All Transport

Supply chain reaction: why the time is ripe for sustainable logistics

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With the stakes higher than ever in the run-up to the crucial UN climate talks in Scotland this November, Sophie Punte and Alan McKinnon share their vision of how logistics systems can and are providing a sustainable backbone for the planet’s ever-increasing movement of goods.

Electric vehicle last-mile deliveries in Shanghai, China

When logistics systems work, as they normally do, they are taken for granted and attract little media attention, despite handling USD 19 trillion of merchandise trade annually. The Covid crisis, however, has exposed both the importance and vulnerability of our just-in-time supply chains. These chains have played a critical role in the switch from conventional to online retailing during periods of lockdown and in the supply of personal protective equipment and now vaccines. On the other hand, cancelled ship sailings, trucks caught in 40 km tailbacks at borders, disrupted production lines and empty shelves in our shops have shown how susceptible logistics is to major disasters.

The pandemic has given us a glimpse of the kind of disruptions we can expect from climate change. Already, supply chains are being stressed by climate-induced events, such as the Australian and Californian forest fires and Africa’s floods and droughts. Meanwhile, adaptation of our built environment to ever-more-frequent and extreme weather events will generate much additional freight demand as we try to minimise the consequences of climate change.

Efforts to contain coronavirus have also given us a sense of the magnitude of the changes required to mitigate carbon emissions from freight transport. In May 2020, the International Transport Forum projected a 28% drop in freight-related emissions (PDF link) worldwide as a result of the Covid-19 lockdowns. Although emission levels have since rebounded, this level of decarbonisation will be required by 2030 to get freight transport onto a net-zero trajectory by 2050, though without having to resort to industrial and societal shutdowns.

With logistics’ share of global CO2 emissions at 10-11% and rising, efforts to decarbonise it must intensify. We believe that recovery from the pandemic presents an opportunity to build global supply chains that are both more environmentally sustainable and more resilient. Fortunately, these goals of sustainability and resilience are well aligned, and there are many ways in which they can be jointly achieved.

The logistics decarbonisation process is underway, though its pace and scale must increase to reach the Paris climate goals. In a recent European survey of 90 businesses, 30% had a target to cut total logistics emissions and a sustainability strategy in place or being implemented to deliver it.

New technology and a switch to low carbon energy will dramatically reduce freight emissions. Shenzhen, for example, has already deployed 70 000 “electric logistics vehicles” (ELVs). Small players like Workhorse are aspiring to become the Tesla of the electric delivery van market. However, we need faster action now and cannot wait until the world’s freight fleets migrate from fossil to zero-carbon energy. In the short to medium term, training in fuel-efficient driving, better use of freight carrying capacity, less packaging and shifting freight to cleaner, lower-carbon transport modes can all shrink the logistics carbon footprint.

In deploying these essentially managerial initiatives, we can ride the wave of digitalisation that is already transforming logistics. Digital freight platforms, like G7 in China, Sennder in Europe, India’s Freight Tiger and Flexport worldwide are taking the online matching of loads with available capacity to a new level. They are cutting the 20-30% of truck-kilometres typically run empty and raising fill rates in sea containers, planes and rail wagons. They are also helping entire supply chains to become more visible both operationally and in terms of their carbon emissions. This makes it easier for companies to report emissions to customers and identify ‘hot spots’ in need of efficiency improvement.

An increasingly carbon-intensive hot spot in many companies’ supply chains is the ‘so-called’ last-mile delivery to online consumers. By 2023, online shopping was expected to reach 22% of all retail sales worldwide before taking the impact of the coronavirus into account. A World Economic Forum / McKinsey study (PDF link) has predicted a 30% growth in CO2 emissions from last-mile delivery in the world’s 100 largest cities by 2030.

Where an online delivery replaces a car shopping trip, a significant net reduction in emissions can be achieved. Still, much more can be done to improve the energy and carbon efficiency of last-mile logistics by, for example, consolidating orders, using locker-banks and minimising returns.

The good news is that environmental action in the logistics sector is growing. In support of the EU Green Deal, a Sustainable and Smart Mobility Strategy was published in December outlining how the freight transport sector’s green and digital transformation should proceed. California has mandated that by 2035 only zero-emission vehicles are sold and is requiring truck manufacturers to transition to electric zero-emission trucks beginning in 2024. As part of its commitment to be carbon neutral by 2060, China is prioritising goods movement by rail and the use of electric delivery vehicles to curb freight emissions. About forty cities in The Netherlands are introducing zero-emission freight zones, as are cities in the UK, China and elsewhere.

Over 100 multinationals, including Unilever, HP Inc and Maersk, calculate and report logistics emissions using a standard developed by the Global Logistics Emissions Council or GLEC, thereby increasing consistency and transparency. DP-DHL was the first logistics company to commit to zero-emission freight by 2050, while IKEA will be making only zero-emission home deliveries by 2025. In the European study mentioned earlier, a majority of the 90 businesses surveyed reckoned that at least half of CO2-reducing measures in logistics also cut costs, giving them a strong commercial as well as environmental motive to decarbonise. Of these companies, 70% also reported that the pandemic would have either no impact or a positive effect on their logistics decarbonisation efforts.

Calls for a green recovery to the Covid-19 crisis are growing, supported by clear policy recommendations from the We Mean Business coalition. This needs to go hand-in-hand with making infrastructure climate-ready, at a cost of around USD 1.8 trillion by 2030 according to the UN-led Global Commission on Adaptation. Despite this huge spend, much of which will go on logistical operations, it should save around USD 4 for every USD 1 spent.

This year’s UN Climate Change conference (or COP26) in Glasgow presents an excellent opportunity to scale- up our collective efforts to achieve resilient, zero-emission freight and logistics by 2050.

Sophie Punte is the founder and board advisor of Smart Freight Centre, a global non-profit organisation dedicated to zero-emission freight, and Managing Director of Policy at the We Mean Business coalition.

Alan McKinnon is Professor of Logistics at Kuehne Logistics University in Hamburg, a lead author of the transport chapter of the IPCC’s Fifth Assessment Report and author of “Decarbonizing Logistics“.

The International Transport Forum’s 2021 Virtual Summit on “Transport Innovation for Sustainable Development” will be held from 17 to 28 May online. This special virtual edition of the world’s premier transport policy event features sessions for a brigher transport future including on low-carbon vehicles, actions to decarbonise freight transport, and on achieving more resilient and innovative goods transport. See the Summit programme and register to join the debate!

