JOURNAL
2023

AUTONOMOUS
MOBILITY JOURNAL
Latest developments worldwide

EDITION IV

CONTENT
FOREWORD

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1.

6

IND U S TRY DY N A MI C S

2 . 	U S E C A S E O F T H E S E M E S T E R

10

3.

14

CIT Y OF THE SEMES TER : HON G KON G

4 . 	I N T E R V I E W O F T H E S E M E S T E R

2

18

JOSEPH SALEM

ANTONIO SEMERARO

Partner, Travel & TransportationDubai
salem.joseph@adlittle.com

Principal, Travel & Transportation
Dubai
semeraro.antonio@adlittle.com

MICK AEL TAUVELHASSAN KHAIRAT

Principal, Travel & Transportation
Paris
tauvel.mickael@adlittle.com

Manager, Travel & Transportation
Dubai
khairat.hassan@adlittle.com

GAYA HACIANE

NAMRATA JAISWALManager, Travel & Transportation
Dubai
haciane.gaya@adlittle.com

Manager, Strategy & OrganizationDubai
jaiswal.namrata@adlittle.com

ABDULRAHMAN SALMAN

WALID BENHAMMADI

Business Analyst, Strategy & Organization
Riyadhsalman.abdulrahman@adlittle.com

Business Analyst, Strategy & Organization
Dubai
benhammadi.walid@adlittle.com

ARTHUR D. LITTLEFOREWORD
Dear reader,
In response to the interest generated by the previous
three editions of our journal, and in the spirit of ourperpetual efforts to bring to you the latest developments
and breakthroughs pertaining to the global autonomous
mobility sector, we are excited to share the 4th edition of
our Autonomous Mobility Journal.
In the wake of COVID-19, we have come to realize thateven though the pandemic has had disruptive effects
on the global mobility and automotive sectors, it has
simultaneously accelerated our move into a “newnormal,” where consumers tend to favor home-based
living and working, leading to a growing requirement
for more frequent, fast, and cost-effective movementof goods and people within our cities and beyond.
In today’s context, for mobility industry players toinnovate and cater to shifting consumer preferences, weforesee a growing interest in the research, development,
and imminent rollout of autonomous mobility solutions
across the transport value chain. This includes private
consumer autonomous vehicles (private vehicle
ownership) and public transit, as well as logistics
and freight transport.

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A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

It is of paramount importance for industry players(public and private sector) to recognize thetransformational phase that the mobility sector isundergoing. Mobility players must position themselvesfavorably to explore the promise of autonomous
mobility, reap its benefits as they arise, and minimize
its future impacts on their business models. In thatspirit, over the past year we have been working closelywith mobility stakeholders across the globe, identifying
trends, opportunities, and challenges to draw
implications for the sector and push the boundariesof thought leadership.
While the development of autonomous mobility
solutions globally remains experiential, industry
players are clearly on the lookout for technological andbusiness model innovation to unlock value-creating use
cases. In this journal, we provide our insight into recent
developments and industry dynamics. In addition, wehighlight the key considerations and existing challenges
that stand in the way of full-scale autonomous mobility
solution rollout. We hope that you enjoy reading, and
we look forward to hearing your ideas, thoughts, andqueries.

Joseph Salem
Partner, Travel & Transportation
Arthur D. Little

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ARTHUR D. LITTLE

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A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

1.

INDUSTRY DYNAMIC S

After a long period of hype during the last
decade, autonomous mobility has met theharsh reality of the market. Limited global
implementation of the technology in highvolume use cases, crises driven by the COVID-19
pandemic, and supply shortages have shifted
attention toward more critical technologies
such as longer-range batteries for electricvehicles (EVs). Moreover, recent stock exchange
listings of mobility start-ups have also stirred
some controversy. Most of these listings
happened through special-purpose acquisition
companies (SPACs), and nearly all of them havelost significant value since their introduction.
However, amid these troubled times, thegrowing focus of large global original equipment
manufacturers (OEMs) on accelerating the
adoption of new technologies in the industry,including by growing their EV offerings,
represents a positive prospect for autonomous
mobility in the mid to long term. We explore
these dimensions in this section.

