Towards a Single and Innovative European Transport System : international assessment and action plans of the focus areas : final report.
Date: 2017-08-25
Institutions: Directorate-General for Mobility and Transport
Subjects: data processing, energy efficiency, environmental impact, greenhouse gas, innovation, intelligent transport system, organisation of transport, reduction of gas emissions, report, research and development, road traffic, sustainable mobility, transport infrastructure, transport network, transport policy, urban transport

Towards a Single and Innovative 
European  
Transport System 

International Assessment and Action Plans 

of the Focus Areas 

Final Report 

July 2017 

mmmll 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
European Commission 
Directorate-General for Mobility and Transport 
Directorate B – Investment, Innovation & Sustainable Transport  
Unit B3 – Innovation and Research 

Contact e-mail: MOVE-B3-SECRETARIAT@ec.europa.eu  

Authors:  
Angelos Bekiaris, Centre of Research and Technology Hellas, CERTH 
Oliver Lah, Wuppertal Institute for Climate, Environment and Energy 
Matina Loukea, Centre of Research and Technology Hellas, CERTH 
Gereon Meyer, VDI/VDE Innovation + Technik GmbH 
Beate Müller, VDI/VDE Innovation + Technik GmbH 
Shritu Shrestha, Wuppertal Institute for Climate, Environment and Energy 
Sebastian Stagl, VDI/VDE Innovation + Technik GmbH 

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Luxembourg: Publications Office of the European Union, 2017  

ISBN 978-92-79-71640-9 
DOI: 10.2832/006045 
Catalogue: MI-01-17-866-EN-N 

© European Union, 2017  
Reproduction is authorised provided the source is acknowledged. 

ii 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Towards a Single and Innovative  
European  
Transport System 

International Assessment and Action Plans  
of the Focus Areas 

Final Report 

July 2017 

iii 

 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Abstract 

The study “Towards a Single and Innovative European Transport System” is developing action plans for 
the establishment of an integrated transport system in Europe. This report  was created in a joint effort 
between VDI/VDE Innovation + Technik GmbH (Germany), Wuppertal Institute for Climate, Environment 
and Energy (Germany) and the Centre of Research and Technology Hellas, CERTH (Greece) on behalf 
of  the  European  Commission’s  DG  MOVE.  Focus  of  the  report  is  the  international  assessment  of  six 
different  countries  –  Brazil,  China,  India,  Japan,  South  Korea,  USA  –  in  five  focus  areas  across  all 
transportation modes. It provides actions plans on how to overcome existing European barriers towards 
a single and innovative European Transport System based on best practices and lessons learned in the 
countries  under  study.  In  addition  to  the  actions  plans,  the  study  also  provides  recommendations  for 
international collaboration. 

Authors 

Angelos Bekiaris, Centre of Research and Technology Hellas, CERTH 
Oliver Lah, Wuppertal Institute for Climate, Environment and Energy 
Matina Loukea, Centre of Research and Technology Hellas, CERTH 
Gereon Meyer, VDI/VDE Innovation + Technik GmbH 
Beate Müller, VDI/VDE Innovation + Technik GmbH 
Shritu Shrestha, Wuppertal Institute for Climate, Environment and Energy 
Sebastian Stagl, VDI/VDE Innovation + Technik GmbH 

Contact 

Study Coordinator: Dr Gereon Meyer, email: gereon.meyer@vdivde-it.de 

The team would like to thank Maria Carbone and the Commission staff for their constructive feedback 
and inputs throughout the process. 

Berlin, 19 July 2017 

Client 
Title 

European Commission, DG MOVE 
Final  Report  –  Towards  a  Single  and  Innovative  European  Transport 
System: Lot 2 - International Assessment and Action Plans of the Fo-
cus Areas 

The information and views set out in this report are those of the author(s) and do not necessarily re-
flect the official opinion of the Commission. The Commission does not guarantee the accuracy of the 
data included in this study. Neither the Commission nor any person acting on the Commission’s behalf 
may be held responsible for the use which may be made of the information contained therein. 

© VDI/VDE Innovation + Technik GmbH (2017) 

iv 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Executive Summary 

This  report  has  been  created  in  the  context  of  the  study  “Towards  a  Single  and  Innovative  European 
Transport System” that develops  action plans on how to create an integrated  European transport sys-
tem. Thereby it takes into account the European Commission’s White Paper on Transport.  The overall 
goal of the study is to identify barriers within Europe and to find best practices in the international arena 
that  can  be  potentially  translated  to  the  European  context  to  overcome  these  barriers.  Subject  of  this 
report  is  the  international  assessment  conducted  as  part  of  the  contract  concerning  “International  as-
sessment and action plans of the focus areas”, i.e. Lot 2 of the original call for tenders. 

The  Focus  Areas  are  built  on  five  thematic  transport  research  areas  in  accordance  with  the  Strategic 
Transport Research and Innovation Agenda (STRIA): (1) connected driving and automation of transport, 
use of automated optimization of traffic flows, (2) transformation of infrastructure to address connectivi-
ty, resilience, new fuels and energy efficiency, (3) smart mobility services (including provision and use of 
data, and urban mobility), freight and logistics, (4) standardization and interoperability, and (5) alterna-
tive fuels other than electrification. 

In light of the growing globalization with increasing co-operation between nation states and the elimina-
tion of cultural and political differences, learning from each other not only creates opportunities for inter-
national  collaboration  and  transfer  of  knowledge  but  also  reduces  redundancies  and  the  likelihood  of 
taking faulty measures. Therefore, analysing other countries’ best practices and lessons learned of suc-
cessful transportation initiatives and activities is beneficial. The countries in focus – Brazil, China, India, 
Japan, South Korea and United States of America  – represent both highly industrialized as well as in-
dustrializing nations with different challenges. 

In  order  to  be  able  to  identify  best  practices,  first,  a  comprehensive  picture  of  the  status  quo  of  the 
transport  systems  has  been  drawn.  This  has  been  achieved  by  conducting  a  state-of-play  analysis  of 
the  respective  countries  along  their  transportation  value  chain  from  research  to  industry  and  market 
across all modes. Based on these, an analysis on each country’s strengths, weaknesses, opportunities 
and threats (SWOT) has been undertaken in all focus area. In addition a Porter’s 5-Forces analysis has 
been conducted to show the dynamics of one particular value chain in each country. Through this ap-
proach the maturity degree of each country’s transport system has been assessed and rated on a five-
point  scale  (see  Figure  1).  Even  though  each  country  has  its  specific  challenges  to  cope  with,  many 
countries  seem  to  be  driven  by  the  same  societal  problems  evoking  technological  and  infrastructural 
shifts. The assessment shows that USA and Japan are leading in almost all of the analysed focus are-
as. Both China and Korea also benefit from their relatively favourable traffic environments. However, in 
both countries opportunities have yet to be exploited. Compared to these four countries Brazil and India 
are lagging behind in all Focus Areas due to disadvantageous framework conditions. Europe’s maturity 
degree,  which  is  juxtaposed  to  the  thorough  analysis,  is  perceived  to  be  comparable  with  the  highest 
degrees in the study for Focus Area 1 and 2 and in the middle range for Focus Areas 3, 4 and 5. 

Based on these analyses best practices and lessons learned were identified, characterized and eventu-
ally analysed in terms of their feasibility for the European situation. Valuable examples were found in all 
countries and focus areas (see Figure 2). To enhance the international assessment, four best practices 
outside of the study’s scope were added to the analysis. Where the feasibility analysis returned positive 
results and where lot 1 identified barriers, actions were defined on how to enable a transfer of the prac-
tices to the European context to overcome existing hurdles within the European Union. All actions were 
synthesized  into  action  plans  consisting  of  activity  fields  for  which  the  European  status  quo  was  as-
sessed and overarching goals formulated. Additionally, responsibilities, time frames (2020, 2030, 2050) 
and measurements for success have been defined. 

In a last step recommendations for international collaboration between the European Union and coun-
tries  under  study  have  been  identified.  These  recommendations  address  the  strengthening  of  the  EU 
competitiveness, market access issues, the contribution to dealing with global challenges and the identi-
fication of global players and programmes for enabling collaboration, cooperation and joint initiatives. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Résumé 

Ce rapport intérimaire a été rédigé dans le cadre de l’étude «Vers un système de Transport Européen 
unique  et  innovant».  Il  prend  ainsi  en  compte  le  Livre  blanc  de  la  Commission  européenne  sur  les 
transports. L’objectif principal de cette étude est de soutenir l’établissement d’un système de transport 
intégré, en identifiant les obstacles en Europe et de repérer les bonnes pratiques dans l’arène interna-
tionale qui pourraient être retranscrites dans le contexte Européen afin de surmonter ces obstacles. Le 
sujet de ce rapport intérimaire est l’illustration des premiers résultats de l’évaluation internationale con-
duite par le lot 2. 

Les secteurs d’intérêts sont construits autour de 5 domaines de recherche thématiques dans les trans-
ports  conformément  au  Livre  Blanc  sur  les  Transports  ainsi  qu’au  plan  stratégique  de  recherche  et 
d'innovation en matière de Transports (STRIA): 1) La conduite connectée et l’automatisation des trans-
ports, 2) La transformation des infrastructures, 3) Les services liés à la mobilité intelligente, le transport 
de marchandises et la logistique, 4) la standardisation et l’interopérabilité, et 5) les carburants alterna-
tifs, autres que l’électrification. 

A  la  lumière  de  la  globalisation  croissante  impliquant  un  renforcement  des  coopérations  entre  états-
nations et l’élimination des différences culturelles et politiques, apprendre les uns des autres crée des 
opportunités  de  collaborations  internationales  et  de  transfert  de  connaissances  tout  en  réduisant  les 
redondances et  la probabilité de prendre des dispositions inadaptées. C’est pour cette raison  qu’il est 
propice  d’analyser  les  bonnes  pratiques  établies  dans  d’autres  pays  ainsi  que  les  leçons  retenues  de 
initiatives  et  activités  fructueuses  dans  le  domaine  des  transports.  Les  pays  concernés  ont  Brésil, 
Chine, Corée du Sud, Etats-Unis d’Amérique, Inde et Japon. 

Afin de pouvoir identifier les meilleures pratiques, on a d'abord dressé un tableau complet du statu quo 
des  systèmes  de  transport.  Cela  a  été  réalisé  en  effectuant  une  analyse  de  l'état  de  la  situation  des 
pays respectifs le long de leur chaîne de valeur de transport, de la recherche à l'industrie et au marché 
dans tous les modes. Sur cette base, une analyse des forces, des faiblesses, des opportunités et des 
menaces (SWOT) de chaque pays a été entreprise dans tous les domaines d'intervention. De plus, une 
analyse des cinq forces de Porter a été menée pour montrer la dynamique d'une chaîne de valeur parti-
culière  dans  chaque  pays.  Grâce  à  cette  approche,  le  degré  de  maturité  du  système  de  transport  de 
chaque pays a été évalué et noté selon une échelle de cinq points (voir Figure 1). Même si chaque pays 
a des défis spécifiques à relever, de nombreux pays semblent être motivés par les mêmes problèmes 
sociétaux qui évoquent les changements technologiques et infrastructurels. L'évaluation montre que les 
États-Unis et le Japon sont à la pointe dans presque tous les domaines d'étude analysés. La Chine et la 
Corée bénéficient également de leur environnement de trafic relativement favorable. Cependant, dans 
les deux pays, les opportunités n'ont pas encore été exploitées. Par rapport à ces quatre pays, le Brésil 
et l'Inde sont à la traîne dans toutes les zones thématiques en raison de conditions des cadres défavo-
rables. Le degré de maturité de l'Europe est perçu comme étant comparable aux  plus hauts degrés de 
l'étude pour les zones de focalisation 1 et 2 et au milieu pour les domaines d'intervention 3, 4 et 5. 

Sur la base de ces analyses, les meilleures pratiques et les leçons apprises ont été identifiées, caracté-
risées  et  finalement  analysées  en  termes  de  faisabilité  pour  la  situation  européenne.  Des  exemples 
précieux ont été trouvés dans tous les pays et domaines cibles (voir Figure 2). Pour améliorer l'évalua-
tion  internationale,  quatre  pratiques  exemplaires  en  dehors  de  la  portée  de  l'étude  ont  été  ajoutées  à 
l'analyse.  Lorsque  l'analyse  de  faisabilité  a  donné  des  résultats  positifs  et  que  le  lot  1  a  identifié  des 
obstacles, des actions ont été définies sur la manière de permettre un transfert vers le contexte euro-
péen. Toutes les actions ont été synthétisées en plans d'action composés de domaines d'activité pour 
lesquels le statu quo européen a été évalué et des objectifs globaux formulés. De plus, les responsabili-
tés, les délais (2020, 2030, 2050) et les mesures de succès ont été définis. 

Dans une dernière étape, des recommandations pour la collaboration internationale entre l'Union Euro-
péenne et les pays étudiés ont été identifiées. Ces recommandations visent le renforcement de la com-
pétitivité  de  l'UE,  les  questions  d'accès  aux  marchés,  la  contribution  à  la  résolution  des  problèmes 
mondiaux et l'identification d'acteurs et de programmes mondiaux permettant la collaboration, la coopé-
ration et les initiatives conjointes. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 1: Degree of maturity of the integrated transport system along the focus areas in six countries and in Europe 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 2: Best practices and lessons learned of integrated transport system along the focus areas in selected countries 

 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Table of Contents 

Executive Summary ..................................................................................................................................v 

Résumé ................................................................................................................................................... vi 

List of Figures ......................................................................................................................................... xii 

List of Abbreviations .............................................................................................................................. xiv 

1 

Study Outline ................................................................................................................................... 1 

2  Methodological Approach and Work Steps ..................................................................................... 3 

2.1  Step 1 – Examination Stage .................................................................................................. 3 

2.1.1  Collecting Evidence of the State of Play for all Focus Areas in the Selected 

Countries ....................................................................................................................3 
2.1.2  Assessing the State of Play per Focus Area and Country .........................................4 

2.2  Step 2 – Identification and Assessment of Best Practices and Lessons Learned ................ 4 

2.2.1  Characterisation of Best Practices and Lessons Learned .........................................5 
2.2.2  Assessment of Feasibility of Best Practices and Lessons Learned ...........................5 

2.3  Step 3 – Development of International Dimension within High-Level Clusters ..................... 5 

2.3.1  Derivation of Action Plans ..........................................................................................5 
International Co-operation and High-Level Clusters ..................................................6 
2.3.2 

2.4  Ambassadors ......................................................................................................................... 7 

3 

State-of-Play Analysis ...................................................................................................................... 8 

3.1  Focus Area 1 – Connected Driving and Automation of Transport......................................... 8 

3.1.1  Brazil...........................................................................................................................8 
3.1.2  China ....................................................................................................................... 10 
3.1.3 
India ......................................................................................................................... 14 
3.1.4  Japan ....................................................................................................................... 18 
3.1.5  South Korea ............................................................................................................ 28 
3.1.6  United States of America ........................................................................................ 31 

3.2  Focus Area 2 – Transformation of Infrastructure ................................................................. 41 

3.2.1  Brazil........................................................................................................................ 41 
3.2.2  China ....................................................................................................................... 43 
3.2.3 
India ......................................................................................................................... 50 
3.2.4  Japan ....................................................................................................................... 53 
3.2.5  South Korea ............................................................................................................ 57 
3.2.6  United States of America ........................................................................................ 64 

3.3  Focus Area 3 – Smart Mobility Services, Freight, And Logistics ......................................... 68 

3.3.1  Brazil........................................................................................................................ 68 
3.3.2  China ....................................................................................................................... 70 
3.3.3 
India ......................................................................................................................... 73 
3.3.4  Japan ....................................................................................................................... 76 
3.3.5  South Korea ............................................................................................................ 83 
3.3.6  United States of America ........................................................................................ 87 

3.4  Focus Area 4 – Standardization and Interoperability .......................................................... 95 

3.4.1  Brazil........................................................................................................................ 95 
3.4.2  China ....................................................................................................................... 96 
India ......................................................................................................................... 99 
3.4.3 

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.4.4  Japan ..................................................................................................................... 101 
3.4.5  South Korea .......................................................................................................... 104 
3.4.6  United States of America ...................................................................................... 105 

3.5  Focus Area 5 – Alternative Fuels Other than Electrification .............................................. 110 

3.5.1  Brazil...................................................................................................................... 110 
3.5.2  China ..................................................................................................................... 112 
3.5.3 
India ....................................................................................................................... 116 
3.5.4  Japan ..................................................................................................................... 118 
3.5.5  South Korea .......................................................................................................... 122 
3.5.6  United States of America ...................................................................................... 126 

3.6  Maturity Degree ................................................................................................................. 131 

3.7  Porter’s 5-Forces Analysis ................................................................................................. 132 

3.7.1  Brazil: Biofuels Value Chain .................................................................................. 132 
3.7.2  China: Smart Logistics Service Value Chain ........................................................ 135 
3.7.3 
India: Smart Cycle and Auto Rickshaw Hailing Services Value Chain ................. 136 
3.7.4  Japan: High-speed Train Value Chain .................................................................. 139 
3.7.5  South Korea: Smart Mobility Platform Value Chain .............................................. 140 
3.7.6  USA: Automated Driving Value Chain ................................................................... 142 

4 

Best Practices .............................................................................................................................. 144 

4.1  Focus Area 1 – Connected Driving and Automation of Transport..................................... 144 

4.1.1  Brazil/South Korea/USA: Test Beds for Vehicle Automation ................................ 144 
4.1.2  Japan/USA: Nissan’s Anthropology Research ...................................................... 147 
4.1.3  Japan: SIP-ADUS .................................................................................................. 148 
4.1.4  Japan/USA: Variable Message Signs (VMS) and Runway Status Lights (RWSL) 151 
4.1.5  USA: California’s Regulatory Framework.............................................................. 153 
4.1.6  USA: Connected Vehicle Deployment Program & SPY Car Act ........................... 154 
4.1.7  USA: Energy Impact Assessment of Connected and Automated Transport ........ 157 
4.1.8  USA: Venture Capital Environment ....................................................................... 158 

4.2  Focus Area 2 – Transformation of Infrastructure ............................................................... 160 

4.2.1  Brazil/India: Curitiba Bus Rapid Transit (BRT) System ......................................... 160 
4.2.2  China: Maglev/High-Speed Trains ........................................................................ 163 
4.2.3  Japan: Demand-responsive Infrastructure Development ...................................... 164 
4.2.4  Japan: National Resilience & Disaster Risk Management System ....................... 165 
4.2.5  Japan/South Korea: Transit-oriented Development .............................................. 166 
4.2.6  South Korea: Gyeongin Ara Waterway Project ..................................................... 168 
4.2.7  South Korea: Urban Traffic Improvement Promotion Act ...................................... 170 
4.2.8  USA: Beyond Traffic 2045 ..................................................................................... 171 
4.2.9  USA: Livability Initiative ......................................................................................... 172 
4.2.10  USA: MIT Changing Places .................................................................................. 175 

4.3  Focus Area 3 – Smart Mobility Services, Freight, and Logistics ....................................... 177 

4.3.1  Brazil: Uber for Trucks........................................................................................... 177 
India: Smart Cycle and Auto Rickshaw Services .................................................. 178 
4.3.2 
4.3.3  South Korea: Uiwang ICD Dry Port ....................................................................... 179 
4.3.4  USA: Smart City Challenge ................................................................................... 181 

4.4  Focus Area 4 – Standardization and Interoperability ........................................................ 183 

4.4.1  South Korea: Smart Transportation Card.............................................................. 183 
4.4.2  USA: NHTSA/SAE Standards ............................................................................... 185 

4.5  Focus Area 5 – Alternative Fuels Other than Electrification .............................................. 186 

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Final Report – International Assessment and Action Plans of the Focus Areas 

4.5.1  South Korea: Ulsan Hydrogen .............................................................................. 186 
4.5.2  USA: California’s Zero Emission Vehicle (ZEV) Program ..................................... 188 
4.5.3  USA: Clean Cities .................................................................................................. 189 

4.6  Additional Best Practices from Countries outside of the Study’s Scope ........................... 191 

4.6.1  Singapore: Electrified Automated Shared Mobility (Focus Area 1, 2, 3, 5) ........... 191 
4.6.2  Canada: Mobility Ecosystem in Toronto City Planning  (Focus Area 2) ............... 192 
4.6.3  Philippines: Transport Network Companies (TNC) in Manila (Focus Area 3) ....... 192 
4.6.4  Australia: Freight Labelling & EDI Standard (Focus Area 4) ................................ 193 

4.7  Best Practices Summarised .............................................................................................. 194 

5 

Action Plans ................................................................................................................................. 195 

5.1  Focus Area 1 – Connected Driving and Automation of Transport..................................... 196 

5.2  Focus Area 2 – Transformation of Infrastructure ............................................................... 200 

5.3  Focus Area 3 – Smart Mobility Services, Freight, and Logistics ....................................... 204 

5.4  Focus Area 4 – Standardisation and Interoperability ........................................................ 207 

5.5  Focus Area 5 – Alternative Fuels Other than Electrification .............................................. 210 

6 

Potentials for International Co-operation ..................................................................................... 213 

7  Conclusions ................................................................................................................................. 219 

8 

Annex ........................................................................................................................................... 227 

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Final Report – International Assessment and Action Plans of the Focus Areas 

List of Figures 

Figure 1: Degree of maturity of the integrated transport system along the focus areas in six 

countries and in Europe ............................................................................................................ v 

Figure 2: Best practices and lessons learned of integrated transport system along the focus 

areas in selected countries ...................................................................................................... vi 

Figure 3: Work flow in lot 2 .......................................................................................................................3 

Figure 4: Scope of governmental program SIP-ADUS .......................................................................... 19 

Figure 5: Japanese people's Intention to use autonomous vehicles ..................................................... 25 

Figure 6: Japanese people's intention to use autonomous vehicles by age ......................................... 25 

Figure 7: Advanced Rapid Transit Concept developed in SIP-ADUS ................................................... 26 

Figure 8: The Next Urban Transportation System in the context of automated driving ........................ 27 

Figure 9: Routes of the Virginia Automated Corridors initiative ............................................................ 32 

Figure 10: Urban Automation: 78 Cities Analysis in Smart City Challenge ........................................... 35 

Figure 11: Google's in-house driverless car design .............................................................................. 36 

Figure 12: A Lexus RX450h retrofitted by Google for its driverless car fleet ........................................ 36 

Figure 13: The Tesla Model S P85D ..................................................................................................... 37 

Figure 14: Global ranking of port (2012) ............................................................................................... 44 

Figure 15: Accelerating development in transport infrastructure in China ............................................ 44 

Figure 16: China’s GDP and transport infrastructure investment trend during 1995-2014 ................... 45 

Figure 17: Type of private participation in different sectors for the period 2004–2013 ......................... 49 

Figure 18: Average commuting distance and commuting time of Koreans ........................................... 59 

Figure 19: New 4-type Bus Management System in Korea .................................................................. 61 

Figure 20: Automation of freight handling developed by JR Freight ..................................................... 78 

Figure  21:  Japan’s  growing  car  sharing  market  (left/red:  number  of  vehicles;  right/blue: 

number of users) ................................................................................................................. 81 

Figure  22:  ASEAN-Japan  Transport  Partnership  Work  Plan  for  2015-2016  and  Green 

Logistics ............................................................................................................................... 82 

Figure 23: Bus Management System (BMS) in Seoul ........................................................................... 86 

Figure 24: Participants of the Smart City Challenge organized the USDoT ......................................... 92 

Figure 25: China standardization system .............................................................................................. 96 

Figure 26: Levels of Chinese standards ................................................................................................ 97 

Figure 27: Organization of ITS Japan and involved parties ................................................................ 102 

Figure 28: V2V/V2R Standardization in Japan compared to Europe and USA .................................. 102 

Figure  29:  Summary  of  SAE  International’s  Levels  of  Driving  Automation  for  On-Road 

Vehicle ............................................................................................................................... 106 

Figure 30: Share of alternatively fueled vehicles................................................................................. 115 

Figure 31: Greenhouse gas emission from Transportation in USA..................................................... 126 

Figure 32: Federal fleet AFV inventory by fuel type ............................................................................ 129 

Figure 33: Total alternative fuel consumption by fleet ......................................................................... 129 

Figure 34: Degree of maturity of the integrated transport system along the focus areas in six 

countries and in Europe ..................................................................................................... 131 

Figure 35: Porter's 5-Forces Analysis ................................................................................................. 132 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 36: Porter's 5-Forces Analysis on the Biofuels Value Chain in Brazil ...................................... 135 

Figure 37: Porter's 5-Forces Analysis on the Smart Logistics Services Value Chain in China ........... 136 

Figure 38: Porter's 5-Forces Analysis on the Mobile Rickshaw Hailing Service Value Chain in 

India ................................................................................................................................... 138 

Figure 39: Porter's 5-Forces Analysis on the High-speed Train Value Chain in Japan ...................... 140 

Figure 40: Porter's 5-Forces Analysis on the Smart Mobility Platforms Value Chain in South 

Korea ................................................................................................................................. 142 

Figure 41: Porter's 5-Forces Analysis on the Automated Driving Value Chain in USA ...................... 143 

Figure 42: Best practices and lessons learned of integrated transport system along the focus 

areas in selected countries ................................................................................................ 194 

Figure 43: Action Plan on Connected Driving and Automation of Transport ...................................... 199 

Figure 44: Action Plan on Transformation of Infrastructure ................................................................ 203 

Figure 45: Action Plan on Smart Mobility Services, Freight, and Logistics ......................................... 206 

Figure 46: Action Plan on Standardisation & Interoperability .............................................................. 209 

Figure 47: Action Plan on Alternative Fuels (Other than Electrification) ............................................. 212 

Figure 48: Degree of maturity of the integrated transport system along the focus areas in six 

countries and in Europe ..................................................................................................... 220 

Figure  49:  Results  from  Porter's  5-Forces  analyses  for  one  value  chain  per  country  under 

study .................................................................................................................................. 223 

Figure 50: Best practices and lessons learned of integrated transport system along the focus 

areas in selected countries ................................................................................................ 224 

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Final Report – International Assessment and Action Plans of the Focus Areas 

List of Abbreviations 

AAI 

Airports Authority of India 

ADB 

Asian Development Bank 

ADS-B 

Automatic Dependent Surveillance-Broadcast 

ADU 

Autonomous Driving Unit 

AFC 

Automatic Fare Collection 

AFDC 

Alternative Fuels Data Centre 

AFV 

Alternative Fuel Vehicles 

AGT 

Automated Guideway Transit 

AGV 

Automated Guided Vehicle  

AHS 

Advanced Cruise-Assist Highway 

AIIB 

Asian Infrastructure Investment Bank 

AJTP 

ASEAN-Japan Transport Work Plan 

ALC 

Australian Logistics Council  

AMRUT 

Atal Mission for Rejuvenation and Urban Transformation 

ANATEL 

Agência Nacional de Telecomunicações 

ANP 

National Agency of Petroleum 

ANPR 

Automatic Number Plate Recognition 

APM 

Automated People Mover 

AQSIQ 

General Administration of Quality Supervision, Inspection and Quarantine 

ARAI 

Automotive Research Association of India 

ARB 

Air Resources Board 

ARIWS 

Autonomous Runway Incursion Warning Systems 

ART 

Advanced Rapid Transit 

ASCE 

American Society of Civil Engineers 

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Final Report – International Assessment and Action Plans of the Focus Areas 

ASV 

ATC 

ATO 

ATS 

Advanced Safety Vehicle 

Automatic Train Control 

Automatic Train Operation  

Automatic Train Stop 

ATTRI 

Accessible Transportation Technologies Research Initiative 

AUV 

Asian Utility Vehicles  

AV 

Automated Vehicles 

AV OS 

Autonomous Vehicle Operating System 

AVF 

Alternative Vehicle Fuels 

AVLS 

Automatic Vehicle Location System 

BASt 

German Federal Highway Institute  

BDD 

Berkeley Deep Drive 

BGGEY 

Billion Gallons of Gasoline Equivalent per Year 

BIS 

Bureau of Indian Standards 

BMS 

Bus Management System 

BOT 

BRT 

BS 

Built-Operate-Transfer 

Bus Rapid Transit 

Bharat Stage 

BTEC 

Beijing Transport Energy Environment Centre 

BVLS 

Beyond Visual Line of Sight 

CAAC 

Civil Aviation Administration 

CAAC 

China’s Civil Aviation Authority 

C-ACC 

Cooperative Adaptive Cruise Control 

CAF 

Corporacion Andina de Fomento 

CAGR 

Compounded Annual Growth Rate 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Caltrans 

California Department of Transportation 

CATARC 

China Automotive Technology and Research Center 

CATS 

China Academy of Transportation Science  

CBTC 

Communication-based train control 

CCD 

Charge-Coupled Device 

CER 

Certified Emission Reductions 

CESVI 

Centro de Experimentação e Segurança Viária (Experimental and Road Security Cen-
ter) 

CET 

Engenharia de Trafego 

CHP 

California Highway Patrol 

CIBiogás 

International Centre for Biogas 

CNG 

Compressed Natural Gas 

CNIS 

China National Standardization Institute 

CNPq 

Brazilian Council for Scientific and Technological Development 

CNY 

Chinese Yuan (Renminbi) 

CO 

CO 

Carbon Monoxide 

Cabinet Office 

COMTRAC  Computer-Aided Traffic Control 

Copersucar 

Cooperativa de Produtores de Cana-de-Acucar, Acucar e Alcool do Estado de Sao 
Paulo 

COSYS 

Cargo Operating System 

CPC 

Communist Party of China 

CRN 

Core Road Network 

CS 

Cabinet Secretariat 

CTC 

Centralized Traffic Control 

CV 

Connected Vehicle 

CVRIA 

Connected Vehicle Reference Implementation Architecture 

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DART 

Dallas Area Rapid Transit  

D-ATIS 

Digital-Automatic Terminal Information Service 

DCL 

Departure Clearance 

DIMTS 

Delhi Integrated Multi-Modal Transit System Ltd. 

DMS 

Dynamic Message Signs 

DMV 

Department of Motor Vehicles 

DoE 

U.S. Department of Energy 

DOTC 

Department of Transportation and Communication  

DRM 

Disaster Risk Management 

DRT 

Demand-Responsive Transport 

DSRC 

Dedicated Short Range Communications 

EDI 

EDP 

EPA 

Electronic Data Exchange 

Electronic Data Processing 

U.S. Environmental Protection Agency 

EPAct 

Energy Policy Act  

EST 

ETC 

Eastern Standard Time 

Electronic Toll Collection 

ETCS 

Electronic Toll Collection System 

ETMS 

Expressway Traffic Management System 

EV 

Electric Vehicle 

FAA 

Federal Aviation Administration 

FAST 

Fixing America’s Surface Transportation 

FCI 

FDI 

Future City Institute 

Foreign Direct Investment 

FHWA 

Federal Highway Administration 

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FTA 

FTC 

FYP 

Federal Transit Administration 

Federal Trade Commission 

Five-year Development Plan 

GAIL 

Gas Authority of India Ltd. 

GEJE 

Great East Japan Earthquake 

GHG 

Greenhouse Gas 

GIS 

Geographic information system 

G-ITS 

Green Intelligent Transport Systems 

GLONASS 

Global Navigation Satellite System 

GPRS 

General Packet Radio Service 

GPS 

Global Positioning System 

GRISTEC 

National Association of Risk Management and Tracking and Management Technology 
Companies  

GRS–IBS 

Geosynthetic Reinforced Soil-Integrated Bridge System 

GTX 

Great Train eXpress 

HC 

Hydrocarbons 

HOV 

High-Occupancy Vehicle 

HSR 

High Speed Rail 

HSR-350x  

High-speed rail 350-km/h 

HSST 

High Speed Surface Transport 

HUD 

U.S. Department of Housing and Urban Development 

HySUT 

Hydrogen Supply/Utilization Technology 

HyTReC 

Hydrogen Energy Test & Research Centre 

IC 

ICD 

Integrated Circuit 

Inland Container Depot 

ICMC 

Mathematics & Computer Science Institute 

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ICT 

IDC 

IEC 

IFC 

Information and Communications Technology 

International Data Corporation 

International Electrotechnical Commission 

International Finance Corporation 

IGIA 

Indira Gandhi International Airport 

IGL 

IIMs 

IISC 

IIT 

Indraprastha Gas Ltd. 

Indian Institutes of Management 

Indian Institute of Science 

Indian Institutes of Technology 

IMO 

International Maritime Organization 

ImPACT 

IMpulsing PAradigm Change through disruptive Technologies 

INCT-SEC 

National Science & Technology Institute for Critical Embedded Systems 

IoT 

ISO 

Isro 

Internet of Things 

International Organization for Standardisation 

Indian Space Research Organisation 

ITCS 

Integrated Traffic Control Systems 

ITDP 

Institute for Transportation and Development Policy 

ITS 

Intelligent Transport System 

ITS JPO 

Intelligent Transport System Joint Program Office 

JAFA 

Japan Aircargo Forwarders Association 

JAP 

Japan Airlines 

JARI 

Japan Automobile Research Industry 

JARTIC 

Japan Road Traffic Information Center 

JCAB 

Japan Civil Aviation Bureau 

JIFFA 

Japan International Freight Forwarders Association 

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JNNURM 

Jawaharlal Nehru National Urban Renewal Mission 

JNR 

Japanese National Railway 

JR 

Japan Railway 

JSTRA 

Japan Ship Technology Research Association  

KAICA 

Korea Auto Industries Cooperation Association 

KAMA 

Korean Automobile Manufacturers Association 

KATS 

Korean Agency for Technology and Standards 

KCSI 

Korean Customer Satisfaction Index 

KEC 

Korea Expressway Corporation 

KOTI 

The Korea Transport Institute 

KRRI 

Korean Rail Research Institute 

KS 

KSA 

KTX 

KUL 

Korean Industrial Standards 

Korean Standards Association 

Korea Train eXpress 

Kookmin Unmanned Vehicle Laboratory 

L&T IDPL 

L&T Infrastructure Development Projects Limited 

LED 

LGV 

LNG 

LPG 

Light Emitting Diodes 

Laser Guided Vehicles 

Liquefied Natural Gas 

Liquefied Petroleum Gas  

LPGV 

Liquefied Petroleum Gas Vehicles 

LRT 

LTC 

LTE 

Light Rail Transit 

Lane Trace Control 

Long Term Evolution Wireless Broadband Technology 

M2M 

Machine-to-Machine Technology 

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MAFF 

Ministry of Agriculture, Forestry and Fisheries, Japan 

MAP 

Machine Advanced Processor 

MART 

Montachusett Area Regional Transit Authority 

MCMV 

Minha Casa Minha Vida 

MDR 

Major District Roads 

METI 

Ministry of Economy, Trade and Industry, Japan 

MIC 

MIIT 

Ministry of Internal Affairs and Communications, Japan 

Ministry of Industry and Information Technology, China 

M-ITS 

MART’s Integrated Traveller Services 

MLIT 

Ministry of Land, Infrastructure, Transport and Tourism, Japan 

MLTM 

Ministry of Land, Transport and Maritime Affairs, South Korea 

MoD 

Mobility on Demand 

MOE 

Ministry of Environment, Japan 

MoF 

Ministry of Finance, China 

MOLIT 

Ministry of Land, infrastructure and Transport, South Korea 

MoRTH 

Ministry of Road Transport and Highways, India 

MOTIE 

The Ministry of Trade, Industry and Energy, South Korea 

MoUD 

Ministry of Urban Development, India 

MSAA 

Mobility Services for All Americans 

MSR 

Maritime Silk Road 

NDRC 

National Development and Reform Commission  

NEDO 

New Energy Technology Development Organization 

NGV 

Natural Gas Vehicles 

NHAI 

National Highways Authority of India 

NHTSA 

National Highway Traffic Safety Administration 

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Nicera 

Nippon Ceramic Co. Ltd.  

NICT 

National Institute and Communications Technology, India 

NMT 

Non-Motorised Transport 

NOX 

Nitrogen Oxides 

NPA 

National Police Agency 

NRTP 

National Road Transport Technology 

NTIC 

National Transport Information Centre 

NWCMC 

Nanded Waghala City Municipal Corporation 

OBOR 

One Belt, One Road 

OBU 

On-Board Unit 

OD 

Origin-Destination 

OEM 

Original Equipment Manufacturer 

PAC 

PEV 

PIC 

PIL 

Programa de Aceleração do Crescimento 

Plug-In Electric Vehicle 

Passenger Information Control 

Logistics Investment Program, Brazil 

PIMAC 

Public and Private Infrastructure Investment Management Center, Korea 

PM 

Particulate Matter 

PNMU 

Política Nacional de Mobilidade Urbana 

PNPB 

National Program for Production and Use of Biodiesel 

PPP 

Public-Private Partnership 

PRC 

Programmed Route Control  

PRT 

REL 

RFS 

Personal Rapid Transport 

Runway Entrance Lights 

The Renewable Fuel Standard 

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RGV 

Rail Guided Vehicles 

Rinfra 

Reliance Infrastructure Ltd. 

RIT 

Rede Integrada de Transporte ("Integrated Transport Network") 

RLSVDS 

Red Light-Stop Line Violation & Detection System 

RNG 

Renewable Natural Gas 

RTN-X 

Automated Transportation and Sorting Vehicles 

RTRI 

Railway Technical Research Institute 

RWSL 

Runway Status Lights 

SAC 

China Standardization Administration  

SASAC 

State-owned Assets Supervision and Administration Commission, China 

SCMaglev 

Super Conducting Maglev 

SESEI 

Seconded European Standardisation Expert for India 

SFC 

Smart Freight Centre 

SIAM 

Society of Indian Automobile Manufacturers 

SIP-ADUS 

Strategic Innovation Promotion Program – Automated Driving for Universal Services 

SKY-RAV 

Automated Overhead Travelling Vehicles 

SLB 

Service Level Benchmarks 

SME 

Medium-sized Enterprise 

SOFC 

Solid Oxide Fuel Cell 

SPY Car 

Security and Privacy in Your Car Act  

SREB 

Silk Road Economic Belt 

STBG 

Surface Transportation Block Grant Program 

STI 

STP 

Science, Technology & Innovation 

Surface Transportation Program 

Sulgás 

State Gas Company 

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Final Report – International Assessment and Action Plans of the Focus Areas 

TCR 

TED 

Trans-China Railway 

Transport Engineering Department 

TEDC 

Transport Engineering Division Council 

TEU 

THL 

Twenty Foot Equivalent Unit 

Take-off Hold Lights 

THRSL 

The Hi-Tech Robotic Systems Ltd. 

TIGER 

Transportation Investment Generating Economic Recovery 

TMCC 

Transportation Management Coordination Center 

TMGR 

Trans-Monogolian Railway 

TMR 

Trans-Manchurian Railway 

TNC 

TNC 

Transport Network Companies 

Transport Network Companies 

TOD 

Transit-Oriented Development 

TOPIS 

Traffic Operation Information Service 

TSR 

UAS 

UAV 

Trans-Siberian Railway 

Unmanned Aircraft Systems 

Unmanned Aerial Vehicles 

UFES 

Federal Universities of Espíritu Santo  

UMFG 

Federal Universities of Minas Gerais 

UMTRI 

University of Michigan Transportation Research Institute 

URBS 

Urbanização de Curitiba (Urbanisation of Curitiba) 

USDOT 

U.S. Department of Transportation 

USP 

University of São Paulo 

UWR 

United We Ride 

V2I 

Vehicle-to-Infrastructure 

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Final Report – International Assessment and Action Plans of the Focus Areas 

V2V 

V2X 

Vehicle-to-Vehicle  

Vehicle-to-Everything 

VAC 

Virginia Automated Corridors 

VC 

Venture Capital 

VDS 

Vehicle Detection Systems 

VICS 

Vehicle Information and Communication System  

VMS 

Variable Message Signs 

VRA 

Vehicle and Road Automation 

WAVE 

Wireless Access for Vehicular Environments 

WG 

Working Group 

Wi-Trac 

Wireless Traffic Signal Controller 

WRI 

World Resources Institute 

YMTL 

Ymananashi Test Line 

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Final Report – International Assessment and Action Plans of the Focus Areas 

1 

Study Outline 

This report, carried out according to the contract signed on March 22, 2016 with the European Com-
mission, summarizes the “International assessment and action plans of the focus areas” (lot 2 part) of 
the study “Towards a Single and Innovative European Transport System”. The study’s overall goal is 
to create action plans on how to create a single and innovative European transport system. Thereby it 
takes into account the European Commission’s White Paper on Transport. The main contractor for the 
lot 2 part is VDI/VDE Innovation + Technik GmbH (Germany). Part of the work is subcontracted to the 
Wuppertal Institute for Climate, Environment and Energy (Germany) as well as to the Centre for Re-
search and Technology Hellas, CERTH (Greece). 

While the lot 1 part of the study (also called SINTRAS,  led by JIIP) provides an assessment of ways 
and  possibilities  to  overcome  European  barriers,  lot  2’s  task  is  to  investigate  best  practices  and  les-
sons learned in six selected international countries covering highly industrialized and newly industrial-
izing countries, namely USA, Japan, Korea, China, India and Brazil. Lot 2 assesses whether a transfer 
of these best  practices to  Europe is beneficial for the advancement towards an  integrated European 
transport system. Lot 2 will further develop action plans and derive recommendations addressing the 
strengthening of the EU competitiveness, market access issues, the contribution to dealing with global 
challenges and the identification of global players and programmes for enabling collaboration, cooper-
ation and joint initiatives.  

This  is  insofar  important  as  transportation  policies  usually  lead  to  irreversible  consequences.  This 
problem can be overcome by sharing information on best practices and lessons learned and thus help 
reduce trial and error. The continuously increasing globalization efforts support this further by fostering 
the  convergence  of  attributes  such  as  social  and  physical  infrastructure,  cultures,  politics,  societies 
and economies.  

As  stated  in  the  Inception  Report  for  lot  2,  this  Final  Report  marks  the  end  of  the  study’s  three-step 
approach. The main outcome of the first step is an analysis of the state of play of the transport system 
in  each  focus  area  regarding  its  advancing  towards  an  integrated  transport  system  in  the  respective 
country  (chapter  3).  Through  this  analysis  the  structure  of  the  transport  system,  related  industries, 
markets as well as the regulatory framework and the financing system of funding programmes can be 
revealed. This investigation provides comprehensive information on the relevant regulatory and policy 
framework conditions and the structures of transport-related industries and value chains, the state of 
the art of R&D and technologies, methods for financing, innovation in transport and related business 
models especially in regard of an integrated transport system. Additionally, the respective key players 
as well as the dynamics in the value chains were identified. These findings will enable an understand-
ing  of  the  structures  and  dependencies  among  players  as  well  as  the  effectiveness  of  means  and 
mechanisms in the mutual inter-dependency of legislative, industrial and demand side powers. 

The  standardized  and  well-structured  assembly  of  the  results  of  the  SWOT  analyses  supports  the 
assessment and help to weigh the relevance of findings. To increase the understanding of outcomes, 
the results are visualized in a world map to facilitate stakeholder involvement by making it easily and 
quickly accessible for the reader. In addition one Porter’s 5-Forces analysis was established to show 
different market dynamics in various industries in the countries under study. 

Through this approach it was possible to identify best practices and lessons learned in all Focus Areas 
and analyse countries under study along the entire value chain (chapter 4). All of these best practices 
and lessons learned are again depicted  in a  world map to give an overview of international findings. 
To be able to derive action plans out of the identified best practices, they were first characterised and 
analysed in terms of their feasibility for Europe. Where this analysis returned positive results, actions 
were derived to be taken between today and 2050 (chapter 5). 

In  a  last  step  recommendations  for  international  co-operations  are  given,  based  on  study  outcomes, 
and  especially  as  put  forward  during  the  Expert  and  Stakeholder  Workshops  (chapter  6)  as  well  as 
where no international best practices could be identified. 

1 

Final Report – International Assessment and Action Plans of the Focus Areas 

Before  the  results  are  shown,  this  chapter  explains  the  aim,  background  and  policy  context  of  the 
study. Additionally, the Focus Areas are specified and discussed, also in view of the difference to lot 
1’s understanding. Chapter 2 will continue  with  a brief overview  of the methodological approach and 
stakeholders consulted. 

Analyses were conducted along the following Focus Areas as specified in the tender and the inception 
report: 

1)  Connected driving and automation of transport, use of automated optimization of traffic flows 
2)  Transformation  of  infrastructure  to  address  connectivity,  resilience,  new  fuels  and  energy  effi-

ciency 

3)  Smart mobility services (including provision and use of data, and urban mobility), freight and lo-

gistics 

4)  Standardization and interoperability 
5)  Alternative fuels other than electrification 

To  guarantee  consistency  throughout  the  study  the  Focus  Areas  have  been  colour-coded.  Through 
this  approach,  it  was  possible  to  easily  allocate  outcomes  in  all  steps  in  relation  to  each  other,  and 
additionally assemble results in different ways without losing orientation. 

Like  lot  1  we  also  recognize  that  there  are  many  overlaps  and  inter-dependencies  between  the  five 
areas such as Focus Area 3 dealing with technological advances already presented in Focus Area 1 
or that  infrastructural  questions  of logistics/freight are  already  dealt  with in Focus Area 2. Regarding 
Focus Area 4 we come to the same conclusion that it cuts horizontally across all the other focus areas. 
Along with lot 1, we avoided the duplication of results by covering the overlap area in one focus area 
only  but tried to refer to it where applicable in order to guarantee cross-feeding  and comprehensive-
ness of information. 

Even though we perceive the same interdependencies as lot 1, we identified the following differences 
in the understanding of the Focus Areas compared to lot 1: 

  Focus Area 1: Whereas lot 1 limits its analysis on connected driving and automation of transport, 
and  use  of  automated  optimisation  of  traffic  flows,  we  would  add  an  item  on  “Automation  of 
Transport in Modes other than Road” as automation is widely deployed in aeronautics and of in-
creasing importance in rail and waterborne. 

  Focus Area  2: Transformation  of infrastructure to  address connectivity, resilience, new fuels and 
energy efficiency. For resilience we would suggest to refer not only to climate change related dis-
asters but also to security issues. 

  Focus Area 3: We would propose to widen the meaning of Smart Mobility Services such that not 
just very specific IT solutions like payment systems are considered but also comprehensive solu-
tions and service offers such as ride or car sharing. 

  Focus Area 4: Lot 1’s definition only covers freight and logistics. We would suggest extending this 
definition to personal mobility as there are a lot of standardization issues in automation and smart 
mobility services for passenger transport. 

The understanding of the Focus Areas is still subject for discussion in continuous proceedings. 

Despite  the  fact  that  electrification  is  particularly  exempted  from  the  analysis  it  has  become  clear 
throughout the study that it is an aspect that shall not be neglected since most countries under analy-
sis, as well as Europe, have decided to opt for the development of this technology rather than other 
propulsion systems. In fact, it is not only perceived as one of the three big automotive revolutions (to-
gether with automation and sharing) but also of growing relevance for other transport modes, especial-
ly the aeronautics industry. Even though the topic has not been specifically addressed in Focus Area 
5, it  was included  in  other  Focus Areas  where  its impact  was perceived to be rather big (e.g. Focus 
Area 2) or where it made up an important part of a best practice (e.g. Singapore: Electrified Automated 
Shared Mobility). 

2 

Final Report – International Assessment and Action Plans of the Focus Areas 

2 

Methodological Approach and Work Steps 

The work of lot 2 is carried out in three steps as depicted in Figure 2. Step 1 constitutes the examina-
tion  stage  of  the  work.  The  results  were  validated  in  the  1st  Validation  Workshop. Within  step 1,  the 
state of play of the focus areas in each of the selected countries was investigated. This built the basis 
for  the  work  in  step  2,  the  identification  and  assessment  of  international  best  practices  and  lessons 
learned,  and  step  3,  the  development  of  international  dimension  within  high-level  clusters.  Results 
from step 3 were validated in the 2nd Validation Workshop. 

Figure 3: Work flow in lot 2 

2.1 

Step 1 – Examination Stage 

The examination stage involved desk research, field work and stakeholder consultation, based on the 
partners’  extended network of experts acting as “ambassadors” (see chapter 2.4), in  order to get an 
insight  into  the  state  of  play  of  the  transport  research  and  innovation  system  within  each  of  the  five 
focus areas in the selected countries. Through a standard data format continuous information on the 
results of the different partners was guaranteed. Additionally, it helped to identify, early in the process, 
gaps in the data base as these could then be efficiently addressed by enabling the research team to 
continuously cross-check. Thus, the standard data format represents an efficient measure for mutual 
quality control. 