Gender in the balance: the win-win of designing innovations for all

International Transport Forum All Transport, gender ,

This UN International Day of Women and Girls in Science, Magdalena Olczak-Rancitelli encourages us to seize the opportunity for more inclusive transport policies in the wake of the Covid pandemic

Increasing numbers of people cycling and walking has been one of the few pieces of good news to come out of the Covid crisis. But what if you live in a society where girls are not even allowed to learn to ride a bike? What if you’re afraid to walk to home from work at night? The pandemic has revealed many long-standing problems and highlighted many urgent issues for women and girls as transport users, and as employees in the transport sector. But there is hope: these issues can be addressed using the many tools at our disposal, from technological innovations to better government policy.

If we want to change behaviours, attitudes and capacities, the best place to start is by listening to the experiences and proposals of those most directly concerned. The third edition of the ITF Compendium on Transport Innovation for Sustainable Development: A Gender Perspective does just that. The publication presents a wealth of ideas from women on how to make transport more inclusive and sustainable.

The wide-ranging contributions share a common starting point: transport is not gender neutral. Women prefer flexible modes that facilitate trip chaining more than men, for example. And since women do most of the unpaid care work that many families depend on, they travel more with children and other dependents – the “mobility of care”. Anyone who has struggled to get small children and related paraphernalia up public transport stairs or onto a bus will be painfully aware that these needs are usually not accommodated in the design of transport infrastructure, services or vehicles.

Women also feel less safe and secure in public spaces, which deters them from choosing public transport, taxis, shared mobility, or from cycling and walking. Ultimately, this limits women’s and girls’ access to schools, jobs, health and other public services. The digital gender gap further hampers women’s access to online mobility services.

Even if the observational evidence is there for all to see, well-designed policies reply on good data. Gendered analysis helps assess whether specific gender needs are met properly and what the impact of innovation could be on mobility. Understanding what women want from cities, and how this translates into a vision for urban transport, should be at the heart of urban public policy. This, however, will require much finer and more differentiated knowledge of travel behaviour and users’ needs than has been the case until now. New data sources can help develop that knowledge base, but it is important to avoid biases that have become ingrained in past transport policy making. Public-private co-operation to collect, share and process gendered data is a solution, not least as a way to benefit from the wealth of mobility data created during the Covid 19 pandemic through track and trace apps.

Technology and planning alone will not suffice to improve our transport systems. Access to and affordability of transport often depends on education and income. Digital competence now also determines access to new mobility solutions, as well as the need to own a smartphone. Universal access to innovative transport services can only be achieved when these aspects are placed squarely at the centre of governance framework design.

Ride hailing is a good example. Few industries have been so greatly impacted by the pandemic, but the form of impact has varied enormously. In some markets, passenger trips have stopped, while in others there has been a sudden surge in demand as wary riders shift away from public transport. Focusing on women would not only be morally justifiable: it would enable a resilient recovery for the sector. Post-Covid recovery plans that are attentive to the concerns and needs of women will lead to an increase in female customers.

The experiences of women working in the transport sector been highlighted, and changed, by the pandemic. Customer-facing staff have seen their role expanded from ticket sales and information to policing social distancing and mask wearing regulations. Often their jobs are more dangerous where public co-operation is lacking. Transport staff, of course, risk greater exposure to the virus, as born out by infection and death rate data.

Women are often hailed as front-line “heroes” of the pandemic. The increased automation of ticketing, cleaning and other activities in response to the virus is more likely to threaten their jobs, however. Women must be given access to the training and skills development needed to benefit from the employment opportunities led by innovation. Some of the most innovative sectors – like remotely piloted aircraft systems (drones) – have pronounced gender disparities. The industry as a whole reflects the existing gender inequalities in science, technology, engineering and mathematics (STEM). Governance, nomenclature, and education must be combined in our approach to right this injustice.

Good governance is essential to point technological innovation towards equity and sustainability. But we need to rethink governance itself to follow rapid innovation and increased complexities. Exchange of good practices and ideas among all stakeholders – policymakers, business, civil society and academia – is essential to any good governance framework. The ITF Annual Consultation on gender provides a unique platform to advance dialogue on gender issues in transport and to facilitate knowledge exchange.

Our latest Compendium on Transport Innovation will inspire the discussions at this year’s consultation on 11 February 2021. But the discussions won’t stop there, and will continue in the lead-up to and during the 2021 ITF Annual Summit on Transport Innovation for Sustainable Development: Reshaping Mobility in the Wake of Covid-19.

2021 ITF Compendium on Transport Innovation for Sustainable Development: A Gender Perspective

Magdalena Olczak-Rancitelli is a Manager for Summit Preparation at the International Transport Forum

 

Safer arterial roads in Latin America: lessons from Bogotá, Fortaleza and Mexico City

International Transport Forum All Transport ,

Three Latin American cities provide effective road safety lessons using a holistic management approach to a culture hooked on speed.

Bogotá permanently reduced maximum speed limits from 60 to 50 km/h in May 2020 | Source: Secretaría de Movilidad de Bogotá

Road safety is a growing concern in cities aiming to become more liveable. Where people feel unsafe, policies to promote walking and cycling will be handicapped, and deliver far less than their potential. Reducing crash risks thus not only saves lives, it also unlocks sustainable forms of transport that cut pollution, fight congestion and improve the physical and mental health of citizens. Cities all around the world have committed to deliver safer streets. Many have taken a leadership role in the battle for road safety. Much can be learnt from cities that have achieved large reductions in traffic fatalities, as revealed in this ITF report. The publication details seven case studies of cities implementing data-driven policies that inspire best practices in urban road safety.

In Latin America, the case studies provide insights into how to address high road mortality rates (PDF) in the context of rising motorisation and a culture hooked on speed. Lessons from Bogotá, Fortaleza and Mexico City are the key to delivering safer arterial roads. In all three cities, streets with a mix of vulnerable road users and motor vehicle traffic were limited to 30 km/h in accordance with international guidelines, while arterial roads were limited to 50 km/h. Strategies to improve speed limit enforcement, including introduction of new speed control systems, were also part of the holistic speed management approach taken in these cities.

Safe speed limits on Bogotá’s most dangerous roads

In 2016, the administration in Bogotá adopted a ‘Vision Zero’ approach as the roadmap for their road safety strategy. From the adoption of a speed management programme, the city targeted arterial roads for speed reduction and installation of speed cameras. In 2017, these corridors accounted for three out of four traffic deaths.

The speed reduction programme on arterial roads first targeted the five corridors with the highest casualty rates. It tested the benefits and then disseminated results via social media before the expansion to other roads. Headlines included the number of lives saved since implementation and days without recording a death. The demonstrated reduction in lives lost convinced many of the administration’s strongest critics to accept the speed management programme as effective.