LOOKING FOR
TH E SILVER LINING
Autonomous mobility led the new mobility
hype during the 2010 decade, but it appears tohave suffered from both internal limitations
and external risks in recent years. While
the technology exists and has proven to be
fully functional and usable both in testing
grounds and in real-life conditions, the lack ofsuitable infrastructure and insufficient costeffectiveness seem to have limited use cases
to select innovation-driven models and brands.
The COVID-19 pandemic and its impact on
economies and consumer behavior were also notof much help in spreading autonomous mobility
to larger-scale use cases. Moreover, the lasting
global semiconductor chip shortage and greater
supply crisis have shifted automaker attentions
toward the installation of more critical
functions in their vehicles.
However, promising silver linings are starting

RECENT STOCKE XCHANGE LISTINGSO F M O B I L I T Y S TA R T- U P S
H AV E S T I R R E D
SOME CONTROVERSY

to appear. First, while autonomous mobility is
still not accessible or even available to mostusers on the roads globally, companies operatingin this space have continued their work in the
background to advance the technology. Second,
the growth of other mobility-related technologies
and use cases is expected to pave the way andfacilitate the uptake of autonomous mobility.
According to the International Energy Agency(IEA), EV sales reached 2 million units in the firstquarter of 2022, representing a 75% increase
compared to the same period in 2021. Compared
to traditional internal combustion engines (ICEs),
EV hardware and software are significantly moresuited to accommodate autonomous-drivingfeatures, and autonomous-driving technology
is more prevalent across EVs than ICE vehicles.

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ARTHUR D. LITTLE

S PACs : T H E V EHI CLEO F C HO IC E

alone, mostly focused on autonomous mobility,

One of the characteristics that differentiates

went public in 2021 through a SPAC formation

EVs, and air mobility companies. Embark Trucks,
an autonomous trucking software company,

the autonomous mobility landscape from moremature or advanced sectors is the appeal ofwith a valuation of around US $5 billion. In thesame year, the autonomous trucking and ridehailing company, Aurora, listed through a SPAC

SPACs, as a significant number of start-ups

with a starting valuation of $13 billion. Electricin this space are going public through SPACs

Last Mile Solutions (ELMS), another player inrather than more conventional initial public
offerings (IPOs). SPACs are companies without
a commercial purpose, established specificallyto raise capital through an IPO. Once the IPO is

this segment, also went public with a valuationof $1.4 billion. These are just a few of the many
examples in the autonomous and EV space.

completed, the SPAC’s management team has
up to 24 months to identify a suitable target
to acquire or with which to merge. Hence,
SPACs act as publicly traded shell companies
that allow a business to be listed on the stock
exchange, either directly by merging with

AMID TH E CRISIS, WH AT’S
TH E FUTURE H OLD IN TH E
MID-TE RM?

the SPAC or indirectly as the sole asset in aOver the last two years, mobility SPACs have

SPAC’s portfolio. This solution provides anrapidly increased in number. However, they havealternative path to access the stock market

also shown fragility and lack of resilience in afor companies that do not want to (or cannot)

difficult market context. Valued at $1.4 billion

go through the traditional IPO process and fulfill

at the time of its SPAC in 2021, for example,

requirements in terms of revenues and financial

ELMS filed for bankruptcy just one year later,

documentation.

and many other mobility SPACs seem to be

In recent years, SPACs have become increasingly
prevalent, allowing start-ups, tech companies,
and nontraditional businesses to be publicly

on a similar path. According to data collectedby PitchBook (see Figure 1), nearly all mobility
SPACs have been trading below their IPO price of$10 per share. In fact, 43 out of a total of around

listed and receive significant cash inflows

60 companies analyzed by PitchBook have beenwith less complexity and fewer requirementsfrom the market regulator. The smart mobility
ecosystem has been particularly prone to SPACs,
with more than 40 deals announced in 2021

trading below $5 per share, while 15 companies
have registered a 90% loss on their share pricecompared to their 52-week high at the close of
the second quarter of 2022.

Figure 1. Stock price and 52-week high share price for selectmobility SPACs
Figure 1. Stock price and 52-week high share price for select mobility SPACs
$45
$40
$35

52-week highStock price*

$30
$25
$20

$10 per share
SPAC IPO price

$15
$10
$5
$0

Charge- Quantum- Fisker
Point
Scape

Luminar

NikolaProterra

Joby
Aviation

SES

Hyzon

AuroraArrival

Velodyne Cazoo
Lidar
Group

EmbarkTrucks

Bird
Rides*As of 16 June 2022
Source: Arthur D. Little; PitchBook*As of 16 June 2022
Source: Arthur D. Little; PitchBook

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A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

Even more troubling, only four out of the 60+
companies considered have been trading overtheir IPO share price, with ChargePoint, Blue
Bird, Enovix, and Verra Mobility valued between$11 and $16, but still far from all-time highs after
their IPOs. The broader tech sector has also
been suffering from a difficult market context

LEGACY OEMs ARE
P R O G R E S S I V E LY
GAINING TR AC TIONI N T H E I N N O VAT I V E
M O B I L I T Y S PA C E

since 2020, with the NASDAQ-100 Technology
Sector Index losing close to 40% between
November 2021 and November 2022. Mobility
SPAC performance over the period appears tobe below sector average, with certain players
having lost a significant share of their valuation.
However, if the short-term future appears
relatively clouded for some autonomous
mobility SPACs, a silver lining can be seen,
driven by more conventional legacy players.
While smaller mobility start-ups have beenleading innovation in their specific verticals inrecent years, large OEMs have taken their time
to adjust their strategies, R&D focus, supply
chains, and production capacity. As a result,legacy OEMs are progressively gaining tractionin the innovative mobility space, including
autonomous mobility.