2.1.1  Collecting Evidence of the State of Play for all Focus Areas in the Selected 

Countries 

User-friendly surveys and questionnaires for stakeholder consultation covering all relevant aspects of 
each focus area were established. They focus on national success stories and best practice examples 
for  the  development  and  deployment  of  innovations  that  enable  integrated  and  sustainable  transport 
systems. The surveys and questionnaires were designed in such a way that transfer into the standard 
format  was  easily  achievable.  User-friendliness  and  adaptation  to  experts’  time  and  availability  re-

3 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

strictions  was  guaranteed  by  allowing  participation  through  web  interface  (http://www.vdivde-
it.de/umfrage/lot2), email, and phone. 

The 11th ITS European Congress in Glasgow, United Kingdom, was used as an early-stage opportuni-
ty for spreading information and raising awareness of the study in the European context and to estab-
lish  personal  contacts  to  ambassadors  and  relevant  stakeholders  with  in-depth  knowledge.  These 
contacts were of value for the outcome of the study as well as to identify key persons suitable for the 
upcoming validation workshops. Close contact to stakeholders was kept during the entire consultation 
phase in order to uphold their commitment and to ensure relevant and steady feedback. 

Complementary and in parallel to the stakeholder consultation, the state of play per focus area in each 
country  was  investigated  by  desk research. Sourcing  of content  was  achieved  by  scanning scientific 
journals,  relevant  newsletters,  press  and  professional  publications,  relevant  websites  of  identified 
stakeholder groups, previous studies, policy and strategy documents, etc. Agile interplay of stakehold-
er consultation and desk research ensured a detailed investigation delivering the necessary facts for 
the analysis and keeping the focus on barriers and best practices. Knowledge gaps identified through 
one method were tried to be filled by the other. Finally, the desk research  was validated through the 
stakeholder consultation. Weekly phone conferences were held between the contractor and the sub-
contractors in order to align the methods, complement the approaches and assess the findings. 

2.1.2  Assessing the State of Play per Focus Area and Country 

Based on the evidence collected through desk research and stakeholder consultation for each focus 
area  from  the  viewpoint  of  the  respective  country  investigated,  SWOT  analyses  on  the  state  of  play 
regarding  the  integrated  transport  system  were  carried  out.  Based  on  the  state-of-play  and  SWOT 
analysis, the performance of selected countries was rated on a five-point scale. The results were visu-
alized  in  a  way  that  makes  the  immediate  comparison  of  analysed  countries  possible  by  displaying 
them in pictograms on a world map. The outcomes are additionally juxtaposed to the European situa-
tion. 

All the results and findings were  validated and enhanced in the  1st Validation Workshop involving in-
ternational experts and European stakeholders. Experts were selected in such a way that the resulting 
group covered all investigated countries and focus areas. Also delegates from the European Commis-
sion  and  selected  relevant  European  stakeholders  shared  perspectives  and  practical  experiences  in 
implementing integrated transport solutions. 

The workshop also served to collect further best practices and lessons learned from the investigated 
countries.  Specifically,  the  SWOT  analyses  that  were  made  for  each  focus  area  and  each  country 
were  discussed  on  the  basis  of  the  report  and  complemented  by  practical  experiences,  expert 
knowledge of transport policy and the state of the art of technological development. A further aim was 
to  start  a  discussion  about  potential  fields  of  international  transport  research  and  innovation  co-
operation with Europe.  

2.2  Step 2 – Identification and Assessment of Best Practices and Les-

sons Learned 

Based on the evidence collected in step 1, step 2 delivers best practice examples and lessons learned 
from  the  selected  countries. Through  the  systematic  analysis  in  step  1  –  that  always  considered  the 
entire  value chain – it  was possible to find  valuable examples in all focus areas, in all countries and 
along the entire value chain covering R&D, industry, market, policies and initiatives as well as regula-
tion  and  legislation.  Through  a  two-fold  approach,  consisting  of  a  characterisation  and  a  feasibility 
analysis, information could be gathered on whether the transfer and implementation of the certain best 
practice or lesson learned  would be  beneficial for advancing Europe towards an  integrated transport 
system. Thus, step 2 laid a solid basis to derive the international dimension, including action plans, in 
step  3.  The  work  in  step  2  involved  desk  research,  field  work  and  stakeholder  consultation.  Further 
important input for best practices and lessons learnt was gained in the 1st Validation Workshop. 

4 

Final Report – International Assessment and Action Plans of the Focus Areas 

2.2.1  Characterisation of Best Practices and Lessons Learned 

Each identified best practice was characterized along different categories. These categories comprise 
of: 

  Method of implementation 

  Target user group 

  Financing 

  Business models 

  Technologies employed 

  Enabling framework 

  Other aspects that may be applicable. 

The  characterisation  was  done  by  desk  research  and,  when  needed,  missing  information  was  re-
trieved through direct contact to the ambassadors or other relevant stakeholders identified throughout 
the work. 

2.2.2  Assessment of Feasibility of Best Practices and Lessons Learned 

Following the characterisation  an  assessment was undertaken on  whether the potential implementa-
tion of identified and characterised best practice is feasible in Europe by taking a closer look into the 
following aspects: 

  Availability of Technologies and Know-how within the Necessary Timeframe 

  Violation of Legal/Regulatory Framework in the EU 

  Necessary Standardization Compliant to EU Standardization Policy 

  Available Funding Models 

  Public Acceptance due to Cultural Aspects 

  Availability of Resources/Raw Materials 

  Other Aspects 

All best practices which turned out to be feasible were conveyed into single actions that were synthe-
sized into action plans with milestones 2020, 2030 and 2050. The derivation of action plans was un-
dertaken in step 3 of the study. 

2.3  Step 3 – Development of International Dimension within High-Level 

Clusters 

Within step 3, the international dimension of the European transport research and innovation coopera-
tion was developed within high-level clusters. Action plans were derived for those best practices and 
lessons  learned  that  in  step  2  had  been  proven  to  be  applicable  and  feasible  for  implementation  in 
Europe  in  order to support the EU in advancing the  integration of the transport  system. The  work of 
step 3 was validated through review by relevant European stakeholders and delegates of the Europe-
an Commission within the 2nd Validation Workshop. 

2.3.1  Derivation of Action Plans 

In  each  focus  area,  actions  to  be  taken  are  bundled  into  activity  fields.  By  taking  into  consideration 
inner-European  barriers  identified  by  lot  1  of  the  study,  not  only  the  status  quo  but  also  overarching 

5 

 
Final Report – International Assessment and Action Plans of the Focus Areas 

goals for each activity field was defined.  All action  items within  one  activity field shall help  attain the 
goal by overcoming the status quo. 

To set clear conditions for each action, not only the activity fields with their status quo and goal were 
defined but also the area of interest, the timeframe, the responsibility as well as key performance indi-
cators  of  proposed  action.  Through  the  categorisation  in  different  areas  –  R&D&I,  demonstration, 
manufacturing,  skills  and  education,  business  models, 
legislation/regulation,  standardiza-
tion/interoperability,  policies/incentives,  public/user  awareness  and  infrastructure  –  roles  become 
clear. The allocation of action items to different time frames – 2020, 2030, 2050  – shall increase the 
possibility to establish roadmaps on how to create a single and integrated European transport system. 
Assigning  responsibilities  for  each  action  item  helps  manage  the  different  stakeholders  in  the  imple-
mentation process. Suggestions for key performance indicators shall facilitate the measurement of the 
potential success or failure of actions to be taken. 

2.3.2 

International Co-operation and High-Level Clusters 

In addition to these action plans, the results of  the SWOT and Porter’s 5-Forces analyses as well as 
the  assessment  of  the  best  practices  and  lessons  learned  pointed  to  further  recommendations  for 
international  cooperation.  During  the  1st  Validation  Workshop  participating  experts  suggested  what 
best practices or lessons learned shall be transferred to Europe, where Europe shall export its exper-
tise to other countries and where measures are to be taken in a joint effort. During the 2nd Validation 
Workshop  these  results  together  with  findings  from  the  action  plans  were  further  processed  into  the 
following high-level clusters: 

1)  Strengthening  of  the  EU  competitiveness:  Measures  strengthening  the  excellence  and  attractive-
ness of research and innovation in the European Union will ultimately support its economic and indus-
trial competitiveness. Within the context of international cooperation this will be enabled by global net-
works  and  cooperation  facilitating  the  access  to  external  sources  of  knowledge.  Thus,  novel  ap-
proaches and ideas for measures supporting the development and implementation of innovations that 
advance the integration of the European transport system can be derived and transferred to Europe. 
Further,  agreements  on  common  practices  and  policies  on  technological  and  industrial  objectives, 
common R&D policy objectives and regulatory conditions will optimize the conduction of research and 
the exploitation of results.  

2)  Addressing  market  access  issues:  Measures  to  facilitate  the  access  to  existing,  new  or  emerging 
markets including specific trade or development issues will be derived.  

3) Contribution to addressing global challenges: Global societal challenges can be tackled more rapid-
ly by developing and deploying effective solutions within international collaborations and by optimizing 
the use of international and European research infrastructures. 

4) Identification of global players and  programmes: The  identification of key actors and main R&D&I 
programmes  including  financing  models  within  the  focus  areas  in  each  country  will  enable  initiating 
effective global networks and collaborations and offer the opportunity for joint initiatives or harmoniza-
tion in R&D&I activities. 

As outlined,  each  of the steps built on  preceding steps. Thus, this methodological approach allowed 
for a consistent, comprehensible and robust analysis starting from the assessment of the state of play 
in countries under study to the formulation of action plans and potentials for international collaboration. 

6 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

2.4  Ambassadors 

Connected  and  Automated 
Driving 

Infrastructure 

Smart Mobility 

Standardization  and  Interoperabil-
ity 

Alternative Fuels 

General Transport Topics 

USA 

Steven  Shladover, California 
PATH  Program  program 
manager,  EERES  –  COENG 
Engineering 
Research, 
University  of  California  at 
Berkeley 

Mohammed  Yousuf,  Federal 
Highway Administration 

John  Halkias,  Federal  Highway 
Administration  Office  of  Opera-
tions,  U.S.  Department  of  Trans-
portation 

Jorge  A.  Prozzi,  Professor,  De-
partment  of  Civil,  Architectural 
and  Environmental  Engineering, 
University of Texas at Austin 

Joseph McKinney, Consultant  

R. 

Johnson, 

Direc-
Larry 
tor,Transportation 
Technology 
Research  and  Development  Center, 
U.S Department of Energy 

Ossama  “Sam”  Elrahman,  Research 
Coordination and Technology Transfer, 
Transportation  Research  &  Develop-
ment  Bureau, New York Department of 
Transportation  

Marie Venner, Consultant 

John Munro, University of Maryland 

Japan 

Takahiko  Uchimura,  Vice 
President, ITS Japan 

Hironao  Kawashima,  Professor, 
Faculty  of  Science  and  Technolo-
gy, Keio University 

Shinichi  Ishii,  Director  of  Engi-
neering, 
Strategy 
Business 
Consulting  Department,  Nomura 
Research Institute, Ltd. 

Junichi  Hirose,  Researcher,  Co-
mobility  Society  Research  Center, 
Keio University  

Shinichi  Goto,  project  coordinator, 
Research  Center  for  New  Fuels  and 
Vehicle  Technology,  National  Insti-
tute  of  Advanced  Industrial  Science 
and Technology 

Hironao Kawashima, Professor, Faculty 
of  Science  and  Technology,  Keio 
University 

South Korea  

Seung  Ku  Hwang,  Vice 
President,  Hyper-connected 
Communication  Research 
Laboratory,  Electronics  and 
Telecommunications 
Research Laboratory 

Research 
Moon, 
Young-Jun 
Fellow,  Transport  Technology 
Research  Group,  The  Korea 
Transport Institute (KOTI) 

Jae  Hak  Oh,  Vice-President,  The 
Korea Transport Institute (KOTI) 

Sang  Keon  Lee,  Vice  Director, 
Global  Development  Partnership 
Center,  Korea  Research  Institute 
for Human Settlements 

Ock-Taeck Lim, Professor, Laborato-
ry  for  Next  Generation  Fuel  &  Smart 
Powertrain, Ulsan University 

Young-Jun  Moon,  Research  Fellow, 
Transport Technology Research Group, 
The Korea Transport Institute (KOTI) 

China 

India 

Brazil 

Wang, 

Chief 
Xiaojing 
Engineer,  China  Research 
Institute 
Highways, 
Ministry of Transport 

of 

Yafeng  Yin,  Director,  Transporta-
tion  Research  Center,  University 
of Florida 

Philippe  Crist,  International 
Transport Forum 

Sheldon Qiu, College of Metropoli-
tan  Transportation,  Beijing  Uni-
versity of Technology 

Chao  Li,  China  Academy  of 
Transportation Science (CATS)  

Meissner, 

Miriam 
Research 
Associate,  Mercator  Institute  for 
China Studies  

Donglian Tian (Ms.), Senior Engineer, 
China  Automotive  Technology  and 
Research Center 

Xiwen Zhang, Consultant 
Daizong Liu, World Resources Institute 
(WRI)  

Dibyendu 
Sengupta, 
Transport  Sector  Specialist, 
European  Business 
and 
Technology Centre 

Madhav  Pai,  Director,  EMBARQ 
India, World Resources Institute  

Sameera 
Transport 
Kumar, 
Researcher, India Office, Clean Air 
Asia 

Chhavi Dhingra, Manager Capacity 
Buidling,  World 
Resources 
Insitute India 

Parthaa  Bosu, 
South  Asia  Liaison, 
Clean Air Asia 

India  Director  and 
India  Office, 

Geetam  Tiwari,  TRIPP  Chair  Professor, 
Department of Civil Engineering, Indian 
Institute of Technology New Delhi 

Ashish 
Executive Manager SEA, ICLEI 

Rao-Ghorpade, 

Regional 

Denis 
Fernando  Wolf, 
Institute of Mathematics and 
Computer  Science  Depart-
ment  of  Computer  Science, 
University of Sao Paulo 

Marcelo 
BHTRANS)  

Cintra 

do 

Amaral 

Daniela  Facchini,  Projects  and 
Operations  Director,  EMBARQ 
Brazil, World Resources Institute   

Marcio  D'Agosto,  Professor,  Univer-
sidade Federal do Rio de Janeiro  

Roberto  Gregorio  da  Silva,  Presi-
dente  Society  of  Urbanization 
URBS 

Toni  Lindau,  Director,  EMBARQ  Brazil, 
World Resources Institute 

Magdala  Arioli,  World  Resources 
Institute 

Roberto  Schaeffer,  Universidade 
Federal do Rio de Janeiro  

7 

 
  
 
Final Report – International Assessment and Action Plans of the Focus Areas 

3  State-of-Play Analysis 

3.1 

Focus Area 1 – Connected Driving and Automation of Transport 

3.1.1  Brazil 

3.1.1.1  General Information 

Autonomous  and  connected  vehicles  contribute  to  improving  traffic  flow  and  lowering  emissions  by 
communicating  their  position,  speed  and  the  condition  of  traffic  around  them  to  other  vehicles  and 
traffic control centers, which can control growing traffic congestion and pollution problems. Automation 
of transport in Brazil is on the rise together with an integrated traffic controlling system. Up to grade 4 
Automation of metro and driverless car/taxi are available in São Paulo. A study by Cisco systems on 
customer experience stated that Brazil is the most willing to trust autonomous technology or driverless 
automobiles in which 90% drivers showed the willingness to use self-driving vehicles.1  

Of the 19 main Brazilian airports listed by  Couto et  al. for 2015, only four are equipped  with the ILS 
(instrument landing system) category II and only  one  with (as  yet uncertified) category III equipment 
required  to  allow  for  autopilot  landings  of  passenger  aircraft  (only  required/allowed  in  times  of  poor 
visibility).2 An additional 12  are equipped  with CAT I equipment providing only assistance to pilots in 
times of poor visibility. Related to air traffic control, Departure Clearance (DCL) and Digital-Automatic 
Terminal  Information  Service  (D-ATIS)  systems  are  being  rolled  out  to  23  airports  throughout  Brazil 
(Sao Paulo’s and Rio de Janeiro’s airports were already equipped). 3 Additionally, Sao Paolo’s airport 
has started the rollout of a real-time cargo-handling automation and monitoring system.4 

Nothing could be found detailing any automation of maritime or riverine transport in Brazil. 

3.1.1.2  Research, Development & Innovation 

Various researches are being carried out for driverless car/taxi and trucks in Brazil. A taxi service us-
ing  an  autonomous  vehicle  is  being  tested  by  researchers  at  the  University  of  SãoPaulo  (USP)  and 
travelled  on  the  streets  of  the  city  São  Carlos  in  São  Paulo  State  in  2013.  It  is  used  through  a 
smartphone  app  and  customers  will  input  the  destination  by  voice  command  or  use  a  touch  screen 
inside the car. The taxi will then return to its parking spot to await the next call. CARINA, the Intelligent 
Robotic  Car  for  Autonomous  Navigation  (Carro  Robótico  Inteligente  para  Navegação  Autônoma,  in 
Portuguese), is only one of the autonomous cars under development in Brazil. Others are in the pro-
cess of development at the Federal Universities of Minas Gerais (UMFG) and Espírito Santo (UFES). 
Autonomous trucks are also under development by the São Paulo group researchers. Various devices 
fitted to the truck for the autonomous system can control every movement, including small motors to 
control the steering wheel and brakes. Speed is controlled by an electronic circuit attached to the ac-
celerator. Likewise, cameras, GPS antennas, and sensors were also fitted. 

Swedish company Semcon is also going to develop autonomous vehicles in Brazil with an OEM. The 
development will take place in Brazil, with the involvement of ten Semcon specialists in Brazil and four 
in Europe in a joint development project.5  

1 Korzeniewski, J. (2013). Autonomous cars found trustworthy in global study. Retrieved from 
http://www.autoblog.com/2013/05/19/autonomous-cars-found-trustworthy-in-global-study/  

2 Guilherme S.and Couto, A. P. (2015). Structural Properties of the Brazilian Air Transportation Network. Retrieved from 

http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0001-37652015000401653#t01  

3 SITA. (2014). Brazil upgrades air traffic technology for World Cup and Olympics. Retrieved from 

https://www.sita.aero/pressroom/news-releases/brazil-upgrades-air-traffic-technology-for-world-cup-and-olympics  

4 Dhingra, L. (2013). Sao Paolo Airport Cargo Transport Going Real-Time, Automated. Retrieved from 

http://insights.wired.com/profiles/blogs/gru-airport-to-lead-cargo-transport-and-facilitate-global-trade#axzz4CzbsLo00  

5 Automotive World. (2016). Brazil not ready for driverless cars, but offers low-cost development opportunities. Retrieved from 

http://www.automotiveworld.com/analysis/brazil-ready-driverless-cars-offers-low-cost-development-opportunities/  

8 

 
                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.1.3  Industry 

The Federal Government of Brazil introduced an Auto Incentive program - the Programa de Incentivo 
à  Inovação  Tecnológica  e  Adensamento  da  Cadeia  Produtiva  de  Veículos  Automotores  (Inovar)  in 
2012.  It fosters industry competitiveness by encouraging automakers to produce more efficient, safer, 
and technology-advanced vehicles while investing in the national automotive industry. 6 It supports the 
technical  development and provides incentive through a tax reduction measures. It can also support 
autonomous vehicles development in Brazil. This program, however, lacks the ambition to bring Brazil-
ian vehicle standards into line with international best practices, and unclear future steps of the initiative 
create  uncertainty  for  investors  and  undoubtedly  delays  manufacturers’  investment  plans  concerning 
advanced technologies.7 Moreover, due to the lack of necessary infrastructure and enough social ca-
pacity, the full benefits from automation might fall. 

3.1.1.4  Market 

The grade 4 metro automation, São Paulo Metro Line 4, is running in Brazil since 2010. It is the first 
driverless  metro  in  South  America  and  it  was  developed  by  the  German  company  -  Siemens  Train-
guard  MT  CBTC  (communication-based  train  control).  It  has  an  advanced  ticketing  system  in  which 
one does not need to insert ticket or tap the card on the turnstile. One can just hold it in the hand and 
pass through the  block, which  will detect the ticket/card and  automatically  discount the trip  while the 
screen door open.8 Other future automated metro lines in São Paulo includes line 1, line 2, line 3 and 
line 6, which are operated by Companhia Do Metropolitano De São Paulo (São Paulo Subway Com-
pany). Beside operation, these lines are also modernized with the stations extension.  

In order to support connected driving, cities in Brazil, such as Rio, have an integrated controlling sys-
tem. It was operated since 2010, which allows more than 30 city agencies to monitor what is happen-
ing  across  the  city  in  real  time.  Four  years  of monitoring  showed  that  it  has  reduced  emergency  re-
sponse time by 30 percent. Approximately 8,800 buses and municipal vehicles are monitored via GPS 
to track traffic and provide rapid response to traffic incidents.9 Belo Horizonte also has its operational 
center that it has been operating since  the World Cup in 2014. In São Paulo, Companhia de Engen-
haria de Trafego (CET), or the Company of Traffic Engineering, monitors traffic flow from its command 
center. CET controls the smooth flow of traffic in the sprawling metropolis, which, in practice, means 
supporting vehicular traffic in a city that still prioritizes the use of individual automobiles.10 The penetra-
tion of the connected car is projected to rise from 0.76% in 2016 to 2.28% in 2020.11  

3.1.1.5  SWOT Analysis 

Strengths 
  Engagement in a multitude of international co-
operation to develop automated vehicles 
  Strong ITS environment developing in the right 
direction for automation and connectivity 
  Deployed  driverless  public  transportation  in 

bigger cities 

Opportunities 
  High  consumer  willingness  to  use  driverless 

 

vehicles 
Increase  of  capacity  in  public  transport  and 
waterborne freight 

Weaknesses 
  Knowhow  on  connectivity  and  automation 

technologies is not yet wide spread 

  Technical  education  and  training  for  profes-

sionals is insufficient 

  Problem of financing R&D&I 
  Arising data security and privacy issues 
Threats 
  Benefits  from  automation  might  fall  flat  be-
cause  Brazil  lacks  the  necessary  infrastruc-
ture 

6 ICCT. (2013). Brazil's Inovar-Auto Incentive Program. International Council on Clean Transportation. 
7 Lucon, O., Romeiro, V., and Fransen, T. (2015). Bridging the gap between energy and climate policies in Brazil. World Re-

sources Institute. OCN and IEE USP. 

8 Ferreira, R. (2012). Sao Paulo Metro. Retrieved from http://www.nycsubway.org/wiki/Sao_Paulo_Metro#Line_by_Line  
9 Colin, B. (2015). 4 Inspirations for Sustainable Transport from Rio de Janeiro. Retrieved from 

http://www.wri.org/blog/2015/03/4-inspirations-sustainable-transport-rio-de-janeiro  

10 Nobre, L. (2012). Space, time, and trajectories. Retrieved from http://audi-urban-future-initiative.com/blog/sao-paulo-5  
11 Statista. (n.d.). Connected Car: India. Retrieved from https://www.statista.com/outlook/320/119/connected-car/india  

9 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.2  China 

3.1.2.1  General Information 

China is ready as a market for the arrival and promotion of automated driving, especially concerning 
road transport. It is the world’s biggest automotive market and is plagued with air pollution, traffic con-
gestion  and  a  chaotic  traffic  system  with  unpredictable  traffic  patterns.  For  example,  more  than 
260,000  people  died  in  2013  in  traffic  accidents,  according  to  data  from  the World  Health  Organisa-
tion.12 

Based  on  the  sales  lists  and  numbers  of  vehicles  with  relevant  advanced  driver  assistance  systems 
(SAE levels 2+), China  has a lead (together  with  USA), in terms of absolute market size,  while con-
cerning the number of new vehicles licensed worldwide, China is coming right after USA (together with 
Germany).13 

China  can  be  also  considered  a  leader  in  the  area  of  the  drones  evolution  and  development. While 
China’s drone laws keep changing according to the evolution of the sector, the current legislation de-
fines (among others) that drones under 7kg are allowed to be flown in China, but for drones weighing 
between  7-116kg  a  license  is  required  by  the  Civil  Aviation  Administration  (CAAC).  Additionally,  any 
drone more than 116kg requires a pilot’s license and an Unmanned Aerial Vehicles (UAV) certification 
for its operation, while also approval needs to be ensured before drone flights in controlled areas and 
for all commercial drone flights.14 

China has been using drones in several services, such as aerial photography, construction and deliv-
eries, while industries of oil and gas as well as the agriculture sector are often served by their use. 

3.1.2.2  Research, Development & Innovation 

China, competing with USA and Europe that currently have the leading role in the self-driving sector, is 
preparing a regulatory framework that could provide it with precedence. 

The OEM Great Wall Motor Co., which is one of the biggest automotive industries in China, has begun 
R&D  actions  in  Yokohama  aiming  also  to  reinforce  and  further  develop  its  cooperation  with  relevant 
OEMs  from Japan,  mainly  industries  relevant  of  auto-parts  production.  In  parallel,  the  company  also 
aims to create at least three more overseas research and development centers in India, North America 
and Europe, in order to be able to deliver products of high quality and expertise in several areas, such 
as environmental friendly and automated cars.15 

Additionally,  more  Chinese  OEMs  have  launched  and  developed  R&D  actions  related  to  automated 
driving.  For  example,  Chongqing  Changan  Automobile  Co  has  also  opened  research  centers  in  the 
U.S., Japan, Britain, and Italy, while Zhejiang Geely Holding Group Co. has created a research centre 
together  with  its  Volvo  Car  unit  in  Gothenburg,  Sweden16.  Moreover,  Baidu  Inc.  has  also  announced 
the formation of a relevant team in Silicon Valley, which will be part of Baidu’s newly-created Autono-
mous Driving Unit (ADU)17. 

Furthermore,  the  Japanese  OEM  Nissan  Motor  Co.,  has  signed  a  cooperation agreement  with  the 
China Automotive Technology and Research Center (CATARC) for the adaptation of safety features, 
like lane keeping  and collision avoidance, so it can  adjust its  work and  production to China’s driving 

12 World Health Organization (2015). Road traffic deaths - Data by country. Retrieved from: 
http://apps.who.int/gho/data/node.main.A997 
13 Berger, R. GmbH - Automotive Competence Center & fka Forschungsgesellschaft Kraftfahrwesen Aachen (2016). Automated 
Vehicles Index – Q1 2016. Retrieved from: http://www.fka.de/consulting/studien/index-automated-vehicle-2016-01-q1-e.pdf  
14  UAV  Systems  International  (2016).  China  Drone  Laws.  Retrieved  from:  https://uavsystemsinternational.com/drone-laws-by-
country/china-drone-laws/  
15 The Japan Times (2016). China’s Great Wall automaker opens Yokohama R&D division in bid to obtain Japanese technology. 
Retrieved from: http://www.japantimes.co.jp/news/2016/01/13/business/corporate-business/japanese-rd-base-chinas-great-
wall-motor-commences-operations/#.V5mwjPmLSUn 

16 The Japan Times (2016). China’s Great Wall automaker opens Yokohama R&D division in bid to obtain Japanese technology. 
Retrieved from: http://www.japantimes.co.jp/news/2016/01/13/business/corporate-business/japanese-rd-base-chinas-great-
wall-motor-commences-operations/#.V5mwjPmLSUn 

17 Yoo, E. (2016). Baidu announces New Autonomous Car Team in Silicon Valley. Retrieved from: 

http://technode.com/2016/04/25/baidu-announces-new-self-driving-car-team-silicon-valley/  

10 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

habits and road conditions.18 CATARC is a research institute established in 1985 to meet China’s need 
of  managing  the  automotive  industry.  Belonging  to  the  State-owned  Assets  Supervision  and  Admin-
istration Commission of the State Council (SASAC),  CATARC assists the  authorities  to  organize the 
research  on  industry  policy  and  also  provides  consultation  to  the  industrial  organizations  and  enter-
prises.19 

Regarding drones, their development will continue to support economic growth in China because it is a 
pillar of technological innovation. As a rapidly developing sector of technological innovation, in which 
China  invested CNY  1.3  trillion    in  2015  (comprising over  2%  of  the  GDP),  drones  are  expected  to 
boost the growth of the Chinese economy in the future20. 

DJI,  which  is  a  leader  company  of  China  in  the  production  of  flying  drones  and  aerial  photography 
systems, allows and even urges its software developers to experiment and create their own applica-
tions  for  some  drones,  leading  them  to  very  interesting  results.  The  company’s  research  is  currently 
focused  on  activities  concerning  the  improvement  of  collision  avoidance  and  life  of  battery,  so  as  to 
ensure that drones are still operable even if there is a problem with other features (i.e. GPS sensors 
malfunction),  while  they  have  also  developed  a  model  for  spraying  crops  in  areas  with  difficult  ac-
cess21. 

3.1.2.3  Industry 

China is planning to have a draft roadmap ready within 2016, which will determine technical standards 
and regulatory guidelines regarding self-driving cars. The Chinese government estimates to have self-
driving vehicles ready for highways within the next 3-5 years, as well as autonomous vehicles for ur-
ban driving until 2025. This draft roadmap is being prepared by  the National Technical Committee of 
Auto Standardization (NTCAS) that has the support of the Ministry of Industry and Information Tech-
nology and is expected to set up a common language for communication between vehicles and (V2V) 
but also between vehicles and infrastructure (V2I). Its issuance is of great importance, as it is going to 
set a unified framework for the whole of China concerning autonomous driving22. The draft roadmap is 
to obtain information from several Chinese Ministries, as well as  industry players. It will be approved 
by the State Council. The adoption and use of cellular data technology will probably be included in the 
draft, as for instance LTE (Long Term Evolution wireless broadband technology) or 5G which is more 
advanced  technology  than  the  one  used  in  Europe  or  in  USA,  for  the  communication  between  cars. 
Another very important issue that will be taken under consideration by the  Committee is the clarifica-
tion  of legal issues (i.e.  who is responsible  in case of a collision?). Important players of the Chinese 
automotive industry, like SAIC Motor and Changan Automobile Group, have internal goals that could 
go along with this roadmap23. 

The leader in China is the  company  Baidu,  which is involved  in the automated  vehicles sector since 
2013. Baidu is currently cooperating with BMW, while also testing its technology in the United States. 
It has also cooperated with Google and Tesla Motors, showing great progress in terms of the cutting-
edge  technology  of  driverless  vehicles.  The  company  is  also  preparing  to  introduce  automated  ser-
vices in public transportation of China over the next 2 years. Baidu already enjoys the support of sev-
eral local Chinese governments – in terms of both regulations and infrastructure – which will be used 
to introduce small automated buses. After it started its autonomous car project in 2013, Baidu cooper-
ated with big players, such as Google and Tesla Motors and now has made great progress in terms of 

18 Bloomberg News (2016). China's Changan Auto to Send Driverless Car on 1,200-Mile Test. Retrieved from: 

http://www.bloomberg.com/news/articles/2016-03-23/china-s-changan-auto-to-send-driverless-car-on-1-200-mile-test 

19CATARC (2016). Profile CATARC. Retrieved from  http://www.catarc.ac.cn/ac_en/content/20160506/7488.html 
20 Mitchell A. (2015). Are we ready for self-driving cars? Retrieved from: https://www.weforum.org/agenda/2015/11/are-we-

ready-for-self-driving-cars/ 

21 Stayton, J. (2016). What does the future hold for drones? China may know. Retrieved from: 

http://money.cnn.com/2016/05/16/technology/drones-future-dji-china/ 

22 Spring, J. (2016). Look Mao, no hands! China's roadmap to self-driving cars. Retrieved from: 

http://www.reuters.com/article/us-autoshow-beijing-china-selfdriving-idUSKCN0XK021 

23 Spring, J. (2016). Look Mao, no hands! China's roadmap to self-driving cars. Retrieved from: 

http://www.reuters.com/article/us-autoshow-beijing-china-selfdriving-idUSKCN0XK021 

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Final Report – International Assessment and Action Plans of the Focus Areas 

the cutting-edge technology of driverless vehicles24. Baidu is also planning to implement road tests of 
driverless cars in 10 Chinese cities, targeting the commercialization of technology in  three years and 
succeed mass production within the next five years.25 

The Chongqing Changan Automobile Co., China’s partner of Ford Motor Co., performed a test journey 
of  2,000  km  with  a  couple  of  its  prototype  self-driving  sedans,  covering  the  distance  between  its 
Chongqing headquarters and Beijing within six days. Having his hands in his lap, a test engineer was 
observing  the  car  using  several  automation  functions  such  as  automatic  cruising,  lane  keeping  and 
changing, speed reduction through traffic sign recognition, driving through traffic congestion and voice 
control. 26 

According to Changan representatives, a self-driving model should be on the market within the next 2-
3 years, while the company also plans to spend CNY 5 billion (USD 773 million) to expand the tech-
nology  until  2020.  The  two  aforementioned  OEMs  (Baidu  and  Changan)  are  also  in  discussions  for 
future cooperation.27 

Additionally, China Yutong Bus , a leading Chinese bus manufacturer, has also realised a self-driving 
city bus test trip. The bus, equipped with many sensors, including camera and Lidar, covered a route 
of  32km  on  an  intercity  road  between  Zhengzhou  and  Kaifeng,  in  regular  traffic,  reaching  the  maxi-
mum speed of 68 km/h without any human intervention. The bus passed through 26 traffic lights and it 
was to change lanes and make overtaking maneuvers.28 

The Swedish company Volvo also aims to conduct a test with automated cars in China within its Drive 
Me project that was set up first in Sweden. During this experiment 100 cars are going to be tested on 
public roads, such as express roads and highways, and in everyday conditions, while local drivers will 
be used. Volvo, owned by China's Zhejiang Geely Holding Group Co, is now searching for a city that 
could  provide  the  necessary  circumstances  (i.e.  permissions,  regulations,  infrastructure,  etc.)  for  the 
realization of the experiment. The start of the replication of the project in China was not yet communi-
cated.29 

Additionally, in all the above described private initiatives, it is also important to mention that the Chi-
nese government is also playing a great role in the promotion and development of the driverless mar-
ket, with central and local governments investing in relevant projects. A good example is the support 
and enhancement of Baidu to run public transportation.30 However,  an obstacle to this or a retarding 
factor could be the Federal system, which leads to different governance initiatives between central and 
local governments. 

As  far  as  the  air  transport  is  concerned  and  more  particularly  the  development  of  drones  in  China, 
above mentioned company DJI is a major player in China. The company works on drones related to 
emergency response, firefighting, as well as surveillance.  It has been holding the wheel of the newly 
established industry since the launch of its Phantom 1 model.31 

Yuneec is another key player, located in Jiangsu and focusing on developing and manufacturing high-
tech  electric  propulsion  systems  for  aircrafts,  small  unmanned  aerial  systems,  personal  electric 

24 Markoff, J. and Mozur, P. (2016). China’s Companies Poised to Take Leap in Developing a Driverless Car. Retrieved from: 
http://www.nytimes.com/2016/04/04/technology/chinas-companies-poised-to-take-leap-in-developing-a-driverless-car.html  

25 Xinhua News Agency (2016). Baidu to produce driverless cars in five years. Retrieved from: 

http://news.xinhuanet.com/english/2016-06/27/c_135470370.htm  

26 Bloomberg News (2016). Self-Driving Car Completes 1,200-Mile Roadtrip Across China. Retrieved from: 

http://www.bloomberg.com/news/articles/2016-04-18/china-s-changan-auto-completes-1-200-mile-autonomous-drive-test  
27 Mitchell, A. (2015). Are we ready for self-driving cars? Retrieved from: https://www.weforum.org/agenda/2015/11/are-we-

28 Hars, A. (2015). Chinese company unveils prototype of self-driving bus. Retrieved from: http://www.driverless-

ready-for-self-driving-cars/ 

future.com/?p=830  

29 Shirouzu, N. (2016). Volvo plans to test up to 100 self-driving cars in China experiment. Retrieved from: 

http://www.reuters.com/article/us-china-autos-volvo-idUSKCN0X32RO  

30 Stayton, J. (2016). What does the future hold for drones? China may know. Retrieved from: 

http://money.cnn.com/2016/05/16/technology/drones-future-dji-china/  

31 CATARC (2016). CATARC Profile. Retrieved from http://www.catarc.ac.cn/ac_en/content/20160506/7488.html  

12 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

transport  systems  and  smart  radio  systems.32  Intel  Corp.  has  invested  more  than  USD  60  million  to 
Yuneec to investigate the possible commercial uses of unmanned aircraft33. 

However, drones application is not only restricted to flying, but also companies involved in underwater 
vehicles  are  making  their  appearance  into  the  consumer  market. Deepfar,  an  ROV  manufacturer  in 
China, just released their latest series called White Shark that can dive up to 100 meters deep with a 
life battery of more than 2 hours. 

The more essential difference between a drone and an underwater drone is that drones are wireless 
while an underwater drone is connected to a buoy by a tether because radio waves don’t travel as well 
through water. The buoy is equipped with WIFI to send data to phones and laptops.34 

3.1.2.4  Market 

According to data from the 2015 World Economic Forum survey35, Chinese people are more eager to 
ride a self-driving car than Americans (75% of Chinese against 50% of Americans). Within the next 20 
years, China will probably become the most important market for autonomous vehicles (is expected to 
be the largest market by 2040), meeting the needs of at least one quarter of  global demand, with the 
automated taxis introducing this development. An important boost to China’s market development for 
autonomous vehicles can be considered  as an economic advantage on world markets due to its low 
labour costs, as well as the existing manufacturing infrastructure that enables fast production.  

The Chinese government reported that 4.8 million new companies  were registered from March 2014 
until  May  2015.  The  government  is  encouraging  this  increase  in  an  effort  to  solve  some  economic 
problems, like unemployment, the transition of economy from being focused on manufacturing to one 
based on services36. 

China presents also very great progress and development in the area of air transport and particularly 
in the drones sector, which is a rapidly expanding market at a global level, in terms of both production 
and  usage.  More  specifically,  China,  that  is  already  active  in  the  production  of  parts  for  other  aero-
space vehicles, has already begun to emerge as a drone-manufacturing power. 

The government of China has also already incorporated the use of drones in several areas and tasks, 
concerning,  e.g.  public  safety  and  emergency  medical  services.  China’s Civil  Aviation  Authority 
(CAAC) has released a series of regulations in early 2016.37 

However, due to this growth of China in the drones’ sector, citizens have begun to express concerns 
related  mainly  to  issues  of  safety,  security  and  privacy.  This  is  a  reason  for  the  Chinese  authorities 
plan to restrict advanced drone technology exports, in order to immunize national security. In Decem-
ber  of  2015,  regulatory  authorities  announced  their  plan  to  prohibit  drone  delivery in  crowded  cities, 
especially after an accident that took place in Sichuan, where an unmanned aircraft crashed into pow-
er lines causing a massive blackout.38 

The regulations provided by CAAC categorize drones into seven types according to their weight, ad-
dressing concerns regarding smaller consumer drones, by setting guidelines of a threshold of about 7 

32 E-go (2016 ABOUT E-GO, THE PREMIER ELECTRIC TRANSPORTER BY YUNEEC. Retrieved from http://e-
go.com/about.php  
33 Clark, J. (2015). Intel Invests USD 60 Million in Chinese Drone Maker Yuneec. Retrieved from: 

http://www.bloomberg.com/news/articles/2015-08-26/intel-invests-60-million-in-chinese-drone-maker-yuneec  

34 Feng, C. (2016). The Underwater Drone Manufacturer That Wants To Be China's Next DJI. Retrieved from: 

http://www.forbes.com/sites/cfeng/2016/03/30/the-underwater-drone-manufacturer-that-wants-to-be-chinas-second-
dji/#b9b928576fc2  

35 Mitchell, A. (2015). Are we ready for self-driving cars? Retrieved from: https://www.weforum.org/agenda/2015/11/are-we-

ready-for-self-driving-cars/  

36 Stayton, J. (2016). What does the future hold for drones? China may know. Retrieved from: 

http://money.cnn.com/2016/05/16/technology/drones-future-dji-china/  

37 Harsono, H. (2016). Drones: Putting China’s economy on autopilot. Retrieved from: 
https://techcrunch.com/2016/06/03/drones-putting-chinas-economy-on-autopilot/  

38 McNabb, M. (2016). China’s New Drone Regulations. Retrieved from: http://dronelife.com/2016/01/19/chinas-new-drone-

regulations/  

13 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

kilograms, which is a major difference from the US registration threshold of 250 grams.39  In addition, 
drones that weigh less than 7 kilograms are allowed in less populated and rural areas, while in meg-
acities,  like  Beijing  and  Shanghai,  many  restrictions  have  been  set  about  the  time  and  location  of 
drone  flights.  The  regulations  provide  also  detailed  instructions  concerning  the  expected  behaviour 
while piloting UAVs, whilst they also define that operators must have a license and several certificates, 
including  training  and  health.  Operators  must  also  ask  for  permission  by  the  administration  before 
each flight.40 

While  the  new  regulations  clarify  and  define  many  issues,  appointing  at  the  same  time  penalties  for 
non-compliance, China has also announced a new rule about a currently developed cloud-based mon-
itoring system for drones, in an effort to insure airspace safety by combining technology solutions and 
regulations.41 

3.1.2.5  SWOT Analysis 

Strengths 
  A  multitude  of  ongoing  industrial  activities  in 
automation and connectivity by major OEMs 
  Favourable  governmental  policy  framework 
due to desire to shift to an economy driven by 
high-tech and consumer industries 

  Strong  IT  sector  with  major  companies  such 

as Baidu pushing towards automation 

  Large-scale test-beds implemented 
Opportunities 
  China is expected to be the largest market for 

autonomous vehicles by 2040 

  Economic advantages on world market due to 

low labour costs 

  Fast production possible due to existing man-

ufacturing infrastructure 

  Steep learning curve because of high-volume 
development and production possibilities 

3.1.3 

India 

3.1.3.1  General Information 

Weaknesses 
  Slow  uptake  of  automation  and  related  tech-

nologies 

  Federal  system  leads  to  different  governance 
initiatives  between  central  and  local  govern-
ments 

Threats 
  Chaotic  traffic  system  with  high  congestion 
and unpredictable traffic patterns impedes im-
plementation 

  Lack  of  (or  outdated)  planning  of  funding  ac-
tivities for automation by the Chinese govern-
ment. 

Over the past two decades, India has advanced in information technology (IT). The Indian economic 
boom has resulted in an exponential increase in motorisation, urban traffic congestion and deteriora-
tion  of  air  quality  in  the  megacities.  India  uses  intelligent  transport  system  (ITS)  to  alleviate  existing 
concerns including traffic congestion, air and noise pollution, by enhancing data collection for address-
ing the transport-related concerns at the vehicule or infrastructural levels. Some of the ITS technolo-
gies  are  Automated  speed  enforcement,  Incident  management,  Electronic  toll  collection,  Traveller 
information and Vehicle control technologies like intelligent cruise control and speed alerts. 42  

Along  with  the  development  of  ITS,  research  has  been  carried  out  on  the  automation  of metros  and 
driverless  cars  up  to  automation  level  4.  Automation  level  2-metros  are  already  running  in  various 
cities of India. Although India  has many car manufacturers, Mahindra  is the  pioneer to introduce the 

39 McNabb, M. (2016). China’s New Drone Regulations. Retrieved from: http://dronelife.com/2016/01/19/chinas-new-drone-

regulations/  

40 Global Times (2016). Civil aviation authorities tighten drone flight rules. Retrieved from: 

http://www.globaltimes.cn/content/964135.shtml  

41 McNabb, M. (2016). China’s New Drone Regulations. Retrieved from: http://dronelife.com/2016/01/19/chinas-new-drone-

regulations/  

42 EBTC. (2012). Intelligent Transport Systems in India. European Business and Technology Centre. EBTC. 

14 

 
                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

driverless car in the country. Also THRSL (The Hi-Tech Robotic Systemz Ltd.) introduced Automated 
Guided  Vehicle  (AGV)  -  Novus-Drive,  which  is  the  first  driverless  shuttle  in  India.  A  study  by  Cisco 
systems on customer experience stated that 86% of the Indian population would ride driverless. Thus, 
Indians are the second most willing to trust autonomous technology after Brazil where 95% were keen 
to do so.  

3.1.3.2  Research, Development & Innovation 

As ITS is central to the future development of connected driving in India, it is discussed shortly in this 
section.  The  Ministry  of  Road  Transport  and  Highways  (MoRTH)  has  started  the  National  Road 
Transport  Policy  (NRTP)  that  promotes  road  infrastructure  support,  public  transport  and  quality  and 
productivity of goods transportation and infrastructure. NRTP underlines the importance of ITS in the 
road  and  highway  infrastructure  including  technologies  in  real  time  traffic  flow  management,  parking 
availability, vehicular traffic, and a basic geographic information system (GIS). In addition, the NRTP 
also  discusses  the  use  of  ITS  technologies  in  transport  systems  in  freight  and  cargo  transport,  like 
electronic tagging and automatic toll collection and can greatly reduce waiting/ transit times and lead 
to increased emissions and fuel consumption.43 

NRTP states that the government of India is promoting R&D in the use of ITS for addressing the prob-
lems of the transport sector. This includes the construction and maintenance of road infrastructure, IT-
based vehicle registration and creating a centralized registry/depository of all information on motorized 
vehicles.44 

In Delhi, DIMTS (Delhi Integrated Multi-Modal Transit System Ltd) specializes in the development and 
deployment of Intelligent Transport Systems. It includes: 

  Wireless Traffic Signal Controller (Wi-Trac): Wireless operation  eliminates road  cutting-refilling  & 

cable laying operations, associated with conventional Traffic Controller 

  Red Light-Stop Line Violation & Detection System (RLSVDS): Snapshot with number plate details 

and three seconds video is provided as evidence from RLSVDS Server 

  CCTV  Junction  Surveillance:  Real  time  streaming  video  from  junctions  and  strategic  locations 
enable effective traffic & incident management from remote Traffic Command Control Centre, and 
allows operators to directly observe the traffic conditions at all junctions, verify incidents and con-
gestion conditions 

  Variable Message Sign (VMS): VMS is an electronic message sign with a systematically arranged 
cluster  of  Light  Emitting  Diodes  (LED)  which  are  wired  together  and  electronically  driven  &  con-
trolled. 

  Video Incident Detection: Through real-time analysis of images of the camera, the incident detec-
tion module is able to detect all major incidents within seconds. Automatic Incident Detection can 
be  done  for:  stopped  vehicles,  drivers  on  the  wrong-way,  pedestrians,  lost  cargo,  smoke  &  fire, 
queue, speed drop among others. 

  Control and Command Centre: Integrated Command Centre for various Intelligent Transportation 

and Traffic Management sub-systems.45  

3.1.3.3  Industry 

Delhi will be the first city in India with metro automation grade  level 4 for few lines (Pink line and Ma-
genta line). Inauguration is scheduled for early 2017. Automation level 2-metros are already running in 
Delhi and Kolkatta.  

Regarding the automotive industry  Mahindra & Mahindra is the first  car manufacturer to introduce or 
test  driverless  cars  in  the  country.  Mahindra's  electric  car subsidiary,  Mahindra  Reva,  has  submitted 

43 EBTC. (2012). Intelligent Transport Systems in India. European Business and Technology Centre. EBTC. 
44 EBTC. (2012). Intelligent Transport Systems in India. European Business and Technology Centre. EBTC. 
45 Puranik, V. (2013). Intelligent Tranport Systems (ITS). Retrieved from Delhi Integrated Multi-Modal Transit System Ltd. 