Positive results led to the reduction of speed limits on another set of five corridors at the beginning of 2019. The arterial roads that received treatment under the programme showed a decrease of 21% in traffic fatalities compared to the average for the three years 2015-2018, corresponding to 46 lives saved. Data from speed cameras also indicated improvement in compliance, with lower excess speeds although the proportion of vehicles exceeding limits, old and new, was unchanged at around 20%.

Arterial roads selected for new speed limit of 50km/h in 2018 and 2019 in Bogotá:

Source: Secretaría de Movilidad de BogotáSource: Secretaría de Movilidad de Bogotá

Plans for the programme to cover the entire arterial road network of Bogotá were accelerated by the Covid-19 crisis. The city announced a permanent reduction of the maximum general speed limit for all roads from 60 km/h to 50 km/h in May 2020. Intended to clear hospitals of traffic injury victims during the peak of the pandemic, the measure also aimed to protect the lives of citizens in the long term. 92 speed cameras placed at 40 points in the city will monitor speeding and issue automatic sanctions to offenders.

Disrupting the high-speed culture in Fortaleza

Source: Prefeitura Municipal de Fortaleza

Fortaleza is one of the rare places in the world that achieved the United Nations’ target of cutting traffic fatalities by half during the Decade of Action for road safety. The city went from a rate of 14.9 deaths per 100 000 inhabitants in 2010 to 7.4 in 2019. A successful strategy targeted the culture of speeding in Fortaleza through street transformations. Bike lane and dedicated bus lane networks were both expanded. Traffic calming measures were implemented in specific areas, with the redesign of pedestrian crossings, modernisation of the traffic light system, and speed limit reduction on arterial roads.

The city followed a similar approach to Bogotá in securing public support and winning over opposition. Each intervention was first tested on pilot projects, with positive outcomes publicised extensively. A first experience targeted Fortaleza’s most dangerous arterial road, the Avenida Leste-Oeste. Framed as an infrastructure improvement, this pilot proposed to complement the speed reduction with a redesign of the avenue. The new limit of 50 km/h accompanied new traffic lights, pedestrian crossings, lighting, bike lanes, and bus lanes. Narrower lanes and more frequent stop lights were also used to nudge drivers towards compliance with the new speed limit.

Redesigned Leste-Oeste avenue with safer speed limit of 50km/h:

Source: Prefeitura Municap de Fortaleza

The success on the Avenida Leste-Oeste was measurable: collisions involving motorised vehicles and pedestrians decreased by 63%. Data from the city’s camera enforcement system also revealed a higher rate of compliance. The city applied a tolerance period without penalties to give drivers the time to adapt: the police notified drivers of infractions but gave no sanction to people driving between 50 km/h and 60 km/h during the first six months. Positive results from this pilot project resulted in a decision to expand the same treatment to another four avenues. Fortaleza is now working on a Road Safety Plan for the next 10 years to scale up interventions and consolidate a Safe System approach (PDF) to the whole of the city.

Innovative speed control systems in Mexico City     

Source: SEMOVI Mexico city

In Mexico City, hostility to traffic surveillance and control mechanisms, in particular speed cameras, pushed local authorities to rethink their speed control system. The city shifted from Fotomultas (automatic fines) to Fotocívicas, a new system that replaced monetary fines with civic sanctions. Traffic penalties in Mexico City are now educational and correspond to the number of infractions perpetrated by the driver. They range from online courses, to awareness workshops, and up to 10 hours of community work.

The new system aims at improving driver behaviour and increasing compliance with speed limits. To curb speeding, Fotocívicas considers speed violations of more than 40% above the limit as more serious. Such infractions correspond to five penalty points, in contrast to one-point penalties for other violations registered by red light and speed cameras. The programme also relocated the surveillance technology to road sections and intersections with a higher incidence of traffic collisions and speeding.

An online course is one of civic sanctions from the new Fotocívicas system:

Source: SEMOVI Mexico City

Early results from the new system indicate improvements in the compliance with speed limits. Fotocívicas identified a reduction of almost 60% in the average speed of the vehicles exceeding the limit of 50 km/h on urban roads. The results also reveal a lower repeat offence rate: one out of three sanctioned drivers violated traffic rules on more than one occasion, in contrast with one out of two for the same period under the old system.

A positive repercussion of the awareness workshops among the population incited Mexico City to plan an expansion of this educational programme towards all drivers. As a first step, the administration selected motorcyclists engaged in commercial activities to be the first road user group to attend the workshops. Currently, one out of two crashes in Mexico City involve a motorcyclist.

Bogotá, Fortaleza and Mexico City are members of the ITF’s Safer City Streets network, which includes more than 40 cities across the globe. Together in the network, cities share data and draw lessons from their various approaches to urban road safety policy. To join the network, contact the ITF secretariat: alexandre.santacreu@itf-oecd.org

“To Empower Women, Everyday Acts Matter Most”

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How can the transport sector get better at serving the needs of women – both as customers and as employees? On the occasion of International Women’s Day 2020, Sharon Masterson spoke to Emma Latham Jones about women innovators, why getting girls interested in STEM is not enough, and inspiring female voices at the transport ministers’ Annual Summit.

How can the transport sector become more attractive for women?

ELJ: Innovation will be the core theme of the ITF Summit in May 2020. What is the role of women in innovation?

SM: There have been women among transport innovators throughout history – they just weren’t acknowledged. Think of Katherine Johnson, a woman and mathematician who worked for NASA. Her trajectory calculations were critical for successfully sending the first humans into space. Despite her enormous contributions to space exploration, she remained mostly unknown until the 2016 movie “Hidden Figures” made her a household name – at the age of 98. Sadly, Katherine Johnson passed away this 24 February; she was 101 years old.  

NASA mathematician Katherine Johnson at the 2017 Academy Awards

ELJ: A powerful reminder of both of the impact women can have and how little their contributions are often valued! I know you have a strong interest in developing female innovators and leaders. When you look at the next generation, what do you see?

SM: I am more than interested, I am passionate about the development of the next generation. If I look at the young women of today, I see they are strong and not afraid to claim their space at the decision-making table. They know exactly how to make their voices heard – and others are listening! 

ELJ: Can you give me some examples?

SM: This February, I was at the Global Ministerial Road Safety Conference in Sweden. One of the largest delegations at that conference was the delegation of the World Youth Assembly for Road Safety. Their co-chair, Omnia El Omrani, a medical student, made an impassioned plea to all present for safer and more sustainable roads and cities. She demanded “no false promises or fake commitments”. She made the very poignant point that today’s youth feel that their future is uncertain and not enough importance is given to critical issues that affect it.

If we think of sustainability, and in particular climate change, it is also a young female activist, Greta Thunberg, who has the largest following. Her message is a very simple one: listen to the climate experts and the science, and then act upon their advice.

Young women are making their voices heard

ELJ: How can the transport sector attract more women and girls?