This shift appears to be driven by advancements
in autonomous mobility technologies and, more
importantly, by EV sales growth. Given theirpowertrain as well as their heavier reliance on
software, EVs are more suited to accommodate
autonomous mobility than traditional ICEs.
As such, rapidly growing EV sales driven by
their normalization in OEM model lineups andthe development of more efficient charging
networks are likely to present the positive
outlook autonomous mobility was waiting for.
With OEMs focusing more and more on EVs andinnovative technologies, autonomous mobility’s
mid-term future appears to be more promisingthan its recent past. Now it is up to smaller
mobility players, including weakened SPACs, totake advantage of this traction and develop themarketable products and services, both for B2B
and B2C, that will allow them to remain relevantin the mobility space.

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ARTHUR D. LITTLE

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A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

2. USE CASE OF THE SEMESTERFO CUS O N RO B OTAXISINTRODUCTION
TO ROBOTAXIS

Robotaxis, also known as autonomous taxis,
are an important mode of transportation in

Robotaxis offer many benefits for theautonomous mobility with enormous potential fortransportation industry, such as increaseda robust business case for service providers andefficiency by operating 24/7 without the needcar manufacturers from commercialization of thefor breaks or human drivers, reduced costs, andservice. Today, robotaxis operate as “community

increased safety through the use of advanced

robotaxis,” providing commercial services

sensors and navigation systems. They are alsousing simple community roads under restrictedconvenient to use, providing on-demand service

operating environments (see Figure 2). We foresee

and improved mobility for people who havethe evolution of robotaxis into “city robotaxis”

difficulty driving or lack access to personalby 2027, where they would operate in any

vehicles. Additionally, they can optimize traffic

mapped area of a city as well as under extremeby taking the most efficient routes and reduce

weather conditions. We further anticipate theemissions by running on electric power. Therefore,

development of “anywhere robotaxis” by 2030,

we believe that robotaxis have the potential

which would operate anywhere and under any

to revolutionize urban and suburban mobility

weather conditions, traveling along bumpy,

use cases, serving as a convenient, safe, andunmapped, or unmade roads.

affordable option. Today, robotaxis have hit amajor milestone as companies are able to finallycommercialize driverless ride-hailing services forthe public in different cities around the world.

Figure 2. Robotaxis use case evolution
Figure 2. Robotaxis use case evolution

Today

2027+

2030+

1st stage
Community robotaxi

2nd stage
City robotaxi

3rd stage
Anywhere robotaxi• Operate on simple
community roads withfull interaction withother vehicles &vulnerable road users• Operate on any mapped
area of the city with fullinteraction with othervehicles & vulnerable
road users• Service not allowed
during extreme
weather conditions• Service allowed during
extreme weather
conditions• Operate anywhereand under any weather
condition, travelingalong bumpy,
unmapped, or unmade
roads, as necessary

Source: Arthur D. Little

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Source: Arthur D. Little

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ARTHUR D. LITTLE

However, despite these initial deployments,

As mentioned, community robotaxis arerobotaxis still remain in the development stage

currently in use in several cities, and companies

and will have to evolve through the three stages

such as Waymo and Cruise have been charging

described above in their quest for full autonomy.

customers for their robotaxi services for quite

These stages have distinctive characteristics

some time. Below, we present some of thewhen it comes to the potential operating

early deployments of community robotaxis,

environment, journeys provided, and service

highlighting their main characteristics:

availability.

- In October 2020, Waymo finally opened up a

C O M MU N I T Y ROB OTAXI S —TODAYCommunity robotaxis are already technicallyfeasible and have been implemented in different
cities around the world. Many of these earlyexperiments do not have a robust business case,but they are of upmost importance, primarily
because they provide companies with thepossibility to cover many miles and develop theexperience they need to guide further robotaxi
development.
The typical operating environment for this use
case is quite limited and represented mainly bycity communities, where robotaxis can operate
on simple community roads with full interaction
with other vehicles and vulnerable road users,
such as pedestrians and cyclists.

truly driverless ride-hailing service. ExistingWaymo One members were provided accessto the service in a 50-square-mile area in the
US city of Phoenix, Arizona. In August 2022,
Waymo extended the driverless autonomous
taxi service to downtown Phoenix. Currently,
only people accepted onto Waymo’s “Trusted
Tester” shuttle program are eligible to hailthese rides.