DIMTS. Retrieved from http://www.dimts.in/Services_Transportation_Intelligent_Transport_System.aspx  

15 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

proof of concepts for driverless cars in the UK and Singapore. Once the experiment of R&D for the car 
is finished in Bengaluru, it will be tested on the road. However, the test will not be carried out in India, 
but will be in the UK and Singapore due to the inadequate infrastructure and crowded roads. 46 Mahin-
dra is currently in the process of crowdsourcing some of the innovation in the areas of driverless cars. 
It introduced a driverless car challenge, which invited engineers to build cars for a potential cash prize 
of  USD  700,000.  This  project  allows  engineers  to  build  driverless  car  prototypes  to  assist  in  the  de-
congestion  of  Indian  roads.47  Likewise,  THRSL  (The  Hi-Tech  Robotic  Systemz  Ltd.)  had  introduced 
Automated Guided Vehicle (AGV) - Novus-Drive, which is the first driverless shuttle in India. The first 
test drive was at the Auto Expo in Greater Noida in February 2016 for ferrying visitors around the ex-
hibition centre. AGVs in India are foreseen to be mainly deployed in controlled environments such as 
large university or office campuses, elderly health care communities, trade fair and theme parks  and 
within the upcoming smart cities.48 49 

Moreover, in order to strengthen connected driving in India, IT companies such as Infosys, TCS, Wipro 
and HCL are working together with global carmakers, auto parts suppliers, insurers and content pro-
viders for integration of technology. Infosys has developed a customized telecom solution  –  Applica-
tion Platform, for connected cars and has partnered with a tech start-up to monitor driving behaviour 
using a Telematics Dongle as an aftermarket solution to auto insurers. Mahindra & Mahindra has an-
nounced plans to bring Android-enabled infotainment systems in its flagship Scorpio and XUV models 
by joining Google-spearheaded Open Automotive Alliance.50 Wipro is also working on an infotainment 
system. Telecom operator Vodafone is in talks with Accenture, Huawei and Porsche to integrate ma-
chine-to-machine (M2M) technology to power internet applications.51 

Likewise, with the vision for a connected world as well as safer, more convenient and easier driving, 
Tech  Mahindra  is  developing  smart  solutions  such  as  an  intelligent  Auto  Park  Assist  system.  It  will 
make parking the car completely automatic and needs zero intervention from the driver. They are also 
building an Autonomous Vehicle Operating System (AV OS) with a partner. The AV OS will be a pow-
erful platform on which people can build applications that will eventually power the future autonomous 
cars.  With  a  versatile  and  comprehensive  AV  OS,  the  path  towards  autonomous  cars  will  be  much 
more systematic and fast.52 

Mistral Solutions in India (partnered with KritiKal Solutions) works on selective implementation of intel-
ligent traffic solutions in India. It eases traffic congestion and traffic gridlocks without having to plan for 
fresh investments in the transportation infrastructure. It uses Intelligent Transportation Systems (ITS) 
using  video  surveillance  systems,  Charge-Coupled  Device  (CCD)  featured  global  shutters  and  Auto-
matic Number Plate Recognition (ANPR) etc.53  

The Indian Railways have developed a real-time train (passenger and freight) tracking device54 which 
would help avoid collisions and with train departure and arrival coordination. The railway company has 
planned (in 2012) to outfit 100 trains with the devices. 

46 Aggarwal, V. (2015). Mahindra experimenting with driverless cars; developing software to control car's movement in India. 

Retrieved from http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/mahindra-experimenting-with-
driverless-cars-developing-software-to-control-cars-movement-in-india/articleshow/46461771.cms  

47 India Tranport Portal. (2015). Mahindra Group begin experimentation on the future of driverless car. Retrieved from 

http://indiatransportportal.com/mahindra-group-driverless-cars-31256  

48 Motorinida. (2016). THRSL receives huge applause for Novus-drive, the driverless vehicle. Retrieved from 

http://www.motorindiaonline.in/applications/hi-tech-demonstrates-driverless-vehicle-capability-with-novus-drive/  

49 The Hi-Tech Robotic Systemz Ltd. (n.d.). Driverless Vehicles - Our Latest Entrant (NOVUS-DRIVE). Retrieved from 

http://www.hitechrobotic.com/novus_drive.html  

50 Batchu, S. (2014). Mahindra: It's just a matter of time that connected cars will become a mainstream in India. Retrieved from 

http://telematicswire.net/mahindra-its-just-a-matter-of-time-that-connected-cars-will-become-a-mainstream-in-
india/#JI54vrlj26cOE31B.99  

51 Mukherjee, K. (2016). Time Ripe for India to Get into the Reality of Connected Cars! Retrieved from http://cmrindia.com/time-

ripe-for-india-to-get-into-the-reality-of-connected-cars/  

52 Natarajan, K. (2015). The Road to Autonomous Vehicles. Retrieved from http://www.techmahindra.com/sites/blogs/the-road-

to-autonomous-vehicles.aspx  

53 Mistral Solutions. (2014). Selective Implementation of Intelligent Traffic Solutions in India. Retrieved from 

https://www.mistralsolutions.com/selective-implementation-intelligent-traffic-solutions-india/  

54 Desai, V., & Harsimran, J. (2012). Indian Railways to launch real-time train tracking via Google maps. Retrieved from 

http://articles.economictimes.indiatimes.com/2012-03-27/news/31244984_1_real-time-train-train-accidents-freight-trains 

16 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.3.4  Market 

The introduction  or acceptance  of fully  autonomous cars in India is  in nascent  phase. Challenges  of 
the autonomous car in India include increased costs, along with additional risks such as data security 
and privacy concerns, and lack of vehicle infrastructure.55 

Although there are basic infrastructure challenges such as reliable connectivity and data rates on one 
side  and the  associated costs for the technology/solutions  on the other side, the penetration of con-
nected car is projected to rise in India from 0.92% in 2016 and to 2.63% in 2020. 56 57 Both industry and 
government  bodies  understand  the  importance  of  connecting  vehicles  in  a  country  where  road  acci-
dents are high  and the cost of traffic congestion is  whopping.58 The connected car market in India is 
foreseen  to  grow  at  a  Compounded  Annual  Growth  Rate  (CAGR)  of  60.4%.  Regarding  connectivity 
technologies,  LTE  will  be  the  main  connectivity  solution  considering  the  advantages,  such  as  better 
end  user  experience,  less  network  traffic,  and  faster  upload  and  download  speed.  Currently,  mobile 
networks have good coverage  in all metropolitan  areas; although, rural areas has some connectivity 
problem,  which  is  likely  to  impact  the  usability  of  cloud  services. Wi-Fi  has  application  in  vehicle-to-
infrastructure  connectivity,  and  can  be  used  for  functions  such  as  software  updates,  downloading 
maps, and data transfer. It seems to be a cost-effective alternative because it does not incur data vol-
ume costs as LTE.59  

ITS applications, in order to enhance connected driving in India, have been introduced in metropolitan 
cities  like  New  Delhi,  Pune,  Bangalore,  Chennai  etc.  focusing  on  stand-alone  deployments  of  area-
wide  signal  control,  parking  information,  advanced  public  transportation,  toll  collection  etc.  However, 
all of these  are small scale pilot studies limited to major cities and are  in  the  beginning stage of de-
ployment.  Thus,  at  present,  the  development  of  ITS  applications  is  in  a  progressive  state  with  traffic 
management centers in India.60 Some of the projects with ITS technology are Wireless Traffic Control 
System, Real Time Traffic Counting and Monitoring System and Intelligent Parking Lot  Management 
System. 

Some of the major social and institutional issues facing the deployment of ITS in India include an un-
derdeveloped  road  network,  severe  budget  restrictions,  explosive  urbanization  and  growth,  lack  of 
resources for maintenance and operation, less demand for automation, lack of interest among policy 
decision makers, and lack of user awareness. In order to achieve the full potential of ITS, it has to be 
implemented  at  a  network  level  rather  than  in  small  corridors.  Overall,  the  existing  implementations 
show promise and potential for the deployment of ITS in India and give an initial empirical basis and 
data  on  ITS  deployment  highlighting  the  data,  methodological,  practical  and  research  challenges  for 
Indian conditions. 61 

55 Boagey, R. (2014). Autonomous cars in India: a developing challenge. Retrieved from 

http://www.automotiveworld.com/analysis/autonomous-cars-in-india-a-developing-challenge/  

56 Batchu, S. (2014). Mahindra: It's just a matter of time that connected cars will become a mainstream in India. Retrieved from 

http://telematicswire.net/mahindra-its-just-a-matter-of-time-that-connected-cars-will-become-a-mainstream-in-
india/#JI54vrlj26cOE31B.99 

57 Statista. (2016). Connected Car: India. Retrieved from https://www.statista.com/outlook/320/119/connected-car/india  
58 Automotive. (2016). India plans route map for the connected car. Retrieved from http://analysis.tu-auto.com/auto-

mobility/india-plans-route-map-connected-car  

59 Research and Markets. (2016). India Connected Car Market By Form Factor Connectivity, Technology, Application - Forecast 

and Analysis (2015-2020).  

60 Vanajakshi, L., Ramadurai, G., & Anand, A. (2010). Intelligent Transportation Systems: Synthesis Report on ITS Including 

Issues and Challenges in India. IIT Madras, Centre of Excellence in Urban Transport. 

61 Vanajakshi, L., Ramadurai, G., & Anand, A. (2010). Intelligent Transportation Systems: Synthesis Report on ITS Including 

Issues and Challenges in India. IIT Madras, Centre of Excellence in Urban Transport. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.3.5  SWOT Analysis 

Strengths 
  Strong 

industry  collaboration  among 

ITS 

companies 

  Partially  automated  public  transport  already 

deployed in bigger cities 

  Strong IT industry and knowhow 

Opportunities 
  Relatively  high  consumer  willingness  to  use 

Weaknesses 
  No  full-scale  deployment  of  advanced  sys-
tems in India yet, especially in rural regions 
  Automation  is  hard  to  achieve  because  of  a 

underdeveloped infrastructure 

  Weak automotive industry and knowhow 
  Severe budget restrictions because of lack of 

interest among policy decision makers 

  Nature of road user is complicated 
Threats 
  Explosive  urbanization  and  growth  of  new 

driverless automobiles 

townships 

  Urbanisation  and  growth  also  leads  to  new 

  Lack of resources for maintenance and oper-

township with innovative 
technologies in use 

3.1.4 

Japan 

3.1.4.1  General Information 

ation 

  Despite of willingness to use driverless auto-
mobiles limited demand for automation due to 
high poverty rate 

Japan’s efforts to push connectivity and automation stems from different factors. The biggest driver is 
the country’s aging society. Apart from that, the country’s scarcity of resources, the aim to reduce traf-
fic fatalities, and the avoidance of congestion are further drivers. Additionally, in its programs the gov-
ernment’s funding efforts are often related to their hosting of the 2020 Olympic/Paralympic Games. It 
was defined as a milestone to attain their goal of showing the world to have the most advanced ICT 
environment.62 

Whereas the private and public sectors will jointly invest money to build test courses, the development 
of the necessary infrastructure, such as on-road systems, is solely financed by the public sector.63 

3.1.4.2  Research, Development & Innovation 

The  Japanese  government  has  introduced  a  variety  of  different  programs  to  push  the  developments 
towards automation and connectivity. On the basis of “the Science and Technology Basic Law”, com-
prehensive  STI  (Science,  Technology  &  Innovation)  strategies  are  formulated  every  five  years  since 
1996. In their 4th update, which was formulated for the period 2016-2020, a JPY 335-billion action plan 
for  S&T  Priority  Measures  was  defined  that  identified  prioritized  areas,  including  energy  and  next-
generation infrastructure. It also introduced the so-called Cross-Ministerial Strategic Innovation Promo-
tion Program (SIP). “Innovation of Automated Driving for Universal Services” (SIP-ADUS) was named 
one of ten key themes, making up JPY 2.45 billion of the JPY 50 billion heavy program. The program 
is  based  on  a  public-private  collaboration  in  which  ITS-related  ministries  and  five  car  manufacturers 
(Toyota,  Nissan,  Honda,  Mazuda,  Subaru)  participate  to  foster  advancements  of  vehicle  automation 
and  connectivity.64  The  program  aims  at  achieving  level  2  automation  by  mid-2010s  and  level  3  by 
early 2020s and at contributing to the establishment of standardization and harmonization as well as 
at  nourishing  the  social  acceptance  for  the  realization  and  promotion  of  vehicle  automation. 65  The 
scope of the project spans across different fields, including (1) development and verification of auto-

62 Kawamoto, M. (2014). An Approach to the Next Generation Transportation Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP7_Kawamoto.pdf  

63 ZDNet (2015). Japan focuses self-driving car technology. Retrieved from http://www.zdnet.com/article/japan-focuses-self-

driving-car-technology/ 

64 Tanuma, T. (2014). The National Program for Innovation. Cross-ministerial Strategic Innovation promotion Program(SIP). 

Retrieved from http://www.its-jp.org/english/files/2014/07/SIP2_Tanuma.pdf  

65 Yokoyama, T. (2014). Humans and Automated Driving Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP5_Yokoyama.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

mated  driving  technologies;  (2)  development  of  evaluation  models  and  simulation  technologies  on 
vehicle behavior and collision to effectively reduce traffic fatalities and congestion; (3) international co-
operation; and (4) deployment for next generation urban transportation services.66 

As  can  be  seen  in  Figure  4  automated  driving  will  be  realized  integrating  on-board  technologies  on 
one  side  and  co-operative  assist  (precise  digital  map,  data  acquisition  through  radio  communication 
and global positioning) on the other side. On-board technologies are already in product level competi-
tion  and car manufacturers are demonstrating their technologies. Therefore, the  scope of SIP-ADUS 
does  neither  include  on-board  technologies  nor  the  development  of  prototype  automated  cars.  It  fo-
cuses  on  areas  of  cooperation,  such  as  dynamic  map,  connected  vehicles,  human  factors,  impact 
assessment,  next  generation  transport,  security  and  international  cooperation. 67  The  vehicle  to  infra-
structure cooperation introduced in 2011 is built on older technology, such as car navigation (1980s), 
real-time traffic information service (1996) and Electronic Toll Collection ETC (introduced in 2001). 

Figure 4: Scope of governmental program SIP-ADUS68 

Responsible  for  the  collection  of  traffic-related  data  is,  among  others,  the  Japan  Road  Traffic  Infor-
mation Center (JARTIC)69, commissioned by  prefectural police  headquarters and road administrators 
subordinated by MLIT. It was founded in 1970 to ensure the safety and convenience of road users by 
collecting traffic-related data. Over the past 40 years the center has formed a nation-wide information 
network  available  via  different  offline  and  online  channels.  It  provides  collected  data  to  the  Vehicle 
Information  and  Communication  System  Center  (VICS)70  that  further  processes  data  and  communi-
cates it to road users in real-time via three communication and broadcasting media: infrared beacon, 
radio wave beacon, and FM multiplex broadcasting. 

Another  JPY  55  billion  are  invested  between  2014  and  2018  for  the  program  “IMpulsing  PAradigm 
Change through disruptive Technologies (ImPACT)” that promotes high-risk, high-impact R&D. In the 

66 Amano, H. (2014). Automated Driving Technology Research in Japan: Strategic Innovation Promotion Program. Retrieved 

from http://www.its-jp.org/english/files/2014/07/SIP0_Amano.pdf 

67 Amano, H. (2016). A National Project in Japan: Innovation of Automated Driving for Universal Services. In: Road Vehicle 

Automation 3, Meyer, G., Beiker, S. (eds.). 

68 Amano, H. (2014). Automated Driving Technology Research in Japan: Strategic Innovation Promotion Program. Retrieved 

from http://www.its-jp.org/english/files/2014/07/SIP0_Amano.pdf 

69 JARTIC (2016)Japan Road Traffic Information Center (n.d.). Retrieved from http://www.jartic.or.jp/ 
70 Vehicle Information and Communication System (2016). How VICS works. Retrieved from http://www.vics.or.jp/en/vics/ 

19 

 
 
                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

5th version of the Science  & Technology  Basic Plan (2016-2020)71 the ImPACT (IMpulsing PAradigm 
Change through Disruptive Technologies Program) R&D project shall be continued to act as a model 
case for extending similar schemes to the R&D projects that may not have a high probability of yield 
(high-risk  research)  but  that  can  be  expected  to  have  a  significant  impact  if  successful.  The  overall 
focus  is  put  on  the  development  towards  a  so-called  Society  5.0  or  Super  Smart  Society  (after  the 
hunter–gatherer society (1.0), agricultural society (2.0), industrial society (3.0), and information society 
(4.0)). ICT is expected to further evolve to connect, separate systems in various fields (energy, trans-
portation, manufacturing, and service) using cyberspace. This will involve working on standardizing the 
interfaces, data formats and the like. Priority areas include an efficient and effective infrastructure, ITS 
and transport system resilience. 

MLIT also established the Auto-pilot System Study Group in June 2012. The study group, made up of 
the Parliamentary Vice-Minister, academia and auto manufacturers, clarifies and studies challenges to 
achieve auto-pilot systems. The study group has defined 4 levels of automation (similar to the US SAE 
standards)  as  well  as  public-private  ITS  Initiatives  and  a  roadmap  towards  deployment  (definition  of 
automation level for automated driving, clarification of time of market deployment in accordance with 
automation level).72 

Another  important  player  in  automation  is  the  National  Institute  of  Information  and  Communications 
Technology (NICT) that promotes the full spectrum of research and development in ICT from basic to 
applied  research  with  an  integrated  perspective.  NICT  forms  close  ties  with  the  academic  and  busi-
ness communities in Japan as well as with research institutes overseas.73 

Research and development at Toyota is organized in a three-fold structure: basic research (basic ve-
hicle-related  technology),  forward-looking  and  leading-edge  technology  development  (technological 
breakthroughs  related  to  components  and  systems), and  product  development  (new  model  develop-
ment).  Automation  and  connectivity  is  anchored  within  basic  research  which  is  mainly  done  in 
Nagakute City and Aichi in Japan, in one research site in Changshu in China as well as in three re-
search centers in the USA. The US subsidiaries focus on autonomous driving (Ann Arbor, Michigan), 
“guardian angel driving” (Palo Alto, California) and deep learning respectively (Cambridge, Massachu-
setts).74 75 Toyota is the global leader in the number of self-driving car patents (followed by Germany’s 
Robert Bosch GmbH, and Japan’s Denso Corp) with 1,400 patents filed so far. Thus, the company has 
issued  more  than  twice  as  many  patents  as  any  other  company  until  January  2016.76  Through  this 
approach Toyota also invests a lot  in the development of C-ITS such as  eco-friendly  driving support 
systems  that  use  road-to-vehicle,  vehicle-to-vehicle  and  pedestrian-to-vehicle  communication  to  re-
duce  the  likelihood  of  traffic  accidents.  Technologies  include  Intelligent  Driver-support  Systems such 
as  the  Highway  Driving  Assist,  Lane  Trace  Control  (LTC),  and  Cooperative-adaptive  Cruise  Control 
(C-ACC). The company has also announced that it will equip all of their new models with auto-braking 
systems to help prevent accident fatalities. 

Nissan  has  seven  research  facilities:  three  in  Japan  (Atsugi,  Oppama,  Yokohama),  one  in  India 
(Chennai), two in the U.S. (Detroit, Silicon Valley) and one in Russia (Moscow). Research on automa-
tion  and  connectivity  is  undertaken  in  all  of  its  research  centers  in  Japan,  in  India  (due  to  strong  IT 
industry), and in the youngest subsidiary in Silicon Valley where special emphasis is put on the inclu-
sion of ethnography and design anthropology as foundational components of research on autonomous 

71 Cabinet Office (2015). Report on The 5th Science and Technology Basic Plan. Retrieved from 

http://www8.cao.go.jp/cstp/kihonkeikaku/5basicplan_en.pdf  

72 Yamamoto, T. (2014). Automated Driving  Activities in Japan Activities in Japan. Retrieved from 

https://higherlogicdownload.s3.amazonaws.com/AUVSI/3a47c2f1-97a8-4fb7-8a39-
56cba0733145/UploadedImages/documents/pdfs/7-17-
14%20AVS%20presentations/takumiYAMAMOTO%20English(Final1).pdf  

73 National Institute of Information and Communications Technology (2016). Organization. Retrieved from 

http://www.nict.go.jp/en/about/NICT 

74 Toyota (2016). Toyota's Research and Development Organizations. Retrieved from http://www.toyota-

global.com/company/history_of_toyota/75years/data/automotive_business/products_technology/research/bases/index.html  

75 Muller, D. (2016). Ann Arbor picked for third Toyota Research Institute location. Retrieved from 

http://www.mlive.com/auto/index.ssf/2016/04/ann_arbor_picked_for_third_toy.html 

76 Ingrassia, P. and White, J. (2016). Automakers, not Silicon Valley, lead in driverless car patents: study. Retrieved from 

http://www.reuters.com/article/us-tech-ces-autos-idUSKBN0UJ1UD20160105 

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Final Report – International Assessment and Action Plans of the Focus Areas 

vehicles.77 All research activities are structured along four identified major societal trends: electrifica-
tion, aging of society, formation of new information services and urbanization. 78 Automation and con-
nectivity is anchored in all four key domains. Nissan R&D predicts autonomous cars to be marketable 
by 2020.79 Nissan Advanced Technology Center80 is also cooperating with researchers at MIT, Oxford 
and Tokyo University. In accordance with the key research areas of the SIP, Nissan developed a dy-
namic map prototype that was launched in 2015.81 A dynamic map is a database with layered structure 
built  on  graph  network  representation  of  road.  The  database  is  expected  to  be  expanded  to  include 
much more detailed description of road structure and surrounding environment and to be dynamically 
linked to real-time data from integrated on-board sensing systems and semi-real-time data from V2X 
communications. Nagoya University, also involved in SIP-ADUS, undertakes research, too. 

The World Expo 2005 near the city of Nagoya in the Aichi Prefecture served as an incubator for two 
promising  technologies.  First,  Linimo,  a  magnetic  levitation  train,  was  presented  as  the  world's  first 
unmanned  commercial  Urban  Maglev  and  Japan’s  first  commercial  maglev  to  use  the  High  Speed 
Surface Transport (HSST) type technology. It now operates to serve the local community and covers 
9 km with a top speed of 100 km/h.82 Second, an automated platoon bus system was put into real op-
eration  for  passenger  services.  The  system  carried  about  2  million  visitors  in  6  months.  However,  it 
was  never  deployed  for  permanent  operation.  Additionally,  between  2010  and  2015  Japan’s  Energy 
ITS  project  has  been  developing  and  testing  platooning  of  three  fully  automated  trucks.  The  project 
was  funded  by  METI  through  its  New  Energy  Technology  Development  Organization  (NEDO)  with 
about USD 12 million per year for five years. The project is co-ordinated and managed by the Japan 
Automobile  Research  Institute  (JARI)  and  involves  a  multitude  of  different  universities  and  only  indi-
rectly truck manufacturers. The primary goal is to attain energy savings through the reduction of aero-
dynamic  drag  by  operating  trucks  in  an  electronically  coupled  platoon  at  shorter-than-normal  gaps. 
The  reduction  in  aerodynamic  drag  for  following  vehicles,  and  build-up  of  pressure  behind  the  lead 
vehicle yields impressive fuel efficiencies, with various tests reporting convoy savings of between 5% 
and 10% with most fleet operators attributing some 30 to 40% of their operating costs to fuel expendi-
ture. Further objectives are the improvement of highway traffic flow and safety.  The Japan market is 
expected  to  witness  a  notable  number  of  factory-equipped  truck  platooning  systems  only  by  2022, 
owing to the fact that the region remains low in terms of connected truck technology penetration. 83 But 
there  is  also  development  in  the  passenger  sector,  spearheaded  by  Toyota.  The  company  develops 
and tests a platoon of three Lexus LS-460 passenger cars that follow each other closely to reduce fuel 
consumption.84  

As for academia, the one university contributing most to the advancement of automation and connec-
tivity is without doubt Tokyo University. A multitude of laboratories and institutes are working on these 
technologies  including  Shibasaki Laboratory,  Center  for  Spatial  Information  Science,  the  Interfacial 
Transport  Engineering  Lab  in  the  Institute  of  Industrial  Science,  the  Oguchi  &  Iryo  Laboratory  in  the 
Institute of Industrial Science, the Advanced Mobility Research Center, Institute of Industrial Science, 
the Future Generation Mobility Center in the Institute of Industrial Science, the Information and Robot 
Technology  Research  Initiative,  and  the  School  of  Engineering.  Other  universities  engaging  in  this 

77 Jordan, B., Wasson, C. and Roth-Lobo, H. (2015). Ethnographic Study Lifts the Hood on what REALLY Goes On inside that 

Car. Retrieved from https://www.epicpeople.org/ethnographic-study-lifts-the-hood 

78 Nissan Global (2016). Research with an Eye on the Trends That Will Impact the Automotive Future. Retrieved from 

http://www.nissan-global.com/EN/NRC/DOMAINS/#page1 

79 Nissan Global (2016). Research Fields. Transition of research fields. Retrieved from http://www.nissan-

global.com/EN/NRC/FIELDS 

80 Joon-Sool, K. and Ji-Soo, L. (2016). Race is on to capture driverless car market. Retrieved from 

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3014601&cloc=joongangdaily|home|newslist2 

81 Fukushima, M. (2014). Dynamic Map [Presentation]. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP3_Fukushima.pdf 

82 Yasuda, Y., Fujino, M., Tanaka, M., Ishimoto, S. (2004). The first HSST maglev commercial train in Japan. Proceedings of the 

18th international conference on magnetically levitated systems and linear drives (MAGLEV 2004). Retrieved from 
http://www.maglev.ir/eng/documents/papers/conferences/maglev2004/topic1/IMT_CP_M2004_T1_10.pdf 

83 Maida, J. (2016). Increased Acceptance of Connected Trucks in China, Japan, and Australia Labels APAC as the Fastest-

growing Truck Platooning System Market Until 2020, Says Technavio. Retrieved from 
http://www.businesswire.com/news/home/20160704005076/en/Increased-Acceptance-Connected-Trucks-China-Japan-
Australia 

84 Wang, B. (2015). 7.7 Million Truck Platoon Systems to Ship by 2025 and Japanese truck platooning research. Retrieved from 

http://nextbigfuture.com/2015/05/77-million-truck-platoon-systems-to.html 

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Final Report – International Assessment and Action Plans of the Focus Areas 

technology  field  are  Aoyama  Gakuin  University,  Kyoto  Institute  of  Technology,  Nagoya  Institute  of 
Technology,  Nagoya  University,  Ochanomizu  University,  Osaka  Institute  of  Technology,  Tokyo  Insti-
tute of Technology, and the National Institute of Informatics. 

3.1.4.3  Industry 

The automotive industry in Japan is organized in vertical “keiretsus”. A keiretsu is typically centered on 
an OEM and ties together suppliers, manufacturers, and distributors of an industry85 with interlocking 
shareholdings, joint R&D activities, technology transfers, primary or exclusive customer supplier rela-
tionships, etc. During Japan’s decade of slow growth in the 1990s many corporations suffered from the 
rigid structures of the Keiretsu system. So, new Keiretsus were developed, e.g. by Toyota, that break 
from  traditional  keiretsus  by  also  sourcing  from  the  global  market  and  encouraging  suppliers  to  be-
come involved in product development already at the planning stage.86 

Nissan will be the first Japanese manufacturer to introduce autonomous driving technologies to control 
steering,  brakes  and  throttle  on  highways.  The  system,  called  ProPILOT,  is  integrated  in  the  5th-
generation Japan-only Serena minivan to be released in August 2016. In 2017 the system is expected 
to  be  introduced  on  the  European  market  in  the  Qashqai.  The  system  was  designed  for  single-lane 
highway driving. According to the company, multi-lane autonomous driving will be introduced in 2018 
and autonomous driving in urban contexts in 2020.87 Nissan has also teamed up with NASA to further 
develop their automated driving systems and recently with the Department of Automotive Engineering 
at  Tsinghua  University  to  establish  a  joint  research  center  for  intelligent  mobility  to  work  on  R&D  of 
electric vehicle and autonomous drive technologies especially for the Chinese market.88 

The Renault-Nissan alliance plans to launch 10 models with significant autonomous driving functionali-
ties built into mainstream, mass-market cars at affordable prices in the US, Japan, Europe, and China 
through  2020.89  On  the  short  run  the  alliance  will  introduce  a  plethora  of  different  technologies  to  in-
crease the convenience such as an automotive app for mobile devices that allows for remote interac-
tion with the car, an “Alliance Multimedia System”, and a new Virtual Personal Assistant feature. The 
alliance has a R&D budget of USD 5 billion and several research centers all over the world. 90 

Mitsubishi  has  introduced  the  EMIRAI3  xAUTO,  an  automated  concept  car,  in  October  2015. 
Mitsubishi Electric Corp. plans to readjust their developed  defence technology for use in autonomous 
vehicles. The company is  expected to commercialize its technologies as of 2020. 91 In 2017, they  will 
start offering superior lane-keeping and auto brake systems.92 

Toyota is expected  to  invest USD 1 billion in autonomous vehicles,  artificial intelligence (AI), and ro-
botics in the next four years. The company together with Fanuc and Panasonic collaborates with Pre-
ferred  Networks,  a  company  developing  machine  learning  technology,  to  apply  AI  to  robots  and  au-

85 Moffatt, M. (2015). An Economic Introduction to the Japanese Keiretsu System. The Definition, Significance, and History of 

Keiretsu in Japan. Retrieved from http://economics.about.com/od/termsbeginningwithk/g/keiretsu_system.htm 

86 Aoki, K. and Lennerfors, T. (2013). The New, Improved Keiretsu. Retrieved from https://hbr.org/2013/09/the-new-improved-

keiretsu 

87 Collie, S. (2016). Nissan Serena will be the first Japanese vehicle with autonomous drive. Retrieved from 

http://newatlas.com/nissan-propilot-serena/44325/ 

88 NissanNews (2016). Nissan Joint Research Center for Intelligent Mobility at Tsinghua University opens in Beijing. Retrieved 
from http://nissannews.com/en-US/nissan/usa/channels/us-nissan-technologies-autonomous-driving/releases/nissan-joint-
research-center-for-intelligent-mobility-at-tsinghua-university-opens-in-beijing 

89 Adashek, J. (2016). People behind the ProPILOT: From NASA Mission Control to the driver’s seat, scientist shapes future of 
autonomous driving. Retrieved from http://nissannews.com/en-US/nissan/usa/channels/us-nissan-technologies-autonomous-
driving/releases/people-behind-the-propilot-from-nasa-mission-control-to-the-driver-s-seat-scientist-shapes-future-of-
autonomous-driving 

90 NissanNews (2016). Renault-Nissan to launch more than 10 vehicles with autonomous drive technology over the next four 

years. Retrieved from http://nissannews.com/en-US/nissan/usa/channels/us-nissan-technologies-autonomous-
driving/releases/renault-nissan-to-launch-more-than-10-vehicles-with-autonomous-drive-technology-over-the-next-four-years 

91 Mitsubishi Electric (2015). Mitsubishi Electric Introduces EMIRAI3 xAUTO Automated Driving Concept Car. Retrieved from 

http://www.mitsubishielectric.com/news/2015/1014-b.html 

92 2025AD (2016). Mitsubishi redesigns weapon technology for driverless cars. Retrieved from https://www.2025ad.com/in-the-

news/news/mitsubishi-boosts-driverless-cars/ 

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Final Report – International Assessment and Action Plans of the Focus Areas 

tonomous driving systems. Sony has invested in ZMP, a start-up in robot cars, to develop self-driving 
vehicle technologies.93 

Automotive suppliers put just as much effort into the advancement of automation and connectivity. For 
example  Panasonic  just  shifted  their  motor  business  from  to  automotive  and  industrial  appliances, 
paving  the  way  in  factory  automation.  In  2013,  the  company  released  new  portable  car  navigation 
systems that is equipped with a drive camera function allowing to record the traffic situation in front of 
the vehicle and view the scenery of the drive in conjunction with the engine start-up. It uses GPS, gyro 
and Quasi-Zenith Satellite – Japan’s continuously developing domestic positioning system – precision 
positioning technologies.94  

Nippon Ceramic Co. Ltd. (Nicera), a tier-2 supplier mainly supplying Denso and Panasonic, is develop-
ing  ultrasonic  sensors  for  less  than  USD  0.9295  that  help  autonomous  vehicles  avoid  crashes  and  fit 
into tight parking spaces. The company’s global market share in ultrasonic sensors is about 50%. Ul-
trasonic sensors can detect objects and obstacles within a 5-meter range. NEC Corp., Hitachi Automo-
tive Systems Ltd. also produce sensors.96 NEC is very strong in image recognition technology and V2X 
communication technology.97 However, Japanese car parts makers lag behind German suppliers such 
as Bosch or Continental in sensor technology. 

In  2014,  METI  signed  an  agreement  with  Japan  Automobile  Research  Institute  (JARI)  worth  JPY  1 
billion  to  develop  autonomous  driving  software  in  collaboration  with  NEC,  Pioneer  and  ZMP  that  is 
expected to be put in practical use within five years.98 

NEC, Denso, eSol formed a joint venture, named Aubass, to develop basic software that can support 
high-speed  data  communication,  high-quality  security,  and  high-performance  microcomputers  for  in-
vehicle systems mainly used for automated driving.99 

Denso  started  testing  advanced  driving  support  technologies  in  2014  on  public  roads.  The  company 
also owns a test course that has been in use.100 In 2016 the company which specializes on communi-
cation-based  vehicle  control  and  in-vehicle  communication  devices  has  partnered  with  NTT  DO-
COMOCO,  Inc.,  Japans  biggest  mobile  phone  operator  with  expertise  in  LTE  and  5G  networks,  to 
jointly develop vehicle control systems for automated driving systems.101 

Hitachi  Automotive  Systems  has  defined  their  business  along  three  different  domains,  two  of  which 
tackle automation and connectivity. Whereas automation is mainly addressed within the field “safety” 
where different drive control systems are developed, the field “information” focuses on connectivity by 
developing cloud information network services as well as on-board information equipment.102 

Fujitsu already runs intelligent traffic systems and intelligent parking solutions. 103 In Europe the compa-
ny is developing multi-modal route planning linking multiple transportation networks including road, air, 
sea,  and  rail.  In  a  joint  collaboration  with  the  MIT,  Fujitsu  Laboratories  the  company  develops  a 

93 Inagaki, K. (2016). Google and IBM overshadow Japanese tech groups in global AI race. Retrieved from 

http://www.ft.com/cms/s/0/c33eabe6-bea7-11e5-9fdb-87b8d15baec2.html#axzz4HaZVxXoz 

94 Telematics Wire (n.d.). Japan: Panasonic to release car navigation unit – Gorilla Eye. Retrieved from 

http://telematicswire.net/japan-panasonic-to-release-car-navigation-unit-gorilla-eye/ 

95 Curry, D. (2016). Who’s the Japanese firm with half of the self-driving car market?. Retrieved from 

http://readwrite.com/2016/04/15/nippon-ceramic-self-driving-car-japanese-tl4/ 

96 Horie, M., Jie, M. (2016). 92-Cent Crash Avoidance Sensor Drives Nippon Ceramic’s Gains. Retrieved from 

http://www.bloomberg.com/news/articles/2016-04-10/a-92-cent-chip-for-driverless-cars-is-a-windfall-for-japan-maker 

97 Arai, S., Hayakawa, A., Katou, M. et al. (2015). NEC’s Commitment to Smart Mobility. In: NEC Technical Journal Vol. 10, 

Number 1. Retrieved from http://www.nec.com/en/global/techrep/journal/g15/n01/pdf/150112.pdf 

98 Nikkei (2014). Japan Trade Ministry, companies team up on self-driving tech. Retrieved from http://asia.nikkei.com/Tech-

Science/Tech/Japan-Trade-Ministry-companies-team-up-on-self-driving-tech 

99 Edwards, D. (2016). Denso, eSol, and NEC form joint venture for connected cars. Retrieved from 

http://roboticsandautomationnews.com/2016/04/27/denso-esol-and-nec-form-joint-venture-for-connected-cars/4235/ 

100 Denso (2014). DENSO Tests Advanced Driving Support Technology on a Public Road in Japan. Retrieved from 

http://www.globaldenso.com/en/newsreleases/140714-01.html 

101 NTT Docomo (2016). DENSO and NTT DOCOMO Agree to Develop Technologies for Advanced Driver Assistance and 
Automated Driving Systems. Retrieved from https://www.nttdocomo.co.jp/english/info/media_center/pr/2016/0222_00.html 

102 Hitachi Automotive Systems (n.d.). Business Description. Retrieved from http://www.hitachi-

automotive.co.jp/en/vision/vision_04/index.html 

103 Reger, J. (2016). Artificial Intelligence (AI) is not a new discipline. Retrieved from http://blog.ts.fujitsu.com/index.php/artificial-

intelligence-ai-not-new-discipline/ 

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Final Report – International Assessment and Action Plans of the Focus Areas 

demonstration project, called “triple-role vehicles” adapting the vehicle to the amount of users and their 
dispensary time. Fujitsu is not only advancing their camera and radar technologies but also works on 
connectivity and online solutions such as with their Intelligent Society Solution SPATIOWL that collects 
travel and sensor information. One application case is the provision of hydrogen station information for 
Toyota’s Mirai FCEV.104 

In addition to the older analogue Automatic Train Control (ATC) Japan’s railway system partially relies 
on  digital  ATC  (D-ATC  or  DS-ATC  for  Shinkansen  trains)  using  train-based  control  (opposed  to 
ground-based  control  of  the  analogue  system)  allowing  for  braking  in  dependence  of  the  specific 
train’s ability. The technology, developed by Hitachi and successfully deployed since the early 2000s, 
was  first  limited  to  automatic  braking.  Later  on  the  company  enhanced  the  technology  by  extending 
the function from just braking to all phases of train operation (ATO).105 In combination with the compa-
ny’s Communication-Based Train Control (CBTC) system higher traffic densities and driverless opera-
tion is made possible. The latter is based on a general-purpose 2.4 GHz band which makes it suitable 
for many different countries and regions.106 

Furthermore  standards  of  the  applications  of  maritime  intelligent  transport  systems  have  been  pre-
sented  including  maritime  Management  and  Information  Systems,  sea  environment  and  interactive 
data  on-line  networks,  ship  integrated  decision  support  systems,  Advanced  maritime  navigation  ser-
vices, automatic identification, tracking and monitoring of vessels, as well as safety purposes. 107 

3.1.4.4  Market 

As can be seen in Figure 5 and Figure 6, according to the White Paper on Transportation published in 
2015108 15.9% would like to use and 38.7% would consider using autonomous vehicles (n=2,000). This 
adds up to more than half of the interviewed to be in favor of developments towards autonomous driv-
ing.  Interestingly,  when  taking  a  closer  look  on  the  difference  between  the  age  of  respondents,  the 
ones most in favor (“would like to use”) are 20 or younger (18.3%), 30 to 39 (17.8%) and 60 or older 
(16.8%). This reflects the technological affinity of the younger generation and the diminishing vitality of 
the  elderly  who  seek  assistance  in  automated  systems.  This  becomes  even  clearer  by  including  the 
ones who tend to perceive developments positively. 42.5% of 50 to 59-year olds and 41.0% of 60 or 
more year old respondents “would consider using” autonomous vehicles. Overall only 14.6% would not 
want  to  use  an  autonomous  vehicle,  divided  by  age  the  majority  of  negative  answers  is  spread  be-
tween age groups 30 to 39, 40 to 49 and 50 to 59 (15.8%). 

All  in  all,  there  is  a  clear  tendency  towards  a  public  acceptance  of  autonomous  cars,  whatever  the 
reasons behind might look like. 

104 Fujitsu (2015). Smart Automobiles and Next-Generation Transportation Systems. Retrieved from 

http://journal.jp.fujitsu.com/en/2015/06/15/02/ 

105 Hitachi Rail (n.d.). ATO (Automatic Train Operation) System. Retrieved from: http://www.hitachi-

rail.com/products/signalling/ato/ 

106 Hitachi Rail (n.d.). Communication Based Train Control (CBTC). Retrieved from http://www.hitachi-

rail.com/products/signalling/cbtc/ 

107 Nowacki, G. (2012). Development and Standardization of Intelligent Transport Systems. In: TransNav – International Journal 

on Marine Navigation and Safety of Sea Transportation, Vol.6 (03) 

108 Ministry of Internal Affairs and Communications (2015), White Paper on Information and Communications in Japan. Re-

trieved from http://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2015/2015-index.html 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 5: Japanese people's Intention to use autonomous vehicles109 

Figure 6: Japanese people's intention to use autonomous vehicles by age110 

To reach the goal of transport automation and connectivity, the government is pushing the IT industry 
and IT-related research. Therefore, different strategies and plans have been issued. One of them, the 
ICT  Growth  Strategy  II  aims  at  realizing  the  world‘s  most  advanced  ICT  environment.  Based  on  the 
vision “creating new  innovation through connecting various things and services  by ICT”  three priority 
projects  have  been  defined:  (1)  local  revitalization  including  smart  cities  and  smart  agriculture,  (2) 
solving  social  problems  including  transportation,  and  (3)  Tokyo  2020  Olympic  &  Paralympic  Games. 
To be able to attain the goal and put the vision into action the government invests in a common plat-
form, the necessary infrastructure, and environmental improvement. 111 

109 Ministry of Internal Affairs and Communication (2015). Study Report on People’s Attitudes toward New ICT Services and 

Technologies that Resolve Social Issues,. Retrieved from 
http://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2015/chapter-4.pdf 

110 Ministry of Internal Affairs and Communication (2015). Study Report on People’s Attitudes toward New ICT Services and 

Technologies that Resolve Social Issues,. Retrieved from 
http://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2015/chapter-4.pdf 

111 Ministry of Internal Affairs and Communications (2014). Smart Japan ICT Strategy. Retrieved from 

http://www.soumu.go.jp/main_content/000301884.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 7: Advanced Rapid Transit Concept developed in SIP-ADUS112 

In cities with high-density travel demand, such as Tokyo and Osaka, a pedestrian-centered multimodal 
transportation  network  is  promising  an  efficient  and  sustainable  alternative  to  conventional  mobility. 
Therefore,  innovative  transit  system  with  automated  driving  technologies  and  on-demand  operation 
are developed  that  will not only reduce travel time and greenhouse gas emissions but  also  increase 
the comfort for passengers and enhance the efficiency for operators. Figure 7 shows different technol-
ogies  to  be  deployed  within  the  Next  Generation  Urban  Transportation  Systems  –  Advanced  Rapid 
Transit  (ART).  It  was  created  in  the  Cross-ministerial  Strategic  Innovation  Promotion  Program  (SIP-
ADUS). 113 They include Advanced Public Transport Priority Systems, Automated Acceleration Control, 
Automated Pull-Over Control, Contactless Electronic Charging, etc.  

Figure 8 shows how the Next Generation Urban Transportation Systems is embedded within the Au-
tomated Driving  theme. It can be seen that is perceived  as a  way to  evoke a modal shift away from 
passenger cars, to push an advanced regional traffic management and to develop traffic infrastructure 
and control and thus, increase safety by encouraging accident prevention activities. Right now it is still 
in  R&D  phase  but  soon  to  be  implemented.  The  plan  is  to  have  field  tests  between  2017  and  2018 
before going in business operation in 2019.114 

The plan to realize comprehensive ITS deployment lies on advances in navigation systems, electronic 
toll collection systems, assistance for safe driving, optimization of traffic management, increasing effi-
ciency  in road management, support for public transport,  increasing  efficiency  of commercial  vehicle 
operations,  support  for  pedestrians,  and  support  for  emergency  vehicle  operations.  ITS  Initiatives  in 
Japan.115  

The  technological  affinity  of  the  Japanese  has  led  to  an  early  and  widespread  use  of  Variable  Mes-
sage  Signs  (VMS)  and  Dynamic  Message  Signs  (DMS)  on  roads  to  facilitate  traffic.  This  holds  also 
true for aviation: Tokyo International Airport (RJTT, Haneda Airport) was the first Japanese airport to 
introduce the Variable Message Sign (VMS) and Runway Status Lights (RWSL) in 2012. The system 
consists of LCD panel boards on one or both sides of the runway  which light  up to indicate how the 
pilot  should  proceed.  It  is  a  system  where  Runway  Entrance  Lights  (REL)  or  Take-off  Hold  Lights 
(THL) are illuminated or extinguished, automatically and independent of air traffic control instructions 
based  on  dynamic  surveillance  capabilities  (multi-lateration)  which  measures  the  aircraft  position  by 

112 Kawamoto, M. (2014). An Approach to the Next Generation  Transportation Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP7_Kawamoto.pdf 

113 Kawamoto, M. (2014). An Approach to the Next Generation  Transportation Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP7_Kawamoto.pdf 

114 Kawamoto, M. (2014). An Approach to the Next Generation  Transportation Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP7_Kawamoto.pdf 

115 Ministry of Land, Infrastructure, Transport and Tourism (2012). ITS initiatives in Japan. Retrieved from 

http://www.mlit.go.jp/road/ITS/pdf/ITSinitiativesinJapan.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

the  

time difference of signals transmitted from the aircraft transponder and received. Other airports such 
as Osaka, New Chitose and Fukuoka soon followed suit.116 117 

Figure 8: The Next Urban Transportation System in the context of automated driving118 

Following  the  incident  of  a  drone  landing  on  the  Prime  Minister’s  office  in  April  2015,  the  Japanese 
legislation was fast to amend the Civil Aeronautics Act and Ordinance in light of unmanned aerial ve-
hicles  that  took  effect  on  10  December  2015.  The  amended  Act  introduced  restrictions  on  areas  of 
flight and operation. It is prohibited for a drone to be used in airspace because of its likelihood to affect 
the  safe  operation  of  aircraft, meaning  above  airports  and  their  vicinity  and  airspace  which  is  above 
densely populated areas based on national census (> 5,000 per km2). Its use is limited to daytime with 
a certain operating distance (30 meters) to other people and properties (among others).119 

For rail, JR Systems is using computer-aided traffic control (COMTRAC) that allows around-the-clock 
status  monitoring  of  all  Shinkansen  trains  currently  in  operation.  The  core  of  the  system  is  a  Man-
Machine  Advanced  Processor  (MAP),  Programmed  Route  Control  (PRC),  and  Electronic  Data  Pro-
cessing (EDP). They are also using Centralized Traffic Control (CTC), Automatic Train Control (ATC), 
Passenger Information Control (PIC) including automatic announcement systems, etc. Automatic Train 
Stop (ATS), a system for automatically applying brakes in situations where the risks overrunning, was 
introduced on all lines including conventional lines.120 

116 The International Federation of Air Line Pilots’ Associations (2012). Variable Message Sign installed at Tokyo International 

Airport. Retrieved from http://www.ifalpa.org/store/13AGEBL03%20-
%20Variable%20Message%20Sign%20installed%20at%20Tokyo%20Int'l%20Airport.pdf 

117 Ministry of Land, Infrastructure, Transport and Tourism (2015). Runway Status Lights (RWSL) in Japan. Retrieved from 

http://www.icao.int/APAC/Meetings/2015%20VisualAids/RWSL%20JAPAN.pdf 

118 Kawamoto, M. (2014). An Approach to the Next Generation  Transportation Systems. Retrieved from http://www.its-

jp.org/english/files/2014/07/SIP7_Kawamoto.pdf 

119 International Comperative Legal Guides (2016). Japan. Aviation Law 2016. Retrieved from http://www.iclg.co.uk/practice-

areas/aviation-law/aviation-law-2016/japan 

120 Central Japan Railway Company (2012). Data Book 2012. Retrieved from http://english.jr-

central.co.jp/company/company/others/data-book/_pdf/2012.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

Weaknesses 
  Despite developments towards more flexibil-
ity traditional Keiretsu systems of value 
chain cooperation are still slow to react to 
crisis situations/changes 

  Tendency to develop island solutions with 
their own standards that are not deployed 
nation-wide, let alone internationally 

Threats 
  Export opportunities are not used sufficiently 

3.1.4.5  SWOT analysis 

Strengths 
  Multitude of academic institutions and uni-

versities putting effort into R&D for automa-
tion and connectivity 

  Strong industrial R&D&I by manufacturers 

and suppliers 

  Strong domestic ITS corporation 
  Long experience and market lead in ICT-

related research and industry 

  Widespread use of state-of-the-art technol-

ogies 

  Strong governmental support through differ-
ent programs and initiatives (e.g. SIP-
ADUS): automated driving 1 of 10 prioritized 
themes 

Opportunities 
  Demographic change, scarcity of resources 
and the necessity to establish a resilient 
transport system are strong drivers for de-
velopment 

  2020 Olympic Games are a major mile-

stones that push investments in related in-
dustries 

  High technological affinity by society, espe-
cially for automated driving  (>50 % in fa-
vour of developments towards autonomous 
driving), affinity to quality 
Japanese companies setting up business in 
other countries such as USA  

 

3.1.5 

South Korea 

3.1.5.1  General Information 

One of the main drivers to push autonomous vehicle technologies is the South Korean’s government’s 
goal to attain their accident reduction target of road accident fatalities to 4,000 by 2017, and the num-
ber of fatalities per 10,000 motor vehicles down to 1.64 during the five-years of the current administra-
tion (2013-2017).121 To reach this goal the government has invested KRW 295.5 billion for converging 
industries  covering  IT  and  automotive  technologies  (see  Focus  Area  3). 122  The  main  actors  are  The 
Korea Transport Institute (KOTI), Korean Automobile Manufacturers Association (KAMA), Korea Auto 
Industries Cooperation Association (KAICA). 

Even  though  the  government  has  pushed  software  development  a  lot  in  the  past,  there  has  hardly 
been any funding for software development recently. Here, South Korea misses out on the opportunity 
to become a world leader in automation technologies, especially in light of the high education rate (> 
80% of the population own a Bachelor degree).  