SM:  The sector is working hard on this, but there is a still a lot to do. Last year the ITF’s Corporate Partnership Board organised a workshop on “Hiring and retaining a diverse workforce”. Two of the many interesting findings from that discussion were the need to address unconscious bias in the workplace and to put measures in place that ensure diversity of applicants in the recruitment process.

To get there, the transport sector has to raise awareness about all the different types of jobs that exist in transport and mobility. We produced a video aimed at encouraging girls and women to consider a career in the transport sector, to simulate their curiosity.

One of the things I would point out is that while there is a lot of emphasis on getting girls interested in science, technology, engineering, mathematics and the professions related to the STEM subjects,  there are many non-STEM jobs in the transports sector, for instance in transport policy, tourism, or urban planning.

#WomenInTransport: ITF Corporate Partnership Board event on 8 March 2019

ELJ:  Transport ministers and delegations from more than 70 countries attend the ITF Summit. How present will women be? Which remarkable women will ministers be hearing from at the Summit in May?

SM: First of all, there is an increasing number of female transport ministers. This traditionally male-dominated portfolio is led by women in ITF member countries from Albania and Austria via Italy and the Netherlands to Korea and the United Sates. They are still a minority, but things have clearly begun to move.

In May, we’ll have a host of remarkable women speaking at our Summit. If I had to pick just one or two from that list, I would highlight Mary Robinson and Sinéad Burke, because they’re Irish and Ireland holds the ITF presidency this year.

Mary Robinson will give a keynote at the Summit. As an Irish woman myself, I remember her election as the first female President of Ireland well. In her acceptance speech she stated: “I was elected by the women of Ireland, who instead of rocking the cradle, rocked the system”. Since her presidency she has gone on to do other very important things in many areas, including advocating for climate change and human rights.

Mary Robinson, former Irish President, will be a keynote speaker at the ITF Summit 2020

Sinéad Burke is a young Irish lady and a powerful advocate for diversity. I was fascinated by her TED Talk and an intervention she made at the World Economic Forum in Davos, where she spoke about why design should include everyone. So when I met Sinéad in person I asked her if she would speak at the ITF Summit and give us a user perspective on transport design and inclusion. It will be inspiring to have Sinéad with us!

ELJ: Whose responsibility is it to help women and girls succeed?

SM: I believe that all of us have a shared responsibility to help the next generation, both the young men and the young women. Kind words and encouragement go a long way. It is the everyday acts that matter most to empower women. Diversity and equality matter every day, not just on International Women’s Day. Mol an óige agus tiocfaidh siad is an old Irish saying meaning young people will progress and grow better with praise than criticism. I grew up with that saying and it is something that I’ll be passing along to my daughter.   

ELJ: That’s a beautiful saying. Thank you for sharing it. Finally, how will you be celebrating International Women’s Day?

SM: The two events we had prepared for International Women’s Day 2020 have had to be postponed until later in the year because of the Coronavirus situation, unfortunately. We will reschedule our workshop on “Gender: The Importance of Co-operation between Industry and Government” and share experiences and best practices among the ITF Corporate Partnership Board’s member companies. The focus will be on how to build and maintain successful women’s networks, as well as the mentoring and coaching activities our member companies have put in place. We will also find a new date for a high-level panel discussion on the same topic – stay tuned!

ELJ: Thank you so much, Sharon.

Sharon Masterson is the Manager of the ITF Corporate Partnership Board (CPB), the International Transport Forum’s platform for engaging with the private sector. The CPB works with the ITF on emerging transport policy issues around topics such as the sharing economy, blockchain, drones, innovative mobility, transport decarbonisation, and gender and diversity.

Emma Latham-Jones is a Young Associate at the International Transport Forum.

Global pandemics and transport systems in an age of disruptions

International Transport Forum All Transport, Aviation, Maritime

The Coronavirus is the most recent in a list of global pandemics – and it is the most impactful. The human and economic costs of Covid-19  go far beyond those of Sars, the Swine flu or Ebola. Its immediate impact on transport activity has been nothing short of dramatic. Will it also change human mobility and freight transport in the long run?

By Francisco Furtado

Arriving passengers are tested for Coronavirus symptoms at Bologna airport in Italy | Source: Shutterstock

It is still early in the cycle of this global pandemic and care needs to be taken not to draw rash conclusions. But some of the striking effects of the Coronavirus on transport and related sectors are evident.

Air travel demand decreased for the first time in a decade from mid-February, according to estimates by IATA, the global association of airlines. In the Asia-Pacific region, air travel is forecast to fall by 8.2% in 2020 compared to 2019. Worldwide, the sector will shrink by 0.6%.

The bulk of this reduction is associated with the domestic Chinese aviation market, which is set to contract by USD 12.8 billion in 2020. Foreign airlines reduced capacity for flights to and from China by 80%, and Chinese airlines by 40%, according to ICAO, the UN aviation body.

More container ship tonnage is idle now than during the global financial crisis. Port operators in China say that volumes for container shipping were 20 to 40% less than last year. On the land side, warehouses and factories are unable to receive or send goods as imposed quarantine exacerbates the existing shortage of truck drivers.

Cancelled and postponed

Supply chain disruptions have led to factory closures and the shutting down of assembly lines – from Hyundai in South Korea to JCB in the United Kingdom – mainly because of the cessation of activity in China and the lack of components sourced from there.

Tourism is another highly visible victim of the Coronavirus. Up to 90% of tourism-related bookings for March are cancelled in some parts of Italy. Preliminary estimates for France point to a 30 to 40% drop in the number of tourists compared to what would be expected for this time of the year. The practically complete absence of Chinese tourists in Europe since the outbreak of Covid-19 points to lost revenue in the order of EUR 1 billion per month.

Rail passengers wearing face masks in Bangkok, Thailand | Source: Shutterstock

The cancellation and postponement of events worldwide has hit big-ticket meetings from the Mobile World Congress in Barcelona, the Paris and Milan Fashion Weeks, or the US-ASEAN summit in Las Vegas. The cancellation of the Berlin Tourism Fair ITB, scheduled for early March, meant 160 000 expected visitors did not travel, use their hotel rooms, or visit the German capital’ s restaurants. Where organisers maintain events, attendance drops dramatically as big employers like Amazon take steps to limit staff travel.

Will things get worse?

Much of this activity should pick up towards the end of the year. To what extent that probable resurgence can make up for the first-quarter plunge is an open question. Some of the above figures, for instance for the aviation sector, were published before the virus reached Europe and other regions outside China. So while they take into account the impact on China, the effects of the global spread of Covid-19 are not yet included. Worse may be to come.