- In June 2022, the California Public Utilities

Commission also gave a green flag to Cruise
to launch a paid, driverless ride-hailing taxi
service. The service initially will be limited to
30 electric cars transporting passengers inless congested parts of San Francisco duringlate-night hours (10 pm to 6 am). The driverless
service will not be allowed to operate in bad
weather conditions, such as heavy rain or fog.

- In August 2022, the Chinese Internet giant
Baidu secured permits to launch a fully

driverless commercial autonomous taxi service
in Chongqing and Wuhan in China. In Wuhan,

C O M M U N I T Y R O B O TA X I S
A R E C U R R E N T LY I N U S E
IN SEVERAL CITIES

Baidu’s service will operate from 9 am to 5 pm
and cover a 13-square-kilometer area in thecity’s Economic and Technological Development
Zone, which is known as China’s “Auto City.” In
Chongqing, the service will run from 9:30 am
to 4:30 pm in a 30-square-kilometer area in
Yongchuan District. Each city will have a fleet

Due to restrictions in the operatingof five Apollo fifth-generation autonomous

environment, the typical service profile is first-/

taxis. Both cities have been testing hubs forlast-mile service, including pickup and drop-off

autonomous vehicles (AVs) and provide the rightof passengers traveling between their homes

technology and infrastructure for launching theand public transportation stops within theirride-hailing service. Baidu plans to expand its

community or short-trip service, which allows

commercial ride-hailing service to 65 cities by

pickup and drop-off of passengers traveling2025 and to 100 cities by 2030.

between their homes and work or leisure venues.
The restricted operating environment is not the
only constraint for this type of use case. Mostof these deployments also are prohibited byregulation to operate during extreme weather
conditions, such as heavy rain or sandstorms.

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C IT Y ROB OTAXI S — 2027
Based on the technology roadmaps of the main
robotaxi OEMs, we anticipate that, in the next
five years, robotaxis will enter the second stageof development, and city robotaxi use cases will
be successfully implemented in various cities
around the world, such as Dubai, San Francisco,
Paris, and Beijing, among others.

ANYWH ERE ROBOTAXIS —2030 AND BE YOND
Anywhere robotaxis represent the lastdevelopment stage for robotaxis and will requirea true leap in technology development since
anywhere robotaxis will be able to operate
anywhere and under any weather conditions.

Compared to community robotaxis, city
robotaxis will be able to operate in much more
complex operating environments. Indeed, they
will be capable of operating in automated modein any mapped area of a city, and to circulate
on any type of road, regardless of the level ofcomplexity and interaction with mixed traffic.

C I T Y R O B O TA X I SWILL OFFER A MORE
ROBUST BUSINESSC A S E T O C O M PA N I E S

In addition, restrictions related to service
availability will be relaxed as technology
advances and public acceptance increase,allowing these deployments to operate evenduring extreme weather conditions.
As a result, city robotaxis will offer a morerobust business case to companies, enablingthem to fully monetize the provided services.

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Indeed, stage three will enable a robotaxi topick customers up from their homes and drive
them into another city (or vice versa), travelingalong bumpy, unmapped, or unmade roads, asnecessary. Operation will be possible under any
weather conditions, including snow, hail, andheavy rain.

ARTHUR D. LITTLE

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3. CITY OF THE SEMESTER:
HONG KONG

AVs are intended to reshape the future of(2) smart mobility infrastructure, (3) mobility

the transport sector across all travel modes.

services digitalization, and (4) improving current

Pioneering countries and cities are preparing

traditional services. The overarching program,for this transformation journey by building

encompassing autonomous mobility as a key

momentum to unlock early advantages from thisfocus, has a clear vision to capitalize on thetrend. Hong Kong, as an example, has set a clear

advent of advanced technology to pursue smart

target to enable the AV ecosystem from different

mobility. The strategy consists of three building

angles, including setting a strategic direction thatblocks to guide efforts toward advancing aacts as an overarching umbrella to lead public

smart and autonomous mobility ecosystemand private sector efforts, upgrading the existingfor Hong Kong (see Figure 3):

infrastructure to enable relevant technologies,

1. Smart transport infrastructure — sensing

and developing the necessary framework thatand analytic technology and onboard andallows for fast adoptions in response to market

vehicle technology.

updates. Hong Kong’s relative success in enabling
the deployment of AVs can be attributed to

2. Data sharing and analytics — data-sharing

its focus on setting a clear strategic direction,and data analytics technologies.

developing enabling regulations, encouraging

3. Applications and services — new datastakeholder engagement, and strengthening

sharing, new-generation parking meters,

the underlying infrastructure.

and smart public transport infrastructure.
As part of the strategy, the Hong Kong

S E T T I N G A CLEAR
ST RAT EGI C D I R ECT I ON

government has facilitated the achievementof technology advancement and industry
development in vehicle-to-everything (V2X), AVs,

Hong Kong’s Transport Department (TD) has

and ultimately introducing AVs with integrated

initiated a proactive strategy to progress on

Internet access. However, its primary strategic

numerous smart mobility initiatives that focus

focus is enabling the overarching ecosystem foron four key elements: (1) autonomous mobility,

such advancements through these three blocks.