121 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-

701, Republic of Korea, p. 86. 

122 Jeong Eun Ha (2015). Autonomous Vehicle industry in Korea, p. 1-2. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.5.2  Research, Development & Innovation 

Hyundai is putting a lot of effort in developing fully autonomous cars.123 Their plan is to set aside KRW 
2 trillion to commercialize fully autonomous vehicles by 2030. In its Uiwang Choongang Laboratory, its 
central  research  center,  and  in  its  Namyang  R&D  Center  in  Hwaseong,  Gyeonggi,  different  autono-
mous car technologies are being tested. The company has received the approval for testing its auton-
omous  road  vehicle  prototype  in  Nevada,  United  States.  124  However,  it  is  perceived  as  a  late  comer 
when  it  comes  to  automation.125  Hyundai  plans  to  invest  KRW  2  trillion  on  the  development  of  smart 
cars  by  2018.  Together  with  their  smaller  affiliate  Kia  Motors  Corp.  they  are  planning  to  unveil  self-
driving vehicles in 2020.126 The company announced to invest USD 9.75 billion over five years includ-
ing USD 2 billion on R&D to Kia Motors over three years.127 

Hyundai  Mobis,  a  car  part  manufacturer  affiliated  with  the  OEM,  has  received  a  temporary  license 
plate from the Ministry of Land, Infrastructure, and Transport to test its self-driving car on a 41 kilome-
ter freeway from Seoul to Hobeop Junction in Gyeonggi. The license is effective for five years. In addi-
tion the company is building its own test roads designed just for the autonomous cars inside a large-
scale testing ground including technology for simulation of emergency situations. It is scheduled to be 
constructed by October 2016 in  Seosan,  South Chungcheong.128 Another  applicant to the  automated 
driving  license  plate  is  Kookmin  University’s  Kookmin  Unmanned  Vehicle  Laboratory  (KUL).  The  re-
search laboratory is working on unmanned vehicles since 1997.129 

The main actor is the Korea Transport Institute. Their (research) activities span across eleven different 
areas,  including  Intelligent  Transport  Systems:  Highway,  Aviation,  Transport  economics,  Urban 
transport, Railway,  Logistics, ITS, Traffic safety and disaster prevention, Government-project, Means 
of transportation, National strategy. 

Seoul National University has introduced a demonstration project called Snuber (SNU + Uber) at the 
university campus testing different technologies in its autonomous vehicle prototype. 

3.1.5.3  Industry 

Hyundai Motor, as Korea’s biggest car manufacturer, introduced the first partially automated demon-
stration car in 2010.130 Their updated plans foresee a commercialization of driverless vehicles by 2020. 
After receiving a test license for US highways, the company has recently also received a license from 
the Ministry of Land, Infrastructure and Transport for testing its autonomous Genesis sedan prototype 
on local roads in real-traffic conditions. The company is continuously improving their driver assistance 
systems.131  

Apart from Hyundai, the main industrial company working on autonomous vehicle technologies in Ko-
rea is Unmanned Solution. The company, based in Seoul, specializes in unmanned transportation and 
is  run  by  a  former  researcher  at  Kookmin  University.  It  has  successfully  manufactured  test  cars  for 
autonomous driving.132 

123 Lavars, N. (2015). Hyundai unleashes fully-autonomous Tucson Fuel Cell vehicles on US roads. Retrieved from 

http://www.gizmag.com/hyundai-autonomous-fuel-cell-us-roads/40935 

124 Jin-hai, P. (2015). Hyundai to test autonomous cars in U.S. Retrieved from 

http://www.koreatimes.co.kr/www/news/biz/2016/03/388_193175.html 

125 Airrang.co.kr. (2016): S. Korea transport ministry issues first license plate to an autonomous vehicle 

http://www.arirang.co.kr/News/News_View.asp?nseq=188922  

126 Safe Car News (2015). South Korea: Hyundai plans self-driving Genesis. Retrieved from http://safecarnews.com/south-

korea-hyundai-plans-self-driving-genesis_n693 

127 Iglauer, P. (2015). Hyundai to develop fully autonomous cars by 2030. Retrieved from http://www.zdnet.com/article/hyundai-

to-develop-fully-autonomous-cars-by-2030 

128 Eun-Soo, J. (2016). Mobis’ self-driving car advances. Retrieved from 

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3019829&cloc=joongangdaily|home|newslist1 

129 Kookmin Unmanned Vehicle Laboratory. Retrieved from http://kul.kookmin.ac.kr 
130 López, J. (2015).  Hyundai Self Driving Car 2030 Plan. Retrieved from http://thekoreancarblog.com/2015/04/07/hyundai-self-

driving-car-2030-plan 

131 Hyo-sik, L. (2016). Hyundai Motor to test self-driving car on local roads. Retrieved from 

http://www.koreatimes.co.kr/www/news/biz/2016/03/123_199840.html 

132 Joon-Sool, K. and Ji-Soo, L. (2016). Race is on to capture driverless car market. Retrieved from 

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3014601&cloc=joongangdaily|home|newslist2 

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Final Report – International Assessment and Action Plans of the Focus Areas 

The Incheon Airport-Maglev rail line began commercial operation in February 2016. Two more stages 
of 9.7 km and 37.4 km are planned, which, once completed, will form a circular line. These lines make 
up a core  project that  the  Korea Rail Network Authority managed. Hyundai Rotem has supplied four 
driverless trains, each with capacity for 230 passengers.133 

Suncheon SkyCube PRT is one of the handful personal rapid transit (PRT) systems in the world and 
the  only  PRT  in  Asia.134  The  4.64-kilometer-long  railway  connects  Suncheon’s  Dream  Bridge  with 
Suncheon’s Literature Center in 10 minutes. In opposition to the rather generic automated guideway 
transit  (AGT)  and  the  more  specific  automated  people  mover  (APM)  –  both  for  mass-transit  –  Sky 
Cube  has  a  total  of  40  railcars,  with  each  one  being  able  to  accommodate  six  to  nine  passengers. 
Passengers can only  get  on and get  off at the arrival and destination stations (no stops  in between) 
and tickets cost KRW 5,000.135 System installation costs about 1/10th of the cost it takes to build sub-
way  systems.  They  are  also  one  third  the  cost  of  light  rail  train  systems  and  capacity  is  about  the 
same. Because operation of PRT is automatic, cost efficiency is high and costs can be further reduced 
if  cars  are  not  operated  when  there  are  no  passengers.  PRT  is  an  advantageous  solution  for  devel-
opment of new cities or new routes or advancements to existing routes.136 

3.1.5.4  Market 

The  South  Korean  government  has  set  a  concrete  strategy  for  technology  development  related  to 
drones and autonomous vehicles which they have implemented in 2015. After requests for deregula-
tions,  the  Ministry  of  Land,  Infrastructure  and  Transport  revised  the  Automobile  Management  Act, 
making it possible for self-driving vehicles to be tested on a total of 320 km on six designated routes 
on five national highways, including Suwon, Hwaseong and Yongin and a 41-kilometer section on the 
Gyeongbu  Expressway  from  Seoul  to  Busan  as  well  as  the  Incheon-Gangneung  expressways.137  138 
The license requires two drivers in the car at all times. Both license and plate are valid for five years. 

K-Water, the governmental agency for comprehensive water resource development and management, 
introduced the ICT-based Smart Water Management Initiative that provides integrated water resource 
management services over the whole process of water cycle. Through the system a variety of different 
information  shall  be  retrieved:  real-time  hydrological  information,  weather/rainfall  prediction,  flood 
analysis, real-time operation and control of dams and weirs.139 

With respect to high-altitude unmanned aerial vehicles, the government has designated four locations 
of air space, along  with 15 key developers,  which  will be allowed to use the designated air space to 
test their new products.140 

133 Railway Gazette (2016). Incheon Airport maglev starts passenger services. Retrieved from 

http://www.railwaygazette.com/news/news/asia/single-view/view/incheon-airport-maglev-starts-passenger-services.html  
134 Nikola (2015). Suncheon SkyCube PRT Ride . Retrieved from http://kojects.com/2015/07/20/suncheon-skycube-prt-ride 
135 Imagine your Korea (2014). Suncheon Bay’s eco-friendly ‘Sky Cube’ train opens April 20. Retrieved from 

http://english.visitkorea.or.kr/enu/AKR/FU_EN_15.jsp?cid=1917408 

136 Posco.com (2014). Korea’s First Personal Rapid Transit (PRT), SkyCube. Retrieved from 

http://globalblog.posco.com/koreas-first-personal-rapid-transit-prt-skycube 

137 Joon-Sool, K. and Ji-Soo, L. (2016). Race is on to capture driverless car market. Retrieved from 

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3014601&cloc=joongangdaily|home|newslist2 

138 Korea Bizwire (2015). S. Korea to Begin Road Test of Self-Driving Cars in Feb. Retrieved from http://koreabizwire.com/s-

korea-to-begin-road-test-of-self-driving-cars-in-feb/44678 

139 K-water (2016). K-water will open the future of water management with its own smart technologies. Retrieved from 

http://english.kwater.or.kr/eng/busi/SWMIPage.do?s_mid=1552 

140 K-water (2016). K-water will open the future of water management with its own smart technologies. Retrieved from 

http://english.kwater.or.kr/eng/busi/SWMIPage.do?s_mid=1552 

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.1.5.5  SWOT Analysis 

Strengths 
  State-of-the-art technologies already de-

ployed 

  Export-oriented commercialization activities  
  Strong government push through financing 
programmes for IT and automotive tech-
nologies; however, in the last 5 years sup-
port reduced in comparison with other 
technologies 

  Government puts focus on funding SMEs 

 

(rather than big Chaebols) 
In ICT-related industries synergies are built 
between government, research and indus-
try 

  Legislation has been eased: roads have 

been opened for testing of automated driv-
ing, four locations of air space for high-
altitude unmanned vehicles 

Opportunities 
  Demographic change, urbanization and 

reduction of traffic fatalities are huge driv-
ers of automation and connectivity 
  Citizens demand more mobility options 
Individual mobility stronger than public 
 
transportation 

3.1.6  United States of America 

3.1.6.1  General Information 

Weaknesses 
 

Lagging behind other countries in car auto-
mation; South Korea’s technology level is at 
about 70-80% of global automation status-
quo because there is no core technology de-
veloped (as e.g. in Germany and Japan) 
  Despite research and commercialization ac-
tivities by single companies there is a lack of 
innovation culture and industrial activies 
  Economy is organized along business con-

glomerates 

  Lack of IT-related expertise/knowledge in 

comparison to other countries (e.g. USA, In-
dia, China, Japan) 

Threats 
  Because users are concerned about privacy 
with Korean products they opt for foreign ser-
vices 

  Lowest birth rate in the world 

Most  stakeholders  in  the  US  consider  autonomous  vehicles  to  be  a  major  part  of  the  transportation 
sector future and the automotive industry. In this context of development and investment in the sector 
of autonomous driving, a classification system has also been created with six levels of vehicle automa-
tion, ranging from “no automation” up to “full automation”.141 

The  rapid  development  of  the  autonomous  vehicles  technology  forces  state  and  municipal  govern-
ments to find ways to ensure that potential challenges impacts can be tackled in a timely manner. In 
this  context,  16  states  have  already  introduced  legislation  concerning  autonomous  vehicles  in  2015, 
more than 12 states in 2014, 10 states (including D.C) in 2013 and 6 states in 2012.142 The no ratifica-
tion of the Vienna Convention by the USA allows for favorable legislation of testing and uptake, while 
in the opposite side is the Federal structure that often leads to poor harmonization between states. 

3.1.6.2  Research, Development & Innovation 

The development of vehicle automation is evolving very quickly, with many OEMs mainly manufactur-
ers’  suppliers  developing  and  testing  prototype  technologies,  with  high  number  of  innovative  SMEs 
providing the necessary sensor solutions, with well-established industrial collaboration between auto-
mobile  manufacturing  companies  and  technology  companies,  both  being  power  horses  of  the  U.S. 
economy,  and  with  venture  capital  companies  putting  money  into  automation  and  connectivity  tech-

141 SAE International (2014). Automated Driving Levels of Driving Automation Are Defined in new SAE International Standard 
J3016. Retrieved from: http://www.sae.org/misc/pdfs/automated_driving.pdf  
142 National Conference of State Legislatures (2016). Autonomous | Self-Driving Vehicles Legislation. Retrieved from: 

http://www.ncsl.org/research/transportation/autonomous-vehicles-legislation.aspx  

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Final Report – International Assessment and Action Plans of the Focus Areas 

nologies. Many  U.S. based IT companies are global market leaders in big data  analysis required for 
higher level automation in complex environments, such as cities.  

The ITS Joint Program Joint Program Office (ITS JPO) of the USDoT, is the basic sponsor of the Con-
nected Vehicle program. Connected Vehicle focuses on localized Vehicle-to-Vehicle (V2V), Vehicle-to-
Infrastructure (V2I) and Vehicle-to-Device Systems (V2X) to support safety, mobility and environmen-
tal  applications  using  vehicle Dedicated  Short  Range  Communications  (DSRC)\  Wireless  Access  for 
Vehicular  Environments  (WAVE).  This  program  has  support  from  most  of  OEMs  and  a  number  of 
state departments of transportation. 

The  ITS  America  Connected  Vehicle  Task  Force  in  cooperation  with  other  organizations  (i.e.  Trans-
portation Research Board, Institute of Transportation Engineers, American Association of State High-
way    and  Transportation  Officials,  International  Road  Federation,  etc.)  have  tried  to  respond  to  the 
Middle Class Tax Relief and Job Creation Act143, while the USDoT has developed a Connected Vehicle 
Reference Architecture144  regarding the components deployment by road operators, equipment manu-
facturers, service providers, etc.  USDoT intends to implement test beds at several different locations 
in the US, in an effort to help and promote the deployment on highways 145, as well as face the problem 
of lack of telecommunication infrastructure, especially in rural regions.  

Furthermore, the Virginia Automated Corridors (VAC) is a new initiative aiming to provide an automa-
tion-friendly  environment  in  which  government  agencies,  equipment  manufacturers  and  suppliers 
could test and certify their systems. The VAC will offer great advantages and assets in on-road safety 
research for efficient solutions to automated-vehicle testing.146 Figure 9 presents the routes included in 
the VAC initiative.  

Figure 9: Routes of the Virginia Automated Corridors initiative147 

The Tri-Lateral Working Group (WG), which has been created by the VRA (Vehicle and Road Automa-
tion) FP7 Project in 2013, focuses also on autonomous driving, involving all road users within a con-
nected environment for broad information sharing and collaboration across the regions, in an effort to 
achieve  the  maximum  benefits  in  terms  of  safety,  mobility  and  environmental  impact.  The  Trilateral 
WG is composed of EU, US and Japanese representatives, as well as experts to support the discus-
sions. From the European side, VRA provides the support to the EU officials.148 

http://www.itsa.org/industryforums/connectedvehicle  

143 ITS America (n.d). The Connected Vehicle - Next Generation ITS. Retrieved from: 
144CVRIA (2016).  Connected Vehicle Reference Implementation Architecture. Retrieved from  
http://www.iteris.com/cvria/index.html  
145 ITS America (n.d). The Connected Vehicle - Next Generation ITS. Retrieved from: 
http://www.itsa.org/industryforums/connectedvehicle  
146VAC (2015). Providing real-world testing environments for the development and deployment of automated vehicles: 
Retrieved from  http://www.vtti.vt.edu/PDFs/VAC.pdf  
147 Virginia Tech Transportation Institute (2015). Virginia Tech Transportation Institute and Partners Unveil Virginia Automated 

Corridors. Retrieved from: http://www.vtti.vt.edu/featured/?p=260  

148 VRA Networking in Automation (2014). Trilateral Automation WG on Road Vehicle Automation. Retrieved from: http://vra-

net.eu/event-archive/trilateral-automation-wg-on-road-vehicle-automation/  

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The Tampa, Florida Expressway Authority recently conducted a SWOT analysis of the role of “Auto-
mated Vehicles to Reduced Fuel Consumption and Air Pollution”.149 

The Florida SWOT analysis considered two scales—a single automated vehicle and the whole traffic 
system.  Automated  vehicles  (AVs)  provide  significant  safety  benefits,  may  improve  urban  areas  by 
reducing the need for parking and enhance fuel reduction, while offering synergies with alternative fuel 
vehicles. A reduction of fuel consumption of 20% to 50% seems to be feasible.  

The SWOT study revealed that the Automated Vehicles have the potential to contribute to the goal of 
reducing  fuel  consumption.  One  weakness  of  the  Tampa  Hillsborough  Expressway  Authority  SWOT 
analysis is that it did not include an evaluation  of the type of fuel being consumed  with Autonomous 
Vehicle technology.  If the SWOT considered alternative fuels, it is conceivable that the results would 
have directly favoured the implementation of connected driving150. 

Also,  the  University  of  Kentucky  recently  completed  a  SWOT  analysis  of  Self-Driving  Cars  for  ICT 
300.151 Threats posed by self-driving vehicles identified through the SWOT analysis include the poten-
tial for injury or death via unforeseen/un-programmed accident avoidance situations and the dramatic 
increase in threats to privacy through the operation of networks that track your location on a 24-hour 
basis.  

Opportunities included the  need to develop new manufacturing processes and facilities and a transi-
tion from vehicle ownership to pay-as-you-go.  Strengths included the ability to centralize the control of 
traffic flows which should reduce congestion.  Weaknesses ranged from the time it takes to develop a 
supporting  infrastructure  to  building  appropriate  regulatory  and  liability-management  frameworks  to 
establishing globally-accepted standards. 

On  September  14th,  2015,  the  USDoT  announced  the  selection  of  sites for  the  Connected  Vehicle 
(CV) Pilot Deployment  Program152. The CV  Pilots  Deployment  Program seeks to combine connected 
vehicle and mobile device technologies in innovative and cost-effective ways to improve traveller mo-
bility  and  system  productivity,  while  reducing  environmental  impacts  and  enhancing  safety.  At  the 
three selected pilot sites will be evaluated.  This will advance the proof of concept and move towards 
deployment and operations phases. 

These  three pilot  sites,  which  were  selected  in  order  to  represent  different  needs  and  applications, 
include  the  use  of  connected  vehicle  technologies  to  improve  safe  and  efficient  truck  movement 
(southern Wyoming), the exploitation of V2V and intersection communications to improve vehicle flow 
and pedestrian safety (New York), as well as deployment of multiple safety and mobility applications 
on and in proximity to reversible freeway lanes (Tampa, Florida).153 

The three pilot sites will work together and also co-operate with the USDOT, and additional stakehold-
ers  and  team members,  in  order  to  enhance  program  productivity.  This model  of co-operation  is  ex-
pected to benefit the current effort but also the second wave of pilot deployment sites that are going to 
be identified later in the program.154  

As more and more automated and connected vehicles are manufactured and more and more enabling 
infrastructure  is  being  built,  the  country’s  legal  framework  is  developed  to  go  hand  in  hand  with  this 
progress. 

Congress has suggested but not introduced new legislation yet, mainly due to the opposition from car 
manufacturers  and  technology  companies.  On  July  of  2015,  Senators  Edward  Markey  and  Richard 

149 Eckart, J. and Vairavamoorthy, K. (2013). Contribution of Automated Vehicles to Reduce Fuel Consumption and Air Pollution. 

Retrieved from: http://www.automatedvehicleinstitute.org/pdf/TAVI_9-FuelAirQualityEckart.pdf  

150 Eckart, J. and Vairavamoorthy, K. (2013). Contribution of Automated Vehicles to Reduce Fuel Consumption and Air Pollu-

tion. Retrieved from: http://www.automatedvehicleinstitute.org/pdf/TAVI_9-FuelAirQualityEckart.pdf 
151Self Driving Car (2016). The Future. Retrieved from https://selfdrivingcarproject.wordpress.com/    
152 USDoT – Intelligent Transportation Systems Joint Program Office (2016). Connected Vehicle Pilot Deployment Program. 

Retrieved from: http://www.its.dot.gov/pilots/  

153 USDoT – Intelligent Transportation Systems Joint Program Office (2016). Connected Vehicle Pilot Deployment Program. 

Retrieved from: http://www.its.dot.gov/pilots/ 

154 USDoT – Intelligent Transportation Systems Joint Program Office (2016). Connected Vehicle Pilot Deployment Program. 

Retrieved from: http://www.its.dot.gov/pilots/ 

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Blumenthal proposed legislation requiring the Department of Transportation’s National Highway Traffic 
Safety Administration (NHTSA) to cooperate with the Federal Trade Commission (FTC) for the estab-
lishment of consumer data privacy and car computer network security rules (“f Car Act”).  

The SPY  Car  Act was  based  on  a  report  by  Senator  Markey,  who  had  surveyed  OEMs  about  cyber 
threats to safety and the collection and storage of driving data (i.e. location, driving history, and user 
data). According to the report, almost every car on the market has wireless technologies and has also 
identified several weaknesses in the security of connected features in cars. 

The SPY Car Act would require collaboration between the NHTSA and the FTC to implement cyberse-
curity  standards  for  vehicle  system  and  driving  data  security. 155  More  information  is  presented  in  the 
“Standardization & Interoperability focus area, in section 3.4.6.2. 

UC Berkeley PATH has been created of the Berkeley DeepDrive (BDD) Industry Consortium that will 
facilitate  linkages  between  innovations  in  information  technology  to  innovations  in  car  manufacturing 
for connected vehicles. This research alliance will investigate state-of-the-art technologies in computer 
vision  and  machine  learning  for  automotive  application.  The  Center's  inaugural  private  industry  part-
ners  are:  Audi/VW  of  America,  Bosch,  Ford,  Honda,  NVIDIA,  Samsung,  Panasonic,  Qualcomm,  and 
Toyota.156 

Another  area  that  is  examined  by  the  US  Government  for  the  use  of  autonomous  vehicles,  is  the 
planned  emergency  procedures.  More  specifically,  the  U.S.  Department  of  Transportation  has  been 
examining  how car-to-car  communications,  which  is  a  critical  piece  of  the  anticipated  self-driving  fu-
ture, could enhance and improve evacuation procedures. The recent federal policy guidance highlights 
the  need  for  auto  makers  to  consider  how  autonomous  vehicles  could  respond  in  emergency  situa-
tions157. 

The  U.S.  Department  of  Transportation  is  officially  entering  into  this  self-driving  area,  issuing  policy 
guidance on regulating the emerging technology nationwide. This equates to a federal endorsement of 
full autonomy. 

In more details, with the guidance, DoT aims to lay a foundation for the safe testing and deployment 
of  autonomous  vehicles.  It  also  includes  a  15-point  “Safety  Assessment”  to  guide  carmakers 
through the development phase, encompassing cases, such  as how vehicles should react if auton-
omous  technology  fails,  and  how  the  manufacturers  intend  to  share  the  driving  data  gathered  by 
their vehicles. It describes a “model policy” for states, trying to ease the current patchwork of state 
laws, into something more consistent with national policy. And it discusses ways that the National 
Highway Traffic Safety Administration could apply current safety regulations regarding autonomous 
cars,  as  well  as  the  potential  for  new  standards  and  testing  protocols  that  mig ht  be  necessary  as 
technology evolves. However, as was pointed out by the DoT officials, this guidance is just a gui d-
ance and not a statement of rule-making.158 

The USDOT has also  issued  the  Smart  City  Challenge,  announcing  to  fund  one  city  with  USD  40 
million, in order to support it in evolving to become the country’s first Smart City by fully integrating 
innovative  technologies,  like  self-driving  cars,  connected  vehicles  and  smart  sensors  into  their 
transportation network.159 78 cities participated in this initiative, giving great emphasis on automat-
ed  vehicles.  In  more  details,  82%  of  the  participants  included  significant  vehicle  automation  con-
cepts,  as  part  of  their  Smart  City  vision.  Many  applicants  identified  opportunities  for  leveraging 
automated vehicles to connect disadvantaged communities, while significant interest was also shown 
in electric propulsion (i.e. electric automated vehicles), as well as  low speed automated vehicles sup-

155 Markey, S. and Edward, J. [D-MA] (2015). Security and Privacy in Your Car Act of 2015 or the SPY Car Act of 2015. Re-

trieved from: https://www.congress.gov/bill/114th-congress/senate-bill/1806/all-info 

156 Ingrassia P. and  White J. (2016).  Automakers, not Silicon Valley, lead in driverless car patents: study. Retrieved from: 

http://www.reuters.com/article/us-tech-ces-autos-idUSKBN0UJ1UD20160105   

157 Bliss L. (2016). Could Self-Driving Cars Speed Hurricane Evacuations?. Retrieved from: 

http://www.theatlantic.com/technology/archive/2016/10/self-driving-cars-evacuations/504131/  
158 Bliss L. (2016). The U.S DOT Officially Puts a Car in the Self-Driving Race. Retrieved from: 

http://www.citylab.com/commute/2016/09/the-us-dot-officially-puts-a-car-in-the-self-driving-race/500744/  

159 US Department of Transportation (2016). Smart City Challenge. Retrieved from: https://www.transportation.gov/smartcity.  

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Final Report – International Assessment and Action Plans of the Focus Areas 

porting first mile / last mile connections, automated / semi-automated transit vehicles, automated truck 
demonstration and truck platooning.160 

Figure 10: Urban Automation: 78 Cities Analysis in Smart City Challenge 

Regarding the air sector, the Unmanned Aircraft Systems (widely known as drones) are widespread in 
USA,  especially  for  military  use.    United  States drone  laws  are  continuously  changing  and  evolving, 
following the technological developments. The NEW Small UAS Rule (Part 107), including all pilot and 
operating rules, will be effective on August 29, 2016.161 

However,  up  until  now,  United  States  Drone  laws  allow  drones  to  only  be  used  for  recreational 
use. Recently  the  Federal  Aviation  Administration  (FAA),  which  was  trying  to  enforce  drone  registra-
tion  and  education  for  years,  has announced that  all  drones  and  quadcopters  that  weigh  more  than 
250  grams  should  be  registered.  The  registration  can  be  done  on  internet  through  a  web  form.  The 
reason is that there are a lot of safety and privacy concerns. One is that drone airspace could interfere 
with  the  airspace  of  other  aircrafts  and  this  is  why  the  FAA  has  declared  that  drones  are  prohibited 
within five miles around airports and national parks, as well as, in certain areas where it might be con-
sidered that drones could be a threat. 

It is also forbidden for drones to fly above the height of 400 feet and without the sight of operator. This 
limitation of up BVLS (Beyond Visual Line of Sight) is the greater inhibitor to commercial use of drones 
for transport application and logistics. Other safety concerns stem from the fact that almost everything 
can be attached to the drone – there have been incidents of people attaching guns and flamethrowers. 
With registration, it is easier to trace and recognize the violations.162 

3.1.6.3  Industry 

NHTSA is expected to propose best-practice guidance to industry for setting principles regarding the 
safe operation of fully automated vehicles. NHTSA plans to work with industry and other stakeholders 
aiming at guidance for the  safe deployment  and operation of autonomous vehicles, providing  a con-

160 Cronin B. (2016).  Beyond Traffic: The Smart City Challenge - Automation in the Smart City. 

161 Federal Aviation Administration (2016). Summary of small unmanned aircraft rule (part 207). Retrieved from: 
https://www.faa.gov/uas/media/Part_107_Summary.pdf  

162 Thomas Foster  (2015).  New Drone Regulation in USA – What Changes? Retrieved from: https://www.cinema5d.com/new-

drone-regulation-in-usa-what-changes/ 

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Final Report – International Assessment and Action Plans of the Focus Areas 

sensus  concerning  the  performance  characteristics  necessary  for  fully  autonomous  vehicles,  as  well 
as the testing and analysis methods for their assessment.163 

The  ITS  America  Connected  Vehicle  Task  Force  is  also  in  dialogue  with  industry  and  public  sector 
members  about  the  challenges  of  public-private  partnerships  and  business  models  that  are  going  to 
make deployment  attractive for both sides, ensuring long term technical support and implementation 
and assisting USDoT, the FCC, as well as state and local authorities in establishing leadership where 
needed164. 

Perhaps  the  most  typical  example  of  autonomous  driving  development  is  USA  is  the  Google  Self-
Driving  Car  Project.  Google  Self-Driving  Car is  an  initiative, as  part  of  Google’s  project  to  develop 
technology for electric cars. The software installed in Google's cars is named Google Chauffeur165. The 
team  has  equipped  a  number  of  different  types  of  cars    (i.e.  Toyota  Prius, Audi  TT,  and Lexus 
RX450h)  with  self-driving  equipment,  while  has  also  developed  its  own  custom  vehicle,  assembled 
by Roush Enterprises and using equipment from Bosch, ZF Lenksysteme, LG and Continental.166 

Figure 11: Google's in-house driverless car design167 

Figure 12: A Lexus RX450h retrofitted by Google for its driverless car fleet168 

Google's  cars  have  about  USD  150,000  in  equipment,  including  a  USD  70,000 LIDAR systems. The 
range finder mounted on the top is a Velodyne 64-beam laser, which allows the car create a detailed 
3D map of its environment. The car then uses these maps, combines them with world high-resolution 

163 National Highway Traffic Safety Administration (2016). Secretary Foxx unveils President Obama’s FY17 budget proposal of 
nearly USD 4 billion for automated vehicles and announces DOT initiatives to accelerate vehicle safety innovations . Retrieved 
from: http://www.nhtsa.gov/About+NHTSA/Press+Releases/dot-initiatives-accelerating-vehicle-safety-innovations-01142016  

164 ITS America (2016). The Connected Vehicle - Next Generation ITS. Retrieved from: 

http://www.itsa.org/industryforums/connectedvehicle  

165 Fisher, Adam (2013). Inside Google's Quest To Popularize Self-Driving Cars.  Retrieved from: 

http://www.popsci.com/cars/article/2013-09/google-self-driving-car. 
166 Nelson, G. (2015). Google in talks with OEMs, suppliers to build self-driving cars. Retrieved from: 
http://www.autonews.com/article/20150114/OEM09/150119815/google-in-talks-with-oems-suppliers-to-build-self-driving-cars  
167 WIKIPEDIA (2016), Google self-driving car. Retrieved from https://en.wikipedia.org/wiki/Google_self-driving_car#cite_note-
19  
168 WIKIPEDIA (2016), Google self-driving car. Retrieved from https://en.wikipedia.org/wiki/Google_self-driving_car#cite_note-19  

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maps and produce different types of data models that allow it to drive itself. As of June 2014, the sys-
tem works with a very high definition inch-precision map of the area the vehicle is expected to use. As 
of  June  2016,  Google  had  test  driven  their  fleet  of  vehicles,  in  autonomous  mode,  a  total  of 
2,777,585 km.169 

Tesla is another OEM that is active in the area of autonomous cars, making semi-autonomous cars. 
Tesla's  strength  is  propulsion  and  storage  technology,  notably  batteries.  The  vehicles  are  equipped 
with new instrument panels, app  windows  and take up more of the 17-inch  touchscreen. Drivers are 
getting information about what their cars are doing when they are in Autopilot, while they can also lock 
and unlock their car from the status bar.170The Tesla Model S finds its way by the use of two tracking 
systems, either by locking onto the car ahead or sighting the lane marks. In case of difficulties in de-
tecting the road, a “Hold Steering Wheel” advisory is being used. , while if lane keeping is interrupted, 
a black wheel gripped by red hands and a “Take Over Immediately” message appear on the dash. 171 
Tesla's strength is propulsion and storage technology, notably batteries. 

Figure 13: The Tesla Model S P85D172 

Since  2015  there  are  also  various  reports  that  Apple  is  also  working  on  an  autonomous  car  project. 
The  iCar  project  it  will  probably  be  released  on  2020.173  Another  proof  of  the  company’s  turn  in  the 
autonomous cars field is that Apple has invested  USD 1 billion in the Chinese ride-sharing company 
Didi Chuxing.174 Apple's advantage is in electronic navigation and communication systems. 

BMW, Intel and Mobileye's partnership is also another significant milestone for the automotive indus-
try.   Mobileye's  technology  enables  BMW  to  be  the  first  OEM  to  succeed  series  production  of  fully 
autonomous vehicles by 2021.175 

169 Madrigal, A.C. (2014). The Trick That Makes Google's Self-Driving Cars Work. Retrieved from: 

http://www.theatlantic.com/technology/archive/2014/05/all-the-world-a-track-the-trick-that-makes-googles-self-driving-cars-
work/370871/  

170 Mc Hugh, M.   (2015). Tesla’s Cars Now Drive Themselves, Kinda. Retrieved from: http://www.wired.com/2015/10/tesla-

self-driving-over-air-update-live/  

171 Sherman, D. (2016). 2015 Tesla Model S P85D. Retrieved from: http://www.caranddriver.com/features/semi-autonomous-

cars-compared-tesla-vs-bmw-mercedes-and-infiniti-feature-2015-tesla-model-s-p85d-page-5  

172 Sherman, D. (2016). 2015 Tesla Model S P85D. Retrieved from: http://www.caranddriver.com/features/semi-autonomous-

cars-compared-tesla-vs-bmw-mercedes-and-infiniti-feature-2015-tesla-model-s-p85d-page-5 

173 Lewis Painter (2016). iCar release date rumours, features and images: Apple has tripled its R&D budget to USD 10bn sug-

gesting something big is being developed | Project Titan to roll-out in 2021. Retrieved from: 
http://www.macworld.co.uk/news/apple/will-apple-make-icar-project-titan-rumour-roundup-ford-tesla-budget-date-
3425394/#launch  

174 Daisuke Wakabayashi and Douglas McMillan (2014). Apple’s Latest USD 1 Billion Bet Is on the Future of Cars. Retrieved 

from: http://www.wsj.com/articles/apples-1-billion-didi-investment-revs-up-autonomous-car-push-1463154162  

175 http://www.mobileye.com/  

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However, the United States is not the current leader in the generation of connected driving intellectual 
property.    According  to  a  report  by  the  Intellectual  Property  and  Science  Division  of  Thomson  Reu-
ters176,  Toyota  is  considered  to  be  the  global  leader  in  the  area  of  self-driving  car  patents.  Toyota  is 
followed by Germany’s Robert Bosch GmbH, Japan’s Denso Corp, Korea’s Hyundai Motor Company, 
and the U.S. General Motors Company. Google ranks only 26th on the number of patents list.177 

Toyota  is  investing  over  a  billion  dollars  in  U.S.  based  research  centers  to  access  the  information 
technology and robotics talent of Silicon Valley, California, Ann Arbor Michigan, and the Boston Mas-
sachusetts area.   USA is also an additional attraction for many other OEMs involved in the research 
concerning automated driving and which make their research centres in the USA, such as Baidu from 
China, or Volvo from Sweden.178 

Partnerships between U.S. OEMs are also being forged  with lesser known  Silicon Valley technology 
companies that have interesting but relatively untested technologies.  General Motors is investing USD 
500 million in Lyft, Inc. to initiate a Detroit-Silicon Valley partnership with the ride-sharing technology 
company to develop an “on-demand” network of self-driving cars.179 

While most experts predict that fully self-driving vehicles are unlikely to be on highways in large num-
bers  for  many  years,  there  are  many  incremental  opportunities  to  introduce  elements  of  “semi-
autonomous” driving systems that can handle tedious or complicated driving situations and/or improve 
information and data services.  

As  far  as  drones  are  considered,  the  UAV  and  drones  industry  is  being flourished,  especially  during 
the last years. There are many drones’ manufactures in USA, developing some of the most advanced 
systems, such as 3D Robotics, Parrot, Matternet, etc. 

3.1.6.4  Market 

In  January  2016,  the  U.S.  Transportation  Secretary  presented  a  new  policy updating  the  National 
Highway  Traffic Safety  Administration's  (NHTSA)  2013  preliminary  policy  statement  about  autono-
mous vehicles. An investment of nearly 10 years and USD 4 billion to stimulate the development and 
adoption of safe vehicle automation through real-world pilots has been also announced. The new poli-
cy is designed to promote the development of technologies with the potential to save lives.180 

The ITS  America  Connected  Vehicle  Task  Force explores  opportunities  for  the  deployment  of  short 
range vehicle-to-X safety, mobility applications and related wireless communications-based intelligent 
transportation  systems.  Issues  examined  concern  technical  risks,  institutional  risks  (i.e.  Liability  and 
privacy issues), meeting stakeholder needs, as well as ensuring system sustainability. 

A 2014  Survey of Public Opinion about  Autonomous and  Self-Driving  Vehicles  in the U.S., the U.K., 
and Australia, conducted by The University of Michigan Transportation Research Institute (UMTRI) is 
illuminating as to public opinion on autonomous mobility in three English-speaking countries.181   The 
main  findings  applicable  to  USA  indicated  that  although  the  majority  of  respondents  had  previously 
heard of autonomous or self-driving vehicles, had a positive initial opinion of the technology, and had 
high expectations about the benefits of the technology, most of them also had high levels of concern 
mainly about security issues and riding in self-driving vehicles. Female responders expressed higher 

176Jen Breen and David Russell (2016). Toyota, Bosch, Denso, Hyundai, GM & Nissan Lead the World in Self-Driving Auto 

Innovation. Retrieved from: http://thomsonreuters.com/en/press-releases/2016/january/toyota-bosh-denso-hundai-gm-nissan-
auto-innovation.html  

177 Paul Ingrassia (2016). Automakers, not Silicon Valley, lead in driverless car patents: study. Retrieved from: 

http://www.reuters.com/article/us-tech-ces-autos-idUSKBN0UJ1UD20160105  

178 Markoff, J. (2015). Toyota Invests USD 1 Billion in Artificial Intelligence in U.S. Retrieved from: 

http://www.nytimes.com/2015/11/06/technology/toyota-silicon-valley-artificial-intelligence-research-center.html?_r=0  

179 Trousdale, S. (2016). GM invests USD 500 million in Lyft, sets out self-driving car partnership. Retrieved from: 

http://www.reuters.com/article/us-gm-lyft-investment-idUSKBN0UI1A820160104  

180 National Highway Traffic Safety Administration (2016). Secretary Foxx unveils President Obama’s FY17 budget proposal of 

nearly USD 4 billion for automated vehicles and announces DOT initiatives to accelerate vehicle safety innovations. Retrieved 
from: http://www.nhtsa.gov/About+NHTSA/Press+Releases/dot-initiatives-accelerating-vehicle-safety-innovations-01142016 

181 Schoettle, B. and Sivak, M.  (2014). A Survey of Public Opinion about Autonomous and Self-Driving Vehicles in the U.S., 

the U.K., and Australia.”  Report No. UMTRI-2014-21. Retrieved from: 
https://deepblue.lib.umich.edu/bitstream/handle/2027.42/108384/103024.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

levels  of  concern  with  self-driving  vehicles  than  did  males  and  they  were  more  cautious  about  their 
expectations concerning the benefits from using self-driving vehicles.182 

With the globalization of the auto-industry and research programs in other countries, the ITS America 
Connected  Vehicle  Task  Force  also  seeks  cooperation  through  international  partnerships  with  asso-
ciations such as ITS Japan, ITS Canada, Europe's ERTICO, and their stakeholders.183 

Despite the assurances  of the USDoT, there is also a general trend towards tracking the driving  be-
haviour of drivers.  Considerably strong was the reaction of the public, in a proposed rule by the Na-
tional Highway Traffic Safety Administration (NHTSA), regarding the placing of event data recorder to 
all cars, concerned about privacy issues.184 

The use of telematics data can be a privacy issue. In 2013, a relevant issue had occurred, when dur-
ing a New York Times’ reporter, contesting of the battery life of a Model S car, Tesla managed to have 
data showing that he was draining the battery on purpose. Although, the reporter argued that he was 
just facing problems finding a charging station in the  dark, the main issues raised from this was that 
the use of the data at face value exposed some major privacy problems. Is this level of data gathering 
happening to everyone? Are car companies unnecessarily tracking drivers without their knowledge? 

The Consumers Union says that having EDRs in all cars is an important step toward improving auto 
safety. But it also says that car owners should own the data and that the privacy concerns of consum-
ers should be respected.185 

Thus,  although  the  US  with  the  endless  driving  distances  and  the  long  highways  along  states  offers 
the obvious entry market for autonomous cars; public acceptance might be the highest obstacle and 
stake. 

On  National  level,  the  U.S.  Department  of  Transportation  (USDoT),  as  a  matter  of  policy  (not  law), 
states that it is committed to secure that connected vehicle technology preserves personal privacy and 
the system protects from unauthorized access. The vehicle information communicated does not identi-
fy the driver or vehicle and technical controls have been put in place to help the prevention of vehicle 
tracking and distortion with the system. It is already working closely with stakeholders to address such 
challenges, as well as develop technology and systems to ensure the safety of automated vehicles. 186 

According to the USDoT, the safety applications of connected vehicles require that the wireless devic-
es  send  and  receive  a  basic  safety  message  (BSM)  about  vehicle  position,  speed  and  more  infor-
mation  related  to  vehicle  status  and  projected  route.  However,  these  BSMs,  contain  no  personally 
information  and  is  transmitted  in  a  very  limited  geographical  range,  usually  less  than  1km.187  Nearby 
motor vehicles are going to use such information to warn drivers of dangerous situations. 188 

182 Schoettle, B. and Sivak, M.  (2014). A Survey of Public Opinion about Autonomous and Self-Driving Vehicles in the U.S., the 

U.K., and Australia.”  Report No. UMTRI-2014-21. Retrieved from: 
https://deepblue.lib.umich.edu/bitstream/handle/2027.42/108384/103024.pdf 

183 ITS America (n.d). The Connected Vehicle - Next Generation ITS. Retrieved from: 

http://www.itsa.org/industryforums/connectedvehicle  

184 The Buffalo News (2014). Amid ‘black box debate,’ cellphones in cars already compromise privacy. Retrieved from: 

http://www.buffalonews.com/business/consumer-reports/amid-black-box-debate-cellphones-in-cars-already-compromise-
privacy-20140929   

185 ConsumerReports (2014). How your car's black box is tracking you. You’re trading personal information for safety and con-
venience. Retrieved from: http://www.consumerreports.org/cro/magazine/2014/09/how-your-car-is-tracking-you/index.htm  

186 U.S. Department of Transportation (2014). ITS Strategic Plan 2015–2019 Automation. Retrieved from: 

http://www.its.dot.gov/factsheets/pdf/FactSheet_AutomatedVehicles.pdf  

187 USDoT – Intelligent Transportation Systems Joint Program Office (n.d). Connected Vehicles and Your Privacy. Retrieved 

188 USDoT – Intelligent Transportation Systems Joint Program Office (n.d). Connected Vehicles and Your Privacy. Retrieved 

from: http://www.its.dot.gov/factsheets/privacy.htm  

from: http://www.its.dot.gov/factsheets/privacy.htm  

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3.1.6.5  SWOT Analysis 

Strengths 
  Strong  government  support  for  combination 

Weaknesses 
  Federal structure leads to poor harmonization 

of connected and automated driving 

between states 

  U.S.  based  IT  companies  are  global  market 
leaders  in  big  data  analysis  required  for 
higher  level  automation  in  complex  environ-
ments, such as cities 

  High number of innovative SMEs provid-
ing the necessary sensor solutions 

  Lack  of  IT  infrastructure,  especially  in  rural 

regions 

  No investment for deployment 
  Lack  of  knowhow  in  automotive-related  tech-

nologies (e.g. sensors) 

  Well-established  industrial  collaboration 
automobile  manufacturing 

between 
companies and technology companies 
  Venture  capital  companies  putting  mon-
into  automation  and  connectivity 

ey 
technologies. 

  Abundance of test-beds 
Opportunities 
 

International  collaboration  e.g.  through  par-
ticipation of relevant government agencies in 
the Trilateral group with Europe and Japan 
  While the deployment of a totally-automated 
vehicles  may  be  years  off,  incremental  ad-
vancements in automated vehicle technology 
are  already  being  implemented  by  various 
automobile manufacturers 

  No  ratification  of  Vienna  Convention  allows 
for favorable legislation of testing and uptake 
  Energy  and  traffic  efficiency  gains  are  ex-
pected to lead to benefits beyond road safe-
ty,  e.g.  better  climate  protection,  air  quality, 
productivity 

  Fertile  ground  due  to  systemic  linking  of  IT, 
automotive  and  energy  developments,  both 
being power horses of the U.S. economy 

Threats 
  Recent  malfunctions  may 

increase  public 

reluctance to purchase automated vehicles 
  Growing  political  and  public  opposition  to 
“free  trade”  agreements  could  slow  the  inter-
national  deployment  of  connected  vehicle 
technologies in the U.S. 
Increasing  sell-out  to  China  due  to  bigger 
market and cheaper production possibilities 
  Ongoing  concerns  regarding  automation  and 
robot  ethics  impede  uptake  of  automation 
technologies 

 

  Potential  increase  of  traffic  volume  based  on 
automatization  may  create  rebound  effects, 
hampering overall benefits 
  Threat in terms of cybersecurity 

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.2 

Focus Area 2 – Transformation of Infrastructure 

3.2.1  Brazil 

3.2.1.1  General Information 

Brazil has a national plan to improve urban mobility through infrastructure improvements and reducing 
reliance on personal vehicles that aim to reduce GHG emissions from passenger road transport by a 
total  of  19.5  million  tons  CO2  by  2020  relative  to  business  as  usual.  Brazil  has  already  developed  a 
program for improving urban mobility that would reduce GHG emissions by reducing dependence on 
personal vehicles.189 The Brazilian Federal Government intends to introduce high speed rail as an al-
ternative  solution  to  other  transport  modes  including  road  and  airports,  but  currently  it  seems  to  be 
expensive. Metro systems exist in eight Brazilian cities, including São Paulo, Rio de Janeiro and Belo 
Horizonte. Brazil’s air transport infrastructure is relatively well developed. Road transport is the primary 
means for passengers and for freight purposes in Brazil. Keeping that in mind, this focus area for Bra-
zil focuses on the transformation of road infrastructure. 

In terms of infrastructure adequacy, Brazil still needs to improve in many parts of  its cities. Based on 
the survey on overall infrastructure quality by World Economic Forum in 2014, Brazil ranked 120 out of 
144 countries, with particularly poor results for roads and air transport quality. 190 Though financial sup-
port  through  the  government  to  improve  infrastructure  is  less,  it  is  attracting  private  investment  in 
roads,  railways  and  airports.191  However,  the  transformation  of  infrastructure  for  public  transport  and 
Non-Motorised  Transport  (NMT)  is  in  rise  in  Brazil.  For  infrastructural  transformations,  the  National 
Policy on Urban Mobility was established in 2012, under the law 12.587/2012. The Mobility Law, as it 
is  known,  brings  to  attention  some  new  elements,  perspectives  and  requirements  that  will  positively 
influence  the  energy  efficiency  of  public  transport.  The  law  promotes  non-motorized  and  prioritizes 
public  over  private  motorized  transport.  In  addition,  the  law  states  that  cities  can  use  methods  and 
tools  for  monitoring  and  controlling  local  pollutants  and  GHG  emissions  from  the  transport  system. 
Although adopting tools for reducing emissions is strongly recommended, it is not mandatory.  

No specific information could be found on Research, Development & Innovation or Industry activities 
regarding transformation of infrastructure in Brazil. 

3.2.1.2  Market 

In order to improve road infrastructure in Brazil, the Institute for Transportation and Development Poli-
cy  (ITDP)  provides  technical  assistance  to  the  cities  (such  as  WRI  Brasil)  investment  in  bus  rapid 
transit (BRT) lanes, which are relatively low cost and have a short lead time. ITDP also supports the 
requirements  for  integrating  large  transport  systems  like  subways  or  trains  with  BRT  lanes  and  the 
promotion  of  cycling  and  walking.192  Between  2009  and  2012,  Rio  created  152  km  of  new  cycling 
pathways  along  the  beachfront  and  connected  the  city’s  lake  to  the  bustling  Botafogo  neighbour-
hood.193  

Also,  the  southern  city  of  Curitiba  pioneered  BRT  systems  with  high-quality  stations,  overland  bus 
transport  and  real-time  information  systems,  as  well  as  dedicated  lanes  for  buses  and  high-capacity 
vehicles.194  Curitiba’s  BRT  has  made  a  huge  impact  on  a  modal  shift  from  automobile  travel  to  bus 

189 Kahn, S., & Brandao, I. (2015). The contribution of low-carbon cities to Brazil’s greenhouse gas emissions reduction goals: 

Briefing on urban energy use and greenhouse gas emissions. Stockholm Environment Institute. 

190 Garcia-Escribano, M., Goes, C., & Karpowicz, I. (2015). Filling the Gap: Infrastructure Investment in Brazil. International 

Monetary Fund. 