The economic impact was most vividly reflected on the stock markets. The week of 24-28 February was the worst week for stocks since the 2008 crisis. Covid-19 could shave 0.5 percentage points to 1.5% of GDP growth in 2020 compared to previous estimates according to the OECD’s Interim Economic Outlook published on 2 March. In a more severe “downside scenario” global economic growth would halve.

Unlike 2019, NO2 levels in Wuhan did not rise after Chinese New Year | Source: NASA

Nasa images show the dramatic extent to which transport activity and industrial production came to a grinding halt across China – not just in Wuhan province – as drastic anti-virus measures were put in place. The levels of nitrogen dioxide (NO2) in the air were 10 to 30% lower in January and February 2020 than the average of the same period for 2005-19. Such a dramatic drop across such a vast area has never been registered before – an indication to how much drastically reducing transport and industrial activity can impact emissions.

Figure 2. Pollutants in early January 2020 across eastern and central China compared to mid-February

Pollutants across eastern and central China in early January and mid-February 2020 | Source: NASA

Are telework and virtual meetings the new normal?

The contraction of transport activity is twofold: Right now, restrictions on travel and voluntary cancellations of trips compound the impact of reduced economic activity that is beginning to be seen. Later, when transport activity resumes towards the second half of 2020 – which is not a given – the bounce back to compensate for the earlier stoppage might lead to congestion on certain nodes of the transport networks, with increased costs and travel times as a result.

Most likely, Covid-19 will also have more long-term effects on transport systems and the demand for their services. Widespread cancellations of business trips and global events could drive the wider adoption of remote meetings and virtual conferences. Rather than an exception, virtual attendance might become a standard practice or even the norm. Improved digital connectivity and changing corporate cultures could work in the same direction.

The same is true for teleworking. The cost to organisations of having staff members in quarantine to contain the spread of Covid-19, is being considerably softened where those concerned can telework. The likely effect is that this form of work will become more widely accepted, reinforcing an already existent trend.

Will virtual meetings become the new normal?

A boost for re-shoring and resilience?

The tendency for nations to trade relatively more with countries of the same region than with the rest of the world is another trend this health crisis could reinforce. The disruption caused to supply chains by events on the other side of the world highlights security, safety and strategic concerns associated with off-shoring industrial production. The 2008 crisis triggered a rise in protectionism and the regionalisation of trade. In recent years, shutdowns of factories resulted in shortages of components “Made in China”, resulting in a push for the diversification of supply sources, including re-shoring.

A third relevant issue for which the pandemic could become a turbo-charger is resilience. The interest in strengthening transport networks’ ability to absorb shocks, deal with slumps and peaks, or to adapt to shifting trade flows was originally stimulated by extreme climate events, such as the 2004 Indian Ocean earthquake and tsunami. The rise of global trade disputes in recent years further nourished it.

Resilient transport networks feature different transport modes that can be used alternatively, they offer multiple route options to circumvent stoppages, and possess built-in flexibility –  for instance to easily mobilise resources to deal with activity peaks and repurpose them for other needs during slumps. More resilience reduces the costs of shocks to the system and increase safety and security of supply – but it also comes with a price tag.

There is still a great degree of uncertainty about this pandemic’s long-term legacy with regard to the mobility of people and the transport of goods. What emerges more and more as the situation evolves is that it could be significant and long-lasting.

Francisco Furtado is an Analyst and Modeller at the International Transport Forum. He is currently working on a project on Decarbonising Transport in Emerging Economies.

Read more about disruptions to the transport system in the ITF Transport Outlook 2019

“Gender is One of the Most Robust Determinants of Transport Choice”

International Transport Forum All Transport , , , , , , ,

What has gender got to do with transport? A lot, but few people know it. That needs to change, was the message from a consultation on gender and transport organised by the ITF with 34 transport stakeholders.

Mary Crass at ITF Summit 2019

Mary Crass, the ITF’s Head of Institutional Relations and Summit sat down with Emma Latham Jones to discuss female representation in the transport industry, women’s personal safety and how gender influences travel behaviour.

ELJ: Is it still necessary to focus on women in transport in 2020?

MC: Without a doubt! Women represent the largest share of public transport users around the world. In France, for instance, two-thirds of passengers on public transport networks are women. A study that we’ve recently done here at the ITF reveals that gender is often a more robust determinant of modal choice than age or income. So it’s really significant, especially since transport services and policies are still not gender neutral.

ELJ: If gender is so important to journey decisions, why is it so often overlooked?

MC: Data collection and analysis very often do not include gender to reflect differences in travel behavior. This means that transport policy is potentially not accounting for 50% of travelers’ needs. It’s a huge missed opportunity for transport authorities, planners and operators to ignore the specific trip patterns and access needs of women— a market that represents over half of public transport clients. Clearly, gender needs to be better taken into transport policy consideration.

ELJ: Are travel policies not gender neutral because women are not well represented in the transport sector?

MC: I think this certainly plays a part. The transport labour force remains heavily male-dominated. Only 22% of transport employees in the European Union are female. In the Asia-Pacific region, women are typically found in fewer than 20% of transport jobs. There are relatively few women working as operators, drivers, engineers, and similar positions. A survey of ITF member countries also found that only 13 out of 60 member countries currently have female transport ministers. As a result, women’s voices in decision-making are under-represented across all levels, which leads to a lack of incentive for transport services to respond to the particular needs of women as users. It also contributes to the fact that gender considerations are largely ignored in transport data collection and analysis, and therefore in policy decisions. We need to change this to ensure that the voice of women is heard in public transport decisions.

ELJ: Does this mean female representation in the transport industry is a priority of the ITF?

MC: Absolutely – the lTF is working alongside its members and stakeholder organisations to better understand the questions related to gender in transport, both on a travel-behaviour level and in terms of representation in the sector. Our consultation on women in transport just now in January brought together 34 stakeholders to explore these questions. We hold this consultation annually, and our understanding of the importance of a gender-diverse transport sector is advancing year to year. We greatly appreciate the insights of our partners and we feed the findings to our summit in Leipzig in May. There we’ll examine how innovation in the sector is impacting women, in terms of their travel and mobility choices.

ELJ: How else does the ITF support women in transport?

MC: We’re looking at gender in transport within the context of inclusive transport and we examine the question from three different angles: travel behavior, safety and security, and representation in the sector. We look at how the gender balance in the industry can be more effectively pursued by understanding the distinctions between how men and women navigate the transport system as users – and how they evolve as workers and professionals serving transport operations and activities.

ELJ: I am a young woman, and sometimes on public transport I find myself concerned about my personal safety. How do issues like these influence women’s decisions and their lives more broadly?