Figure 3. Hong Kong’s Smart Mobility Roadmap
Figure 3. Hong Kong’s Smart Mobility Roadmap
Program mission & vision•“To capitalize the advent of advanced technology
to pursue smart mobility”•

Setting out a holistic and coherent strategy for
implementing numerous initiatives in a timely
and coordinated manner

Source: Arthur D. Little

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Strategic building blocks

Smarttransport
infrastructure

Applications& services

Datasharing& analytics

ARTHUR D. LITTLE

DE V E LO P IN G
E NA B LIN G REG ULAT I ON S
In 2017, the Hong Kong TD issued “A Guide on
Application for Movement Permit for Test, Trial
and/or Demonstration of Autonomous Vehicles
on Roads Within Designated Sites in Hong
Kong,” opening the door for AVs and marking
the TD as a worldwide pioneering regulatory
entity in testing and enabling the relevant
technologies. The move also allowed the TD
to proactively expand regulatory maturity
and competitiveness from the early stages.
At the end of 2020, the TD issued updated
guidelines (“Guidance Notes on the Trials ofAutonomous Vehicles”), establishing a clear yet
flexible mechanism to facilitate applications for
movement permits to conduct more advanced
AV trials (including tests and demonstrations)while ensuring safety. Although Hong Kong lacks
a comprehensive framework or laws governingand regulating the AV ecosystem, these guiding
notes are currently used to clarify key elements
for AV trials, including:- Application procedures for movement

permits. The notes guide applicants throughthe licensing process and required applications
to conduct AV trials. Each application isassessed on a case-by-case basis depending-

on its own merit.

- The applicant should start with in-house

trials to gather experience and evidence tosubstantiate the satisfactory functioningof the AV and its components.

- The transition function between

autonomous mode and manual mode mustfirst be proven in in-house trials or trials
within a confined area before advancing totrials on temporarily closed and open roads.

- Driver/operator requirements. During theroad trials of AVs, there must be a driver/

operator to monitor the operation of the AV
and take over operation of the AV if necessary.

E NCOURAGINGSTAKEH OLDER E NGAGE ME NT
Hong Kong’s ability to position itself as aleader in the smart mobility and AV ecosystem
is contingent on the coordinated efforts ofstakeholders, which are categorized as smart
mobility leading entities and smart mobility
contributors. Smart mobility leading entities
primarily include government entities thatdrive the overall strategic-direction definition.
Smart mobility contributors, on the other hand,are public and private entities that provide
inputs to support defining of the direction,
as well as a private sector–focused advisory
panel that channels market views. In the caseof Hong Kong, all collaboration efforts are

General requirements. The guidance lists all

built on a concept of effective data exchange

major requirements (e.g., AVs shall be roadworthy

and transparency among three categories ofand in good/serviceable condition) and provides

stakeholders:notes on trial proposals with information on therelevant stakeholders and intended results aswell as safety management plans.

- Vehicle requirements. Included in the notes
is a list of obligations relating to vehicle

fitness that applicants seeking on-road trial
permits must fulfill. For example:- The AV, through its sensors or control by

the driver/operator, will need to respond
appropriately to all types of road users,
hazards, and scenarios (TD representatives
may attend and witness the pretrial tests,

1. Leading entities. Smart mobility, particularly
autonomous mobility, is a key focus area for
the Hong Kong government, and the TD is
the leading entity developing all policies andattracting private sector players.
2. Contributors. Contributors are predominantly
private sector entities operating within thesmart mobility ecosystem, formalized via therecent establishment of the Smart Mobility
Consortium, an advisory panel established toprovide input to the TD on regulatory direction.

if required).