191 The Economist. (2015). Brazilian infrastructure: Delays ahead. Retrieved from 

http://www.economist.com/news/americas/21653949-government-getting-serious-about-attracting-private-investment-roads-
railways-and-airports 

192 Frayssinet, F. (2013). Needed in Brazil: Integrated Urban Transport System. Retrieved from IPS-Inter Press Service: Re-

trieved from http://www.ipsnews.net/2013/07/needed-in-brazil-integrated-urban-transport-system/  

193 Colin, B. (2015). 4 Inspirations for Sustainable Transport from Rio de Janeiro. Retrieved from 

http://www.wri.org/blog/2015/03/4-inspirations-sustainable-transport-rio-de-janeiro  

194 Frayssinet, F. (2013). Needed in Brazil: Integrated Urban Transport System. Retrieved from 

http://www.ipsnews.net/2013/07/needed-in-brazil-integrated-urban-transport-system/ 

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Final Report – International Assessment and Action Plans of the Focus Areas 

travel. The result of traveller survey in 1991 estimated that the introduction of the BRT had caused a 
reduction  of  about  27  million  auto  trips  per  year,  saving  about  27  million  litres  of  fuel  annually.195  In 
advance  of  the  Olympic  Games  2016,  the  length  of  mass  transit  systems  in  Rio,  mostly  Bus  Rapid 
Transit (BRT) and metro extension, were increased from 76 to 156 km and 4 to 16 km respectively.196 

Moreover, the development bank of Latin America (Corporacion  Andina de Fomento (CAF)  – Banco 
de Desarrollo de América Latina  in  Portugues)  principally  supports the road  and logistics sector, the 
development of tourism and sports infrastructure, the environmental sector and the response to natu-
ral disasters.197  

In Brazil, there is no direct link between federal policy and what states and cities plan and implement, 
and  no  direct  financing  mechanism  providing  priority  to  sustainable  urban  transport  developments. 
One of the major strategies from the Brazilian Federal Government is the investment on urban infra-
structure  through  financing  programs  such  as  the  Program  for  Accelerated  Growth  (also  known  as 
PAC  (Programa  de  Aceleração  do  Crescimento))  and  the  national  housing  program  (also  known  as 
MCMV  (Minha  Casa  Minha  Vida).    Considering  urban  mobility  only,  PAC  is  providing  €  40  billion  in 
loans  to  88  cities  with  more  than  250  thousand  residents  to  foster  the  implementation  of  structuring 
transport infrastructure projects. It is administered by the Ministry of Cities and funds mass transit pro-
jects, including BRT, Light Rail Transit (LRT) and metro in large cities (see the table in the following for 
PAC  planning  and  implementation  activities).  Although  Federal  Government  is  making  available  of 
financial  resources,  several  cities  lack  good  quality  project  designs  that  induce  transport  integration 
and a comprehensive idea of sustainability.  

The maximum national funding share  is 95%,  with  a  minimum local participation of 5 percent.198 The 
Brazilian government is trying to attract private investment in roads, railways and airports through con-
cessions to redevelop and operate. The government plans to shrink the role of the ailing public railway 
and  airport  operators,  and  rely  less  on  subsidized  loans  from  BNDES,  Brazil’s  overbearing  develop-
ment bank.199 The Brazilian Federal Government launched the Investment Program in Logistics (PIL) in 
2012 that includes projects that contribute to developing a modern and efficient transport system and 
will  be  carried  out  by  means  of  strategic  partnerships  with  the  private  sector,  promoting  a  synergy 
between road, rail, river, sea and air transport systems.200 

Summary of projects and stage of implementation by PAC (updated in 2014): 

SUMMARY 

BRT 

busway 

Metro/rail 

LRT 

Control 

Infrastructure 

Road 

Cycling 

Mobility 

planning 

PAC (implementation) 

PAC (planning)  Other Multilaterals 

Completed 

19 

8 

8 

3 

5 

9 

14 

1 

0 

27 

93 

18 

16 

5 

7 

23 

4 

4 

1 

6 

9 

0 

3 

4 

17 

8 

18 

1 

0 

5 

0 

0 

2 

1 

0 

0 

195 Burgess, C., & Ordiz, S. (2010). Exploring the BRT Systems of Curitiba and Bogota. California Polytechnic State University. 
196 Lindau, T., & Felin, B. (2016). Rio Olympics’ Legacy: Urban Mobility. Retrieved from http://www.wri.org/blog/2016/08/rio-

olympics-legacy-urban-mobility 

197 CAF Development Bank of Latin America (2016). Brazil: Our action. Retrieved from 

https://www.caf.com/en/countries/brazil/our-action/  

198 Owen, B., Carrigan, A., & Hidalgo, D. (2012). Evaluate, Enable, Engage: Principles to Support Effective Decision Making in 

Mass Transit Investment Programs. EMBARQ.  

199 The Economist. (2015). Brazilian infrastructure: Delays ahead. Retrieved from 

http://www.economist.com/news/americas/21653949-government-getting-serious-about-attracting-private-investment-roads-
railways-and-airports 

200 Logistics Brazil. (2015). Logistics Investments Program. Retrieved from http://www.logisticsbrazil.gov.br/highways 

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Final Report – International Assessment and Action Plans of the Focus Areas 

SUMMARY 

Others 

PAC (implementation) 

PAC (planning)  Other Multilaterals 

Completed 

6 

73 

19 

216 

19 

85 

1 

10 

3.2.1.3  SWOT Analysis 

Strengths 
  National plan to improve urban mobility 
through infrastructure improvements 
Involvement of private investment to improve 
and redevelop road, railways and airport in-
frastructure 

 

Weaknesses 
  Government budget deficit for infrastructure 

investment 

  A large part of Brazilian infrastructures still 

require improvement 

  A lack of modal choice is a big obstacle to 

  Transformation of infrastructure for public 

evoke a modal shift 

transport and Non-Motorised Transport is on 
the rise  

  The political and economic environment is 

not ideal for investments 

Threats 
  Hardly any infrastructure to real-

ize/implement new technologies (e.g. track-
ing technologies) 

  Elementary infrastructure is not existent 
 

International investors increasingly partici-
pate in funding competitions 

Opportunities 
  Government initiatives for infrastructure fi-
nancing by the private creates many busi-
ness opportunities 
  Support from the banks 
  General awareness of the opportunities re-

lated to sustainable modes of transport in cit-
ies by the national government 
  Considering the size of the Brazilian 

transport system, there is a big market op-
portunity 

3.2.2 

 China 

3.2.2.1  General Information 

Over half of the population in China now lives in urban areas  and the United Nations  estimates that 
the proportion of urban citizens will reach 75% by 2050. Of course, it is not known if the pace of urban-
ization  will  continue  as  expected  over  the  next  30  to  40  years,  however  it  is  likely  that  there  will  be 
continuing demand for more and better infrastructure as new urban areas develop and existing cities 
expand. 

China’s  highway  transported  36  billion  passengers,  while  the  volume  of  freight  consigned  through 
highway in China reached 32 billion tonnes in 2012. As far as rail transport is concerned, 1,893 million 
passengers  used  China’s  railway  system  and  up  to  3.9  billion  tonnes  of  freight  were  dispatched  by 
railway during 2012. Respectively, 258 million passenger and 4.6 billion tonnes of freight were trans-
ported through China’s waterway during 2012, while the port of Shanghai ranked first in the world and 
8 out of the 20 world’s top ports were located in China (see Figure 14).201 

201 Fung Business Intelligence Centre (2013). Transport Infrastructure Development in China. Retrieved from: 

http://www.funggroup.com/eng/knowledge/research/china_dis_issue116.pdf  

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Figure 14: Global ranking of port (2012) (Source: The Ministry of Transport and World Shipping Council)  

* Ports in the Mainland China 

Regarding the air transport in China, the total air passenger traffic reached 319 million passengers and  
5.5 million tonnes, with the top four passenger airports (in Beijing Capital, Guangzhou, Shanghai Pu-
dong and Shanghai Hongqiao) accounted for 31% of the total passenger air transport in China. 

The Beijing Capital International Airport was declared the 2nd busiest passenger airport in the world in 
2012, transferring 81.9 million passengers and the Shanghai Pudong International Airport was the 3rd 
busiest cargo airport in the world, transferring 2.94 million tonnes.202 

Figure 15: Accelerating development in transport infrastructure in China (Source: China Statistical Yearbook (Abstract) 2013)203  

202 Fung Business Intelligence Centre (2013). Transport Infrastructure Development in China. Retrieved from: 

http://www.funggroup.com/eng/knowledge/research/china_dis_issue116.pdf 

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Final Report – International Assessment and Action Plans of the Focus Areas 

According to the 12th Five-Year Development Plan (FYP), the main goals of the Chinese government 
to accelerate the development of transport infrastructure are: the increase of the length of railway and 
highway in operation, the promotion and development of electrification, the increase of number of civil 
airports, and the increase of coastal deep-water berths.204 

In order to go along with rapid urban growth, many cities in China now have BRT operations or have 
BRT projects being planned or constructed. Guangzhou's BRT system, for example, began to operate 
in February  2010 and it is now the  world second largest BRT system, the first being TransMilenio in 
Bogota  of  Colombia.  Approximately  800,000  passengers  are  moved  around  by  the  BRT  system  per 
day.  A  number  of  initiatives  of  the  system  are  breaking  many  passenger  records  in  China  or  in  the 
world.205 

Figure 16: China’s GDP and transport infrastructure investment trend during 1995-2014 (Source: CIECC Research Centre)206 

In  2014,  the  National  Development  and  Reform  Commission (NDRC)  announced  the  investment  of 
CNY  34  billion  (USD  5.56  billion)  for  transportation  infrastructure,  including  railways,  roads,  airports 
and waterways. Although China had more than 110,000 kilometers of railways by the end of 2014 of 
which 15,800 kilometers were high speed rail (HSR), making it the HSR world leader, the NDRC stat-
ed that more railway lines (mainly in the central and western regions), will be put into operation during 
2015, while also declared that will continue to support and encourage social capital through preferen-
tial measures, in order to attract investment in major transportation infrastructure.207 

By investing heavily in transport infrastructure, the Chinese Government has provided its cities strong 
foundations for their development. Projects, such as the transport-oriented development in the Shang-
hai suburb of Xinzhuang, place mobility  at the centre  of urban development. Another example of the 
investment of the Chinese government in transport infrastructure is the construction of the infrastruc-
ture for the Maglev Train. The Shanghai Maglev Train or Shanghai Transrapid is a magnetic levitation 
train that operates in Shanghai, China. The line is the first commercially operated high-speed magnetic 
levitation line in the world and has a length of 153 metres, a width of 3.7 metres, a height of 4.2 metres 

203 Fung Business Intelligence Centre (2013). Transport Infrastructure Development in China. Retrieved from: 

http://www.funggroup.com/eng/knowledge/research/china_dis_issue116.pdf      

204 Fung Business Intelligence Centre (2013). Transport Infrastructure Development in China. Retrieved from: 

http://www.funggroup.com/eng/knowledge/research/china_dis_issue116.pdf     

205 Division for Sustainable Development -United Nations -Department of Economic and Social Affairs (2012 ). Local Policies 

and Best Practices on “Greening” Urban Transport in Chinese Cities. Retrieved from: 
https://sustainabledevelopment.un.org/content/documents/booklet-greeningchina.pdf  

206 Kaimeng, L. (2016). A Brief Introduction to China’s PPP Application in Transport and Logistics Sectors. Retrieved from: 

https://www.unece.org/fileadmin/DAM/ceci/documents/2016/PPP/Forum_PPP-SDGs/Presentations/Kaimeng_LI-
UNECE_PPP_Forum_March_2016_A_Brief_Introduction_to_China%E2%80%99s_PPP_Application_in_Transport_and_Logist
ics_Sectors.pdf 

207  ChinaDaily  USA 

(2016).  China 

to  step  up  construction  on  major 

http://usa.chinadaily.com.cn/business/2015-02/22/content_19634000.htm  

transport 

infrastructure.  Retrieved 

from: 

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Final Report – International Assessment and Action Plans of the Focus Areas 

and a three-class, 574-passenger configuration. The Shanghai Transrapid project took CNY 10 billion 
(USD 1.33 billion) and two and a half years to complete.208 

Additionally, in 2016 the Changsha Maglev, or Changsha Maglev Express has been also open to  the 
public.  It  is  a  medium-low  speed magnetic  levitation,  or maglev line  in  the  city  of Changsha.  It  is  the 
first one fully developed and produced within the country, while the mid-low speed maglev track is also 
the longest one of its kind in the world, and has been operational for test runs since 26th December 
2015.209 The line stretches over 18.55 kilometers and runs between Changsha Huanghua International 
Airport,  Langli  station  and  the  high-speed  railway  station Changsha  South  Railway  Station. While  its 
rolling stock is designed for a speed of up to 120 km/h, its current maximum speed is 100 km/h and it 
takes 19.5 minutes to complete the whole journey210, which is around 40 minutes quicker than taking 
the airport shuttle bus and around 20 minutes quicker than taking a taxi.211 

The Beijing–Shanghai High-Speed Railway (or Jinghu High-Speed Railway from its Chinese name) is 
also  a  1,318-kilometre  long high-speed  railway that  connects  two  major  economic  zones  in  China, 
the Bohai  Economic Rim and the Yangtze River Delta.  The line opened to the public for commercial 
service  on  June  30,  2011  and  it’s  the  world's  longest  high-speed  line  ever  constructed  in  a  single 
phase.212 

Nevertheless,  the  Chinese  government  can’t  finance  infrastructure  forever.  This  is  why  China  has 
introduced some sort of public-private partnership model. It will also need to introduce more competi-
tion to focus operators on improving efficiency and service quality. 

3.2.2.2  Research, Development & Innovation 

Transport infrastructure is a key factor to China’s urban development and it concerns the whole coun-
try, involving a big range of cities, from developing industrial centres, like Wuxi, to already developed 
urban areas, such as Shanghai.213 

To  boost  economic  growth,  China  has  focused  in  transport  infrastructure  in  recent  years  in  the  four 
major  modes  of  transportation  (road,  railway,  water  and  air).  Investments  amounted  to  CNY  2,200 
billion  in  2011  (≈  USD  304  million).  Highway  accounted  for  more  than  half  of  the  total  fixed  assets, 
indicating the importance of road transportation in the development of transport infrastructure in China. 

Since 2000 the infrastructure investment priority has gradually shifted from roadway building to public 
transportation, especially in large cities. The Chinese government is planning to invest almost  CNY 5 
trillion (nearly USD 750 billion) into transport infrastructure over the next three years. CNY 5 trillion is 
equivalent to 6.9% of China’s 2015 gross domestic product.214 

For example, more than 60 inland airports are under expansion and more 30 new regional airports are 
being under construction. According to government’s source, China's airports  will increase  to 240 by 
2020 from around 200 today, while USD 80 billion would be invested in aviation projects during 2015, 
according to the Civil Aviation Administration of China (CAAC).215 

The Chinese government has been also encouraging the private sector to invest in state projects and 
the  NDRC  has  already  published  a  list  of  infrastructure  projects,  where  the  private  sector  is  encour-

208 Wikipedia (2016). Schanghai Maglev Train. Retrieved from https://en.wikipedia.org/wiki/Shanghai_Maglev_Train#cite_note-3  
209 Wilkinson B.(2016). CHANGSHA'S 'MAGLEV' STARTS ON 6TH MAY! . Retrieved from: 

http://www.wnichangsha.com/changsha-maglev-opens.php  

210 Wikipedia (2016. Changscha Maglev. Retrieved from https://en.wikipedia.org/wiki/Changsha_Maglev  
211 Wilkinson B. (2016). CHANGSHA'S 'MAGLEV' STARTS ON 6TH MAY! . Retrieved from: 

http://www.wnichangsha.com/changsha-maglev-opens.php 

212 Wikipedia (2016). Retrieved from  https://en.wikipedia.org/wiki/Beijing%E2%80%93Shanghai_High-Speed_Railway  
213 Kwok, M. (2014). How is China transforming its cities? Retrieved from: http://thoughts.arup.com/post/mobiledetails/391/how-
is-china-transforming-its-cities?  
214 Lockett, H. and Hornby, L. (2016). China routes CNY 5 trillion into transport infrastructure. Retrieved from: 

https://next.ft.com/content/14926948-172b-11e6-b197-a4af20d5575e  

215 Gray, D. (2015). China's aviation boom drives airport building frenzy. Retrieved from: http://www.reuters.com/article/us-china-
aviation-idUSKBN0P60F220150626  

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Final Report – International Assessment and Action Plans of the Focus Areas 

aged  to  invest.  Transportation,  ICT  infrastructure,  clean  energy,  and  gas  transportation  are  some  of 
them.216 

In  November  2014,  the  Ministry  of  Finance,  the  Ministry  of  Science  and  Technology,  the  Ministry  of 
Industry and Information Technology and the National Development and Reform Commission of China 
cooperated for the publication of the “Notice Regarding Incentive for Construction of New Energy Ve-
hicle Charging Facilities”. In order to promote the construction of charging facilities of new energy ve-
hicles, have set central finance plans for the construction of charging facilities in new energy vehicle 
promotion cities or cluster of cities.  

On October 2015, the Government of China has also adopted a  draft for the 13th Five-Year  Plan for 
2016-2020,  setting  out  the  goals  and  principles  of  China’s  development  within  the  next  5  years. 
Among the targets of the 13th Five-Year Plan, are the increase of the country’s urbanization pace and, 
respectively,  the  development  of  infrastructure217,  as  well  as  the  enhancement  of  the  private  sector 
participation.  

Another action presenting the China's efforts to boost global infrastructure investment is also the crea-
tion of the Asian Infrastructure Investment Bank (AIIB). During 2015, 21 Asian countries signed memo-
randum of understanding for the establishment of AIIB with an expected initial capital of  USD 50 bil-
lion.218  This  initiative  has  been  proposed  by  the  government  of  China.219 The  capital  of  the  bank 
is currently USD 100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about 
half that of the World Bank.220 

Additionally, the One Belt, One Road (OBOR) Initiative is a development strategy and framework that 
focuses on connectivity and cooperation among countries primarily  between the People's Republic of 
China and  the  rest  of  Eurasia,  which  consists  of  two  main  components,  the  land-based  "Silk  Road 
Economic Belt" (SREB) and ocean-based  "Maritime Silk Road" (MSR). This strategy emphasizes on 
China's effort to have a bigger role in global affairs, and the need for priority capacity cooperation in 
areas, like steel manufacturing.221 China’s “One Belt, One Road” (OBOR) encompasses 65 countries 
along  the  land  and  maritime  Silk  Road  routes  and  highlights  China’s  economic  and  strategic  objec-
tives. One of the main reasons that the OBOR initiative has been developed is to face the country’s 
overcapacity  domestically.  In  general,  China’s  leaders  have  put  forward  a  long-term  vision  through 
investing in infrastructure development in OBOR countries, China aims to promote the flow of capital, 
goods and merchandise across the region. According to the Li Daokui from the Tsinghua University in 
Beijing, if the plan is successful over the coming decades, the countries in the region “will form a highly 
effective, efficient and socially developed region like the EU”.222 

3.2.2.3  Industry 

The urban infrastructure’s prompt implementation has also been proven a driver of China’s economic 
growth supporting in parallel the development of industry growth of Chinese cities, while the involve-
ment of the private sector has made industry see strategic opportunities 

For all transportation modes, the governmental administration involves the ministries such as ministry 
of transport, ministry of finance, National Development  and Reform Commission, etc. Initial construc-
tion of infrastructure is mainly conducted by state-owned big contractors, such as China Railway Con-
struction Corporation. In terms of infrastructure operation, originally, transportation commission of local 
government, special bureau of the central government (e.g. former ministry of railway, currently China 

216 Atkinson, R. (2014). ICT Innovation Policy in China: A Review. Retrieved from: http://www2.itif.org/2014-china-ict.pdf  
217 Lyn, F. and Wu, D. (2015). Prosperity for the masses by 2020. Retrieved from: 
http://www.pwchk.com/home/eng/prosperity_masses_2020.html  
218 ChinaDaily USA (2016). China to step up construction on major transport infrastructure. Retrieved from: 

http://usa.chinadaily.com.cn/business/2015-02/22/content_19634000.htm  

219  Xinhuanet (2014). 21 Asian countries sign MOU on establishing Asian Infrastructure Investment Bank. Retrieved from: 
http://news.xinhuanet.com/english/business/2014-10/24/c_133740149.htm  
220 The Economist (2015). The economist explains. Retrieved from: http://www.economist.com/blogs/economist-

explains/2014/11/economist-explains-6  

221Wikipedia (2016). One Belt, One Road. Retrieved from https://en.wikipedia.org/wiki/One_Belt,_One_Road  
222 Fon Mathuros (2016), One Belt, One Road Initiative Signals China’s Economic and Strategic Objectives.  

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Final Report – International Assessment and Action Plans of the Focus Areas 

Railways Corporation) or some BOT (Built-Operate-Transfer) private partners are in charge of opera-
tions of infrastructure. 

Transport infrastructure is the most important area in PPP application in China. Until now, 6,997 PPP 
projects  have  been  listed  into  the  PPP  information  system  of  the  Ministry  of  Transport  reaching  an 
investment of 8.13 trillion CNY. PPP models have been used by 19 industries in China, including en-
ergy,  transport,  ecological  construction  and  environmental  protection,  regional  development,  agricul-
ture,  science  and  technology,  etc.  The  number  of  running  transport  infrastructure  projects  based  on 
PPP  in  China  of  2016  is  761,  while  the  investment  on  the  PPP  projects  in  transport  sector  is  about 
2.23tn CNY.223 

Now the private partners (in China, most are essentially state-owned enterprises) are involved in the 
process  of  the  infrastructure  development  in  the  context  of  urbanization  and  they  invest  instead  of 
government. The government repays the cost through a long term in which performance measurement 
is heavily depended on. Thus, the efficiency and effectiveness of infrastructure is largely improved. It 
is the local practice of commonly used performance based contracting.  

There is an increasingly active secondary market, such as domestic construction companies looking to 
invest  in  new  highway  and  other  infrastructure  projects,  while  opportunities  may  also  appear  if  the 
government allowing private participation in the toll-road concession projects as well.224 

3.2.2.4  Market 

There is already a lively and dynamic presence by European and American companies, especially in 
big coastal cities of China, including Beijing and Shanghai but very few of them are active in second-
ary markets such as Chengdu, Sichuan and Hunan. However, there is a turn of these foreign investors 
in inland, since wages and costs have increased in the coastal areas and since the inland cities also 
ask for investments in infrastructure.  

Foreign  investors  and  companies  being  active  in  China  also  have  to  deal  with  several  challenges 
mainly relating to the comprehension of the local market. There is definitely a need of any new, foreign 
business to China to be partnered with a local company or employ professional consultants and this is 
an effective way to find and understand differences in the regulatory system, tax laws, corporate cul-
ture, business negotiations, employment practices, etc.225 

Transit-oriented  development  (TOD)  is  a  very  important  factor  in  the  development  of  Chinese  cities. 
Many cities adapt their zoning codes, after subway construction, to allow development around transit 
stops. At least 13 Chinese cities currently have one or more subway lines under operation, while an-
other 76 lines are under construction. The target is 40 subways systems by 2020. TOD is expected to 
make a big difference in the long-term sustainability of urban living, focusing also on energy efficien-
cy.226 

China is also focusing on Bus Rapid Transit (BRT), which complements walking and biking. BRT is an 
effective and  inexpensive  approach for the transfer of people  in urban areas. China is building thou-
sands of miles of subway lines but due tunnelling, they are expensive and slow to build and that’s the 
reason why BRT is an excellent complement.227 

223 Kaimeng, L. (2016). A Brief Introduction to China’s PPP Application in Transport and Logistics Sectors. Retrieved from: 

https://www.unece.org/fileadmin/DAM/ceci/documents/2016/PPP/Forum_PPP-SDGs/Presentations/Kaimeng_LI-
UNECE_PPP_Forum_March_2016_A_Brief_Introduction_to_China%E2%80%99s_PPP_Application_in_Transport_and_Logist
ics_Sectors.pdf  

224 KPMG (2009). Infrastructure in China: Foundation for growth. Retrieved from: 

https://kpmg.de/docs/Infrastructure_in_China.pdf  

225 Atkins, M. (2013) Infrastructure investment in China. Retrieved from: http://www.financierworldwide.com/infrastructure-

investment-in-china/#.V5nHqvmLSUl  

226 Bachmann, J.  and  Burnett, J. (2012). Infrastructure and the Environment in Chinese Cities: Prospects for Improvement. 
Retrieved from: http://www.chinabusinessreview.com/infrastructure-and-the-environment-in-chinese-cities-prospects-for-
improvement/  

227 Harvey, H. and Busch, C. (2012). GETTING CITIES RIGHT IN CHINA: Urban design, smart transportation and institutional 

reform. Retrieved from: http://energyinnovation.org/wp-content/uploads/2014/06/gettingcitiesrightinchina-final.pdf  

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Final Report – International Assessment and Action Plans of the Focus Areas 

In March 2014 the government released its new urbanization plan. Targets in the plan include an ur-
banization rate of 60% by  2020, representing roughly 100 million new  urban residents 228. Facing  lim-
ited investment capacity from local governments, the Ministry of Finance (MoF) has been pushing for 
PPPs, which are seen as a way to invest considerable private capital into the public sector.  

Public–private  partnership  (PPP)  is  a  relatively  approach  for  the  provision  of  public  infrastructure  in 
current  China  that  changes  the  paradigm  of  infrastructure  performance  measurement.  In  the  past, 
government  invested  in  infrastructure  mainly  directly  through  its  own  debt  but  the  most  noticeable 
issue  concerning  this  practice  is  the  low  efficiency,  low  quality,  and  failure  to  control  the  long  term 
quality.  

Although Public-Private Partnerships (PPPs) have made their appearance in China since the 1980s, a 
boost in their development didn’t happen until 2014, when the Chinese government published several 
important  documents  promoting  private  investment  in  public  services  and  infrastructure.  Figure  17 
depicts the sectors, where private participation is mainly involved.  

The MoF set up a PPP-leading group and also established a PPP center, whose target is to undertake 
policy  research,  training,  statistics  gathering  and  international  cooperation.  The  MoF  is  planning  has 
also build a proper environment by establishing more effectively related standards and norms by help-
ing the implementation of relevant projects. In this context, in December 2014, the MoF announced 30 
pilot PPP projects of a total CNY 180 billion investment. These projects concern water and heat sup-
ply, waste management, transport, new energy vehicles, environmental restoration, medical treatment, 
etc.229  

In the future, a new law on Infrastructure and Public Utilities Franchises is going to be published, con-
cerning the promotion of PPP.230 

Figure 17: Type of private participation in different sectors for the period 2004–2013 (World Bank, 2014). 

228 Xinhuanet (2014). China's urbanization level to reach 60 pct by 2020. Retrieved from: 

http://news.xinhuanet.com/english/china/2014-03/16/c_133190605.htm  

229 Thieriot, H. and Dominguez, C. (2015). PUBLIC-PRIVATE PARTNERSHIPS IN CHINA On 2014 as a landmark year, with 
past and future challenges. Retrieved from: https://www.iisd.org/sites/default/files/publications/public-private-partnerships-
china.pdf  

230 Buchanan, K. (2014). China: Guidelines on Public-Private Partnerships Issued. Retrieved from: 

http://www.loc.gov/law/foreign-news/article/china-guidelines-on-public-private-partnerships-issued/  

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Final Report – International Assessment and Action Plans of the Focus Areas 

3.2.2.5  SWOT Analysis 

Strengths 
  Massive  investment  of  China’s  government 

Weaknesses 
  Poor  quality  of  initial  construction  of  roads  in 

in transport infrastructure 

general, with the exception of big cities 

  Development  of  PPP  schemes  and  promo-

tion by the Chinese government 

  Fast  realization  of  infrastructure  projects 
due to political structure and cheap labour 
  China  is  continuously  improving  in  technol-
ogy development; quality level is increasing 

  Coordination  issues  among  various  stakehold-
ers:  Coordination  among  different  jurisdictions 
is currently still a major obstacle in the system 
development 

  Lack of charging infrastructure for EVs. 

Opportunities 
  Because  of  fast  implementation,  China’s 
flexibility  to  adapt  to  different  needs  and 
changes is very high 

Threats 
  Faulty  planning  and  forecasting  leads  to  the 
problem  of  “ghost  cities”/”ghost  infrastructure” 
(= unused infrastructure) 

  Local  governments  default  on  PPP  Projects 

payment 

  Emerging active secondary market, such as 
domestic construction companies looking to 
invest  in  infrastructure  projects,  while  op-
portunities  may  also  appear  if  the  govern-
ment  allows  private  participation  in  the  toll 
road concession projects as well 

  A  variety  of  additional  financing  available, 
both domestically and internationally (FDI) 
  “Cooling down” of Chinese economy devel-
opment may promote further investments 

3.2.3 

India 

3.2.3.1 General Information 

In  order  to  respond  the  rapid  momentum  in  India,  it  is  necessary  to  strengthen  transportation  infra-
structure facilities such as rail, roads, port and airport that connects the domestic economy effectively 
and improving overall competitiveness, thereby lowering trade and transaction cost. Aviation Industry 
in India is growing very fast and has undergone a rapid transformation. It is desired in this important 
mode of transport infrastructure, mostly within growing middle income population that has shifted using 
air transport than road.231 Industry estimates that the Indian aviation market is expected to become the 
third largest across the globe by 2020. Indian port sector infrastructure is also seen a great progress in 
the years to come.232 

India has the second largest road network in the world, that is stretched a total of 4.87 million kilome-
ters. Indian roads transport accounts for over 60% of all goods and 85% of total passenger traffic.233 As 
road transport is also the primary means for passengers and for freight purposes in India, this section 
focuses on the transformation of road infrastructure. Major domestic freight transfers in India are con-
ducted through road, although another mode such as inland waterways is more cost efficient in tonne-
km per litre of fuel than roadways but comparatively not well developed.234 

India  has  an  infrastructure  gap  in  terms  of  new  construction  and  improvement,  which  indicates  big 
infrastructure business opportunities for national and international investors. Indian road and highway 
infrastructure need to be improved to channel the burgeoning traffic into less congested routes. Major 
metropolitan  cities  are  continually  addressing  this  issue  by  building  flyovers  and  subways,  widening 

231 Sahoo, P. (2011). Transport Infrastructure in India: Development, Challenges and Lessons from Japan.  
232 IBEF(2016). Infrastructure sector in India. Retrieved from http://www.ibef.org/pages/infrastructure-snapshot 
233 IBEF(2016). Road and Infrastructure Industry Analysis. Retrieved from http://www.ibef.org/industry/roads-presentation 
234 JLL (2015). Indian logistics - Taking giant leaps forward. Jones Lang LaSalle. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

roads and designating one-way roads during peak hours. But an important approach to ITS is to ad-
vance public transportation as a competitive alternative to private transport. Public transport remains 
the predominant mode of transport in India. Buses are not enough in the  cities and also due to con-
gestion, two-wheelers and  cars are preferred in India. People still uses and prefer NMT in India (ex-
cept dense metropolitan cities), but bicycle lanes are not well addressed. Rail services are available in 
seven metropolitan cities of Mumbai, Delhi, Chennai, Kolkotta, Bengaluru, Hydrabad and Pune.  Also, 
the modal shift from automobile travel to BRT and NMT is in progress and has started in major cities. 
BRTs  projects  are  running  in  Pune,  Delhi,  Ahmedabad,  Indore,  Mumbai,  Hyderabad,  Bangalore, 
Chennai, Coimbatore, Jaipur, Madurai, Nagpur, Vijayawada, Visakhapatnam. 

Though  specific  information  on  Research,  Development  &  Innovation  activities  regarding  transfor-
mation of infrastructure in India is not easily available, infrastructure teams at Indian Institutes of Man-
agement (IIMs), civil and transport departments at Indian Institute of Science (IISC) and Indian Insti-
tutes  of  Technology  (IIT)  and  Centre  for  Environmental  Planning  and  Technology  University  (CEPT 
University) are actively working on this front. 

3.2.3.2  Industry 

Some of the Infrastructure companies that are active in infrastructure construction are: 235 

-  Gammom India Ltd. It is involved in highways, public utilities, environmental engineering and ma-
rine structures. It has built the longest fly-over bridge in Mumbai, the first elevated road over road 
in Maharastra and India’s first cable stayed bridge at Akkar, Sikkim etc. 

-  PNC Infratech. Its major infrastructure projects include highways, bridges, flyovers, power trans-

mission lines, airport runways and industrial area development etc. 

-  Reliance Infrastructure Ltd (Rinfra). Its road projects are operative in urban high traffic growth 

- 

corridors of Delhi, Bangalore, Jaipur, Gurgaon, Agra and Pune. It is the first private player in India 
to execute and operate metro rail projects. 
L&T Infrastructure Development Projects Limited (L&T IDPL). It is a pioneer of the Public-Private-
Partnership (PPP) model of development in India, in which infrastructure projects are developed in 
partnership with the Central and State Governments and private sector players. 

-  GMR Group. It is a major player in the infrastructure sector, with world class projects in India and 
abroad. Using the public-private partnership (PPP) model, the Group has successfully implement-
ed several iconic infrastructure projects in India. It operates India’s busiest airport, the Indira Gan-
dhi International Airport (IGIA) in New Delhi. 

3.2.3.3  Market 

In  order  to  create  an  adequate  road  network  and  to  cater  to  the  increased  traffic  and  movement  of 
goods,  the  Indian  government  has  assigned  20%  of  the  USD  1-trillion  investment  to  infrastructure 
during the 12th Five-Year Plan (2012-17) to develop the country's roads. The Government of India is 
investing  Rs  10  trillion  (USD  148.24  billion)  in  highways  and  shipping  sector  by  2019.  Some  of  the 
recent developments are236 : 

-  The National Highways Authority of India (NHAI) has prepared a plan of connecting 27 vertical 

and horizontal highways in the form of an interconnected grid, which is one of the basic practices 
of highway planning for a smooth and uninterrupted access across various regions of India. 
-  The Government of India plans to award 100 highway projects under the Public-Private Partner-
ship (PPP) mode in 2016. As of August 2015, India constitutes 112 completed and 144 ongoing 
PPP projects for roads and highways.237 

-  The Ministry of Road Transport and Highways plans to build extra five Greenfield expressways 
across the country, which are expected to reduce travel time and accelerate economic growth. 

235 IBEF(2013). Road Sector India. Retrieved from http://www.ibef.org/industry/roads-india/showcase 
236 IBEF(2016). Road Infrastructure in India. Retrieved from www.ibef.org/industry/roads-india.aspx 
237 IBEF(2015). Road and Infrastructure Industry Growth - Infographic. Retrieved from http://www.ibef.org/industry/roads-

india/infographic 

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Final Report – International Assessment and Action Plans of the Focus Areas 

-  The Ministry of Urban Development under the government of India is developing Smart Cities 
mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mission. 

The Ministry of Urban development has set up a Smart Cities mission under the Government of India. 
Its objective is to promote cities that provide core infrastructure and give a decent quality of life to its 
citizens,  a  clean  and  sustainable  environment  and  application  of  ‘Smart’  Solutions.  The  focus  is  to 
achieve  sustainable  and  inclusive  development,  looking  at  compact  areas  and  create  a  replicable 
model which will act like a light house to other aspiring cities. One of the core infrastructure elements 
in the smart city is ‘efficient urban mobility and public transport’. Some typical features of comprehen-
sive development in Smart Cities include: creating walkable localities, reduce congestion, air pollution 
and  resource  depletion,  boost  local  economy,  promote  interactions  and  ensure  security.  The  road 
network  is  created  or  refurbished  not  only  for  vehicles  and  public  transport,  but  also  for  pedestrians 
and  cyclists,  and  necessary  administrative  services  are  offered  within  walking  or  cycling  distance, 
promoting a variety of transport options. The network is further enhanced through transit-oriented de-
velopment (TOD), public transport and last mile para-transport connectivity as well as the application 
of smart solutions to infrastructure and services in area-based development. As a result areas become 
less vulnerable to disasters, use fewer resources, and can provide cheaper services.238 Through India 
Smart cities challenge, 33 cities have been selected, out of the100 cities competing to receive funds.239 

Atal  Mission  for  Rejuvenation  and  Urban  Transformation  (AMRUT)  has  also  been  introduced  by  the 
Ministry of Urban Development (MoUD) under the Government of India. Among the components of the 
AMRUT,  urban  transport  and  development  of  green  spaces  and  parks  are  emphasised.  One  of  its 
goals  is  to  increase  the  amenity  value  of  cities  by  developing  greenery  and  well  maintained  open 
spaces (e.g. parks) while reducing pollution by switching to public transport or constructing facilities for 
non-motorized transport (e.g. walking and cycling). All these outcomes are valued by citizens, particu-
larly  women,  and  indicators  and  standards  have  been  prescribed  by  the  Ministry  of  Urban  Develop-
ment in the form of Service Level Benchmarks (SLBs). Previously, the MoUD used to give project-by-
project sanctions. But in the AMRUT, project approval is given by the State Annual Action Plan once a 
year.  This  makes  States  equal  partners  in  planning  and  implementation  of  projects,  thus  actualizing 
the spirit of co-operative federalism. AMRUT Mission focuses on 500 target cities/ULBs.240 

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Nanded Waghala City Mu-
nicipal Corporation (NWCMC) in Maharashtra developed 28 km of cycle tracks and achieved the aim 
of  segregation  of  slow  and  fast  moving  traffic.  This  segregated  traffic  resulted  in  increased  travel 
speeds for both NMT and motorised vehicles, and reduced major accidents.241 

Beside the government initiative to address the infrastructure gap, India witnesses a significant interest 
from national and international investors in its infrastructure development. Some of them are:242 

-  Spanish companies are interested to collaborate with India on infrastructure, high speed trains, 

renewable energy and developing smart cities. 

-  Silver Spring Capital Management, a Hong Kong-based equity hedge fund, plans to invest over Rs 

2,000 crore (USD  306 million) in Hyderabad-based infrastructure developer Transstroy India Ltd, 
for constructing highways in the country. 

-  Airports Authority of India (AAI) plans to develop city-side infrastructure at 13 regional airports 

across India, with help from private investors for building of hotels, car parks and other facilities, 
and thereby boost its non-aeronautical revenues. 

-  Support from the Asian Development Bank (ADB) and the World Bank. 

The World Bank supports ten projects in its transport portfolio which include seven state road projects 
and one each for national highway, rural road and urban transport  (1). ADB Loan is also available to 

238 Smart Cities Mission. (n.d.). Smart City Features. Retrieved from 

http://smartcities.gov.in/writereaddata/Smart%20City%20Features.pdf  

239 Sarkari Yojana (2016). Smart Cities List 2016 – 33 Cities Selected so Far. Retrieved from 

http://www.sarkariyojna.co.in/smart-cities-list-2016-33-cities-selected-far/ 

240 AMRUT. (2015). Atal Mission for Rejuvenation and Urban Transformation. Retrieved from http://amrut.gov.in  
241 NIUA. (2015). Urban Transportation in Indian Cities.  
242 IBEF(2016). Infrastructure sector in India. Retrieved from http://www.ibef.org/pages/infrastructure-snapshot 

52 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

improve about 430 kilometers (km) of major district roads (MDRs) in the state of Uttar Pradesh, in line 
with the Strategic Core Road Network Master Plan for Uttar Pradesh. The activities include reconstruc-
tion, widening and strengthening of culverts and bridges; and maintenance of the improved road  as-
sets, conducting a road safety audit of the MDRs on the core road network (CRN) and initiating reme-
dial measures at identified critical locations.243 

3.2.3.4  SWOT Analysis 

Strengths 
  Government and international initia-

Weaknesses  
  Demand of public transport and non-

motorised transportation exceeds supply 
and growth of the transport infrastructure 
system even though they remain the pre-
dominant mode of transport in India, e.g. 
rail infrastructure 

  Reduced transit possibilities and interfaces 

 

between different modes 
Federal system decreases possibility of 
building a working infrastructure 

  Rate of growth of demand does not match 
the increase in the public transport system 

Threats 
 

If the supporting infrastructure is not built in 
the right way, there are only limited possibil-
ities for transformation towards more sus-
tainable transport 

tives/investment in infrastructure improvement 

Opportunities 
  Business opportunities for international inves-

tors due to infrastructure gap, e.g. for the refur-
bishment of the transport system for new modes 
of transport 

  Multilateral organisations such as the World 

Bank and ADB are supporting infrastructure im-
provement 

  Fast-growing Indian aviation market has under-

gone a rapid transformation 

  Business opportunities for international inves-
tors due to infrastructure gap on road refur-
bishment (e.g. footpath) or infrastructure for 
new mode of transport (e.g. BRT) 

3.2.4 

Japan 

3.2.4.1  General Information 

Japan is a long, narrow island country. The remarkably high proportion of coastline, which spans over 
34,600 km, with a total land area of 380,000 km2, has generated an extremely large number of ports. 
Approximately  42%  of  the  entire  population  of  Japan  lives  near  a  harbor.  Ports  are  the  mainstay  for 
99% of Japan's foreign trade and 42% of its domestic distribution.244 Japanese aviation comprises the 
world’s third largest domestic market, about 5.5% of global traffic and 11% of global industry revenues. 
Aviation  has  a  significant  footprint  in  the  Japanese  economy,  supporting  0.7  %  of  GDP  (JPY  3,135 
trillion)  and  0.7%  of  the  Japanese  workforce  (429,000  jobs).  Including  aviation’s  contribution  to  tour-
ism, the figures rise to 1% of GDP (JPY 4,501 trillion) and 1% of the workforce (620,000 jobs).245 

Along with the governmental decentralization that started in the past 50 years to foster regional eco-

243 ADB (2016). India: Uttar Pradesh Major District Roads Improvement Project. Retrieved from 

http://www.adb.org/projects/43574-025/main  

244 Ministry of Land, Infrastructrue, Transport and Tourism (2016). Ports and Harbours in Japan. Retrieved from 

http://www.mlit.go.jp/kowan/english/index.html 

245 The International Air Transport Association (2012). Strengthening Japan’s Aviation Competitiveness - Reducing Cost of 

Infrastructure. Retrieved from http://www.iata.org/pressroom/pr/Pages/2012-09-19-01.aspx 

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Final Report – International Assessment and Action Plans of the Focus Areas 

nomic  development,  the  transport  system  began  to  decentralize  as  well  in  order  to  better  meet  the 
citizens’  differing  needs.  The  main  authorities  in  charge  of  the  transport  system  in  each  region  are 
regional  offices  of  the  Ministry  of  Economy,  Trade  and  Industry  (METI).  It  can  be  seen  that  recently 
there  has  been  a  general  shift  from  supply-centric  policies  towards  demand-centric  policies  taking 
travel behaviour into consideration. Travel behaviour includes indicators such as trip frequency, activi-
ty choice/trip purpose, destination choice, travel mode choice, departure time choice, route choice, trip 
duration (choice), trip balance (relationship between public and private travel modes). 

It could also be shown that one of the most prominent factors determining travel mode and destination 
choice in Japan is the age of travellers.246 As an answer to the rising age of the Japanese population, 
more and more importance is put on paratransit mobility. This type of transportation refers to demand-
responsive door-to-door transport services (e.g. minibuses) that act as gap fillers between public bus-
es and private automobiles.247  

Apart from the aging society, major drivers of a transforming infrastructure are Japan’s scarcity of re-
sources, an efficient industry and industrial cooperation and the need for resilient infrastructures that 
has increased since the Great East Japan Earthquake (GEJE). To be better suited for future disasters, 
Japan introduced a disaster risk management (DRM) system after that, roads are increasingly devel-
oped to serve as a damage mitigation by acting as secondary barriers or dikes and thus prevent debris 
from  flowing  into  inland  urban  areas.248  The  catastrophe  has  made  Japan  a  world  leader  in  building 
resilience in critical energy, water, transport and other lifeline infrastructures. 

3.2.4.2  Research, Development & Innovation 

As an answer to  the aging population  and to further  push a modal shift so-called compact cities  are 
promoted. A unique example is Toyama City. Centered on public transportation, the city’s main pillar in 
becoming a compact city is a light-rail transit system with lower-floored cars, barrier-free station plat-
forms, and less noise. The overall goal is to increase urban sustainability in a three-fold way including 
environmental,  social  and  economic  aspects.  Major  characteristics  are  shorter  intra-urban  travel  dis-
tances, less automobile dependency, more district-wide energy utilization and local energy generation, 
optimum  use  of  land  resources  and  more  opportunities  for  urban-rural  linkage,  more  efficient  public 
service  delivery,  and  better  access  to  a  diversity  of  local  services  and  jobs.  Through  this  approach 
pollution  shall  be  reduced,  workers’  productivity  shall  be  increased,  and  infrastructure  investments 
costs  shall  be  reduced.  Another  important  aspect  is  the  improvement  of  quality  of  life  and  health  by 
offering facilities for recreation.249 

The  superconducting  Maglev  (SCMaglev),  developed  by  JR  Central,  is  a  magnetic  levitation  railway 
system based on magnetic repulsion between the track and the cars. In 2011, JR Central received the 
permission to operate the SCMaglev on their planned Chuo-Shinkansen linking Tokyo and Nagoya by 
2027  and  to  Osaka  by  2045.  The  technology  has  been  tested  on  the  18  km  long  Ymananashi  Test 
Line (YMTL) since 1997. In 2011 the line was closed for a JPY 23 billion update that includes an ex-
tension to 42.8 km and an upgrade to commercial specification. SCMaglev has reached 603 km/h and 
thus, broke its own record of 590 km/h. It is expected that normal passenger trains will travel with 500 
km/h.  250  251  However,  it  is  not  the  first  Maglev  to  be  developed  in  Japan  (see  Focus  Area  1)  but  of 
course this scale is unprecedented. The main developing institution behind the Maglev program is the 
Railway  Technical  Research  Institute  (RTRI),  funded  by  the  government  and  the  JR  Group.  It  con-

246 Hatzinger, R. and Maxanec J. (2007). Measuring the part worth of the mode of transport in a trip package: An extended 
Bradley-Terry model for paired-comparison conjoint data. In: Journal of Business Research, Vol. 60(12), pp 1290-1302. 

247 Zhang et al. (2013). Paratransit-Adaptive Transportation Policies for Transition to Sustainability in Developing Countries. In: 

Sustainable Transport Studies in Asia, pp.137-166  

248  Ranghieri,  F.  and  Ishiwatari,  M.  (2014).  Learning  from  Megadisasters:  Lessons  from  the  Great  East  Japan  Earthquake. 

Retrieved from https://openknowledge.worldbank.org/handle/10986/18864 

249 Mory, M. (2013). Toyama’s Unique Compact City Management Strategy. Creating a Compact City by Reimagining and Re-

structuring Public Transportation. Retrieved from http://www.uncrd.or.jp/content/documents/7EST-Keynote2.pdf 

250  International  Transport  Forum  (2010).  The  Future  for  Interurban  Passenger  Transport.  Bringing  Citizens  Closer  Together. 
http://www.keepeek.com/Digital-Asset-Management/oecd/transport/the-future-for-interurban-passenger-

from 

Retrieved 
transport_9789282102688-en#page168 

251 Zeit Online (2015). Japans Magnetbahn fährt Rekordgeschwindigkeit. Retrieved from http://www.zeit.de/wissen/2015-

04/maglev-weltrekord-japan-geschwindigkeit 

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Final Report – International Assessment and Action Plans of the Focus Areas 

ducts research about trains, railways and their operation and develops new technology. Other current 
research streams deal with variable gauge systems allowing Shinkansen trains that run on more nar-
row trails to use trails of the original rail network.252 

3.2.4.3  Industry 

Private-sector National Resilience spending was mainly undertaken for earthquake-proofing of building 
and  equipment,  reinforcement  of  transport  systems  (roads  and  railroads),  disaster-relief  robotics, 
communications  resilience,  and  training  of  specialist  leadership.  With  respect  to  transport  systems 
most money is spent on road development, electric vehicles, and the linear bullet train (Maglev) which 
is  currently  under  construction.  The  government’s  rationale  for  including  the  Maglev  in  its  National 
Resilience Plan is that it “encourages the distribution of people and facilities away from the undeniably 
excessive over-concentration of population and core business and government functions in Metropoli-
tan Tokyo.”  Besides infrastructural development, most of the rest of the investment  is spent on  non-
natural disaster events and patent threats (such as cyber-attack or supply shocks of energy and other 
materials). 253 

TAMA Industrial Activation Association Inc.  254  was established by private companies, mainly  product 
developing small and medium-sized enterprises, universities and other education and research organ-
izations, industry associations, and local governments in the western Tokyo metropolitan area. It acts 
as an intermediation of industry-academic and inter-corporate collaboration and is viewed as a leading 
project of the Industrial Cluster Plan throughout the nation. 