MC: Women are more likely than men to be dependent on public transport. Yet they face personal security challenges that hinder and often deter them from using transit systems. As a result, women’s access to jobs, services and amenities is severely compromised. A Reuters survey of 16 major cities worldwide found that women in Latin American cities faced the highest rates of harassment, with about 60% of women reporting physical harassment on public transit systems. Even under conditions where infrastructure is considered to be safe, women’s perception of that security can influence their willingness to use collective means of transport. Simple, low-hanging fruit can go a long way to improve perceptions of security – including better lighting, clear signage and presence of security personnel. Our work has shown that if women do not feel safe and secure using transport, they will switch to taxis or private vehicles faster than men. So ignoring gender impacts of transport infrastructure and operations is a disservice to the sustainability agenda as well.

ELJ: February 11 is International Day of Women and Girls in Science. How can we increase the number of women in transport related science, technology and engineering roles?

MC: If we look at this question from the perspective of education and training, then I’d say employment in the transport sector needs to have greater visibility in higher education. Too often, opportunities in the transport sector for women are not properly understood.

ELJ: What about the more practical aspect of being a woman in a male-dominated sector?

MC: For operational jobs in the sector – driving vehicles for instance – the conditions of employment need to ensure that the needs of both genders are met. Too often required clothing, equipment and even facilities are not appropriate for women in the sector. This can be rectified by ensuring that upstream purchasing and planning of the worker environment take into consideration the presence of women in these jobs.

Thank you so much for your time, Mary.

Mary Crass is Head of Institutional Relations and Summit for the International Transport Forum. She is responsible for the ITF’s relations with member countries, international organisations and associations, and the Annual Summit of the International Transport Forum. The next Summit will be held from 27-29 May 2020 on the topic of “Transport Innovation for Sustainable Development” in Leipzig, Germany.

How Indonesia’s Gojek is redefining “on-demand”

International Transport Forum All Transport

By Will Duncan

Following our look into transport innovation in the Global South, we take Indonesia’s Gojek as a case study to examine Southeast Asia’s bustling on-demand transport market.

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Photo: findracadabra/Shutterstock

Born on congested streets

Jakarta might just have the worst traffic in the world. In serious need of solutions, perhaps it’s no surprise, then, that the Indonesian capital became home to Southeast Asia’s most successful innovative transport start-up: Gojek.

More than 30 million people live in Greater Jakarta — the third-largest megacity in the world, behind Tokyo and Shanghai. Cars can barely move on its congested streets so locals tend to get around on scooters or motorcycles. After all, they’re smaller, simpler, and importantly, cheaper. As in countless other Southeast Asian cities and towns, the scooter is king.

Ojeks — informal motorcycle taxis — are widespread; often more appropriate than conventional four-doored taxis. In 2010, Gojek was born as a ride-hailing call centre with twenty drivers. Just a few years later, the Jakarta-based company launched an app and with astonishing pace transformed on-demand transport and service delivery in the region. Today, its principle service GoRide, has more than two million drivers in 203 cities and districts in Indonesia. It has expanded internationally into Vietnam, Singapore, and Thailand, garnering an estimated worth of US$10 billion, making it Indonesia’s first “decacorn” start-up.

Armed with a fluency of the local market, Gojek has succeeded where Western competitors have not. Ride-sharing services in the busy cities of Southeast Asia tend to move on two wheels. While Uber has been in the region since early 2013, it was late to embrace motorbike taxis, waiting until 2016 to introduce two-wheelers. Gojek’s strongest rival, Singapore’s Grab, also happens to be a regional neighbour. Understanding how Southeast Asia works, how its people typically get around and access services, has proven to not only be an advantage — but essential. After years of competition, in 2018 Uber yielded to its rivals, ceding its ride-hailing and UberEats businesses to Grab in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, in return for a 27.5% stake and a seat on Grab’s board.

Lifestyle on demand

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Photo: findracadabra/Shutterstock

Offering rides on the back of motorcycles was just the beginning. After sufficiently disrupting Indonesia’s typically informal ojek market with a good quality app and a reliable payments system, Gojek, like its rival Grab, has quickly become a one-stop-shop “super app” with over twenty different services, broadening its offering to meet varied and evolving demands. What is striking throughout this expansion is Gojek’s business model, which places a strong emphasis on the role transport plays in all other service markets.

Food delivery quickly became a core element of Gojek’s business. Its GoRide motorcycle drivers could easily double as GoFood delivery people — there’s little difference in carrying passengers to carrying nasi goreng. But why stop there? GoMed offers home delivery for medicines and pharmacy products. Urban logistics are covered by GoSend and GoBox.

GoLife, a smartphone application, allows users to order from GoClean, GoAuto, and GoLaundry — each service is ordered and arrives at customers’ homes on-demand. GoGlam will send a mobile stylist your way; GoMassage lets you order a masseuse!

Despite expanding in several different directions, Gojek’s services are unified both in terms of the user experience, and the logistical networks. A single “super app” with consistent branding supports a sense of familiarity to customers. And each service is powered by Gojek’s locally-driven on-demand transport infrastructure.

This type of service integration within a single umbrella application is radically changing how companies and regulators alike understand app-based mobility services globally. Rather than non-transport sector players using transport providers as a service, Gojek has used its local expertise of how transport works as a springboard for expanding beyond its original business model. In the process, it has flipped traditional roles on their head by sub-contracting non-transport businesses rather than being contracted itself.

A new regulatory challenge

The service industry around the world is experiencing a major shift towards mobile-based on-demand business models. These changes can mean excellent news for consumers; they’ve typically offered greater choice, convenience, comfort, and often lower prices than what was offered before the on-demand disruption began. However, they also pose new regulatory challenges for countries in the Global South and North alike.

First of all, there are safety concerns. Policy makers must ensure that as the market shifts to on-demand gig-economy services, vehicle safety standards are adhered to. Drivers must be properly vetted and trained for the job. It’s worth noting that the rating systems built into most gig-economy applications tend to incentivise personal and professional responsibility on the part of drivers and, indeed, passengers who are also made more accountable for their behaviour. Nevertheless, governments must recognise their role in setting appropriate safety standards.

Then, regulators must confront the global headache that is the gig economy. In Indonesia, millions of people drive passengers, goods, medicines and the like for Gojek, for example, but they aren’t considered employees. This lack of formal employment represents a significant regulatory challenge, both in the Global North and South. It may also offer opportunities, however: in the Global South, to improve the welfare of workers in the informal sector; in the Global North, to create more flexible job opportunities. Gojek again leads the way in this respect, by providing health and accident coverage for its drivers while offering them highly flexible work arrangements.

There are externality issues to consider, too. New home delivery services and on-demand transport options ultimately contribute to more traffic on the roads — motorcycles or otherwise. This means that regulators must consider the traffic and pollution implications of new mobility services — from on-demand ojek services to mobile masseuses.