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3. Dedicated unit. In addition, the TD leads
the overall strategic direction for autonomous
mobility in Hong Kong and has created a
dedicated unit focused on enabling the
deployment of autonomous mobility. The
Smart Mobility Division unit spearheads
regulatory adjustments and acts as the maininterface with the private sector and third
parties in areas related to smart mobility,
including autonomous mobility.
Overall, Hong Kong has identified autonomous
mobility as a strategic focus area, as illustrated
via its governance. The dedicated unit within
the TD, supported by a formalized private

STRE NGTH ENING
TH E UNDERLYINGINFRASTRUCTURE
A key prerequisite for autonomous mobility
is the development of a robust physical anddigital infrastructural layer that effectively
connects the vehicles. Hong Kong has ambitious
plans to be among the first to roll out 5G
communications capabilities to enable theseconnections and has structured a program
across three goals:
1. Connected. Hong Kong is driving connectivity

sector advisory panel, serves as a key enabler

by widening and increasing connectivity

to attract overseas companies, investors, andcoverage and enhancing connectivity speed.

international expertise to assist in developing

In terms of coverage, Hong Kong has launched

the smart mobility and autonomous mobility

a Wi-Fi-connected city program, Wi-Fi.HK,

ecosystem.

which connects more than 36,000 hot spots
across the city. In parallel, the city has put in

Case study — AV trials launchedin Hong Kong

- Context. The Hong Kong Science andTechnology Parks Corporation launched an
AV trial within the Science Park at Pak Shek
Kok. The trial was approved by the TD.

- Approach. The ongoing trial is structured
across two stages. The first stage isavailable to companies within the parkor testing under real-world scenarios,

4,500 MHz for 5G services and has assigned
spectrums in the 26 GHz and 28 GHz bands.
2. Autonomous. Hong Kong’s focus is on thedevelopment of test beds to conduct trials,
with the potential to focus on dedicated AV
corridors or temporary testing in the future.
The city is conducting AV trials for 5G research
purposes and is testing infrastructure forvehicle identification of pedestrian lanes,
including vehicles’ ability to slow down in front

and the second stage will extend theof pedestrians and react to a moving object.

availability of the trial to a broader

3. Shared. Given Hong Kong’s urban landscape andaudience, allowing members of the public
to participate in the trial on weekdays andon selected occasions.

- Results. The data accumulated

will be integrated into a dedicatedplatform, where it can be analyzed
and combined with traffic andtransportation data, thereby supporting
the future advancement and practicalimplementation of AVs across the public
transportation systems in Hong Kong.

Source: Sharon, Alita. “Autonomous Vehicle Trial Launchedin Hong Kong.” OpenGov Asia, 18 October 2022.

16

place a program to launch a total spectrum of

crowded nature, the city’s plans are focusing on
potential dedicated lanes for different modes.
Currently, dedicated lanes exist for bicycles,
although those that exist are primarily restricted
to new territories and parks.
Hong Kong has understood the importance ofinfrastructure as a key prerequisite and enabling
pillar for its autonomous mobility journey. It has
initiated efforts related to increasing connectivity
and rolling out 5G, and it should continue
focusing on trials with AV-dedicated lanes and on
growing shared mobility opportunities within thetransportation ecosystem.

ARTHUR D. LITTLE

S U MM A RY
Hong Kong is positioning itself as a leader in theautonomous mobility ecosystem. Its efforts havebeen particularly successful due to coordinatedefforts across the following key elements:-

Strategy — developing a central vision anddirection that unifies all stakeholder efforts,
drives partnerships, and enables private sector
participation.

- Regulations — reviewing existing conservative
regulations to define a clear regulatory

framework across liability and insurance,- Stakeholder integration — following a

multitiered approach led by a dedicated unit
within the transport authority. The unit leads
all smart mobility/autonomous mobility efforts
and is supported by effective engagement withthe private sector, formalized via the Smart
Mobility Consortium.

- Infrastructure — enhancing connectivity

through 5G rollout to allow for higher peak
speeds along with flexibility and lower latency.

- Technology — maintaining a clear focus on
infrastructure connectivity and investing in
expanding 5G connectivity.

registration, data privacy, and testing anddeployment.

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4. INTERVIEW OF THE SEMESTERInter view wit h Prof. Omaimah Bama sag,
Deput y of Tr anspor t Enablement at
t he Tr anspor t G ener al Aut horit y oft he Kingdom of Saudi Ar abi a (KSA)The Transport General Authority (TGA) wasestablished in 2012 by the Council of Ministers
Resolution No. 373 to regulate the railway, maritime,and land transport industry in the KSA. TGA
maintains high standards of quality and safety in

We will also notice high developments in the areasof V2X, especially between vehicles and meansof micromobility, to reduce the rate of accidents
in this regard, besides the development of new
business models for insurance companies toaccelerate the commercial operation. This willdefinitely lead us to see more licensing of AVs
around the world and their commercial operation
on public streets.

the transport sector and uses data and technology
to create a safe and efficient transport environment
promoting investment opportunities to meet theKingdom’s Vision 2030 socioeconomic goals. We
had the pleasure of conducting an e-interview
with Prof. Omaimah Bamasag, Deputy of Transport
Enablement at TGA.