On Honshu island, following general economic decentralization the Japanese National Railway (JNR) 
was  restructured  into  three  different  companies  in  1987  into  JR  East,  JR  Central,  and  JR West. To-
gether with JR Hokkaido, JR Shikoku, and JR Kyushu there are six passenger railway organizations. 
Besides,  there  is  JR  Freight,  Railway  Technical  Research  Institute  (RTRI)  and  Railway  Information 
System (JR Systems).255 256 

Transport  services  have  been  provided  by  train  companies  competing  with  each  other  in  the  private 
sector,  but  were  subject  to  strict  government  control  of  fares.  As  a  result,  they  had  to  diversify  their 
business in order to find other ways on how to make profit. This is why they introduced other services 
linked to train operation, such as (1) motor vehicle services, (2) suburban residential development and 
(3) retail centres and department stores.257 

In light of the enormous infrastructural developments in road and rail and the strength of Japan’s au-
tomotive and maritime industry, its aviation industry lags behind. However, Mitsubishi Aircraft Corp. is 
aiming to change that with Japan’s first new passenger plane in more than four decades. 258 

3.2.4.4  Market 

As  of  1990  the  Japanese  government  conducts  the  interregional  net  passenger  traffic  survey  every 
five years and aggregates data into interregional OD (origin-destination) tables. The survey covers all 
transportation modes across all regions in Japan and captures different travel characteristics, such as 
origin  and  destination  of  each  transportation  mode  on  the  entire  route.259  Due  to  the  early  develop-
ments  in  high-speed  trains,  the  Japanese  are  eager  users  of  the  train  network.  However,  in  recent 

252 Soejima, H. (2003). Railway Technologies in Japan – Challenges and Strategies. In: Japan Railway & Transport Review, Vol. 

36. Retrieved from http://www.jrtr.net/jrtr36/pdf/f04_soe.pdf 

253 DeWit, A. (2016). Japan’s “National Resilience” and the Legacy of 3-11. Retrieved from http://apjjf.org/2016/06/DeWit.html 
254 Kodama, T. (2002). Industry-Academic and Inter-corporate Collaboration in TAMA (Technology Advanced Metropolitan 

Area). Retrieved from http://www.rieti.go.jp/en/publications/summary/02120003.html 

255 Goto, K. (2000). Passenger Service Technologies. In: Japan Railway & Transport Review 24, Wako, K. (eds.). Retrieved 

from http://www.ejrcf.or.jp/jrtr/jrtr24/pdf/f50_tec.pdf 

256 Central Japan Railway Company (2012). Data Book 2012. Retrieved from http://english.jr-

central.co.jp/company/company/others/data-book/_pdf/2012.pdf  

257 Aveline, N. (2002). Mobility in Japan—A Model for French Transportation Policies?. In: Japan Railway & Transport Review, 

Vol. 31, pp 42–43. Retrieved from http://www.jrtr.net/jrtr31/ap42_ave.html 

258 Cooper, C. (2015). Japan Aims to Crack the Aviation Market With Its First New Passenger Plane in Four Decades. Retrieved 

from http://www.bloomberg.com/news/articles/2015-08-31/japan-set-for-first-flight-of-regional-jet-in-late-october 

259 Tsukai, M. and Okumura, M. (2013). Interregional Tourism Demand and Destination Management. In: Sustainable Transport 

Studies in Asia, pp 113-135. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

decades the number of local airports has increased, leading to an improvement in transportation ser-
vices. Especially, in OD-pairs (origin-destination) over 500 km, air transportation has become competi-
tive as there is an advantage in speed and cost.260 

Japan’s  National  Resilience  (“Kokudo  Kyoujinka”)  strategy,  including  both  public  and  private  sector 
spending, totalled over JPY 24 trillion (USD 210 billion) in 2013 and expected to grow enormously until 
2020.261 It is deeply institutionalized, mainly by the newly established Association for Resilience Japan 
which is far more advanced than its counterpart initiatives in North America, the EU and elsewhere. It 
is assumed that most of the money  will be spent on  concrete-intensive  infrastructure programs such 
as road development.262  

Generally, infrastructure in urban areas, especially transit networks, is centered on rail infrastructure. 
This is due to the early development of high-speed trains (Shinkansen). Not only because of the pri-
mary  role  of  rail  but  also  because  transit  networks  have  relied  on  the  private  sector  for  a  long  time, 
there  is  a  high  level  of  integration  between  various  transportation  modes  and  a  close  link  between 
transportation and urban infrastructure. As a result urban transport systems, especially road infrastruc-
ture, is very underdeveloped leading to frequent congestion. In combination with smooth public trans-
fer  possibilities  this  has  boosted  urban  sprawl.  Private  ownership  and  management  of  residential 
zones  has  led  to  the  government  taking  a  more  pro-active  role  in  urban  planning.  One  successful 
transit-oriented development project is the Shibuya Hikarie area centred around railway lines. The goal 
is to build an “urban core” integrating culture, entertainment, commerce, transportation, work, housing.  
263 264 

The private vehicle market is already saturated in Japan. Therefore, there has been hardly any growth 
in vehicle sales over recent decades. In addition, Tokyo has introduced a unique set of parking poli-
cies that includes the proof-of-parking rules which requires car-buyers to first secure a night-time park-
ing space before registering a car. As parking is scarce and costly (rates are commercially priced) it is 
generally hard for people to meet the proof-of-parking rule and thus, own a car.265 

Tokyo’s subway system is run by two different operators – the Tokyo Metro (run by Tokyo Metro Co., 
Ltd.)  and  the  Toei  Subway  (run  by  the  Bureau  of  Transportation  of  the  Tokyo  Metropolitan  Govern-
ment). Even though they are closely integrated in a unified system of line colours, line codes and sta-
tion numbers, the separate administration has led to some inefficiencies  and inconveniences. Firstly, 
for single rides across the two systems, a special transfer ticket is required. Secondly, the visualization 
of the Tokyo subway network is different in stations, trains and customer information diagrams.266 

With respect to ports, Japan’s port system is considerably deconcentrated in comparison to its neigh-
bouring  countries  China  and  Korea.  It  does  not  have  mega  ports  but  five  medium-sized  ports  and  a 
large number of small local container ports. This is mainly due to its different geographical shape (long 
coastline) and its focus on industrial decentralization.  267 As for port development, the construction of 
two  international  physical  distribution  terminals  was  commenced;  one  at  Onahana  Port,  which  had 
been selected to be the nation’s first designated bulk import port (coal) and one at Kushiro Port. 268  

Japan  Civil  Aviation  Bureau  is  the  civil  aviation  authority  of  Japan  and  a  division  of  the  Ministry  of 
Land,  Infrastructure,  Transport  and  Tourism  (MLIT).  Apart  from  a  few  exceptions,  airports  in  Japan 

260 Tsukai, M. and Okumura, M. (2013). Interregional Tourism Demand and Destination Management. In: Sustainable Transport 

Studies in Asia, pp 113-135. 

261 DeWit, A. (2016). Japan’s “National Resilience” and the Legacy of 3-11. Retrieved from http://apjjf.org/2016/06/DeWit.html 
262 DeWit, A. (2014). Japan's "National Resilience Plan". Its Promise and Perils in the Wake of the Election. In: The Asia-Pacific 

Journal, Vol. 12(51), No. 1. Retrieved from http://apjjf.org/2014/12/51/Andrew-DeWit/4240.html on 25 July 2016 

263 Aveline, N. (2002). Mobility in Japan—A Model for French Transportation Policies?. In: Japan Railway & Transport Review, 

Vol. 31, pp 42–43. Retrieved from http://www.jrtr.net/jrtr31/ap42_ave.html  

264 Nikken (n.d.). Practicing and Propagating TOD to the World. Retrieved from http://www.nikken.co.jp/en/solutions/tod.html  
265 Choi, C. and Loh, N. (2013). Transport Policies and Patterns: A Comparison of Five Asian Cities. Retrieved from 

http://www.lta.gov.sg/ltaacademy/doc/13Sep069-Loh_ComparisonOfFiveAsianCities.pdf  

266 Toi (n.d.). How to Ride the Toei Subways. Retrieved from http://www.kotsu.metro.tokyo.jp/eng/services/sub_ride.html  
267 Le, Y. and Ieda, H. (2010). Evolution Dynamics of Container Port Systems with a Geo-Economic Concentration Index: A 

Comparison of Japan, China and Korea. In: Asian Transport Studies, Vol. 1(1), pp 46-61. Retrieved from 
https://www.jstage.jst.go.jp/article/eastsats/1/1/1_1_46/_pdf   

268 Ministry of Land, Infrastructure, Transport and Tourism. (2014): White Paper On Land, Infrastructure, Transport And Tourism 

In Japan. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

were  constructed  and  are  owned  and  managed  directly  by  either  the  national  government  or  local 
governments. Since April 2015 airports in Japan are classified  either as national airports established 
and managed by the national government (19),  or as special regional airports established by the na-
tional government but managed by local governments (5), or as incorporated airports established and 
managed by corporations under special laws (4), or as regional airports established and managed by 
local governments (54), or as airports for joint use managed by either the Japan Self Defence Forces 
or the US forces stationed in Japan jointly with the national government (8), and other minor airports. 

3.2.4.5  SWOT Analysis 

Strengths 
  Decentralized transport system and gov-

ernance structure allows better adaptation 
to citizens’ differing needs and leads to im-
proved transportation services 

  High modal share of rail due to early in-

vestment in rail infrastructure 

  Smooth transfer possibilities between 

modes 

  Mix between private & public: huge infra-

structure development through privatization, 
but still under governmental control 
  Strong expertise in technological applica-

tions due to early deployment (e.g. smart in-
frastructure) 

Weaknesses 
  Developments in road infrastructure suffers 
from heavy congestion due to focus on and 
early establishment of rail infrastructure 
  Tokyo’s subway system is not well integrated 
because it is run by two different providers 

  Unplanned events are difficult to manage 
  Slow decision-making processes hamper the 
development towards a resilient infrastruc-
ture 

Opportunities 
  Main drivers for further infrastructure im-

Threats 
  Due to geographical position, Japan is prone 

to natural disasters 

  Threat of know-how loss in (international) 

business co-operations 

  Restrictive system decreases implementa-

tion and scalability of infrastructure projects 
  Even though there is a high system stability, 

the magnitude of failure increases with the 
degree of system integration 

provement are demographic change, scar-
city of resources, and need for resilience 
  Fit-for-purpose urban planning decreases 

the likelihood of misplanning 

  Demographic change drives transformation 

of infrastructure towards demand-
responsive door-to-door services 

  Move towards “compact cities” and holistic 
transit-oriented development around exist-
ing railway stations integrating culture, en-
tertainment, commerce, transportation, 
work and housing 

  Tightening of the private vehicle market 

(saturation and tight parking situation) trig-
gers changing consumer behavior 

  High acceptance of new technologies (e.g. 

Scmaglev) 

3.2.5 

South Korea 

3.2.5.1  General Information 

Many factors contributed to the rapid economic growth of South Korea. It is said that the decisive fac-
tor was the construction and systematic operation of transportation logistics facilities.269 

Recently,  there  has  been  a  policy  shift  from  supply-based  to  user-based  infrastructure  development 

269 Hwang, S. Kim, G. (2014). 50 Praxes for Better Transport in Korea. 

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that is centrally  planned, organized and managed by  government who acts as the main supporter of 
transport funding.270 

Like in many other  countries, urban sprawl is becoming a big problem. As more people move to the 
outlying suburban areas due to high housing prices within cities, Seoul plans to extend its metro lines 
into  the  metropolitan  area.  Koreans  have  the  longest  commute  among  OECD  countries.  However, 
commuting is about 25% faster compared to 1990 due to the improved infrastructure.271 

Korea  is  aiming  at  transforming  their  infrastructure  towards  a  green  transportation  system  based  on 
electric  cars,  a  cloud-based  intermodal  transport  system,  and  mobile  traffic  schedule  services  using 
smartphones.  To  spearhead  the  global  development  towards  a  sustainable  transport  system,  the 
country has set itself the goal of defining the related hardware and software systems. At the same time 
it  seeks  to  engage  in  international  standardization  and  regulation  setting  in  order  to  guarantee  the 
mutual operability, compatibility and suitability of related services.272 

Because South Korea is cut off from the rest of Asia due to its on-going disputes with North Korea, it 
has developed one of the world's largest shipbuilding industries and the necessary infrastructure cov-
ering about 1,609 km of navigable waterways in South Korea. 

3.2.5.2  Research, Development & Innovation 

In  order  to  push  intelligent  and  sustainable  transportation,  a  number  of  new  technologies  in  public 
transportation have been introduced. The Ministry of Land, Transport and Maritime Affairs has desig-
nated bimodal trams and magnet-embedded tracks as new transportation technologies. Bimodal trams 
are built by applying railway technologies into buses.  Thus, they combine the flexibility  of buses and 
the  periodicity  of  trains.  The  trams  are  controlled  electronically,  provide  a  smoother  ride  for  passen-
gers, and can be automatically operated on dedicated tracks with magnets embedded in them. They 
are eco-friendly systems that could be an alternative to light rail vehicles.273 

Currently there are several innovative rail technologies being tested by the Korean Rail Research Insti-
tute (KRRI). The institute is developing a 350-km/h high-speed rail (HSR-350x), a light-rail transit (K-
AGT), and a tilting train (TTX) for passenger transport and an ultra-high-speed train reaching speeds 
of up to 400 km/h.274 

3.2.5.3  Industry 

The major innovation in recent years with respect to infrastructure is definitely the Korea Train eXpress 
(KTX), Korea’s high-speed train, run by Korail. While the first generation was based on French TGVs, 
the second generation (KTX II) was developed by the company itself as a result of heavy R&D invest-
ments. The  technology  now  ranks  fourth  after  France,  Germany,  and  Japan.  The  trains  were  devel-
oped  by  Korea  Railroad  Research  Institute  (KRRI)  and  manufactured  by  Hyundai  Rotem,  part  of 
Hyundai Motor Group.275 

3.2.5.4  Market 

In 2010 trips made by bus and rail accounted for 64.3% of all trips, public transport in total made up 
71.5%. In Seoul the vast majority of rides in 2015 was done by public transport or taxi: 37% by sub-
way, 28% by bus and 7% by taxi.276 According to South Korea’s Green Growth strategy green trans-

270 Choi, C. and Loh, N. (2013). Transport Policies and Patterns: A Comparison of Five Asian Cities. Retrieved from 

http://www.lta.gov.sg/ltaacademy/doc/13Sep069-Loh_ComparisonOfFiveAsianCities.pdf  

207 OECD (2014). OECD Green Growth Studies. Retrieved from http://dx.doi.org/10.1787/9789264225503-en  
272 Moon, Y., Kim, S. (2013). International Standardization Strategies for Green Transport System. In: KOTI World Brief Vol.5 

(45) Retrieved from: http://www.koti.re.kr/mail/pdf2/world13-45/Focus.pdf 

273 Nikola (2013). New Generation of Trams. Retrieved from http://kojects.com/2013/03/20/new-generation-of-trams  
274 Railway Research (n.d.). Korean Rail Research Institute (KRRI). Retrieved from: http://www.railway-research.org/Korean 

Rail-Research-Institute 

275  Choon,  C.  (2016).  South  Korea  eyes  global  high-speed  rail  market.  Retrieved  from  http://www.straitstimes.com/asia/east-

asia/south-korea-eyes-global-high-speed-rail-market  

276 Kojects (2016). General Information. Retrieved from http://kojects.com/general-information  

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portation  and  mass  transportation  shall  be  increased.  The  share  of  passenger  transportation  by  rail 
shall  increase  from  18%  in  2009  and  22%  in  2013  to  26%  in  2020.  The  overall  share  of  the  mass 
transit shall be increased from 50% in 2009 and 55% in 2013 to 65% by 2020. The share of bicycle 
transport shall increase from 1.5% of the total passenger transport volume in 2009 and 5% in 2013 to 
10% by 2020.277 

Figure 18: Average commuting distance and commuting time of Koreans 

Whereas subways in Seoul are operated by the public, bus operators are usually private companies. 
Due to Korea’s relatively small geographic area, the share of bus in long-distance travel is compara-
tively high. However, in order to reduce emissions, recent plans foresee a national railway system built 
by 2025 that can link Seoul with most cities in two hours. 

Supply policies include bus rapid transit (BRT), exclusive median bus lane, urban bus reform, transit 
facility expansion, BIS/Bus Management System (BMS), business taxi, bicycle revitalization, pedestri-
an priority zone. Restriction policies include a parking cap, parking fare policy, resident priority parking, 
weekly no driving day program, TDM in private sector and congestion-free transportation.278 

The National Transportation Network Plan (2000-2019)279 aims at establishing  a cost-reduction logis-
tics system and a high-efficiency multi-modal transport system. In the Second Amendment to the Na-
tional  Transportation  Network  Plan  (2001-2020),  published  in  December  2010,  the  expansion  of 
transport  infrastructure  – including roads, railways, airport and  ports  – foresees  the establishment of 
an  integrated  network  for  the  installation  of  interconnected  and  effective  national  comprehensive 
transport  systems.  Additional  goals  are  the  reduction  of  socio-economic  costs  caused  by  transport 
logistics activities and realization of sustainable green growth.280 

The 4th Comprehensive National Territorial Plan Corrective Plan’s (2011-2020) long-term goals are to 
promote  international  cooperation  for  establishing  railway  transport  and  logistics  system  to  enable 
expanding into  Asia and Europe  and for connecting the missing link in Asian  Highway, through con-
necting Korean Peninsula Railway Network with Trans-Siberian Railway (TSR) and Trans-China Rail-
way (TCR). 

The  Urban  Traffic  Improvement  Promotion  Act  issued  in  2010  sets  goals  of  ensuring  smooth  traffic 
and to promote convenience in urban areas, improving traffic facilities and increasing efficiency. The 
act states that anyone who intends to undertake any project within an urban traffic improvement dis-
trict or within a traffic zone of an urban traffic improvement district shall formulate a traffic impact anal-

277  Green  Growth  Knowledge  Platform  (2010).  Road  to  Our  Future  Green  Growth:  National  Strategy  and  the  Five-Year  Plan 
(2009-2013).  Retrieved  from  http://www.greengrowthknowledge.org/resource/road-our-future-green-growth-national-strategy-
and-five-year-plan-2009-2013  

278 Lee, S. (2009). Environmentally Sustainable Transport Policies in Korea. Retrieved from 

http://www.uncrd.or.jp/content/documents/4EST-B1G201.pdf 

279 Hwang, S.  Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp. 91-93 
280 The Ministry of Land, Infrastructure and Transport (2010). The Second Amendment to the National Transportation Network 

Plan 2001-2020. 

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Final Report – International Assessment and Action Plans of the Focus Areas 

ysis  and  improvement  plan.281  If  projects  exceed  a  certain  size  such  plans  have  to  include  a  Traffic 
Impact Assessment (TIA) that is conducted to analyse various traffic facilities and the traffic volume in 
anticipation of expected transportation needs within one, five and ten years. Through this assessment 
secure,  smooth,  pleasant  and  safe  urban  travel  can  be  guaranteed  based  on  appropriate  traffic 
measures  and  an  improved  transportation  environment.282  The  number  of  TIA  reached  about  400  in 
the first four years after its introduction in 1987 and increased to 700 in the late 1990s. 

In  May  the  Ministry  of  Land,  Infrastructure  and  Transport  (MOLIT)  appointed  Seoul’s  city  center  as 
Korea’s first Green Transport Promotion Zone. It covers parts of the two heavy-traffic districts Jongno-
gu  and  Jung-gu.  Measures  include  the  establishment  of  pedestrian  zones,  bicycle  infrastructure 
(paths, racks and bicycle parking) and better facilities for public transport users.  The Seoul Metropoli-
tan  Government  developed  measures  according  to the  principles  of  A  (Accident-Free),  B  (Barrier-
Free), C (Congestion-Free), D (Disorder-Free) and E (Emission-Free). In total there are 29 measures. 
Based on 2015-levels, goals for 2018 and 2030 have been set respectively: 283 

Space for green transport (km2) 
Modal share of green transport (%) 
Modal share of cars (10.000/day) 
Air pollution (ton/year) 
Traffic fatalities (people/year) 

2015 
0.43 (31.2%) 
68.3 (2013) 
80 (2013) 
5,036 (2012) 
8 (2014) 

2018 

2030 

0.58 
70 
74 
4,532 
5 

0.87 
75 
56 
3,198 
0 

In the Seoul Transportation Vision 2030 the plan to build a sustainable transportation system that cen-
tres  on  pedestrians  was  articulated.  Its aim  is  to  expand  its  urban  railroad  network  so  that  subway 
stations  are  located  no  more  than  ten  minutes  away  from  anywhere  on  foot.  This  entails  providing 
safe, convenient transportation for the disabled, a pedestrian-oriented transportation environment, and 
low-cost, high efficiency operation systems. 

Like in other Asian countries, such as Japan, the Korean government has also  articulated efforts to-
wards  Transit-oriented  Development  in  its  Public  Transport  Reform.  One  urban  project  is  centred 
around  the  Multi-Mode-COEX-Station  that  is  integrating  different  transport  modes.  In  the  past,  two-
dimensional road  planning  for surface roads or raised highways  was more emphasized,  but recently 
the focus has been put on three-dimensional  urban planning reducing  transfer congestion  by  adding 
underground and high-rise walkways. 

Due to the fact that local governments in agriculture and fishing areas cannot afford to subsidize bus 
companies, two demand-responsive transport services have been introduced: Hope Taxi in Seocheon 
County and Majung Bus in Asan City both in Chungchungnam Province. Hope Taxi is currently oper-
ated in five towns and townships and 22 villages.284 

The Public Transport Reform in 2004 has introduced the Bus Management Sytem (BMS) that divided 
the  bus  network  in  four  different  types,  easily  recognizable  by  four  different  colours.  The  goal  is  to 
ease the usability for users. 

281  Ministry  of  Land,  Infrastructure  and  Transport  (2010).  Urban  Traffic  Improvement  Promotion  Act  ACT.  Retrieved  from 

http://elaw.klri.re.kr/kor_service/lawView.do?hseq=18768&lang=ENG  

282 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp. 31 
283  Medimorec,  N. 

(2016).  Seoul  Becomes  Korea’s  First  Green  Transport  Promotion  Zone.  Retrieved 

from 

http://kojects.com/2016/06/13/seoul-becomes-koreas-first-green-transport-promotion-zone  

284 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp 70 

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Figure 19: New 4-type Bus Management System in Korea 

The exclusive 141 km High-Occupancy Vehicle (HOV) Lane of Gyeongbu Expressway, a main arterial 
road, aimed to grant exclusive use to public transportation.285 

With respect to rail transport, a multitude of different technologies are developed: Continental Railroad 
Connection (TKR), Great Train eXpress (GTX), Light Rail Transit (LRT) and the Korean Train eXpress 
(KTX).  In  the  3rd  National  Railroad  Development  Plan,  the  Ministry  of  Land,  Infrastructure  and 
Transport  aims  to  upgrade  existing  rail  lines  so  they  can  accommodate  high-speed  trains  and  open 
new railroads that can handle semi-high speed rolling stock. 286 Korea Rail Network Authority, a public 
corporation, oversees rail development.  

The primary goal of North-South Railroad Connection Project is to establish the Trans-Korea Railway 
(TKR) on the Korean Peninsula, but the final goal is to induce Korean railroads to go beyond the Ko-
rean Peninsula and connect to Eurasian railroads including the Trans-Siberian Railway (TSR), Trans-
China Railway (TCR), Trans-Mongolian Railway (TMGR) and Trans-Manchurian Railway (TMR). 

The Gyeongbu High Speed Railway Project in the Honam axis is being constructed to become another 
central  axis  in  Korea.  In  this  project,  which  has  entered  the  second  phase,  a  high-speed  railway  is 
constructed on new train tracks in order to further narrow regional differences. A further railroad con-
structed at the moment in the capital area will link Suseo and Pyeongtaek.287 

Along the Seoul-Busan axis, the KTX (Korea Train eXpress) has been built. Numbers show that since 
the  introduction  of  this  high-speed  train  connection,  49%  of  commuters  between  the  two  cities 
switched from airborne transportation to KTX followed by users of passenger cars and express buses. 
In particular, the number of flights from Seoul to Daegu decreased from 36 to 4 per day, down 90%.288 
As a result  of the continuous development of the KTX infrastructure about  70% of the  nation is  now 
reachable  within  3  hours  from  any  other  point  in  the  country.289  About  150,000  people  use  the  KTX 
every day, doubling the 71,000 figure when it started operating. In the same time, the daily number of 
airline passengers dropped from 21,341 before the opening of KTX to 10,934. The government’s plan 
is to phase in more high-speed trains once all existing major conventional railway lines are electrified. 
By increasing the KTX transport share up to 35% of overall transportation,  Korail is pushing to estab-
lish  strategies  to  increase  the  Korean  Customer  Satisfaction  Index  (KCSI)  up  to  the  level  of  airlines. 
The  organisation  is  also  adopting  a  market-oriented  rate  system  to  overcome  the  limitations  of  the 

285 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp. 90 
286 Yonhapnews (2016). S. Korea eyes quasi-high-speed railway system. Retrieved from 

http://english.yonhapnews.co.kr/news/2016/02/03/0200000000AEN20160203007100320.html  

287 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp. 140. 
288 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do,p p. 138. 
289 Chun-Hwan (2005). Transportation Revolution: The Korean High-speed Railway. In: Japan Railway & Transport Review, Vol. 

40. Retrieved from http://www.ejrcf.or.jp/jrtr/jrtr40/pdf/f08_kim.pdf  

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Final Report – International Assessment and Action Plans of the Focus Areas 

current fixed rate system and become more competitive than other transportation modes.290 In addition, 
nine  lines  of  Light  Rail  Transit  (LRT)  have  been  constructed  to  cover  areas  that  are  not  covered  by 
existing  rail  system.  The  Ui  LRT  line  (11,4km),  first  of  the  nine  LRT  lines  to  be  constructed  was 
opened in 2014. 

To further evoke a modal change, the Gyeongin Ara Waterway Project was initiated by K-Water. The 
19 km long and 80 km wide waterway connects the Han River and the West Sea and enables trans-
portation of 250 containers in one shipping and thus, reducing environmental costs compared to road 
and  railway.  The  project  further  aims  to  prevent  the  Gulpo  River  from  flooding  and  to  create  leisure 
space for local residents.291 This shall be achieved by involving experts of tourism and culture from the 
planning  stage.  Eight  spectacular  waterfront  sceneries  are  being  created  and  the  entire  19-km  Ara 
Waterway will become a bicycle road, inline road and pedestrian walk.292 

Rapid growth in Korea's export and import volumes has led to an expansion of the nation's ports. The 
pace of port expansion, however, was slower than the growth of trade: this led to congestion at gate-
way  ports  such  as  Busan,  Gwangyang,  and  Incheon,  which  handled  the  majority  of  the  Republic  of 
Korea's foreign trade. In response, in 1980, the government initiated a policy to develop inland logis-
tics  centers,  also  known  as  dry  ports.  Dry  ports  are  logistics  facilities  that  can  carry  out  inter-modal 
transportation among roads, rails, ports and airports. Inland logistics bases are divided into multimodal 
logistics  terminals  and  inland  container  bases.  One  such  multimodal  logistics  terminal  was  built  in 
each of the country’s five districts. The Gunpo Multimodal Logistics Terminal that serves as the center 
of logistics for the Seoul Metropolitan Area contributes to cutting down logistics costs by significantly 
reducing  transport  costs  and  time  through  bulk  cargo  transportation  via  different  railway  lines.293  An-
other such dry port  is the  Uiwang Inland Container Depot (ICD),  which  is located 25 km from Seoul, 
was developed in 1993 by a public–private partnership (PPP), by the Korean Railroad Company and 
private  transportation  companies.  In  2006,  more  than  2  million  TEU  containers  were  handled  at  Ui-
wang ICD. Further, the road mode share was approximately 75%, except for a drop in 2008. The rail 
mode share of throughput handled by the ICD was about 25% in 2010, even though the ICD was run-
ning over capacity. This use of railways for transport from the ICD to seaports has helped ease road 
traffic  congestion  and  reduce  vehicle  emissions.  An  expansion  of  the  ICD's  capacity  would  further 
enhance the environmental benefits, as would an increase in the rail mode share of freight. The Minis-
try of Land, Transport and Maritime Affairs (MLTM) is the regulatory authority responsible for the plan-
ning, construction, and management of dry ports in the Republic of Korea. MLTM encourages private 
sector  investment  in  the  development  of  dry  ports  and  logistics  centers.  Large-scale  infrastructure 
project proposals from the private sector are reviewed by the Public and Private Infrastructure Invest-
ment  Management  Center  (PIMAC)  to  determine  whether  they  are  consistent  with  the  government's 
long-term plans and investment priorities. The government provides some support for the development 
of dry ports by assuming part of the land acquisition and project costs. 294 

Considering airborne transportation,  in total there  are  15 airports in  South Korea, six only for civilian 
use and nine for joint use between military & civilians. In 2006, the Construction & Transportation R&D 
Innovation  Roadmap  (2nd  mid-  to  long-term  (2013-2017)  was  issued.  In  2007  the  Aviation  Advance-
ment Project, which was renamed into Aviation Technology Research Project in 2013 was issued. 295 

The  aviation  sector  contributes  KRW  8,347  billion  (0.8%)  to  Korean  GDP  and  supported  around 
140,000 jobs in 2011. Airlines registered in Korea directly employ 29,000 people locally, and support 
through their supply chains a further 29,000 jobs. Shippers pay airlines KRW 12,028 billion annually to 

290 Chun-Hwan (2005). Transportation Revolution: The Korean High-speed Railway. In: Japan Railway & Transport Review, Vol. 

40. Retrieved from http://www.ejrcf.or.jp/jrtr/jrtr40/pdf/f08_kim.pdf on 25 July 2016.  

291 K-water (n.d.). GyeongIn Ara Waterway Projects. Retrieved from 
http://english.kwater.or.kr/eng/busi/project01Page.do?s_mid=1190  
292 Ji-hyun, L. (2012). K-water to develop Ara Waterway. Retrieved from 

http://koreajoongangdaily.joins.com/news/article/Article.aspx?aid=2950390  

293 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do. 
294 Hanaoka, S. (2011). Promoting intermodal freight transport through the development of dry ports in Asia: An environmental 

perspective [Article]. In: IATSS Research, Vol. 35(1), pp 16-23. Retrieved from 
http://www.sciencedirect.com/science/article/pii/S0386111211000148  

295 Hwang, S. Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, pp. 225-

231. 

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carry 2.6 million tonnes of freight to, from and within Korea. The benefit to shippers, in excess of this 
expenditure,  is  estimated  as  KRW  5,012  billion.  Domestically,  more  than  134,700  flights  make  over 
22.5  million  seats  available  to  passengers,  destined  to  14  airports  Passengers  spent  KRW  48,765 
billion (inclusive of tax) on air travel in 2009 and shippers spent KRW 12,028 billion on the transporta-
tion of air cargo.296 

3.2.5.5  SWOT Analysis 

Strengths 
  Systematic approach towards construction of 

Weaknesses 
  Koreans have the longest commutes 

transportation logistics 

  Early development of inland distribution cen-

ters (dry ports) 

  71.5% of all trips made with public transport 

(64.3% by bus & rail) 

  Pro-active urban planning including Transit-
oriented Development (e.g. Multi-Mode CO-
EX station, BRT), Traffic Impact Assessment) 
in anticipation of expected transportation 
needs within 1, 5 and 10 years), and three-
dimensional urban planning 

among OECD countries. However, 25% 
faster than in 1990 due to improved infra-
structure 

  Subways are operated by the public, bus 
operators are usually private companies 

  Most long-distance travel within Korea 

made by bus; however, the government 
plans to establish a rail network to reduce 
GHG emissions 

  Railway system developed only on north-
south axis; no tracks from east to west 

Opportunities 
  Shift from supply-based to user-based infra-

Threats 
  Urban sprawl is becoming an increasing 

structure development 

problem 

  Many business opportunities in infrastructure-

  Threat from North Korea might decrease 

related industries 

the realization of infrastructure projects 

  Synergies between the government & indus-

  Big need for resilient systems 

try 

  Green Growth Strategy to increase share of 

public mass transport: 65% by 2020 

  National railway system further developed: 

infrastructure to be built by 2025 that can link 
Seoul with most cities in two hours 
  Gyeongin Ara Waterway Project pushes 

modal shift and takes holistic approach by in-
cluding pedestrian and bicycle lanes 
  The modal share of green transport shall 

reach 75% (compared to 68.3% in 2013) by 
2030 and the modal share of cars reduced to 
56% (compared to 80% in 2013) 

  Development of long-distance buses running 

on natural gas 

  COP21 is a big driver; high commitments 

were given that shape governmental strate-
gy. Goal: 1 million electric vehicles and 3.000 
stations until 2020; reduce GHG emissions 
by 34% until 2030 

  The Winter Olympic Games 2018 act as a 

further driver 

296 Oxford Economics (OECD (2014), Compact City Policies: Korea. Towards Sustainable and Inclusive Growth, OECD Green 

Growth Studies, OECD Publishing, Paris, Retrieved from  http://www.iata.org/policy/Documents/Benefits-of-Aviation-
Republic%20of%20Korea-2011  

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3.2.6  United States of America 

3.2.6.1  General Information 

U.S. transportation fell from 5th place in the World Economic Forum's rankings in 2002 to 24th in 2011. 
This decline could be ascribed to a general trend of inadequate investment in the sector of transport 
infrastructure.  According  to  the  American  Society  of  Civil  Engineers  (ASCE),  the  U.S.  infrastructure 
has been awarded with D or D+ from 1998 to 2013. 297 The award criteria used cover different aspects, 
including (but not limited to): 

  provision of an assessment of the infrastructure’s capacity to meet current and future needs; 
 
 
 

the infrastructure’s existing or near future physical condition; 
the current level of funding compared to the funding need; 
the  evaluation  of  the  necessary  cost  for  the  improvement  of  infrastructure  and  determination  of 
whether future funding perspectives will be enough; 
the owner’s ability to operate and maintain the infrastructure properly and whether the infrastruc-
ture is in compliance with the government’s regulations; 
the level at which the safety of the public could be endangered by the condition of the infrastruc-
ture; 
the  evaluation  of  the  infrastructure  system’s  capability  to  prevent  or  protect  against  various 
threats; and 
the ability to rapidly recover with minimum damage, as well as the use of innovative techniques.298 

 

 

 

 

In all these areas there is  potential for improvement all  across the country.  Current infrastructure re-
quires  more  investment  –  for  instance, one  in  nine  U.S.  bridges are  structurally  deficient—while  new 
projects are needed to address issues such as road congestion and airport delays.299 

3.2.6.2  Research, Development & Innovation 

According to the U.S. Transportation Secretary, USD 500 million are going to available for transporta-
tion projects in the US under the 8th round of Transportation Investment Generating Economic Recov-
ery (TIGER) program.  The 2016 TIGER program will be used to fund capital investments in surface 
transportation infrastructure and is going to be provided for projects which  will be deemed to  have a 
major  impact  on  the  nation  (i.e.  that  generate  economic  development,  improve  access  etc.).  Since 
2009, TIGER programs have already provided nearly  USD 4.6 billion to 381 projects in all 50 states, 
the District of Columbia and Puerto Rico.300 

Moreover,  the  Federal  Highway  Administration  (FHWA),  in  an  effort  to  develop  an  integrated  multi-
modal  network  that  will  promote  and  enhance  community  objectives,  like  community  development, 
greater  accessibility, safer  transportation systems, transportation system  for all  users, etc. is  funding 
transportation related projects and activities, enabling citizen to have a better quality of life by reducing 
pollution, saving money, living closer to work, etc. 

As  part  of  the USDoT  Livability  Initiative,  FHWA  works  within  the  HUD/DOT/EPA  Interagen-
cy Partnership  for  Sustainable  Communities,  for  the  coordination  and  promotion  of  Federal  housing, 
transportation and other infrastructure policies and investments.  

297 Markovich, S.J. (2014). Transportation Infrastructure: Moving America. Retrieved from: 
http://www.cfr.org/infrastructure/transportation-infrastructure-moving-america/p18611  

298 American Society of Civil Engineers (2013). Report Card for America’s Infrastructure. Retrieved from: 

http://www.infrastructurereportcard.org/a/documents/2013-Report-Card.pdf  

299 Markovich, S.J. (2014). Transportation Infrastructure: Moving America. Retrieved from: 
http://www.cfr.org/infrastructure/transportation-infrastructure-moving-america/p18611  

300 The White House - Office of the Press Secretary (2014). FACT SHEET: President Obama Lays Out Vision for 21st Century 
Transportation  Infrastructure.  Retrieved  from:  https://www.whitehouse.gov/the-press-office/2014/02/26/fact-sheet-president-
obama-lays-out-vision-21st-century-transportation-i  

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Final Report – International Assessment and Action Plans of the Focus Areas 

The Livability initiatives demand the consolidation of such Livability objectives throughout the process 
of the transportation planning and transportation decision making process.301  

A project for the implementation of the Silicon Valley Smart Corridor in northern California was initiated 
in 2015.  This Project coordinates both freeway and selected surface street traffic operations for multi-
ple adjacent jurisdictions in the I-880/Route 17 corridor.  A link to a planned transit management sys-
tem  is  included.  The  involved  jurisdictions  and  stakeholders  are  Caltrans  (California  Department  of 
Transportation),  the  cities  of  San  Jose,  Milpitas,  Santa  Clara  and  Campbell,  the  Town  of  Los  Gatos 
and Santa Clara County, and technical contractors.  An interesting feature of the system is that it al-
lows both monitoring and control of system facilities by all jurisdictions on a peer-to-peer basis. 

The  system  enables  real-time  data  exchange  and  control  between  all  agencies,  thus  providing  the 
ability  for  each  agency  to  monitor  corridor-wide  traffic  management  decision  making.  The  real  time 
monitoring includes the ability to adjust traffic signals, electronic signs, and other devices across multi-
ple  jurisdictions  to  respond  to  traffic  volume  changes  and/or  incidents.  The  system  provides  a  real-
time  status  display  map  of  the  corridor  at  each  agency.  This  will  provide  travellers  with  information 
about current conditions and options, to optimize use of the freeways, expressways, and transit sys-
tems, and to minimize travel on local streets.  The system interfaces with TravInfo, the San Francisco 
Bay Area regional traveller information system. 

The first three phases of the project had an overall schedule of 18 months and a total budget of  USD 
7.5M from California’s Traffic Systems Management program. 

Project elements included: vehicle sensors, CCTV cameras and variable message signs on both sur-
face streets and freeways, traffic responsive signal coordination, upgrades to existing signal and free-
way management systems, a wide area computer network, automated data exchange, a corridor-wide 
real-time display, incident management procedures and a link to TravInfo.  The system enables staff in 
any of the involved jurisdictions’ Traffic Management Centers to manage any part or all of the corridor 
as needed and agreed between the participants.302 

Additionally, some of the biggest US Transportation Infrastructure Projects that are going to be devel-
oped during 2016 are the following.303 

  Second  Avenue  subway line  in  New  York  City:   the  segment  of  the  Second  Avenue  sub-

way line that connects 96th Street to 63rd Street.  

  Light Rail / Streetcar: the H Street and Benning Road streetcar line in Washington D.C. 
  Expo light rail line in Los Angeles: the second segment of the Expo light rail line in Los Angeles, 

which extends the route from downtown to Santa Monica. 

 

  Bus-Rapid  Transit:  Chicago’s  Loop  Link  BRT corridor  is  going  to  have  a  dedicated  lane  along 
Canal Street, and serve a new bus hub beside Union Station. Protected lanes and shorter cross-
ings will also be provided for cyclists and pedestrians.  
Intercity  Rail:  The new  Hudson  River  rail  tunnel  connecting  New  York  and  New  Jersey,  the  first 
phase of the Moynihan Station, which expands the Amtrak concourse of the current Penn Station 
and the privately funded All Aboard Florida passenger rail line, which links Miami and Orlando. 
  Highways  and  Bridges:  The  replacement  of Seattle’s  Alaskan  Way  Viaduct  is  also  expected  to 
have a significant progress in 2016, while the first span of the new Tappan Zee Bridge is expected 
to open in 2016.  

  Street Design: The transformation of Cleveland’s Public Square. It is the transformation of a traffic 

hub into a walkable square surrounded by greenery and thus detached from great traffic. 

  Freight: The Panama Canal expansion is also scheduled for completion during 2016.  

301  USDoT  –  Federal  Highway  Administration  (2016).  Livability 

Initiative  –  What 

is  Livability?  Retrieved 

from: 

http://www.fhwa.dot.gov/livability/  

302 Federal Transit Administration (2014). Annual Report on Funding Recommendations Fiscal Year 2015 Capital Investment 

Grant Program. Retrieved from: 
https://www.transit.dot.gov/sites/fta.dot.gov/files/FY15_Annual_Report_on_Funding_Recommendations.pdf  

303  Jaffe,  E. 
to  Watch 
http://www.citylab.com/commute/2015/12/us-infrastructure-projects-2016-transportation/421431/  

(2015).  The  Big  U.S.  Transportation 

Infrastructure  Projects 

in  2016.  Retrieved 

from: 

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Final Report – International Assessment and Action Plans of the Focus Areas 

  Airports:  The  proposed  LaGuardia  renovation,  if  approved,  could  present  great  progress  also  in 
2016 (while many airports across the U.S. wait to get a touch of modernization in 2016). As part of 
its  ambitious  NextGen  technology  upgrade,  the  Federal  Aviation  Administration  plans  to  deploy 
new data communications equipment at 56 airport towers by the end of next year.304 303 

Additionally to all the above, the Federal Highway Administration has launched discussions with state 
and  local  officials,      in  order  to  recommend  routes  in  their  areas  where  drivers  could  charge  electric 
vehicles  and  refuel  those  that  run  on  other  alternative  fuels. Initial  nominations  for  corridor  designa-
tions are going to the done, according to the FHWA, no later than August 2016.305 

3.2.6.3  Industry 

However, the explanation by the US government concerning the takeover of private highway and avia-
tion  infrastructure  continues  to  raise  reactions,  but  for  some  experts,  what  cannot  discussed  is  that 
inefficient public policies that have significantly compromised the performance of those public facilities.  

According  to  Clifford Winston306,  applied  micro-economist  and  senior  fellow  in  the  Economic  Studies 
program at the Brookings Institution, there are three ways that the private sector may be able to help. 
First, privatization, that is returning the public infrastructure into private hand, secondly with the adop-
tion, by the public sector, of technological innovations, especially in information technology, developed 
by the private sector that would improve the performance of existing infrastructure. The third option is 
direct actions taken by the private sector for the improvement of existing transportation system.307 

3.2.6.4  Market 

Just for the trucking industry, the Federal Highway Administration estimates that highway  bottlenecks 
are responsible for more than 243 million hours of delay each year, and a respective cost of USD 7.8 
billion annually.308 

Reinvesting  in  infrastructure  is  a  great  opportunity  for  the  United  States,  as  the  economic  benefits 
related  to  infrastructure  investment  can  be  sustainable.  Increased  infrastructure  investment  is  ex-
pected to result to a wide range of reinforcing benefits.309 

Transportation  investments  affect  also  the  geographic  distribution  of  economic  activity  together  with 
the economy’s level. This means that reducing transport costs in the past years enabled the develop-
ment  of  US  cities  (for  example  Chicago,  which  became  an  important  center  because  it  served  as  a 
central hub between the mid-west and the markets of the northeast and Europe). 

There  are  also  several  laws  and  incentives,  concerning  related  to  the  electrification  of  transport  that 
also  give  a  boost  to  the  US  Transportation  Infrastructure.  For  example,  The  Zero  Emission  Airport 
Vehicle  and  Infrastructure  Pilot  Program,  which  offers  funding  to  airports  (up  to  50%  of  the  cost),  in 
order to get Zero Emission Vehicles, as  well  as  acquire or modify supporting infrastructure for these 
vehicles. This funding must be used for airport-owned, on-road vehicles used only for airport purposes 
and they must meet the Federal Aviation Administration's Airport Improvement Program requirements. 
Moreover, the airport must be for public use.310 

304 Jaffe, E. (2015). The Big U.S. Transportation Infrastructure Projects to Watch in 2016. Retrieved from: 

http://www.citylab.com/commute/2015/12/us-infrastructure-projects-2016-transportation/421431/ 

305 Nadeau, G. (2016). Signs of Things to Come. Retrieved from: https://www.transportation.gov/fastlane/signs-things-come  
306 Winston, C. (2014). How the private sector can improve public transportation infrastructure. Retrieved from: 

http://www.brookings.edu/~/media/research/files/papers/2014/07/improve_transportation_infrastructure_private_sector_winsto
n/improve_transportation_infrastructure_private_sector_winston.pdf   

307 Winston, C. (2014). How the private sector can improve public transportation infrastructure. Retrieved from: 

http://www.brookings.edu/~/media/research/files/papers/2014/07/improve_transportation_infrastructure_private_sector_winsto
n/improve_transportation_infrastructure_private_sector_winston.pdf 

308 The White House (2014). An Economic Analysis of Transportation Infrastructure Investment. Retrieved from: 
https://www.whitehouse.gov/sites/default/files/docs/economic_analysis_of_transportation_investments.pdf  

309 Business Roundtable (2015). Road to Growth. The Case for Investing in America’s Transportation Infrastructure. Retrieved 

from: http://businessroundtable.org/sites/default/files/2015.09.16%20Infrastructure%20Report%20-%20Final.pdf  

310 US Department of Energy (n.d.). Federal Laws and Incentives for Electricity. Retrieved from: 

http://www.afdc.energy.gov/fuels/laws/ELEC/US  

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Final Report – International Assessment and Action Plans of the Focus Areas 

An efficient and well-performing transportation network is necessary for ensuring the US competitive-
ness in a global marketplace, as it has a crucial role in keeping jobs in America, allowing businesses 
to  expand  and  managing  their  inventories  making  it  more  cost-effective  for  manufacturers  to  keep 
production in or move production to the United States.311 

Increased investment in public infrastructure leads to significant economic benefits: 

  Up  to  USD  320  billion  would  be  generated  in  2020  if  U.S.  infrastructure  investment  were 

boosted by 1% of GDP per year.  

  1.7 million jobs would be created over the first three years by an USD 83 billion infrastructure 

investment.  

  Nearly USD 3 in economic activity is created by every USD 1 invested in infrastructure.312 

3.2.6.5  SWOT Analysis 

Strengths 
  Good record of establishing national stand-
ards  for  the  safe  and  efficient  operation  of 
transportation  infrastructure  systems  and 
modes 

  Local state alliances (i.e. West Coast). 
  Competition among State and local jurisdic-
tions  seeking  limited  federal  resources  to 
enhance  connectivity  could  become  an  in-
centive  for  the  deployment  of  connected 
vehicle  systems  through  Public  -  Private 
Partnerships 

Opportunities 
  Promotion  and  enhancement  of  community 
objectives, 
like  community  development, 
greater  accessibility,  safer  transportation 
systems, transportation system for all users, 
etc 

  Development  and  expansion  of  the  Livabil-

ity Initiative 

Weaknesses 
  Decline  of  the  U.S.  transportation  from  5th 
place in the World Economic Forum's rankings 
in  2002  to  24th  in  2011.This  decline  could  be 
ascribed  to  a  general  trend  of  inadequate  in-
vestment  in  the  sector  of  transport  infrastruc-
ture 

  The  government  only  plays  a  little  role;  thus, 
only  economically  profitable  projects  are  real-
ized  and  many  stakeholders  are  involved  and 
decrease efficiency 

  Major focus is on road development 
 

Infrastructure  for  public  transportation  poorly 
developed:  both  short  and  long  distances  as 
well  as  transit  between  modes  (no  connec-
tion/integration) 

Threats 

311 The White House (2014). An Economic Analysis of Transportation Infrastructure Investment. Retrieved from: 
https://www.whitehouse.gov/sites/default/files/docs/economic_analysis_of_transportation_investments.pdf 

312 Atkinson, R. (2014). ICT Innovation Policy in China: A Review. Retrieved from: http://www2.itif.org/2014-china-ict.pdf  

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3.3 

Focus Area 3 – Smart Mobility Services, Freight, and Logistics 

3.3.1  Brazil 

3.3.1.1  General Information 

Several  technologies  and  applications  to  address  mobility  issues  are  being  developed  in  Brazil.  The 
use of technologies for traffic management by  Brazilians is fairly low, only 20% of the cities in Brazil 
with more than 200 thousand inhabitants use it. Some of the technologies are smart traffic lights, elec-
tronic  signs,  surveillance  cameras  and  systems  to  manage  public  transportation.  Among  Brazilian 
cities,  São  Paulo  and  Rio  de  Janeiro  use  these  technologies  the  most.  In  2012,  the  federal  govern-
ment of Brazil published the Brazilian Policy of Urban Mobility, or Política Nacional de Mobilidade  Ur-
bana  (PNMU)  stating  that  every  municipality  with  more  than  20  thousand  inhabitants  must  have  a 
mobility plan by 2015. However, almost none of the cities have developed such a plan.313  

Brazil has smart mobility services for vehicles tracking and freight management. Some mobile applica-
tions are available for car sharing, taxi calls and apps to ease Brazilian traffic system. Various compa-
nies in Brazil are providing smart mobility in logistic sectors within and outside the country. Additional-
ly, Sao Paolo’s airport has started the rollout of a real-time cargo-handling automation and monitoring 
system.314  

No  specific  information  could  be  found  on  Research,  Development  &  Innovation  activities  regarding 
Smart Mobility Services, Freight and Logistics in Brazil.  