These challenges are common to countries across the world. And policy makers everywhere should approach regulation carefully. While the changes in the service industry require stricter parameters and oversight, governments risk forcing innovation out of their cities and industries, should their rules go too far.

expanding

To learn more about global transport innovation, check out the ITF Corporate Partnership Board’s new report Expanding Innovation Horizons: Learning from transport solutions in the Global South.

Will Duncan is currently studying a Master in Public Policy at Sciences Po in Paris, and is an intern at the International Transport Forum at the OECD.

 

Born out of need: How the Global South is driving transport innovation

International Transport Forum All Transport , , , , ,

By Will Duncan

The world’s emerging nations are fertile ground for radical and creative mobility solutions. Government-supported innovation is helping the Global South become a leading force in the future of transport.

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RT-Mart electric bus in China | Photo: Mars Hartdegen/Flickr

The transport sector is moving quickly these days. New technologies, shared services, and GPS are changing how we get from A to B. But perhaps one of the most interesting trends in transport is where, exactly, these innovations are coming from.

“The future of transport is in the Global South’s hands,” says Bambang Susantono, former transport minister of Malaysia and now vice-president of the Asian Development Bank.

It’s easy to see why: Twenty-seven of the world’s 33 megacities are in the Global South — a term that describes low- and middle-income countries in Africa, the Asia-Pacific, Latin America, and the Caribbean.

Extraordinary economic growth and rapid urbanisation have brought sudden change to the Global South. With progress comes a host of challenges — and, first among these is transport.

But need begets innovation. And thus, the assumption that innovation flows from rich to less prosperous regions, from industrialised to developing countries, from the northern to the southern hemisphere is being challenged. Inspiration for tomorrow’s transport solutions can be found in the Global South’s emerging nations by those who care to look.

Decades ahead

Take shared mobility. No other topic preoccupies city officials, transport planners and entrepreneurs in the industrialised North today as much as the question of how to get more than one person into a car built for four or more.

In the South, it’s been a reality for decades. “Shared mobility is everywhere when I travel cities as a global researcher,” says Fábio Duarte, Professor of Urban Planning in Curitiba, Brazil. “I take taxis in Brasília, hold on tight to ojek motorcycles in Jakarta, or figure out how to reach my destinations with matatus in Nairobi.”

Durante says that “thinking of shared mobility as a novelty is a narrow view held in the Global North”. It ignores the creative ways that societies with few cars and inadequate public transport are coping with the lack of options.

WhereIsMyTransport, a UK start-up, secured USD 1.5 million in funding in 2016 to create an accessible and accurate data service for Cape Town’s formal and informal transport routes. Informal shared minibus routes make up a significant proportion of the city’s commutes, which is typical of many cities outside of Europe and North America. WhereIsMyTransport’s digital map has made these services visible. They’re presented as complimentary or, for all intents and purposes, equivalent to any other way to get around the city.

After securing further investment, the company has expanded its data and mapping service throughout Latin America and Asia. A recent project saw informal transport in Mexico City mapped to include over 30 000 informal minibus routes.

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Formal and informal transport networks in Gauteng, South Africa. Source: WhereIsMyTransport

The South is electric

Electric mobility is another example. Despite ambitious pledges, the share of electric vehicles in the Global North remains marginal: just 2.5% of 2018 car sales in the UK were electric, 2.1% in France, and 1% in Japan. Only Norway stands out, with just under 49.1%.

The world leader in electric mobility today is China. Almost 99% of all electric buses and two-wheelers, and 40% of the world’s total of private electric cars can be found there.

This hasn’t happened by accident. The electric mobility revolution that is sweeping the Peoples’ Republic is the result of deliberate government policy. Beijing’s regulatory push mixes substantial investment into research and development, and strict emissions standards designed to force out internal combustion engines with targeted subsidies that have reduced risk for transport operators looking to adapt to the new cleaner technology. Thus, research, industry, and government are steered towards a prevailing direction, turning the country into a world market leader.

Both national legislation and city halls are in a position to provide the “enabling framework” for healthy competition, innovative ideas, and for market disruptions with the potential to greatly benefit citizens.

Emerging nations find themselves with greater freedom to innovate, as they tend to be less restricted by the historical legacies of some more developed countries. “Developing countries can break the mould of traditional transport,” says Susantono. ”The Asian car market is less wedded to internal combustion engines; hence the region now has the largest share of e-vehicles worldwide,” Susantono explains. “In this dynamic, governments of the Global South can be the leaders of change.”

In a further article looking into transport innovation in the Global South, we take Indonesia’s Gojek as a case study and examine Southeast Asia’s bustling on-demand transport market.

expanding

To learn more about global transport innovation, check out the ITF Corporate Partnership Board’s new report Expanding Innovation Horizons: Learning from transport solutions in the Global South.

Will Duncan is currently studying a Master in Public Policy at Sciences Po in Paris, and is an intern at the International Transport Forum at the OECD.

 

Why fighting transport CO2 emissions is like “Game of Thrones”

International Transport Forum All Transport , , ,

by Andrew Jackson

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We all enjoy a good story, where the unsuspecting hero faces challenge after challenge, and eventually wins through to bring triumph for those we care for. “Game of Thrones” challenges that paradigm, as the heroes we love are killed off one by one – with betrayal, swords and poison.

While this comment about “Game of Thrones” may be a spoiler to few people, the International Transport Forum (ITF) at the OECD in May published a report on the future of transport which may include the biggest spoiler of any plot. And unlike in our perfect stories, the report’s plot is one from “Game of Thrones” – where our future ends tragically.

The story starts by looking at how much we will travel in 2050. Cheap cars, cheap flights and cheap freight will provide us with great access. We will be able to explore the world more easily and have the things we want come to our doorsteps from anywhere in the world.

The total distance we travel locally and internationally will continue to rise. New technologies, urbanisation, global patterns of trade and world population growth from 7.7 to 9.7 billion people weave together into a powerful story of our future. Increasing wealth sees many more able to afford to adopt the movement lifestyles of the developed world. The story concludes that by 2050 total travel will increase threefold.

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Changing how we move

Not only will there be a significant increase in movement, we will also change how we move. Fewer people will own their cars. More of us will use public transport and cycle and walk. The use of electric vehicles will increase. We will take all of these steps to make our transport system more sustainable.

But the “Game of Thrones”-like ending to our heroic efforts to reduce CO2 emissions will be that we will fail to reduce the amount of carbon produced by transport. The three-fold increase in the amount of miles travelled will mean that despite all of the international efforts to decarbonise transport, our poison pill will be a 60% increase in CO2 emissions from travel and freight by 2050.

