teleconferencing, virtual teams, telepresence and more. These technologies and enablers allow workers to connect, communicate and collaborate without being physically together at an office or other location.
Further, the growth of ecommerce and the digital economy, including services like media streaming and a massive expansion of online shopping services, means that working and commuting patterns are changing.
Finally, the emergence of ride-sharing, bike-sharing and other similar transport apps and services is also impacting the way we work, live and travel. Yet rather than reducing the demands on public transport systems, use of such services in fact makes people more likely to connect with and use public transport.
It’s clear that these two strands are impacting public transport systems. Population growth is driving increased demand, while the digital economy is shifting the nature of that demand. In response, a new model is emerging: seamless connectivity between different transport modes and systems, orchestrated by public transit authorities.
The future is integrated and intermodal
In this model, public transit authorities act as service providers and coordinators. A traveller might simply enter their desired destination into an app, which would then coordinate all necessary connections.
It might specify, say, a train journey to a local station and ensure a taxi or ride-share car is waiting to take the traveller to their destination. Or it might route them to a pickup point for an on-demand bus, which will then take them to a ferry terminal.
Rather than focusing only on mass transit and the infrastructure it requires, it could incorporate smaller-scale services, with mass personalisation the goal.
It’s an approach that’s already being trialled in cities across the globe, including:
- Sydney, Australia: has trialled on-demand public transit using an app to connect travellers with mini-buses charging fixed fares and picking up from local stops or even residences.
- Arlington, Texas: has replaced local bus services with on-demand ride-sharing (in partnership with provider Via) in commuter vans for a fixed fee or via a weekly pass.
- Nice, France: is trialling a partnership linking trams to Uber rides for ‘last-mile’ evening trips after connecting bus services cease (the buses run until 8pm, the trams until 2.30am).
Only public transit authorities have the scale, infrastructure and ‘backbone’ operations (like rail, bus, tram and ferry routes) to make such endeavours feasible. Operators must decide how best to integrate their services and continue facilitating passenger movements regardless of mode.
Connectivity and culture are the keys
Deploying and upgrading reliable, redundant and secure communications infrastructure is a necessary first step towards such a future. Transit authorities should continue transforming and digitalising, gathering and analysing data in real-time to improve transport network performance (and to identify long-term trends).
But perhaps most importantly of all, they can also evolve their approach to the services they provide. Opening their systems, ‘thinking digitally’ and atomising their customer base into individuals rather than regarding them as massed traffic flows are necessary ‘next steps’.
There is considerable work to be done yet the benefits are potentially enormous, including reduced traffic congestion, air pollution and road deaths. Globally, McKinsey has estimated that by 2030, a rapid transition to advanced mobility systems could result in societal benefits worth around USD$600 billion. Siemens has similarly estimated that investing in public transport to bring systems to ‘best in class’ standards brings significant economic benefits to the broader economy – if adopted by all cities larger than 750,000, up to an additional 1% of global GDP.
With the right technology partners, we believe every authority in the world can play a part in bringing these benefits to their cities and citizens. By becoming truly connected and building a transport network that extends beyond their physical infrastructure, they will help create a future where transport is safe, secure, personalised and cost-efficient.
Blog post 1 in this series takes a look at transport infrastructure, and how connectivity is the key.
Connectivity is transforming public transport. As urban areas expand, digital infrastructure is being rolled out alongside physical infrastructure. This ensures commuters can remain connected while transport operators have access to reliable, real-time data that better informs them about their services. But that’s just the beginning. Read more here