3.3.1.2  Industry 

Log-In  Logistica  Intermodal  offer  cabotage  services  (door  to  door  transportation,  logistical  planning, 
coasting  trade,  port  terminal  and  intermodal  terminals)  with  entire  process  involving  maritime  move-
ment, from planning to delivery. Through the controls, the safety of the mode of transport and the pos-
sibility of tracking cargo, it has been able to drastically reduce the number of accidents caused by the 
operations.  This  helps  to  lower  CO2  emissions  (energy  efficiency),  use  of  natural  waterways  (fewer 
trucks, fewer accidents), integrity of the cargo (security and savings), bulk carriers (sustainability and 
hydrodynamics).315  

Companies in  Brazil commonly  use technologies such as satellite, radio frequency, cellular/ General 
Packet Radio Service (GPRS) + Global Positioning System (GPS) and cellular/GPRS + GPS + satel-
lite in order to achieve precise and real time tracking of vehicles across the country’s roads. Globalna-
ya navigatsionnaya sputnikovaya sistema (GLONASS), a Russian satellite navigation system, is also 
being used in the country. The tracking and telemetry devices must be approved by Agência Nacional 
de Telecomunicações (ANATEL) and certified by the Experimental and Road Security Center/Centro 
de Experimentação e Segurança Viária/Center (CESVI) or the National Association of Risk Manage-
ment and Tracking and Management Technology Companies (GRISTEC).  Some of the tracking tech-
nologies in Brazil are: 316 

  Omnilink: It has nationwide coverage and offers equipment for monitoring and fleet management, 
guaranteeing more control and security over freight services. It also works with telemetry and risk 
management. The combined systems allow more efficiency and savings on freight services. 
Autotrac:  The  vehicle  systems  use  communication  and  tracking  over  GPRS  and  GPS  helping 
control and manage the data collected from the car or motorcycle via web or mobile 

 

  Positron:  It  is  among  the  leaders  in  vehicle  security,  offering  equipment  and  insurance  services 

for clients. 

313 Boechat, L. (2015). Smart Technologies for Urban Mobility in Brazil. Retrieved from TechinBrazil. 
314 Dhingra, L. (2013). Sao Paolo Airport Cargo Transport Going Real-Time, Automated. Retrieved from 

http://insights.wired.com/profiles/blogs/gru-airport-to-lead-cargo-transport-and-facilitate-global-trade#axzz4CzbsLo00 

315 Login (n.d.). Sustainable Logistics Solutions. Retrieved from https://www.loginlogistica.com.br/sustainability/#graneleiros  
316 Boechat, L. (2015). Smart Technologies for Urban Mobility in Brazil. Retrieved from TechinBrazil. 

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For freight management, Guarulhos Sao Paolo Aeropuerto Internacional and NIIT Technologies Inc., a 
global  IT  solutions  firm,  are  working  together  to  revitalize  and  augment  a  Cargo  Handling  System. 
Cargo  Operating  System  (COSYS),  a  product  of  NIIT’s  partner  SATS,  enables  real-time  automation 
and monitoring of processes related to the tracking, shipping and managing of cargo shipments.317 

Some of the Brazilian companies such as DC Logistics Brazil, GAC Marine Logistics and Prompt Bra-
zil  are  providing  smart  mobility  in  the  logistic  sector  within  the  country  and  internationally,  including 
online tools to follow up cargos. The A-Z freight group, an industry-leading site, provides a wide range 
of news, information and data products to the global air cargo community made up of 35,000 global air 
cargo companies, including 24,000 freight forwarders and 1,700 airports.318 

3.3.1.3  Market 

Brazil has Waze mobile navigation apps for easy commuting and providing information about driving 
and  traffic  conditions,  as  well  as  carpool  services.  Some  of  the  taxi  applications  such  as  99taxi  and 
Easy taxi are also used by Brazilians.319 Regarding car sharing, Brazilian cities are exploring car share 
programs  as  the  possible  alternatives  to  private  car  ownership.  Some  of  the  smart mobility  services 
include websites, where available seats and destination are indicated for sharing. Car sharing is popu-
lar  in  the  densely  populated  megacities  of  Brazil.  The  first  Brazilian  car  sharing  provider  is  Zazcar, 
started its services in São Paulo with about 2000 members, 60 vehicles and 45 stations. Vehicle ac-
cess is via RFID smart card, and it has a comprehensive tariff structure for private and business cus-
tomers as well as vehicle reservations via internet and telephone. It plans to extend its services in Rio 
de Janeiro and Curitiba.320  

Brazil also has CarpoolWorld.com, a ride sharing facility available in various cities. The available seats 
in the car are indicated in the website along with the address and the interested one can approach and 
share the ride.321 Uber apps  is also active in  14  Brazilian cities, such as in Belo Horizonzte,  Brasilia, 
São Paulo and Salvador.322 Besides that, Brazil also has Uber for trucks apps, operated by CargoX. As 
it is reported that around 300,000 vehicles are running empty for 40 percent of the time, this apps aim 
to reduce the number of empty trucks in the highways and increase revenue for truckers and  reduce 
costs for freight owners.323 

Sao Paulo is the first city to regulate fees for shared mobility services, such as Uber. It controls road 
congestion by putting price on vehicle use. The municipality collects a fee based on how many kilome-
tres shared mobility services (such as  Uber cars) are driving their passengers. This aims to regulate 
and manage the emerging services of shared and on-demand mobility.324 

3.3.1.4  SWOT Analysis 

Strengths 
  Systemic  traffic  management  solutions  for 

specific challenges available 

  Precise  and  real-time  tracking  technology 
deployed nationwide for security reasons 
  Freight tracking based on GPRS services (not 
only  RFID) including risk management estab-
lished 

Weaknesses 
  The  use  of  technologies  for  traffic  manage-
ment  is  fairly  low  except  in  São  Paulo  and 
Rio de Janeiro 

  Poor  governmental  support  for  the  develop-

ment of smart mobility solutions 

  Lack  of  coordinated  process  towards  smart 

mobility services 

317 Dhingra, L. (31. December 2013). Sao Paolo Airport Cargo Transport Going Real-Time, Automated. Retrieved from 
http://insights.wired.com/profiles/blogs/gru-airport-to-lead-cargo-transport-and-facilitate-global-trade#axzz4CzbsLo00  

318 Logistics Brazil. (n.d.). Directory of Logistics and Transportation Companies. Retrieved from 

http://www.logisticsbrazil.com/Logistics_Brazil 

319 Boechat, L. (2015). Smart Technologies for Urban Mobility in Brazil. Retrieved from TechinBrazil. 
320 Jung, A. (2014). Carsharing Services in Emerging Economies. GIZ. 
321 CarpoolWorld. (n.d.). Retrieved from https://www.carpoolworld.com  
322 Uber Brazil (n.d.). Uber Brazil. Retrieved from http://uberestimator.com/country/brazil 
323 Ha, Anthony (2016). Goldman Sachs leads USD 10M investment in Brazilian trucking startup CargoX. Retrieved from 

https://techcrunch.com/2016/07/20/goldman-sachs-leads-10m-investment-in-brazilian-trucking-startup-cargox/ 

324 Darido, G. (2016). Sao Paulo’s Innovative Proposal to Regulate Shared Mobility by Pricing Vehicle Use. Retrieved from 

http://blogs.worldbank.org/transport/sao-paulo-s-innovative-proposal-regulate-shared-mobility-pricing-vehicle-use 

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  Brazil is a leader in some solutions (e.g. Uber 

for Trucks) 

Opportunities 
  Due  to  size  and  traffic  issues  of  Brazilian  cit-
ies  there  is  a  great  potential  for  the  develop-
ment of smart mobility solutions 
Increasing integration of modes undertaken 

 

3.3.2  China 

3.3.2.1  General Information 

  Despite  governmental  efforts  pushing  cities 
to establish mobility plans almost no city has 
created one 

Threats 
  Slow development of smart mobility solutions 

cannot respond to exploding traffic volumes  

China is focusing on the development of smart mobility solutions in order to meet the needs and de-
mands  of  its  rapidly  growing  population.  This  includes  mobile  applications,  car  and  bicycle  sharing, 
green vehicles, and transport-related devices. A smart and sustainable transportation system is a pri-
ority for the country, especially because of the high urbanisation rate that will increase even more until 
2020.325 Another key enabler for the deployment of such solutions is the fast infrastructure building.  

The logistics industry in China is also expected to present rapid growth within the next 5 years, predict-
ing major changes in the following five sections: express road freight, air freight, contract logistics, and 
international freight forwarding. However, China’s logistics industry has not  developed accordingly to 
its economy growth mainly due to its fragmentation. But at the present, many transportation and logis-
tics  companies  in  China  are  already  adapting  their  strategies  and  focusing  on  more  innovative  busi-
ness models, improving their networks and their cost structures326, while a lot of opportunities for logis-
tics/freight  development  exist  due  to  well-established  infrastructure  and  export-oriented  economy. 
Currently, China has many logistics parks (clusters of logistics activities at well-defined locations). Due 
to  the  rapid  growth  in  exports  and  the  local  manufacturing  market,  hundreds  of  such  facilities  have 
been  created.  Between  2006  and  2012,  the  number  of  logistics  parks  in  China  increased  by  24%  a 
year.327 

3.3.2.2  Research, Development & Innovation 

The widespread adoption of the Internet of Things (IoT) applications in China appeared in 2010. Smart 
Cities constitutes a major example of China’s application  of IoT. The National Development and Re-
form  Commission  (NDRC)  and  MIIT  have  also  published  a  guideline  for  the  development  of  smart 
cities, while the central government has selected 202 cities to pilot smart city projects by developing a 
large database and sensor networks for the collection, storage and analysis of information related to 
transportation,  public  safety,  environment,  etc.328.  By  2015,  there  were  over  285  pilot  Smart  Cities  in 
China, as well as 41 special pilot projects.329 The integration of the information and industry technology 
in Smart Cities can create new services that lead to the improvement also of transport infrastructure, 
as well as the efficiency of urban management.  The Chinese government shows great interest in the 
Smart Cities development and has promoted the development of such technology in national policy. 330 

In the context of the Smart Cities development in China, an agreement has also been signed between 
several players in the UK and China Smart Cities initiatives for the development of a Joint Smart Cities 
Laboratory, co-located in Shanghai and Manchester. Digital China is funding the Jiao Tang University, 
so as to locate a Smart Cities laboratory there. The agreement requires a similar initiative to be estab-
lished  in  Manchester,  to  enable  collaboration  around  current  and  future  best  practices  in  Smart  City 

325  Frost  &  Sullivan  (2014).  Smart,  Seamless  and  Sustainable:  The  Future  of  Mobility  in  China.  Retrieved  from: 

http://ww2.frost.com/news/press-releases/smart-seamless-and-sustainable-future-mobility-china/  

326 Gob, M et al.(2015). China 2015: Transportation and Logistics Strategies. Retrieved from: 
https://www.atkearney.com/documents/10192/74d60d15-dc42-48a3-8dc8-7a2297f0be22  

327 The World Bank (2015). Logistics Centers Can Become Hubs of Freight Activity in China. Retrieved from: 

http://www.worldbank.org/en/news/press-release/2015/04/21/logistics-centers-can-become-hubs-of-freight-activity-in-china   

328 Atkinson, R. (2014). ICT Innovation Policy in China: A Review. Retrieved from: http://www2.itif.org/2014-china-ict.pdf  
329 Panori, A. (2016). Report: Smart cities in China. Retrieved from: http://www.urenio.org/2016/04/01/report-smart-cities-china/  
330 Johnson, D. (2014). Smart City Development in China. Retrieved from: http://www.chinabusinessreview.com/smart-city-

development-in-china/  

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design and technologies. The three universities of Manchester, Manchester Metropolitan and Salford 
along with the eForum form the basis, for the UK side, of the Joint Laboratory.331 

The overall expansion and development of the IoT also extends to the freight  and logistics sector in 
China. Emerging technologies including Big Data, IoT and cloud computing offer major opportunities to 
develop this sector and have already been adopted by some companies, such as SF express, which 
has made its sorting operation very effective by integrating technologies, such as voucher, computer 
bar code and radio frequency identification.332 

The Smart Freight Centre (SFC) is a global non-profit organization aiming to remove market barriers, 
as well as exploit existing initiatives for catalysing practical solutions throughout industry, in the freight 
and  logistics  sector.333  The  SFC,  together  with  the  Beijing  Transport  Energy  Environment  Centre 
(BTEC),  have  started  a  pilot  project  concerning  the  reduction  of  air  pollution  and  CO2  emissions, 
through  the  “Green  Trucks”  initiative,  including  the  use  of  innovative  technologies  by  freight  carriers 
and the development of a platform for both carriers and technology suppliers to cooperate, in order to 
promote and enhance technology adoption.334 

3.3.2.3  Industry 

The Ministry of Industry and Information Technology (MIIT) plans to invest and build on China’s Inte-
grated  Circuit  (IC)  design  industry’s  capability  for  mobile  smart  terminals,  cloud  computing,  IoT,  and 
Big Data. To become international lead market a further goal is to anchor the designs in international 
standards that other countries have to adapt to. Thus, the country does not only want to become less 
reliant on imports and foreign technology but also make all other parts of the world dependent on the 
domestically  developed technology. The MIIT is also planning to establish a national industry invest-
ment fund to attract venture capital and private equity investment in the IC industry. 335 Integrated Cir-
cuit design is the fastest growing segment of China’s semiconductor industry. 336 

In  the  context  of  the  changing  mobility  trends  in  China,  OEMs  are  required  to  co-operate  with  local 
governments to create new mobility solutions adapt their work to local customer needs including safety 
issues,  infrastructure  constraints  and  yearn  for  flexibility.  The  challenge  for  them  is  to  take  these  is-
sues into consideration while also staying competitive with cheap public transport and taxi service. 337  

Many  foreign  enterprises,  mainly  IT  companies  and  telecommunication  operators,  have  also  started 
participating and cooperating in the construction and development of Smart Cities in China. However, 
as  in  other  areas  of  action,  all  these  companies  have  to  deal  with  various  problems,  risks  and  chal-
lenges related to their ability to join and, thus, work under the different conditions of China (i.e. legisla-
tion framework).338 

Additionally,  in  the  context  of  the  logistics  sector  development  in  China  and  the  integration  of  smart 
technologies,  the  logistic  industry  is  becoming  more  mature.  A  wave  of  industries  is  expected  to 
emerge that will lead to a more compact market and facilitate local companies in competing with for-
eign corporations.339 

331 euForum (2012). EU-China Smart Cities. Retrieved from: http://www.eu-forum.org/smart-cities  
332 Deloitte (2015). Investment Promotion Report of China's Logistics Industry 2014-2015 - Simplified Version. Retrieved from: 
http://www2.deloitte.com/content/dam/Deloitte/cn/Documents/public-sector/deloitte-cn-ps-china-logistics-industry20142015-
en-150708.pdf  

333 Smart Freight Centre (2016). Smart Freight Centre aims to make the global freight sector more efficient and environmentally 

sustainable. Retrieved from: http://www.smartfreightcentre.org/main/what-we-do/overview-vi  

334  Smart 

Freight  Centre 

(2016).  Green 

Trucks  China  Pilot  Kickoff  Workshop.  Retrieved 

from: 

http://www.smartfreightcentre.org/news/green-trucks-china-pilot-kickoff-workshop  

335 EUSME Centre and China-Britain Business Council (2015). The ICT Market in China. Retrieved from: 

http://www.ccilc.pt/sites/default/files/eu_sme_centre_report_-_the_ict_market_in_china_update_-_july_2015.pdf    

336  PWC 

(2015).  China's 

Impact 

on 

the  Semiconductor 

Industry 

– 

2015  Update.  Retrieved 

from: 

http://www.pwc.com/gx/en/industries/technology/publications/semiconductor-china-ic-design-industry.html  

337 Raymond Tsang and Pierre-Henri Boutot (2015). China New Mobility Study. Retrieved from: 

http://www.bain.com/publications/articles/china-new-mobility-study-2015.aspx  

338 Hu Yang (2015). Smart city: opportunity and challenge for enterprises. Retrieved from: 

http://www.chinadaily.com.cn/business/2012-11/15/content_15935688.htm  

339 Gob, M-F., Wang, T., Gan, C.W., Li, J. and Yu, Z. (2015). China 2015: Transportation and Logistics Strategies. Retrieved 

from: https://www.atkearney.com/documents/10192/74d60d15-dc42-48a3-8dc8-7a2297f0be22  

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3.3.2.4  Market 

While the government of China is trying to balance supply and demand in basic sectors of the econo-
my, like transportation, big industry players are beginning to adopt the internet of things products and 
services. Logistics companies are more and more using real-time information, provided by connectivi-
ty, in order to enhance efficiency and decrease their costs340. The logistics market of China is develop-
ing rapidly through the last years. However, logistics software is considered an area that still needs to 
be upgraded, in order to enhance the ability of logistics companies to offer fast and high quality ser-
vices.341 

In 2013, the Ministry  of Industry and Information Technology (MIIT) published a document called the 
“Informatization Development Plan” concerning the progress of the Chinese ICT sector. In this docu-
ment several encouraged sub-sectors were listed, including logistics with e-commerce as well as intel-
ligent transportation systems. In order to maximize the potential and benefits of ICT, China has devel-
oped  several  industry-specific mid  and  long-term  ICT policies342.  Regarding  the  long-term  ICT  devel-
opment, the General Office of the Communist Party of China (CPC) Central Committee and the Gen-
eral Office of the State Council have published the State Informatization Development Strategy (2006- 
2020) which defines China’s goals for informatization development for the next 15 years.343 

In order to boost of several policy priorities related to the IoT industry and IoT applications, a national 
IoT Center was established in Shanghai in 2010. The government-owned institute receives an annual 
investment of CNY 10 billion to operate across a multitude of areas including health applications, intel-
ligent buildings and household, smart power grids and smart transportation.344 

According to the International Data Corporation (IDC), the construction of “smart cities”, deployment of 
the IoT and cloud services, as well as mobility and IT products will be the main drivers of the Chinese 
ICT market development.345 

In 2015, the EU SME Centre published a report called “Smart Cities in China”. The centre is an initia-
tive of the European Union, aiming to provide support to European small and medium-sized enterpris-
es  (SMEs)  in  order  to  help  them  get  ready  to  do  business  in  China346.  This  report  not  only  gives  an 
overview of the market and the state of play regarding Smart Cities in China but also acts as an "advi-
sory tool" for EU SMEs that want to expand their activity in this sector. A list of barriers encountered by 
EU SMEs is also presented in the report, including some legal and regulatory issues, market and op-
erational difficulties, etc. It suggests advice to help tackle these problems.347 

3.3.2.5  SWOT Analysis 

Strengths 
  Major  IT  companies  are  engaged  in  de-
veloping 
for  societal  ad-
vancement  creating  the  baseline  for  the 
development of smart mobility services 
  Strong  IT  knowhow  and  a  multitude  of 

technologies 

Weaknesses 
  Big  regional  differences  regarding  technological 

progress and technology readiness level 

  Despite  affordable  transport  possibilities  there  is 
hardly any development of smart mobility services 
in small cities 

innovation activities 

  Well-established  IoT knowhow  and  indus-

try 

340 GSMA (2015). How China is Scaling the Internet of Things.  Retrieved from: http://www.gsma.com/newsroom/wp-

content/uploads/16531-China-IoT-Report-LR.pdf  

341 Deloitte (2015). Investment Promotion Report of China's Logistics Industry 2014-2015 - Simplified Version. Retrieved from: 
http://www2.deloitte.com/content/dam/Deloitte/cn/Documents/public-sector/deloitte-cn-ps-china-logistics-industry20142015-
en-150708.pdf  

342 EUSME Centre and China-Britain Business Council (2015). The ICT Market in China. Retrieved from: 

http://www.ccilc.pt/sites/default/files/eu_sme_centre_report_-_the_ict_market_in_china_update_-_july_2015.pdf  

343 Atkinson, R. (2014). ICT Innovation Policy in China: A Review. Retrieved from: http://www2.itif.org/2014-china-ict.pdf  
344 Atkinson, R. (2014). ICT Innovation Policy in China: A Review. Retrieved from: http://www2.itif.org/2014-china-ict.pdf  
345 EUSME Centre and China-Britain Business Council (2015). The ICT Market in China. Retrieved from: 

http://www.ccilc.pt/sites/default/files/eu_sme_centre_report_-_the_ict_market_in_china_update_-_july_2015.pdf     

346 EUSME (2016). The Centre. Retrieved from http://www.eusmecentre.org.cn/about-centre  
347 Panori, A. (2016). Report: Smart cities in China. Retrieved from: http://www.urenio.org/2016/04/01/report-smart-cities-china/ 

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  Well-established  multi-modal 
industry with economies of scale 

logistics 

  Ride  and  bike  sharing  are  increasingly 

popular in China 

Opportunities 
  Fast  deployment  of  smart  mobility  ser-
vices  possible  due  to  fast  infrastructure 
building 

Threats 
  Uncertainty in local government regulations. 
  Threats concerning safety issues 

  Many  opportunities 

logistics/freight 
development  due  to  well-established  in-
frastructure and export-oriented economy 

for 

3.3.3 

India 

3.3.3.1  General Information 

India faces various mobility challenges such as traffic congestion, pollution and road accidents. On top 
of that, public transport has not been able to cope with the increasing travel demand, resulting in over-
crowded  buses  and  trains  and  thus,  the  preference  of  cars  over  public  transport.348  In  order  to  ease 
traffic congestion and efficient vehicle movement in Indian cities, various services for smart mobility in 
India are applied, such as smart card ticketing machines and smart mobile phone application. The use 
of the smart mobility  apps are expected to  grow as the average mobile  app  usage has  grown  expo-
nentially by at least 131%.349  

The Indian logistics and supply chain management sector is informal and fragmented, mostly with low-
tech vehicles and often without warehouses. Yet, there are a few large companies that are operating 
big  fleets  of  well-coordinated  vehicles  with  different  capacities.  Currently,  some  institutions  such  as 
Indian Railway Institute of Logistics and Material Management, Indian Institute of Logistics in Chennai 
and  Kochi  are carrying out the research  in the field of logistics and supply chain management in In-
dia.350  Also,  smart  logistics  start-ups  are  also  growing  in  India  for  efficient  goods  delivery.  However, 
poor transport and mobile network infrastructure hinder smart mobility services in India. 

348 Reddy, P. (2016). How mobility apps are transforming the urban transportation in India. Retrieved from https://www.move-

forward.com/how-mobility-apps-are-transforming-the-urban-transportation-in-india/ 

349 The Times of India. (2015). App usage in India grows 131%. Retrieved from http://timesofindia.indiatimes.com/tech/tech-

news/App-usage-in-India-grows-131/articleshow/48553584.cms 

350 Thaller, C et al. (n.d.). Analysis of the Logistics Research in India – White Paper 

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3.3.3.2  Industry 

The  Information  Technology  department  -  Delhi  Integrated  Multi-Modal  Transit  System  Ltd.  (DIMTS) 
has built strength in the Transport Analytics domain backed by its versatile Research & Development 
capabilities. It has contributed significantly to the Urban Mobility space through time-tested Intelligent 
Transport Systems evolved on gathering field knowledge over the years. Some of the products/ solu-
tions are351:  

  Automatic  Vehicle  Location  System  (AVLS)-  DIMTS  has  solutions  for  Vehicle  Tracking  and  Fleet 
Management  for  all  categories  of  public  transport,  based  on  a  combination  of  GPS,  GPRS,  GIS 
and Web technologies. Customized mobile and email alerts based on different conditions are sent 
to stakeholders while tracking movement of the fleet / vehicle, for security and monitoring purpos-
es. 

  Mobile Applications: 

o  Pooch-O,  the  flagship  product  is  a  ‘One-Stop  Transit  App’  from  DIMTS,  with  a  commuter-
centric interface giving options for travel by Auto Rickshaws,  buses and provides traffic infor-
mation to help commuters plan better travel. 

o  NextBus  Delhi  is  a  bus  application  that  provide  route  information,  live  occupancy  status  and 
estimated  time  of  arrival  (exact  time  of  the  next  bus’  arrival  with  its  bus  number)  for  cluster 
buses  in  Delhi.  The  app  also  gives  information  regarding  bus  frequency,  bus  stop  locations, 
and maps for better visibility to the commuter.  

o  TellTail  is  a  security  app  for  Indian  citizens,  especially  for  lady  commuters.  This  application 
can  be  used  all  over  the  country  for  basic  security  features.  Residents  of  Delhi  travelling  by 
auto can share the location of the Auto Rickshaw they are travelling in with their family/friends 
and  can  be  tracked.  In  case  of  emergency,  pressing  the  panic  button  thrice  or  shaking  the 
mobile violently will indicate the danger situation. Emergency contacts will be alerted with an 
alarm even if their phone is on Silent mode and receive a message that contains the location 
of the user and a map for further guidance.  

  Automatic  Fare  Collection  (AFC)  -  Enabling  payments  for  multiple  purposes  including  public 
transport with DIMTSPay, the unique payments platform for ticketing / passes / parking / toll. It has 
options of a Mobile Wallet, Smart Card, and the standard Credit / Debit Card facility.  

 

Identity  Management  -  Smart-Card  based  solutions  for  issuance  of  Driving  License,  Registration 
Certificates of vehicles,  Permits for State /  National  level commercial  vehicles  and Public Service 
Vehicle badges.  

Cycle rickshaws are a popular form of non-motorised transport (NMT) in India, and also are preferred 
mode of travel in cities, especially for shorter distances and can carry up to two passengers at a time. 
Cycle rickshaws not only serve as an affordable means of travel but also have various other environ-
mental  benefits.  Their  compact  and  flexible  design  allows  them  to  comfortably  pass  through  narrow 
lanes where other public transport modes generally have difficulty. Therefore, with the use of modern 
technology, its use has been increased to promote sustainable mode of transportation.352 Some of the 
initiatives are:353 

Ecocab: An “Ecocab” is basically a dial-a-rickshaw service developed on similar lines as a dial-a-cab 
service. The main idea was to bridge the gap between demand and supply through equal distribution 
of fleet and automation using latest IT tools and real time technologies. The concept was launched for 
the first time in Fazilka, a small town in the state of Punjab. It saved about 900 liters of fuel daily which 
could pollute 14,500 kg of fresh air. It also provides better law and order in the city by providing em-
ployment and quality Ecocab services. On average, one Ecocab saves about 3 liter of fuel per day as 

351 DIMTS. (2013). Transportation Technology and IT Solutions. Retrieved from 
http://www.dimts.in/Services_Transportation_Technology_IT_Solutions.aspx  

352 Ecocabs. (2013). About Ecocabs. Retrieved from http://chandigarh.ecocabs.org/about  
353 NIUA. (2015). Urban Transportation in Indian Cities 

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Final Report – International Assessment and Action Plans of the Focus Areas 

it is being propelled with pedal power instead of thermal or fossil fuel. In Fazilka alone, 500 Ecocabs 
save  about  1,500  litres  of  fuel  per  day.  Advocacy  through  Ecocabs  is  saving  about  900,000  litres  of 
fuel across Punjab and Haryana per day. 

G-Auto:  The  company  offers  an  innovative  solution  to  organize  the  auto  rickshaw  drivers  under  one 
common umbrella brand to offer safer and reliable services to customers while improving the lifestyle 
of auto rickshaw drivers. It has been using mobile technology to offer ‘call an auto service’ at passen-
gers’ doorsteps at a Government approved cost per meter rate. This is used in the cities - Delhi, Ah-
medabad, Gandhinagar, Baroda, Surat and Rajkot. 

At least two companies based in India market efreight software packages. Hans Infomatic 354 offers its 
iCaffee  software  and  various  other  programs,  including  warehouse  and  transport  management  sys-
tems for logistics operators. Another company, NewAge355, provides “a complete, feature-rich end-to- 
end  eCommerce  suite  for  Freight  Forwarders,  SOCs,  Custom  Brokers,  Carrier  Agents,  Third  Party 
Logistics, Multi Model Operators, Movers and WMS”. 

Some  logistics  start-ups  are  growing  in  India  to  provide  effective  goods  delivery,  such  as  Ecom  Ex-
press  (for  ecommerce  sites),  Delhivery  (provides  end-to-end  logistics  solutions  to  the  customer  and 
also helps to connect the country’s fragmented logistics ecosystem), BalckBuck (uses its technology to 
aggregate freight to transport goods between cities) and Gojavas (provides end-to-end logistics solu-
tions to companies).356 Some private start-ups on road logistics industry are also growing in India with 
the aim to make the logistics space more organized. They are Moovo (connects users to trusted mini-
truck drivers), Shipsy (picks, packs and delivers parcels from the customer’s doorstep), Turant Deliv-
ery  (works  with  the  vendors  to  help  them  optimise  their  inventory  utilisation)  and  Blowhorn  (offers  a 
tech platform connecting customers with owners of mini-trucks to move goods from one place to an-
other), etc. These logistics start-ups have mobile (Android) apps to connectivity.357 

3.3.3.3  Market 

The carsharing provider Zoom is India’s first membership-based, self-drive car hire service, started in 
2011  in  Bangalore.  It  offers  state-of-the-art  car  sharing  technology,  for  example  vehicle  access  via 
smart phone, and a fleet including various models of car. Based on the cooperation with Golden Gate 
Properties, an Indian property developer, car sharing stations of Zoom are mainly in residential apart-
ment complexes.  Cooperation  with GM, Mahindra and BMW, allows the provider to access vehicles, 
maintenance,  insurance,  financing  and  logistical  support.  Zoom  plans  to  offer  specific  tariffs  to  stu-
dents and expand the system to Mumbai and Delhi.358 

Another start-up car sharing facility in India is by Ridingo.com, founded in 2012 in Bangalore and fo-
cusing on improving the efficiency of urban road transport with the help of ride share. Once people are 
registered, they can use this facility through a phone. 

Likewise, Uberpool359 apps, an American online transportation network company, also offer car sharing 
in many Indian cities (such as New Delhi, Pune, Mumbai, Chennai and  Jaipur) with wide varieties of 
vehicle  options  from  scooter  to  luxurious  cars.  Besides  car  sharing,  an  Indian  online  transportation 
network  company  named  Ola  is  also  providing  taxi  sharing  service  in  100  Indian  cities.360  Users  can 
select cars of their choice361. Ola has started a pilot on-demand auto rickshaw services too in Banga-

354 Hans Informatic (2016) , About Us . Retrieved from http://www.hansinfomatic.com/about_us.html 
355 Foreight suite (2016). Retrieved from http://efreightsuite.com/ 
356 Meghna, R. (2015). 10 top-funded logistics startups in India this year. Retrieved from https://www.techinasia.com/ten-top-

funded-logistics-startups-india-2015 

357 Sangwan, S. (2015, November 16). Can these 9 Startups Change the On Road Logistics Industry in India? Retrieved from 
http://www.iamwire.com/2015/11/9-startups-easing-pain-shifting-heavy-packages-moovo-shipsy-instavans-turant-delivery-
blowhorn-thekarrier-shippr-theporter-parcelled/125572 

358 Jung, A. (2014). Carsharing Services in Emerging Economies. GIZ. 
359 UBER (2016). Retrieved from https://www.uber.com/ride/uberpool/ 
360 Russell, J. (2015). India’s Ola Announces Carpooling Service That Matches Customers Within Social Groups. Retrieved from 
https://techcrunch.com/2015/10/13/indias-ola-announces-carpooling-service-that-matches-customers-within-social-groups/ 

361Ola (2016). Retrieved from  https://www.olacabs.com/fares 

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Final Report – International Assessment and Action Plans of the Focus Areas 

lore.362 With the Indian Supreme Court’s decision of ban on diesel cabs in May 2016, the effect is seen 
not only on  the  decrease  in the  number of diesel driven taxis on the road363 but  also on the Ola  and 
Uber  facilities.364  Besides  that,  Ola  is  also  going  to  get  hard  hit  in  terms  of  competing  with  Uber,  as 
Uber has decided to sell off its Chinese operations to local rival Didi Chuxing and invest more in India, 
thus changing the current Indian market.365 

3.3.3.4  SWOT Analysis 

Strengths 
  Wide-spread  use  of  smart card  ticketing  ma-

Weaknesses 
  Poor transport and mobile network infrastruc-

chines and smart mobile phone applications 
  Smart  Mobility  Services  offer  an  answer  to 

ture, mainly in rural areas 

  Not  enough  mobile  apps  in  local  (Hindi)  lan-

country-specific challenges 

guage 

  Well-deployed  automatic  fare  collection  and 

smart cards 
Opportunities 
  Huge potential for smart services such as car 

Threats 
  Developed  solutions  have  no  fertile  ground 

and ride sharing 

because of high poverty rate 

  The  use  of  the  smart  mobility  apps  are  ex-
pected  to  grow  as  the  average  mobile  app 
usage has grown exponentially 

  Framework  conditions  for  the  implementation 
of smart mobility solutions are non-existent 
  Framework  conditions  for  the  implementation 

  Fast 

of 

new 

uptake 

technologies 
(smartphones) boost the development of new 
services  since  there  is  no  path  dependency 
on old technologies 

of smart mobility solutions are limited 

3.3.4 

Japan 

3.3.4.1  General Information 

Japan’s 5th Basic Plan foresees the integration of different systems (energy, transportation, manufac-
turing,  service,  etc.)  to  cope  with  the  increasing  complexity  of  today’s  transport  systems.  One  of  the 
application areas that integrate this complexity was formed in the smart community or smart city pro-
jects.  At  the  moment  there  are  more  than  200  running  smart  city  projects,  organized  by  the  central 
government, local government as well as the private sector. The developments towards smart cities is 
anchored  within  the  Ministry  of  Economy,  Trade  and  Industry’s  (METI)  flagship  project  “Next-
Generation Energy and Social Systems Test-Bed”, in the 2012 Japan Revival Strategy as well as the 
2013  Japan  Reconstruction  Strategy.  The  smart  city  project  in  Japan  focuses mainly  on  energy  and 
the  reduction  of  their  respective  carbon  footprints  (opposed  to  surveillance  in  e.g.  Songdo  or  Glas-
gow). The smart-city market is expected to reach at least a cumulative JPY 5,000 trillion in value be-
tween  2011  and  2030,  including  smart  infrastructure  as  water  and  housing,  smart  grids,  renewable 
energy, battery storage, etc. 

As shown in Focus Area 2, Japan's transport system mainly developed around the railway infrastruc-
ture.  Smart mobility  services  also  came  into  being  because  railway  companies  had  to  diversify  their 
business to make up for decreasing profits in their core business. Plus, major train stations have be-
come focal points in cities offering a variety of different mobility services. There is a widespread use of 
“on the go”-services through GPS, mobile phones and data ports in convenience stores. 

362 NDTV correspondent. (2014). Now Book Auto Rickshaws in Bangalore via Ola Cabs. Retrieved from 

http://gadgets.ndtv.com/apps/news/now-book-auto-rickshaws-in-bangalore-via-ola-cabs-623314 

363 Rajagopal, K. (2016). SC converts ban on diesel cabs to ‘gradual phase-out’. Retrieved from 

http://www.thehindu.com/news/national/ban-on-delhi-diesel-cabs-supreme-court-changes-mind-modifies-ban-to-gradual-
phaseout/article8581050.ece 

364 IANS. (2016). Ola and Uber Face Effect of Ban on Diesel & Petrol Cabs in Delhi. Retrieved from http://www.thequint.com/hot-

wire/2016/05/01/ola-and-uber-face-effect-of-ban-on-diesel-and-petrol-cabs-in-delhi 

365 Reuters. (2016). VB. Retrieved from Uber targets Ola in India after losing to Didi in China 

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Final Report – International Assessment and Action Plans of the Focus Areas 

However, a major setback is that Japanese citizens are neither involved in the governance system and 
political  economies  nor  in  the  planning,  design  and  deployment  of  these  urban  infrastructures.  The 
reason behind this supply-based approach might be the highly monopolized economic sphere that is 
slow to change since the industry is reluctant to undertake initiatives that might threaten their running 
business models.  

As  for  logistics  and  freight,  the  most  important  means  of  transport  are  road  transports  and  coastal 
shipping. In fact, trucks are the most used means of transportation making up 50%, followed by ship-
ping  with  44%,  rail  by  5%  and  airlines  with  0.2%.366  As  can  be  seen,  rail  transportation  only  plays  a 
minor role in freight in Japan, the major company being JR Freight which only concentrates on certain 
express  routes  and  niche  markets.  Due  to  cost  efficiencies  in  airborne  freight  transportation  in  the 
United States, the international air transports on trans-Pacific routes, including freight from other Asian 
countries, have climbed and Japan’s decentralized port system is suffering from the effects. Addition-
ally, Japan’s industry has focused more intensely on manufacturing in international locations resulting 
in falling freight  volume for Japanese  logistics service providers. Faced simultaneously  with stronger 
international competition, Japanese logistics service companies are trying to strengthen their position 
in sea, land and air transports by offering multimodal shipping provided by a single source. ITS Japan 
and academia are also putting enormous effort into Multimodal Logistic Systems and Platooning tech-
nology. 

The most important domestic logistics service providers are Nippon Express, Yusen Air / Sea Service, 
Yamato  Holdings  and  Sagawa  Express.367  Even  though  Japan  has  a  well-established  railway  infra-
structure, the problem with connectivity in rail is that freight cars have neither their own power supply 
nor their own sensors. Despite the fact that there is such a good railway infrastructure, rail  is mainly 
used for passenger transport in Japan (see Focus Area 3). However, automation offers a lot of poten-
tial for freight since sensors could measure temperature, location, humidity, and vibration (when  ma-
neuvered) in the cargo space in all transport modes.368 

In  general,  the  Japanese  transport  system  is  characterized  by  very  fluid  transportation  modes,  well-
established  management  and  a  high  level  of  service-orientation.  The  advanced  system  has  mainly 
been  possible  because  of  the  Japanese  culture  that  values  efficiency,  technological  advancements 
and service orientation. 

3.3.4.2  Research, Development & Innovation 

Japan  is  pushing  technological  development  in  many  ways.  Smart  Systems  that  are  currently  being 
tested  in  Japan  include:  Traffic  Information  Control  System  (Next  Generation  Systems),  Contactless 
Electronic Charging, Advanced Rapid Transit, Advanced Public Transport Priority System,  Next Gen-
eration  Telematics  (connecting  cars  and  people,  connecting  cars  and  smartphones),  C-ITS,  Energy 
Management (connected with homes, offices, stores, factories via cloud technologies; optimized ener-
gy  use),  Next  Generation  Urban  Traffic  System  (combining  cars  with  public  transit  and  last-mile-
mobility  systems),  vehicle  as  a  resource  (storage,  communication/networking  capability,  infor-
mation/signal processing, electric power, sensing). All these technologies are to be developed in light 
of the push towards increasing resilience. Especially, the vehicular network is not perceived as a sepa-
rate entity but as a framework around already known networks creating a vehicle-based network and 
puts the car in a central position in ICT architecture.369 

Toyota's is putting their vision of smart mobility “Ha:mo", a next-generation urban transport system that 
has been tested in Toyoda City, Grenoble and Tokyo. Ha:mo, short for “Harmonious Mobility Network”, 
aims  for  optimally  combining  personal  mobility  vehicles  such  as  automobiles  with  public  transporta-

366 JR Freight (2015). Freight Rail Overview & Freight Management in Japan. Retrieved from 

http://www.carecprogram.org/uploads/events/2015/035-Railway-WG-Meeting/Presentation-Materials/Day-2/2015-RWG-
Meeting-P15_%20JR%20Freight_KNishimura_EN.pdf 

367 DHL (n.d.). Japan. Retrieved from https://www.dhl-discoverlogistics.com/cms/en/course/trends/asia/japan.jsp  
368  Bosch 

(2016).  Connected 

trains  are  better 

trains.  Retrieved 

freight 

freight 

from  http://www.bosch-

presse.de/presseforum/details.htm?txtID=7511&locale=en 

369 Altintas, O. (2015). Towards Smart Mobility: Vehicle-Centric View of Information and Communication Technologies. Re-

trieved from http://sites.ieee.org/italy/files/2016/03/Toyota-Altintas_RTSI_2015.pdf  

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Final Report – International Assessment and Action Plans of the Focus Areas 

tion.  The system features new mobility options such as the "Toyota i-Road" personal mobility concept 
car,  "COMS"  ultra-compact  single-occupant  electric  vehicle  and  "Winglet"  an  ultra-compact  personal 
transport assistance robot. Another stream of efforts is put on Next-Generation Telematics that enable 
the  gathering  and  processing  of  data  and  turning  it  into  information  that  is  useful  to  both  large  and 
small-scale users. These include: Voice Recognition Agent, Smart G-BOOK (smartphone-based navi-
gation service) and Big Data Traffic Information Service that collects large-scale driving data (including 
vehicle  position,  speed,  and  other  statistical  data),  and  which  is  being  used  for  traffic  flow  improve-
ment, map information and disaster response measures.370 

Fujitsu uses real-time display of information to generate a predictive determination of what there is to 
come and what there is to be done. By doing so, they want to realize a modal shift, improving the us-
er/passenger experience and facilitating the management for urban transportation.371 To do so, Fujitsu 
Laboratories  and  MIT  have  partnered  up  to  develop  an  on-demand  transportation  technology  that 
dynamically  assigns  the  same  vehicle  to  different  modes  of  transport  depending  on  demand.  Thus, 
they can balance vehicle oversupply or shortages. The partnership shall respond to various needs of 
transport users  while increase profits for operators. The main driver  is Japan’s  aging population and 
efforts to increase sustainability.372 

Furthermore,  Fujitsu  has  entered  co-operation  with  the  Center  for  Infrastructure  Asset  Management 
Technology and Gifu University to enhance the ability of road inspection based on G-sensors. Based 
on  smartphones  and  on-board  devices,  the  Roadway  Patrol  Support  Service  uses  Fujitsu’s  cloud  to 
continuously check road quality which is then automatically reported to and analysed by the municipal 
government for road facility maintenance.373 

As  for  rail  freight,  JR  Freight  is  increasingly  relying  on  automation  for  its  freight  handling  based  on 
three systems: IT-FRENS for selecting the optimal route, DRIVER for navigation, and TRACE for loca-
tion information based on RFID tags and GPS (see figure 16).374 

Figure 20: Automation of freight handling developed by JR Freight375 

370 Toyota (2013). Toyota's Vision of Smart Mobility to Feature at Tokyo Motor Show. Retrieved from 

http://www2.toyota.co.jp/en/news/13/11/1108.html  

371 Fujitsu (n.d.). Vision of Smart Mobility. Smart Mobility, an emerging need for Modern Cities. Retrieved from 

http://www.fujitsu.com/global/solutions/business-technology/intelligent-society/smart-mobility/vision 

372 Fujitsu (2014). Fujitsu and MIT Develop On-Demand Transport Service Technology to Support User Needs and Increase 
Service Operator Profits. Retrieved from http://www.fujitsu.com/global/about/resources/news/press-releases/2014/0508-
01.html 

373 Murakami, S. et al. (2014). Manipulating Data to Maintain Transportation Infrastructure. In: Fujitsu Scientific & Technical 

Journal, Vol. 50 (2), pp. 26-34. Retrieved from 
http://www.fujitsu.com/global/documents/about/resources/publications/fstj/archives/vol50-2/paper04.pdf 

374 JR Freight (2015). Freight Rail Overview & Freight Management in Japan. Retrieved from 

http://www.carecprogram.org/uploads/events/2015/035-Railway-WG-Meeting/Presentation-Materials/Day-2/2015-RWG-
Meeting-P15_%20JR%20Freight_KNishimura_EN.pdf 

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The  Smart  Mobility  Research  Center  of  Tokyo's  University  of  Agriculture  and  Technology  comprises 
three  laboratories  into  an  open-innovation  laboratory  in  the  field  of  vehicle  and  mobility  engineering. 
The  focus  lies  on  zero  accidents  and  zero  emissions  but  it  also  covers  active  safety  and  advanced 
driver assistance systems as well as environment-friendly vehicles and alternative power systems for 
enhancing  energy  efficiency.  Methodologically,  it  focuses  on  near-miss  incident  data,  in-depth  anal-
yses based on image-captured drive recorder data,  as well as vehicle control by  using Car-Robotics 
technology.376 

Whereas there is a lot of research on multimodal logistics at Hitotsubashi University,377 other universi-
ties such as Osaka University, Osaka Prefecture University, Kyushu University at Fukuoka, Kobe Uni-
versity, Tokyo University are putting a strong focus on maritime logistics.378 

Toyota’s  InfoTechnology  Center, established in January 2001 in Tokyo,  was founded as  a joint  ven-
ture of eight companies, including Toyota Motor Corporation, DENSO, KDDI and other Toyota group 
companies. 

The Japan Ship Technology Research Association’s (JSTRA) efforts are directed at a series of tech-
nical  challenges  requiring  urgent  solutions  for  the  maritime  industry  such  as  improvement  of  logistic 
efficiency, securing safety and environment protection.379 

3.3.4.3  Industry 

Like  the  central  government  and  local  governments,  the  private  sector  is  engaging  in  the  establish-
ment and development of smart cities. 

In September 2009, the Smart City Project group was founded by 25 companies and one association, 
the  Future  Design  Centre.  The  Smart  City  Project  gathers  some  of  the  largest  firms  in  Smart  City 
technology  and  planning  such  as  Azbil  Corporation,  NEC,  Itochu,  SAP,  Kaneka,  NTT,  LG  CNS,  JX 
Nippon  Oil  &  Energy,  Kawasaki,  Kokusai  Kogyo,  Sumitomo  Forestry,  Sharp,  Tsuneishi,  Sekisui, 
Toschiba, Toppan, Tokyo Gas, Hitachi, Nikken Sekkei, HP and Mitsui. 

This includes Sekisui House’s “smart towns”, Panasonic’s FujisawaSST “smart city” initiative, Hitachi’s 
“Hitachi City”, Mitsui Fudosan and Mitsui Home and various initiatives by Toshiba such as greenfield 
Ibaraki City Smart Community Project. Other companies involved are Azbil, e - solutions, Itoch u, SAP, 
NEC,  NTT  Communications,  LG  CNS  ,  Kaneka,  Kawasaki,  Kokusai  Kyogo  Group,  JX  Nippon  Oil  & 
Energy,  Shimizu,  Sharp,  Sumitomo  Forestry,  Seven  &  iHoldings,  Tsuneishi  Holdings  Corporation, 
Tokyo Gas, Toppan, Nikken Sekkei, HP. 