The ITF’s analysis includes the assumption that we will follow through on all current pledges of worldwide action. It thus assumes that the percentage of trips by car in OECD cities will decrease from 75% to 46%, and that 35% of trips in cities will be by public transport. Overall, this will lead to 20% fewer of trips being made by car. Further assumptions are that the current rate of uptake of electric vehicles will continue and that we will have electric planes making all trips of less than 1 000 kilometres. But all this will still not be enough even to keep CO2 emissions from transport at current levels, let alone reduce them.

We are offered an alternative ending to the story.  A story where we double our current efforts for change in the transport system. The number of trips by car in cities would fall to 26% of trips. There would be a 5% to 10% increase in the densification of our cities. There would be widespread uptake of electric vehicles, and we will use electric aircraft for all flights up to 1600 kilometres.

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The change we need

Yet even this apparent heroic intervention in the form of major investments, rapid technological advances and promotion of significant social change would be destined to fall short of our goal. Just like in “Game of Thrones”, this would be another hero we could embrace, only to see that our renewed efforts fail to bring about the change we need.  Yes, in this scenario we would see a 30% reduction in carbon emissions from transport by 2050.  But it would be nowhere near the 80% reduction we need to avoid annual weather events of a scale and nature that historically were the tragedies of a century.

Tragedies like the 1931 floods in China, which saw more than a million people die, the North American drought of 1988 which led to damage of USD 130 billion and 10 August 2003 European heatwave, the hottest day in history killing 30 000 people across Europe.

I wish I could finish my story with a third ending, where we will live on happily ever after. I do not have one. This is a story that will only end well if we have heroic political leadership. Leadership that is willing to take decisions that will risk their personal political futures today in order to secure a positive future for society. But at the moment we are on a track to see world temperatures rise to the levels which are the worst nightmare of the climate change activists – summer is coming!

Andrew Jackson is Managing Director at Consulting Jackson. He is a former Deputy Chief Executive of New Zealand’s Ministry of Transport

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The ITF Transport Outlook 2019 is available via the OECD iLibrary here

 

 

Bridging the Urban-Rural Divide

International Transport Forum All Transport , ,

by Will Duncan

Countries around the world struggle with a divide between urban centres and rural regions. Bridging it requires imaginative transport policy to connect citizens everywhere with the services they need and give remote communities a better future.

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Olivier Ortelpa; “Paris, Gilets Jaunes – Acte IX”

After decades of weak growth and limited investment, many regional communities across the developed world feel forgotten; left behind by national governments in thriving capital cities. A sharp rise in regional inequality since the beginning of the millennium has exposed new and profound political divisions.

Take the Gilets Jaunes protests, for example, which have gripped France each Saturday since November 2018. It began as a demonstration against a fuel tax, but evolved into an array of anti-government political objectives. The movement highlights the growing dissatisfaction of a society divided into vibrant, globalised urban centres on the one hand and a periphery that is left behind, still struggling to adjust to decades of economic reform on the other.

It’s important for policy-makers to recognise the political fault line the urban-rural divide represents. Regional inequality, intensified by the global financial crisis in most developed countries, has contributed to “growing public discontent with the political, economic, and social status quo” in neglected regional areas, according to the OECD’s 2019 Regional Outlook,

Productivity growth is concentrated in just a single region in one-third of OECD countries — think the Paris region in France or the wealth gap that separates northern from southern Italy.

Cities are economic powerhouses. They are dynamic, yet efficient; with large, dense populations that concentrate innovation, creativity, and extraordinary productivity in close proximity. With more than half the world’s population now living in urban areas (and nearly three quarters in Europe), it’s no surprise that cities are often the primary focus of transport and infrastructure policy experts. Cities’ exceptionally active economies as well as their specific and complex problems from congestion via crime to inequality demand attention and substantial public investment.

Targeting attention on urban regions risks further alienating rural areas, yet “orthodox economics has few answers to the problem of regional inequality”, as The Economist noted.

Transport as an equity issue

Transport connectivity plays a major role in regional integration — that much is clear. Good physical links ensure accessibility and build stronger communities by fostering economic development and social inclusion.

“In the end, it’s an equity issue”, noted Ofelia Betancor of the University of Las Palmas de Gran Canaria at a session dedicated to remote and rural communities during the recent Summit of the International Transport Forum. “We need to combine .. social evaluation criteria with equity criteria”, argued Betancor.

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From left to right: Ofelia Bentacor, University of Las Palmas, moderator Juliette Foster, Gloria Hutt Hesse, Chile’s Minister of Transport and Telecommunications, and Helen Hughes discuss access for remote and rural communities during the ITF  Summit in Leipzig, Germany, on 23 May 2019.

Basic services such as doctors, libraries and post offices are critically important for rural communities. But the available public and private services are often in decline, due to a lack of profitability (and of resources to compensate for that lack), which has left far-out communities further isolated and disadvantaged.

Stronger links between people and products, employment and markets are essential to empowering citizens in regional areas.

Most developed countries are supporting disadvantaged peripheral communities, providing some kind of buffer to regional decline. But simple redistribution — taking from rich areas in order to give to the less well-off regions — has often proved inadequate in the long-run, and expensive projects do not necessarily generate a significant return on investment.

Connectivity beyond planes, trains, and automobiles

So bridging the urban-rural divide not only requires considerable, disproportionate, public investment — it requires thinking outside the box. Governments must be creative and embrace innovation when considering better regional connectivity.

Investment in rural roads, rail, and aviation is obviously essential to bringing a population closer together. But so is considering structural reforms that might strengthen urban-rural economic interdependencies, and harnessing the possibilities of digitalisation, 5G networks or drone technology to connect remote and rural places.

Digital access via the internet provides new ways of linking in citizens outside the main population centres and should be part of policies for enhancing the well-being of rural communities. ”If you want to overcome social isolation, if you want people to have better access to job opportunities, digital connection is a must now,” summed up Helen Hughes, Director of Professional Services at Transport Infrastructure Ireland.

But it is the countryside where digital connectivity is in greatest need for improvement. Currently, urban areas outperform rural areas in quality of internet access in every American state, for example. And many rural EU regions have poor broadband speeds or no broadband connectivity at all.

A better-connected population would represent a vital step in bridging the divide and avoiding the resentment against better-off better-connected urban “elites”. A long-term commitment to maintaining and expanding and infrastructure important to rural communities and innovative approaches to linking in rural areas is essential to help them remain viable and thrive, and ensure that no-one feels left behind.

Will Duncan is currently studying a Master’s in Public Policy at Sciences Po in Paris, France, and is an intern at the International Transport Forum at the OECD.

Links

ITF 2019 Summit session on Ensuring access for remote and rural communities