T G A M A I N TA I N S H I G HS TA N D A R D S O F Q U A L I T Y
AND SAFET Y IN THE
TR ANSPORT SECTOR

Q: What outlook do you foresee forautonomous mobility in the future?
A: There is no doubt that AV technologies areprogressing and growing significantly, especiallyin recent years with the development of computercapabilities and the emergence of the artificial
intelligence revolution, the concept of big data,
and 5G. It is well known that the ultimate global
goal in AV is to bring them to Full Autonomy(Level 5, according to the Society of Automotive
Engineers [SAE] International) in a commercial
form, and it seems to me that we have a tricky
road ahead to reach that level, especially in lightof the challenges related to the security andprivacy of data and risk of cybersecurity attacks.
Therefore, I expect that in the coming years
we will see an increase in spending on R&D andtechnology advancement by OEMs, start-ups,
and tech giants for the development of AVs.

18

I also expect to see AVs commercially soon in
the applications of shared mobility by buses
and taxis, and perhaps trucks and robots, due
to the controllability of their applications andscope, as they often have predetermined origins,
destinations, and paths. Besides that, there
are many global efforts ongoing to define theirtechnical and operational requirements. And withthe emergence of the concept of mobility as aservice (MaaS) and the proof of its effectiveness,
it is expected that there will be a greater trend
toward the concept of autonomous MaaS basedon AVs to serve the first and last mile, and pilots
have begun in some countries around the world. In
the end, I may agree with the global forecast thatcommercial operation of AVs at SAE Level 4 andLevel 5 will become a reality around 2038.

ARTHUR D. LITTLE

Q: What is KSA’s vision toward

reach recommendations that formulate theautonomous mobility?

necessary regulations and legislation for these

A: The Kingdom’s goals for AV transport arevery ambitious and can be seen from the giant
projects based on autonomy, such as the Neomand Red Sea projects in the economic zone.
These smart cities are designed to be sustainablethrough the introduction of new transportsystems for passengers and goods based entirely
on autonomous mobility, such as volocopters,
autonomous pods, robotaxis, etc. On the other
hand, there are several mega projects in a numberof cities in the Kingdom aimed at catering AVs topassengers, such as the King Salman Park projecttechnologies. In the second track, TGA prepares
economic, social, and environmental feasibility
studies through which it determines the stagesof imposing certain regulations on operatorsand providers of public transport services andgoods transport through which the goals of theKingdom’s Vision 2030 are achieved. In short,
imposing regulations by TGA is very easy, but
the most important thing is to verify the adverse
effects that may result from imposing such
regulations because some effects may deviate
from the Kingdom’s desired vision.

in Riyadh and the King Abdullah University of

Q: Are there any other stakeholders involved?

Science and Technology in Thuwal.

How do you coordinate with each other?
A: With the nature of AV technologies, interagency

INTER AGENCYC O L L A B O R AT I O N
IS CRITICAL TO
ACHIE VING R APIDM AT U R I T Y A N D
DEVELOPMENT

collaboration is critical to achieving rapid
maturity and development. TGA is very keen towork with all concerned governmental, private,
local, and international bodies, or even researchbodies, each according to its specialization. On
the governmental level, we are aligned with the
Ministry of Transport and Logistic Services on
AV projects, and with the Ministry of Municipal
and Rural Affairs and Housing, including themunicipalities and royal and development
authorities of the regions, for their competence

Looking at the National Transport and Logistics
Strategy (NTLS), we find it was supportiveof adopting new mobility systems for thetransport of people and logistics sectors. Thiswas reinforced by the sectoral strategy for landtransport by TGA, with targets that aspire toconvert approximately 15% of public transport
vehicles into AVs and 25% of goods transport
vehicles into AVs by 2030.
Q: What role would TGA play in

in infrastructure and city intelligence. We are also
working with the Ministry of Communications andInformation Technology and the Saudi Authority
for Data and Artificial Intelligence to improve
the readiness of the necessary communications
infrastructure for these technologies, such as 5G,
data privacy, and security.
Meanwhile, we seek to discuss with someenforcement bodies, like the General Traffic
Department and Public Security, about theachieving KSA’s vision?

improvement of traffic control units, smart usage

A: The regulatory position of TGA on the

As for research bodies, cooperation is based onpassenger and goods transport sectors in theexchanging data obtained from tests for research

Kingdom makes its role essential in achieving the

purposes, localizing some operational tasks of

Kingdom’s vision. TGA is working on two tracks.

autonomous mobility, and opening new horizons

The first revolves around promoting and adopting

in development and innovation. Cooperation also

new modes and means of transportation throughextends to raising community awareness throughpiloting and testing, R&D, and establishingholding local seminars, hosting international

relationships with governmental and private

conferences specialized in autonomous mobility,

entities, universities, and research bodies toand organizing competitions and hackathons.

of surveillance cameras, and fine approaches, etc.

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A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

Q: What is the status of AV regulations in KSA?
A: The Kingdom is still in the early stages of

Q: What roadblocks do you foresee
for AV market ramp-up in KSA?

regulating AVs, but this does not mean that we are

A: In terms of roadblocks, there are many,

not interested; on the contrary, it is the first concern

and perhaps the most important of them isand target of all parties of the transport ecosystem.

the readiness of the infrastructure for AVs,

At all levels, the authorities are working very

particularly if the aim is to achieve commercial

hard to regulate and legislate AV in the Kingdom

operation at SAE Level 4 and Level 5 for AVs.

through piloting different technologies, conducting

What I mean by readiness here is the readiness ofstudies, and meeting with the competent local andtechnologies and other necessary requirements

global authorities in the field to determine theirin the infrastructure for achieving safe operation

technical, operational, and legislative requirements.

and protection of privacy and data. Also, one of

Saudi Arabia’s desire to build one of the largest

the important roadblocks, assuming that the

sandboxes for new mobility may be strong support

infrastructure in the Kingdom is ready, is thefor advancing the growth of AVs in the Kingdom anddelay in formulating the necessary regulations foris a great accelerator for the development of its

these vehicles. Public acceptance may be anotherregulations and legislation.

roadblock to increasing AVs in the Kingdom,
especially if privacy and security issues are
not well addressed.

ADDRESSING ROADBLOCKSSHOULD BE PARTICIPATORYWORK BE T WEENALL STAKEHOLDERS

Q: How are you looking to tackle
these roadblocks?
A: It is important to note that addressing
roadblocks should be participatory work between
all stakeholders. We are working with many
ministries and agencies, like the Ministry of

It is worth noting that the Saudi Central Bank
(SAMA) recently announced its approval of a new
insurance product, the first of its kind designed
to provide coverage for AVs and related risks. The
bank indicated that the product provides insurance
coverage for AVs that can drive themselves from astart point to a pre-set destination in “autopilot”
mode using various in-vehicle technologies andsensors. These include adaptive control, active
steering, anti-lock braking systems, GPS navigation
technology, lasers, and radar. Coverage is only valid
for vehicles that are driven and operated in licensed
areas and areas designated for AVs.
Q: Are you collaborating with international
authorities for regulatory standardization?
A: Unfortunately, TGA does not have any
collaboration thus far with international bodies
to standardize the regulation, but we will definitely
do so soon. In fact, it is an important step to unify
and integrate efforts and advance the development
toward the commercial operation of AVs.

20

Transport and Logistic Services; the Ministryof Municipal and Rural Affairs and Housing; theMinistry of Communications and Information
Technology; the Saudi Data and Artificial
Intelligence Authority; the National Cybersecurity
Authority; the royal and development authorities
of regions; municipalities; and some other local
and international private sectors to improve thereadiness of the infrastructure in the Kingdom
and formulate the necessary regulations for AVs.
We work also with many research bodies,
universities, and organizations to set up programs
and competitions and develop educational
curricula that contribute to raising community
awareness and educating the community about
what is new in technology.

ARTHUR D. LITTLE

Q: Most AV players foresee large-scale

Q: Going forward, what will be the next steps

commercialization of the service by 2024.

for TGA to ensure effective collaboration with

Do you believe this target is achievable?

the private sector on AVs?

A: Yes, it is achievable, but only to a certain

A: The private sector is one of the most important

extent. Levels 4 and 5 of personal AV may requirearms in the development and growth of AVs. They

more study and research to be commerciallypossess technical and operational knowledge

ready. But if we look around the world, we see

and have global experiences by the nature ofthat there are other AV technologies that are

their presence in several countries around thecurrently operating in a kind of commercial

world, and their role with TGA comes throughmanner, like the autonomous pod, e-commercetransferring their global knowledge. What I see

robot, and all other technologies built similarly

in our collaboration is that they can strengthenon the concept of shared mobility. These are what

TGA in establishing proof-of-concept piloting andI expect to be commercially operational by 2024

support TGA in drafting the necessary regulation

because many organizations and governments

for technologies. Meanwhile, the role of TGA ishave made extensive efforts to develop their

to create investment opportunities for themrequirements and legislation. It is important toand pave the way for new horizons in the local

note that the readiness of the infrastructure andmarket for AVs. This is what the Public Authority

regulation play an important role in achieving thefor Investment and Competitiveness at TGA iscommercialization of AVs.

targeting.

21

A U T O N O M O U S M O B I L I T Y J O U R N A L : L AT E S T D E V E L O P M E N T S W O R L D W I D E

NOTES

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ARTHUR D. LITTLE

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