Hitachi’s plan is to market their ITS applications for a wider variety of social innovations in areas such 
as logistics or urban planning by using probe technology, so that it can help provide safer and more 
comfortable  lives  and  contribute  to  the  progress  of  a  society  that  is  conscious  of  the  environment. 380 
Regarding logistics, Hitachi also works on smart logistics technology including automation, simulation 
and analysis technologies.381 

375 JR Freight (2015). Freight Rail Overview & Freight Management in Japan. Retrieved from 

http://www.carecprogram.org/uploads/events/2015/035-Railway-WG-Meeting/Presentation-Materials/Day-2/2015-RWG-
Meeting-P15_%20JR%20Freight_KNishimura_EN.pdf 

376 TUAT (ND). Smart Mobility Research Center. Researches. Retrieved from http://web.tuat.ac.jp/~smrc/research.html  
377 Hitotsubashi Unversity (2016). Hitotsubashi Researchers Information. Retrieved from https://hri.ad.hit-

u.ac.jp/html/141_research_activity_en.html  

378 EduMaritime (2016). Some of the Best Education in Maritime & Logistics in Japan. Retrieved from 

http://www.edumaritime.net/international/japan  

379 JSTRA. (2016). Introduction. Retrieved from http://www.jstra.jp/english/  
380 Okubo, T. et al. (2014). Realizing Smart Mobility Using Probe Data. Hitachi Review Vol. 63(6), pp. 359-363. Retrieved from 

http://www.hitachi.com/rev/pdf/2014/r2014_06_110.pdf  

381 Hitachi (2016). Smart Logistics Technologies. Retrieved from http://www.hitachi-

transportsystem.com/en/solution/smartlogistics  

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Recently,  VIA  Technologies,  Inc.  and  Japan  Taxi  Co.,  Ltd.  unveiled  the  Smart  IoT  Mobility  System 
based on highly-customizable, in-vehicle system platforms which integrate a full suite of communica-
tion and connectivity features in a highly-optimized solution for commercial vehicle applications, creat-
ing a smart fleet management and the development of new on-demand passenger services.382 

The  Japanese  logistics  industry  comprises  independent  operators  of  land  transportation,  marine 
transportation,  air  freight  forwarding  and  warehousing.383  The  biggest  companies  are:  Yamamoto 
Global Logistics, Yusen Logistics, Fukuyama, Hitachi, Nippon Express, MOL Logistics, Transcontainer 
Ltd, Kintetsu World Express, NEC Corporation, Japan Cargo Express Co., Ltd. The two main industry 
associations are Japan Aircargo Forwarders Association (JAFA) and Japan International Freight For-
warders Association (JIFFA). 

Murata/Muratec  are  developing  a  variety  of  smart  transportation  technologies  for  logistics  such  as 
Laser  Guided  Vehicles  (LGV),  Automated  Transportation  and  Sorting  Vehicles  (RTN-X),  Conveyor 
Systems, Intra-bay Automated Overhead Traveling Vehicles, Inter-bay Automated Overhead Traveling 
Vehicles,  Rail  Guided  Vehicles  (RGV),  Automated  Overhead  Traveling  Vehicles  (SKY-RAV),  and 
Magnetic-guided Automated Transportation Vehicles (AGV).384 

3.3.4.4  Market 

There have been two waves of Smart City projects subsidized by METI. The first wave focused on the 
Test  Projects  for  Next  Generation  Energy  and  Social  Systems.  The  four  key  pilots  were  Keihanna, 
Kitakyushu, Toyota  City, and  Yokohama. The second round  was launched  in 2012, the  year after 3-
11, in order to foster the urban and economic reconstruction of some  disaster hit areas and improve 
their resilience. The total budget allocated to the projects for promoting the introduction of smart com-
munities is JPY 8.06 billion. The ten chosen municipalities are: Fukushima, Aizuwakamatsu City, Iwaki 
City,  Minamisoma  City,  Ishinomaki  City,  Kesennuma  City,  Ohira  Village,  Yamamoto Town,  Kamaishi 
City, Miyako City, Mogami. One of them is the Future City Initiative (FCI), the successor of the initiative 
– Eco-city models – launched in 2008.  

Japan  is  leading  in  ITS.  One  of  its  central  goals  has  been  the  provision  of  real-time  information  on 
traffic conditions from 1996 onwards. Real-time traffic information can be either collected through fixed 
devices or sensors embedded  in  or beside roadways or through mobile probes  delivered  by  taxis  or 
mobile  devices  such  as  smartphones.  Japan  was  the  first  country  to  use  fixed  devices  (1996-2003), 
and then switched to mobile probes (as of 2003).  

Japan’s VICS “Smartway” takes information collected  by Japan’s Road Traffic Information Center on 
roadway conditions, accidents, congestion, and road closures or repairs. It processes, edits, and digit-
izes this information; and then sends it to vehicle navigation systems via different transmission mech-
anisms. It provides users with three different services: (1) information and direct driving assistance, (2) 
internet connection services, and (3) cashless payment services at toll booths,  parking lots, gas sta-
tions, convenience stores, etc. By combining knowledge of the vehicle’s location on the roadway with 
context-specific  traffic  flow  information,  it  advances  towards  AHS  (Advanced  Cruise-  Assist  Highway 
System) and ASV (Advanced Safety Vehicle) to offer safer “smart driving” via vehicle-to-vehicle com-
munications. Information is provided visually and audio, via actual live camera images, including real-
time traffic information during natural disasters—particularly earthquakes, landslides, and tsunamis. It 
has additionally designed mechanisms to automatically feed data about such events into the dynamic 
message signs on roadways.385 

About 68% of all  vehicles regularly using Japan’s toll  expressways are  equipped with  ETC on-board 
units. Japan operates a single national standard for electronic tolling to make the system compatible 
nationwide for transactions across all the country’s toll roads for expanding ETC. In this way,  private 

382 VIA (2016). VIA and Japan Taxi Unveil Smart IoT Mobility System. Retrieved from http://www.viatech.com/en/2016/03/via-

and-japan-taxi-unveil-smart-iot-mobility-system  

383 Mitsubishi Logistics (2016). Japan. Retrieved from http://www.mitsubishi-logistics.co.jp/english/service/pd/district/japan.html  
384 Muratec (2016). Transportation Systems. Retrieved from http://www.muratec.net/logistics/products/transportation/index.html 
385  Ezell,  S.  (2010).  Explaining  International  IT  Application  Leaderhip:  Intelligent  Transportation    Systems.  Retrieved  from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf  

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companies can offer automatic toll collection options, such as in private parking garages. Japan also 
regularly uses variable-toll pricing, easy to implement electronically, to variably price tolls as a means 
to manage traffic flow and congestion in metropolitan areas.386 

The  widespread  deployment  of  Variable-Message  Signs  (VMS),  Integrated  Traffic  Control  Systems 
(ITCS)  and  the  automated  traffic  light  control  systems  have  facilitated  a  smooth  transfer  between 
modes and has decreased the overall congestion in urban areas. In 2016, there were 10,810 car shar-
ing vehicle stations in Japan, showing a year-on-year increase of 14%, 19,717 vehicles, a 20.1% year-
on-year  increase  and  846,240  car  sharing  users,  mirroring  a  24.2%  year-on-year  increase).387  Com-
pared  to  2002,  the  first  year  of  data  gathering,  when  there  were  only  21  vehicles  and  50  users,  this 
shows an enormous growth (Figure 21). One of the main actors is the Japan Car Sharing Association. 

Figure 21: Japan’s growing car sharing market (left/red: number of vehicles; right/blue: number of users)388 

Japan’s intermodal freight policies are embedded in the framework of the “Comprehensive Programme 
of Logistics Policies” launched in 1997. It focuses on infrastructure and deregulation (safety, abolition 
of demand-supply adjustment rules) and the realization of a sophisticated logistical system (IT, stand-
ardization,  new  technologies).  It  is  revised  annually.389  It  was  distinguished  between  three  levels  of 
logistics  systems:  city  logistics,  regional  logistics,  and  international  logistics.  Whereas  intermodality 
was not specifically mentioned, especially within regional logistics the focus was put on modal integra-
tion: modal role-sharing, promotion of coastal shipping and related equipment, promotion of rail cargo, 
access to roads and other modes.390 

386  Ezell,  S.  (2010).  Explaining  International  IT  Application  Leaderhip:  Intelligent  Transportation    Systems.  Retrieved  from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf   

387 Foundation for Promoting Personal Mobility and Ecological Transportation (2016). Changes in Japan’s car-sharing number of 

vehicles and the number of members. Retrieved from 
http://www.ecomo.or.jp/environment/carshare/carshare_graph2016.3.html&usg=ALkJrhjNfPCdE4hxODyyQeI7aXKriCRnug 
388 Foundation for Promoting Personal Mobility and Ecological Transportation (2016). Changes in Japan’s car-sharing number of 

vehicles and the number of members. Retrieved from 
http://www.ecomo.or.jp/environment/carshare/carshare_graph2016.3.html&usg=ALkJrhjNfPCdE4hxODyyQeI7aXKriCRnug 

389 OECD (2001). Intermodal Freight Transport. Institutional Aspects. OECD Publishing.  
390 Horn, B. , Nemoto, T. (2004). Intermodal Logistics Policies in the EU, the U.S. and Japan. Retrieved from https://hermes-

ir.lib.hit-u.ac.jp/rs/bitstream/10086/16054/1/070cmWP_93.pdf  

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In 2013, the Cabinet approved the Fundamental Principles of General Logistics Policy (2013-2017) in 
order to present guiding principles on the logistics policies and administration. 391 The three main policy 
measures are the collection of freights, the creation  of freights by  industrial clusters behind strategic 
ports, and the increase of the competitive power of strategic ports. 392 

Within the ASEAN-Japan Transport Partnership that runs since 2003, the Pakse Action Plan was de-
fined. It is based on four pillars comprising Transport Facilitation, Transport Infrastructure, Quality and 
Sustainable Infrastructure, and Human Resource Development. In the ASEAN-Japan Transport Work 
Plan (AJTP) 2015-2016 and Green Logistics there are 22 projects clustered along the four pillars (see 
Figure 22).393 

Figure 22: ASEAN-Japan Transport Partnership Work Plan for 2015-2016 and Green Logistics394 

The  government’s  logistics  strategy  was  formulated  within  the  Framework  for  General  Measures  for 
Logistics  (2013-2017),  issued  by  the  Ministry  of  Economy,  Trade  and  Industry  defined  the  following 
three  key  points:  (1)  logistics  that  support  enterprises'  global  supply  chains,  (2)  logistics  with  lower 
environmental burdens, and (3) logistics with disaster resilience.395 

391 Ministry of Economy, Trade and Industry (2013). Announcement of the Fundamental Principles of General Logistics Policy 

(2013–2017). Retrieved from http://www.meti.go.jp/english/press/2013/0625_01.html  

392 Kose, T. (2013). Logistics Policy in Japan. Retrieved from 

http://www.japantransport.com/seminar/Kose_Presentation_20140327.pdf  

393 Ministry of Land, Infrastructure, transport and Tourism (2014). Introduction of Japan’s  activity in promotion of Green Freight  

and  Logistics in ASEAN. Retrieved from http://www.gms-eoc.org/uploads/resources/955/attachment/Day%202-
Green%20Freight-Japan%20and%20ASEAN.pdf  

394 Ministry of Land, Infrastructure, Transport and Tourism (2016). Introduction of Japan’s Activity in Promotion of Green Freight 

and Logistics in ASEAN. 2nd Workshop on Green Freight and Logistics co-hosted by ADB/GIZ. Retrieved from: 
http://www.gms-eoc.org/uploads/resources/955/attachment/Day%202-Green%20Freight-
Japan%20and%20ASEAN.pdf#page=1&zoom=auto,-17,540 

395 Ministry of Economy, Trade and Industry (2013). Announcement of the Fundamental Principles of General Logistics Policy 

(2013–2017). Retrieved from http://www.meti.go.jp/english/press/2013/0625_01.html  

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3.3.4.5  SWOT Analysis 

Strengths 
  Development of smart mobility services due 
to industry’s necessity of diversifying busi-
ness 

  Widespread deployment of advanced traffic 

Weaknesses 
  Even though smart service system are ser-
vice-oriented, their development is pushed 
from the supply rather than demand side 
  Citizens not involved in governance system, 

management systems 

  Many industrial research activities and 

demonstration projects (e.g. Toyota’s ha:mo) 

political economies as well as planning, de-
sign and deployment of urban infrastruc-
tures 

  Development of international, high-volume 

  Highly monopolized economic sphere that 

multi-modal distribution terminals 

is slow to change 

  Government support available, particularly 
for smart communities aiming at energy effi-
ciency and savings 

  Even though Japan has a strong rail indus-
try, the majority of logistics and freight is 
done by road transport and coastal shipping 

Threats 
 

Japan’s port system suffers from the effects 
of international shift towards airborne freight 
transportation 

  Well-established industrial cooperation 
  Strong academic R&D 

Opportunities 
  Growing car sharing market, particularly in 

highly urbanized areas 

  Need for resilient systems increases devel-

opment of smart mobility services 

  Because shifting production overseas reduc-
es freight volume for Japanese logistics ser-
vices, Japanese shipping providers have to 
find innovative solutions 

3.3.5 

South Korea 

3.3.5.1  General Information 

According to the South Korea Ministry of Science, ICT, and Future Planning and the Ministry of Trade, 
Industry,  and  Energy,  the  government's  goal  is  to  foster  an  Internet  of  Things  (IoT)  and  smart  car 
business by 2024 that will be worth  KRW 100 billion. During 2015, the government provided  KRW 1 
trillion in funding for various IT-related industries, including KRW 77.2 billion for IoT, KRW 28.2 billion 
for smart cars, and KRW 77.1 billion on its 5G networks.396 

Korea’s Songdo City  was  built entirely as a smart city,  with  a focus on surveillance; however, it  was 
criticized as being a corporate-led, resource-intensive smart city.397 

With regard to freight and logistics, the Korean government has established various policies since the 
turn of the millennia to promote Korea as the logistics center of Northeast Asia (2002), to foster logis-
tics companies (2006), to establish the basic plan for the logistics industry (2001, 2011) and to bring 
the Korean logistics industry in line with advanced markets (2009-2013). Whereas in the early stage, 
logistics policies in Korea  were focused on the  expansion of logistics infrastructure and the develop-
ment of logistics experts, recently, the focus of its industrial policy has shifted to promoting third-party 
logistics, fostering global logistics companies and the sophistication of the logistics industry.398 

396 Mu-Hyun, C. (2015). South Korea to invest USD 5b by 2020 in IoT and smart cars. Retrieved from 

http://www.zdnet.com/article/south-korea-to-invest-5b-by-2020-in-iot-and-smart-cars  

397 DeWit, A. (2014). Japan’s Resilient, Decarbonizing and Democratic Smart Communities. In: The Asia-Pacific Journal, Vol. 

12(50), No. 3. Retrieved from http://apjjf.org/2014/12/50/Andrew-DeWit/4236.html    
398 Invest Korea (n.d.). Investment Opportunities in Korea. Logistics & Distribution.Retrieved from 
http://www.investkorea.org/en/published/publications03.do?mode=download&articleNo=71363&attachNo=10692  

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3.3.5.2  Research, Development & Innovation 

Korea’s  technological  strengths  include:  1)  real-time  traffic  information  provision,  2)  advanced  public 
transportation  information  systems,  and  3)  electronic  fare  payment  and  electronic  toll  collection  The 
ITS Master Plan identified three phases of ITS development in Korea through to 2020, originally  esti-
mating a cost for the entire plan of KRW 8.34 trillion. As of 2007, South Korea updated its investment 
schedule, committing to invest a total of KRW 4 trillion from 2007 to 2020. “ITS Model Cities” were built 
as  of  1998  with  a  pilot  in  Kwa-chon  city,  followed  by  three  more  model  cities  (Daejon,  Jeonju,  and 
Jeju) until 2002 and  25 more until 2007. These 29 cities are part  of South Korea’s Ubiquitous Cities 
initiative.399 

Since 2007, the Ministry of Land, Infrastructure and Transport and the Korea Expressway Corporation 
(KEC)  have  spent  KRW  88.8  billion  to  develop  18  technologies  related  to  communications  and  road 
management for the Smart-Highway initiative. Altogether, the Smart-Highway project draws from vari-
ous communications, information, road construction and management technologies and requires col-
laboration with multiple industries. Via a traffic-monitoring system known as Smart-I, drivers are alert-
ed to crucial information (car accidents, traffic jams or construction) that is sent through a device set in 
real-time  to  their  vehicles.  The  system  is  based  on  Wireless  Access  in  Vehicular  Environments 
(WAVE), a public communications network for traffic and roadway analysis. 400 

3.3.5.3  Industry 

The Smart Transit Cards and Integrated Fare Collection System, also known as T-Money, is a unified 
fare smart card system for public transportation.  It  was developed  by  Korea  Smart Card Co., Ltd.,  a 
joint venture spearheaded by The Seoul Metropolitan Government and including LG Group, credit card 
companies, and smaller telecommunications companies and financially supported by the Asian Devel-
opment  Bank.  401  It  is  an  integrated  fare  collection  system  that  provides  nationwide  compatibility  and 
allows  users  to  pay  for  almost  all  kinds  of  public  transport  with  a  single  card.  It  is  based  on  a  re-
chargeable series of cards and other smart devices used for paying transportation fares.  402 It can be 
used to pay for transportation, including bus, train, and taxi service, as e-money to make purchases at 
vending machines, convenience stores, and museums, to pay fines or taxes, and even as a mileage or 
membership  card.  As  of  March  2009,  customers  used  T-money  for  30  million  public  transit  transac-
tions  per  day  (15.4  million  bus  and  14.6  million  subway  transactions). Within  the  Seoul  metropolitan 
area, 18 million T-money smart cards have been issued, with T-money accepted at the reader termi-
nals of 19,750 buses; over 8,000 subway terminals; 73,000 taxi cabs; 21,000 vending machines; and 
8,300  convenience  stores,  fast  food  stores,  and  parking  garages.  As  Seoul’s  subway  system  has 
moved  from  paper  tickets  to  smart  cards,  it  has  eliminated  the  need  for  450  million  paper  magnetic 
stripe tickets at a savings of KRW 3 billion per year.403 The successful system was already exported to 
New Zealand, Malaysia, Mongolia, and Colombia.404 

The LG group is further investing in smart transportation. Their products cover automatic fare collec-
tion  (as  deployed  with  the  smart  transit  cards  in  Seoul),  fleet  management  service  and  traffic  man-
agement  service  for  road  transportation;  telecommunication  technologies  and  platform  screen  doors 
for rail as well as air traffic control technology for airborne transportation.405 

In mid-2015, a Uber-like service “KakaoTaxi” was launched by  Kakao Corporation, mainly known for 
its  messaging  service  KakaoTalk.  However,  the  difference  is  that  KakaoTaxi  is  not  a  peer-to-peer 

399 Ezell, S. (2010). Explaining International IT Application Leaderhip: Intelligent Transportation  Systems. Retrieved from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf  

400  Suk-Man,  Y.  and  Yoon-Seo,  N.  (2015).  Expressway  at  center  of  Smart  Highway 

initiative.  Retrieved 

from 

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3006530&cloc=joongangdaily|home|newslist2  

401 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-

701, Republic of Korea, p. 14. 

402 Korea Smart Card Co., Ltd  (2016) Retrieved from http://eng.koreasmartcard.com  
403  Ezell,  S.  (2010).  Explaining  International  IT  Application  Leaderhip:  Intelligent  Transportation    Systems.  Retrieved  from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf  

404 Sojung, Y. (2016). Korean transport systems gain international recognition. Retrieved from 

http://www.korea.net/NewsFocus/Business/view?articleId=138090  

405 LG CNS (n.d.). Social Infrastructure. Smart Transportation. Retrieved from 

https://www.lgcns.com/LGCNS.GHP.Main/Service/ServiceContent?MENU_CD=GHPSV202 

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Final Report – International Assessment and Action Plans of the Focus Areas 

sharing service but it connects people to licensed taxi-drivers. Another difference is that there are no 
fees for a taxi driver or for a user; the main aim seems to be the collection of data about trips and taxi 
movements. The  service  is  also  likely  to  be  linked  to  the  company’s  KakaoPay  service.406  Until  June 
2016, the app has been downloaded more than 100 million times.407 In May 2016, the company addi-
tionally  launched  Kakao  Driver,  a  driver-for-hire  service  similar  to  Uber  that  is  connected  to  Kakao 
Navi that leads the driver through the city.408 

Another  app  the  company  launched  in  April  2016,  Kakao  Bus,  provides  real-time  tracking  of  public 
buses,  their  routes,  and  stop  locations,  covering  multiple  cities  across  Korea.  For  the  red  bus  line, 
users can even check the availability of free seats.409 Another service, Kakao Metro, released in June 
2016, lets users check detailed information on metro stations and metro lines in the nation's five big 
cities  (Busan,  Daegu,  Gwangju,  Daejeon,  and  Seoul).  The  company’s  goal  is  “to  connect  a  greater 
range  of  aspects  of  people's  lives  through  its  mobile  platform  enhancing  user  benefits  and  tackling 
problems of existing industries such as a supply-and-demand imbalance and complicated distribution 
structure.”410 

Many  logistics  companies  are  spin-offs  of  big  Korean  companies,  such  as  Samsung  Electronics 
Logitech411 and Hyundai Glovis412. Profiting from their in-house technology knowledge, they offer some 
of the most advancing logistics systems. 

3.3.5.4  Market 

There  are  29  cities  participating  in  South  Korea’s  Ubiquitous  Cities  Initiative,  which  endeavours  to 
embody information technology throughout all city services spanning across traffic services  to  public 
services  through  a  unified  platform.  This  includes  South  Korea’s  Expressway  Traffic  Management 
System  (ETMS)  that  collects  real-time  traffic  information  through  three  primary  mechanisms:  vehicle 
detection  systems  (VDS),  closed-circuit  cameras,  and  vehicle  probe  data.  Data  from  79  different 
transport authorities is communicated to South Korea’s National Transport Information Center (NTIC) 
to support the country’s ITS applications, such as the Hi-Pass electronic toll collection and electronic 
fare payment systems.413 Traffic congestion was further alleviated with automatic illegal parking detec-
tors. 414 

Fares are collected via the Electronic Toll Collection System (ETCS) “Hi-Pass”, a non-stop electronic 
toll  payment  system made  up  of  an  on-board  unit  (OBU),  a  smart  card,  road  facilities  to  collect  tolls 
and  collection  booths.  The  system  started  in  2005  and  later  expanded  across  the  nation.  As  of  July 
2013, there were 332 Hi-Pass systems in operation on highways and in 5 million vehicles. Korea’s Hi-
Pass is covering over 3,200 km of highway, making up a highway utilization rate over 30%. Hi-Pass 
cards can also be used for other purchases beyond highway  tolls,  including at  parking lots, gas sta-
tions, and convenience stores.415 

The system was further developed into ETC 2.0. Developed technologies include Smart Tolls (reduc-
ing  congestion  and  traffic  accidents  through  an  optimized  network  use,  Smart  Toll  Gates  enabling 
smooth  transit,  Smart  Logistics  through  optimized  truck  transport,  big-data-based  Smart  Investment 

406 Nikola (2015). KakaoTaxi Revolutionizing Korea’s Taxi Service. Retrieved from http://kojects.com/2015/10/12/kakaotaxi-

revolutionizing-koreas-taxi-service 

407 Yoo-chul, K. (2016). 'KakaoMetro' gains rising momentum. Retrieved from 

http://www.koreatimes.co.kr/www/news/tech/2016/06/133_207459.html 

408 Sung-won, Y (2016). Kakao expands into substitute driver service. Retrieved from 

http://www.koreatimes.co.kr/www/news/tech/2016/05/133_205956.html . 

409 Korea Bizwire (2016). Kakao Launches New ‘KakaoBus’ App. Retrieved from http://koreabizwire.com/kakao-launches-new-

kakaobus-app/53545 

410 Sung-won, Y (2016). Kakao expands into substitute driver service. Retrieved from 

http://www.koreatimes.co.kr/www/news/tech/2016/05/133_205956.html 

411 Samsung Electronics Logitech. Retrieved from https://selc.co.kr/eng/main.jsp 
412 Hyundai Glovis (2016). Retrieved from http://www.glovis.net/eng 
413 Ezell, S. (2010). Explaining International IT Application Leaderhip: Intelligent Transportation Systems. Retrieved from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf 

414 Hwang, Sang-Kyu & Kim, Gunyoung (2014): 50 Praxes for Better Transport in Korea, The Korea Transport Institute, 

Gyeonggi-do, 411-701, Republic of Korea, p. 16. 

415 Ezell, S. (2010). Explaining International IT Application Leaderhip: Intelligent Transportation  Systems. Retrieved from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf  

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optimizing infrastructure investment. By now the cover ratio is 100% on expressways, 88% on national 
highway  (managed  by  central  government),  61%  national  highway  (managed  by  local  government), 
49% principal prefectural roads, and 31% on other prefectural roads.416 

One of the smart cities is of course Seoul. “Smart Seoul 2015  – Basic Strategic Plan for Informatiza-
tion of Seoul Metropolitan City (2011-2015)” was adopted to overcome the limitations of the preceding 
ICT-advancing program “u-Seoul” that started in 2004. Whereas u-Seoul only applied ICT technology 
to  traditional  city  infrastructure,  Smart  Seoul  takes  a  more  holistic,  systemic  approach  that  follows  a 
people-oriented and human-centric approach. It is based on the three pillars (1) ICT infrastructure, (2) 
integrated city-management framework, and (3) smart users. With respect to mobility and transporta-
tion the Traffic Operation Information Service (TOPIS) was developed within the program. Its goal is to 
bring  together  traffic-related  information  and  provide  smart  traffic  information  in  real  time  in  order  to 
ensure efficient traffic flow. It connects taxi and public transport data for service improvement provided 
for  users  and  service  providers.  The  information  is  displayed  through  various  media,  including  web 
pages,  mobile  apps,  and  Variable  Message  Signs.  The  bus  information  system  provides  users  with 
real-time location and expected arrival time of buses. Data for meta-analyses such as traffic patterns 
are  gathered  from  various  agencies  including  Seoul  Regional  Construction  Management  Administra-
tion and Korea Highway Corporation. 417 

Figure 23: Bus Management System (BMS) in Seoul 

Seoul has also developed into a car sharing city. When the Seoul Metropolitan Government launched 
“Socar” in 2013, the market started to become very dynamic with a lot of new market entrants. There 
is a multitude of different services including Socar and Green Car by Seoul Metropolitan Government, 
City  Car  by  LG,  Green  Square  by  Korail  (Korean  Rail  Service), WeShareCar  by  Korea  Car  Sharing, 
and Rent-a-Car by KT Kumho.418 Interestingly, almost all services use the Kia Ray, an all-electric mini-
van.419 

Based  on  the  comprehensive  Framework  Act  on  Logistics  Policies  (also  known  as  Basic  Logistics 

416 Kanoshima, H. (n.d.). Recent ITS Development in Japan. Retrieved from http://fot-net.eu/wp-

content/uploads/sites/7/2015/10/7_FOT_Kanoshima.pdf  

417 Hi Seoul. (2015). Smart Seoul 2015. Retrieved from http://english.seoul.go.kr/wp-

content/uploads/2014/02/SMART_SEOUL_2015_41.pdf 

418 Korea IT Times (2013). Seoul launches “EV Sharing” program, offering electric car rental at 3,000 won for 30 minutes. Re-

trieved from http://www.koreaittimes.com/story/28572/seoul-launches-%E2%80%9Cev-sharing%E2%80%9D-program-
offering-electric-car-rental-3000-won-30-minutes  

419 Medimorec, N. (2013). Overview of Seoul’s Car-Sharing Services. Retrieved from http://kojects.com/2013/04/18/overview-of-

seoul-car-sharing-services/  

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Policy  Act),  issued  in  2007,  every  five  years,  the  Ministry  of  Land,  Transport  and  Maritime  Affairs 
(MLTM) has to formulate a ten-year master plan for national (National Logistics Master Plan), metro-
politan (Metropolitan Logistics Master Plan) and provincial (Provincial Logistics Master Plan) logistics 
which sets the direction for logistics policy. The  vision of the  national  logistics master plan for 2011-
2020 to become a leading hub for Northeast Asia is translated into three strategic objectives, contrib-
uting  to  five  development  strategies.  Each  strategy  is  translated  into  specific  implementation  tasks, 
including the development of logistics facilities, the enhancement of the competitiveness of urban lo-
gistics,  new  concepts  for  freight  transport  systems  (particularly  relating  to  development  of  green 
transport  and  promotion  of  multimodality  through  integrated  technology),  a  comprehensive  support 
system to promote rail logistics, support for revitalizing coastal, and promoting regional specialization 
of ports. The development of “hardware” is complemented by six implementation tasks for “software”. 
Outsourcing by public institutions to third party logistics companies is encouraged and third-party logis-
tics are specifically promoted through measures such as tax breaks and consulting services.420 

Weaknesses 
  Monopolistic industry decreases innovation 

effects based on competition 

Threats 
  Focus on safety decreases speed of inno-

vations and hampers uptake of new mobility 
services 

3.3.5.5  SWOT Analysis 

Strengths 
  Strong government support for smart mobility 
related industries (IoT, energy, telecommuni-
cation, transport) 

  Nation-wide integration of smart cards and 

fare collection 

  Well-developed centralized data system 

(Traffic Operation Information Service) 
providing smart traffic information in real time 

  Well-established inland multi-modal logistic 

hubs (dry ports) in all five districts 

  Recently revolutionized bus management 

system allows for easy transit 

Opportunities 
 

IoT and smart car industry estimated to be 
worth KRW 100 billion by 2024 

  Car sharing services in Seoul on the rise with 

new market entrants in regular periods 
  Due to lack of geographical space the need 
for smart mobility services is very strong 
  Technological affinity of citizens is very high. 
The huge demand acts as a strong pull factor 
for the development of smart mobility ser-
vices 

  Ministry of Land, Infrastructure and Transport 
receives data (e.g. fuel consumption, speed, 
etc.) from 600,000 freight vehicles that could 
be used for intelligent transport organization 

3.3.6  United States of America 

3.3.6.1  General Information 

The period of smart mobility is characterized by new business models inspired by the sharing econo-
my and innovative technologies that introduce a new age in transportation. On-demand ride services 

420 UNSESCAP. (n.d.). Comprehensive Policy Framework For Logistics:  
National Logistics Strategy. Retrieved from  http://www.unescap.org/sites/default/files/Logistics_policy_ch4.pdf 

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like Uber and  Lyft, real-time ridesharing services such as  Carma and Zimride,  car sharing programs 
such as Zipcar and car2go, bike sharing programs and new urban bike lanes are completely changing 
the way people move421. 

New and alternative ways of transfer, enabled by new technology, have provided individuals with more 
choices. The convenience  of arranging  a ride from  your mobile phone  or the cheaper solution of ar-
ranging a ride with a co-worker or a friend has promoted ride-sharing in the context of a sharing econ-
omy422.  

Uber, which is a very strong start-up company in the ride-sharing field and which has faced many is-
sues and challenges regarding regulations around the world is “pushing” cities to make and pass new 
laws and regulations that will help the ride-sharing and car-sharing services to be released from legal 
problems. Up until now, at least 17 US cities and four states have passed laws concerning such ride-
sharing issues  and covering practices such as  vehicle inspections, driver training programs, criminal 
background checks, insurance policies, etc.423. 

3.3.6.2  Research, Development & Innovation 

In 2005, the Transit Cooperation Research Program of the Transportation Research Board (U.S. Na-
tional Academies of Science) conducted a study (Synthesis 59) on the role and importance of strategic 
planning  and  management  in  U.S.  Transit  Agencies424.    The  study  addressed  a  number  of  strategic 
planning related questions including: How is strategic planning being used and to what extent? What 
forms does it take?  How effective has it been? What benefits has it produced?   

The  project  involved  a  review  of  relevant  literature  on  the  subject,  both  in  general  and as  related  to 
public transportation. In addition, two surveys were conducted of transit agencies. The first was a ran-
dom survey of one agency from each state and the District of Columbia to determine the prevalence of 
the use of strategic planning and management. There were 38 responses to this survey. The second 
was a more detailed survey of selected agencies to examine specific practices. Twenty-four agencies 
responded to that survey. In addition, five agencies were selected as case studies based on the com-
prehensiveness of their process or innovative or noteworthy practices that they use. 

The  study  concluded  that  strategic  management  and  planning  have  an  important  role  in  the  transit 
industry, with some kind of strategic planning and management being implemented by more than the 
80%  of  the  transit  agencies  which  were  randomly  sampled,  indicating  that  the  practice  is  providing 
some real value. As would be expected, its use is more dominant in big agencies. 

Although specific planning practices varied from agency to agency, there were a number of common 
steps in the overall planning processes, including the broad use of SWOT analysis. The main planning 
steps included the creation of an organizational vision and  a  vision statement, the development of a 
mission statement, as well as goals and objectives, the identification of the organization’s core values, 
the implementation of a stakeholder” analysis, the conduction of a SWOT analysis, the identification of 
the  key  strategic  issues  facing  the  organization  and  formulating  strategies,  the  development  of  an 
effective  process  for  implementing  and  managing  the  strategic  initiatives  and  the  evaluation  of  pro-
gress425. 

Two key implementation strategies were used in regard to strategic plan implementation. One was to 
make sure that the strategic plan  was linked to the operating  budget and capital programming pro-
cesses. This helped to ensure that the resources necessary to support the plan would be available. 
The other key strategy was to link the plan to performance measures that created accountability for 

421 Viechnicki, P., Khuperkar, A., Fishman, T.D., and Eggers, W.D. (2015). Smart mobility: Reducing congestion and fostering 
faster, greener, and cheaper transportation options. Retrieved from: http://dupress.com/articles/smart-mobility-trends/  
422 Nicol, E. and Armstrong, S. (2016). Ride-sharing: The rise of innovative transportation services. Retrieved from: 

https://www.marsdd.com/news-and-insights/ride-sharing-the-rise-of-innovative-transportation-services/ 

423 McMillan, D. (2015). Uber Laws: A Primer on Ridesharing Regulations. Retrieved from: 
http://blogs.wsj.com/digits/2015/01/29/uber-laws-a-primer-on-ridesharing-regulations/  

424 TRB “Synthesis Study 59. (2005).Strategic Planning and Management in Transit Agencies“, sponsored by the Federal Trans-

it Administration. Retrieved from: http://www.tcrponline.org/PDFDocuments/tsyn59.pdf  

425 TRB “Synthesis Study 59. (2005).Strategic Planning and Management in Transit Agencies“, sponsored by the Federal Trans-

it Administration. Retrieved from: http://www.tcrponline.org/PDFDocuments/tsyn59.pdf  

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Final Report – International Assessment and Action Plans of the Focus Areas 

implementation and that allowed progress toward plan achievement to be tracked. One strategy used 
by several agencies was to link  strategic plan achievement with the chief executive officer’s perfor-
mance appraisal. 

The Montachusett Area Regional Transit Authority (MART) provides transportation through fixed-route 
and paratransit operations throughout Fitchburg, Leominster, and Gardner area in north central Mas-
sachusetts. MART’s extensive brokerage operations allows for brokerage/coordination of human ser-
vice transportation  in four regions (70%) of Massachusetts. MART  was involved  in a  project through 
the  United  We  Ride/  Mobility  Services  for  All  Americans  (UWR/MSAA)  Initiative,  sponsored  by  the 
U.S.  Department  of  Transportation’s  Federal  Transit  Administration  (USDOT/FTA)426.  Phase  I  of  this 
research project was the development and systems design of a model for a Transportation Manage-
ment  Coordination  Center  (TMCC).  The  model  is  named  MART’s  Integrated  Traveller  Services  (M-
ITS).  

The objective of the UWR/MSAA initiative was to simplify access to transportation services for persons 
with  disabilities,  persons  with  lower  incomes  and  older  adults  by  developing  a  coordinated  human 
service transportation system which will provide a simple point of access for consumers. Another ob-
jective  of  this  phase  was  to  find  alternative  funding  options  for  the  implementation  of  the  system. 
MART  and  many  of  its  stakeholders  have  been  coordinating  transportation  services  across  multiple 
funding  programs, communities, and demographics since 2001. The demography  that MART and its 
partners  support  covers  not  only  older  adults  and  persons  with  disabilities,  but  also  children,  low-
income individuals, and employment seekers427. 

The UWR phased-implementation grant allowed MART to pursue selected modules of the M-ITS co-
ordinated model design submitted under the Phase I. Three projects were chosen: 1) Web-based call-
taking  and  trip-management  software;  2)  a  Web-based  bulletin  board  system  that  implemented  the 
Trip  Board  Portal;  and  3)  evaluation  of  the  feasibility  of  implementing  a  billing  system  the  size  and 
scale of that is proposed in Phase I428. 

As  part  of  the  planning  process  for  Phase  II  of  the  project,  the  M-ITS  project  team  performed  a 
SWOT  analysis  on  the  data  collected  and  the  overall  design  and  data  collection  process  during 
Phase  I.  According  to  the  results  of  this  analysis  concerning  Phase  I,    the  implementation  of  all 
technological components, the strong relationships with stakeholders and the success in identifying 
alternative funding opportunities can be considered strengths of Phase I, while among the wea k-
nesses  are  the  non-consistency  with  marketing  and  outreach,  the  non-maintenance  of  strong 
stakeholder support429.  

Many public transit systems across the United States are moving towards innovative systems for fare 
collection that save time for passengers. The value of this approach is that it provides hundreds of on-
the-ground  laboratories  to  test  various  interconnectivity  and  mobility  devices.    The  drawback  is  that 
implementation  of  new  innovations  is  restricted  to  regions  and  communities  and  is  decidedly  incre-
mental in nature.  Hence, system change will likely proceed at a slower rate than if new interconnectiv-
ity  and mobility  devices  were guided by the  Federal  Government and comprehensively  implemented 
nationally. 

The  Dallas  Area  Rapid  Transit (DART)  in  collaboration  Vix,  Inc.,  is  implementing  a  new,  contactless 
fare payment system.  The new system will enable commuters to pay and travel on DART's buses and 
light-rail  trains  using  NFC-enabled  smartphones,  third-party  or  agency-issued  transit  cards,  or  EMV 
contactless cards. 

426 Federal Transit Administration (2012). USR/MSAA Demonstration of Coordinated Human-Services Transportation Modes, 

FTA Report No. 0058. Retrieved from: https://www.transit.dot.gov/sites/fta.dot.gov/files/FTA_Report_No._0058.pdf  

427 Federal Transit Administration (2012).” UWR/MSAA Demonstration of Coordinated Human-Services Transportation Models.” 

(FTA Report No. 0058). Retrieved from: https://www.transit.dot.gov/sites/fta.dot  

428 Federal Transit Administration (2012).” UWR/MSAA Demonstration of Coordinated Human-Services Transportation Models.” 

(FTA Report No. 0058). Retrieved from: https://www.transit.dot.gov/sites/fta.dot  

429 Federal Transit Administration (2012).” UWR/MSAA Demonstration of Coordinated Human-Services Transportation Models.” 

(FTA Report No. 0058). Retrieved from: https://www.transit.dot.gov/sites/fta.dot  

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Final Report – International Assessment and Action Plans of the Focus Areas 

The  system  will  be  delivered  through  an  account-based,  open  architecture  and  PCI-compliant  fare 
collection platform.430 

In  the  United  States,  the  implementation  of  IoT  based  smart  devices  in  the  railway  sector  has  been 
slow until recently. In the United States, pilot installations of this IoT technology from MPEC Technolo-
gy431 were started in 2014 — specifically, SA380 series sensors and Centrix data analytics software  – 
have been installed on two Class 1 railroads, with further pilot installations planned for two additional 
Class  1  railroads  this  year432.  Several  heavy  rail  transit  operators  focused  in  the  Northeast  U.S.  are 
also actively planning pilot projects. The objective of the U.S. installations is to provide remote moni-
toring  of  track  switches,  track  circuits,  and,  in  the  case  of  the  transits,  third-rail  power  systems  and 
train trip stops.  

The  MPEC  Technology  remote  condition  monitoring  system  enables  railroad  maintainers  adopting 
modern condition-based maintenance strategies. By  appropriate training  and  access to data through 
systems like Centrix, maintenance work can be conducted more efficiently, with less time spent travel-
ling to work sites, while at the same time reducing the number of disruptive failures433.  

The Accessible Transportation Technologies Research Initiative (ATTRI434) is a joint U.S. Department 
of Transportation (USDoT) initiative, co-led by the Federal Highway Administration (FHWA) and Fed-
eral Transit Administration (FTA), with support from the Intelligent Transportation Systems (ITS) Joint 
Program Office (JPO) and other Federal partners. 

For people with disabilities and older adults, inadequate mobility and transportation can prevent them 
from  completing  important  tasks,  such  as  working,  commuting,  shopping  or  even  attending  social 
events.  ATTRI  leads  efforts  to  research,  development  and  implementation  of  solutions,  applications 
and systems to help all people, in order to effectively plan and execute their travel, addressing individ-
ual mobility needs.  

ATTRI  exploits  advances  in  vehicle,  infrastructure,  and  pedestrian-based  technologies,  as  well  as 
accessible data, mobile computing, artificial intelligence, navigation, etc. These technologies are ena-
bled by ever present  wireless communications connecting travellers to their mobile devices, vehicles 
and roadside infrastructure. 

ATTRI research focuses on the needs of three stakeholder groups (people with disabilities, veterans 
with disabilities, and elderly), while promoting the development of technological solutions to decrease 
or  remove  barriers  to  transportation  according  to  4  functional  disabilities:  motor,  visual,  hearing  and 
cognitive. 

The USDoT has determined 4 priority areas for the development of ATTRI applications: 

 
 
 
 

Smart Wayfinding and Navigation Systems 
Pre-Trip Concierge and Virtualization 
Shared Use, Automation and Robotics 
Safe Intersection Crossing 

430 News Release by DART (2015). Dallas Area Rapid Transit (DART) Chooses Vix Technology to Deliver a New, Advanced 

Fare Collection System.  Retrieved from: http://www.dart.org/news/news.asp?ID=1209  

431 MPEC, based in England, provides industrial data acquisition units designed for the unique safety and environmental re-

quirements of the railway. 

432 Class I railroads, which, unlike their smaller companions do not really have another name that they are known by (such as 
Class IIIs known as short lines and Class IIs as regionals). Perhaps that is because they are the industrial leaders and are 
always at the forefront of the latest technologies and newest locomotives on the market. Over the years the number major rail-
roads have shrunk due to mergers, and what remains today are very large mega systems; they include CSX Transportation, 
Norfolk Southern Corporation, Union Pacific, BNSF Railway, and Kansas City Southern. 

433 Andrew Whawell (2016). Perspective: Cloud-Connected Sensors Support On-Time Train Performance by Monitoring Way-

side Equipment. Retrieved from: http://www.progressiverailroading.com/rail_industry_trends/article/Perspective-Cloud-
Connected-Sensors-Support-On-Time-Train-Performance-by-Monitoring-Wayside-Equipment--47806 

434 USDoT - Federal Transit Administration (2014). Accessible Transportation Technologies Research Initiative (ATTRI).  Re-

trieved from: http://www.its.dot.gov/factsheets/pdf/JPO_ATTRI.pdf and https://www.transit.dot.gov/research-
innovation/mobility-demand-mod-sandbox-program.html  

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Furthermore, ATTRI has also determined 4 foundational considerations that should be considered: 

Standard Accessible Data Platform 

 
  Universal Design Standards and Information and Communications Technology (ICT) 
 
 

Integrated Payment Systems 
Leverage Existing Technologies and Ongoing Research435 

On May 2016, the Federal Transit Administration (FTA) announced the investment of USD 8 million in 
funding for Mobility on Demand public transportation projects.  

FTA notes that the market for personal mobility is changing rapidly due to changing social and cultural 
trends  and  technological  advances.  New  mobility  concepts,  from  bike-  and  car-sharing  systems  to 
demand-responsive bus services, are offering to travellers flexible transportation options436.  

FTA is interested in conducting research on new service options, in combination with available tech-
nologies, that allow for greater individual mobility, the improvement of transportation efficiency through 
enabling technologies and innovative partnerships, the increase of the transportation effectiveness by 
the  full  integration  of  transit  and  for  the  enhancement  of  the  customer’s  experience  by  providing  to 
each one equitable, accessible, traveller-centric service. 

FTA launched the Mobility on Demand (MoD) initiative for the development of a multimodal, automat-
ed,  accessible  and  connected  transportation  system.  MoD  allows  the  use  of  on-demand  information 
and real-time data, providing travellers with transportation choices that best serve their needs437.  

FTA’s  MoD  Sandbox  Demonstration  Program  provides  a  venue  through  which  integrated  MoD  con-
cepts  and  solutions,  supported  by  local  partnerships,  are  demonstrated  in  real-world  settings. FTA 
seeks to fund innovative project teams, explore partnerships, develop new business models, integrate 
transit and MoD solutions and investigate new technical capabilities438.  

Importantly,  the  MoD  Sandbox  can  also  provide  FTA  the  opportunity  to  assess  project  impacts  and 
how existing FTA policies and regulations may support these new service transportation models437. 

The  USDoT  has  also  committed  to  give  USD    USD  40  million  funding  to  one  city,  in  order  to  help  it 
become the country’s first Smart City and be able to fully integrate innovative technologies, like self-
driving  cars,  connected  vehicles  and  smart  sensors  into  their  transportation  network,  via  the  Smart 
City Challenge.439 

More particular, the US DoT issued the Smart City Challenge on 1th of December 2015, encouraging 
cities to put forward their best and most creative ideas for innovatively addressing the challenges they 
are facing. 78 cities developed visions and plans to address how emerging transportation data, tech-
nologies, and applications can be integrated with existing systems in their city to address transporta-
tion challenges – including challenges identified by the USDOT in its “2045 Beyond Traffic” report. 

On  23  June  2016,  the  Secretary  of  US  DoT  announced  Columbus  as  the  winner  of  the  Smart  City 
Challenge. 

Smart Cities initiative is a global move that concerns the development of an urban environment inte-
grating  multiple information  and  communication  technology (ICT)  solutions  in  a secure  way  for  the 
management  of  each  city’s  assets,  such  as   local  departments  information  systems,  transportation 
systems, law enforcement, waste management and other community services. ICT is used to enhance 
quality,  performance  and interactivity of urban  services,  safety,  improve  access  to  jobs  and  services 
and accessibility, while also reduce congestion, transportation costs and resource consumption, emis-

435 USDoT - Intelligent Transportation Systems Joint Program Office (n.d).  Accessible Transportation Technologies Research 

Initiative. Retrieved from: http://www.its.dot.gov/research_archives/attri/index.htm  

436 Federal Transit Administration (2016). Public Transportation Innovation Funding Opportunity; Mobility on Demand (MOD) 
Sandbox Demonstration Program. Retrieved from: https://www.federalregister.gov/articles/2016/05/03/2016-10320/public-
transportation-innovation-funding-opportunity-mobility-on-demand-mod-sandbox-demonstration  

437 Federal Transit Administration (2016). Mobility on Demand (MOD) Sandbox Program. Retrieved from: 

https://www.transit.dot.gov/research-innovation/mobility-demand-mod-sandbox-program.html  

438 Federal Transit Administration (2016). Mobility on Demand (MOD) Sandbox Program. Retrieved from: 
https://www.transit.dot.gov/funding/applying/notices-funding/mobility-demand-mod-sandbox-program  

439 US Department of Transportation (2016). Smart City Challenge. Retrieved from: https://www.transportation.gov/smartcity 

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Final Report – International Assessment and Action Plans of the Focus Areas 

sions and use of fossil fuels and improve contact between citizens and government440. Smart city ap-
plications are developed  with the goal of improving the management of urban flows and allowing for 
real time responses to challenges441. 

Smart Cities are exploiting new technologies to transform their systems, operations and services and 
although several limitations exist due to tight budgets, scarce resources and legacy systems such new 
and innovative technologies can turn challenges into great opportunities. 

Figure 24: Participants of the Smart City Challenge organized the USDoT 

Smart Cities provide possibilities in using big data and analytics, cloud for collaboration among differ-
ent  agencies,  IoT,  mobile  for  data  collection  and  troubleshooting,  social  technologies  for  better  en-
gagement  with  citizens442.   As  mentioned  in  Focus  Area  1,  the  USDOT  USDoT  has  given  funding  of 
USD 40 million to one US city, in order to help it become the country’s first city that will fully incorpo-
rate innovative technologies into their transportation network443. 

Regarding the logistic and freight areas, it is estimated that the technology gap will begin to disappear 
due to the evolving nature of e-commerce and its impact on the global economy and how its develop-
ment is continuously changing the ways of package delivery. Transportation execution continues to be 
an  important  issue  with  more  companies  looking  to  handle  their  freight  internally.  According  to  the 
Logistics  Viewpoints,  concerning  freight  moves,  an  increase  is  expected  in  crowdsourced  delivery 
options  available  to  customers  for  almost  any  product,  and  2016  will  bring  about  an  increase  in  the 
number of companies and the markets they serve444.  

440 NYC Mayor’s Office of Tech & Innovation (2016). Building a Smart + Equitable City. Retrieved from: 

http://www1.nyc.gov/site/forward/innovations/smartnyc.page  

441 Komninos Nicos (2013). What makes cities intelligent? Retrieved from: 

https://books.google.gr/books?hl=el&lr=&id=_QOCAAAAQBAJ&oi=fnd&pg=PA77&dq=Komninos,+Nicos+(2013-08-
22).+%22What+makes+cities+intelligent%3F%22.&ots=_Vp1_-
7nlG&sig=isn9afy3iKAYkbrBh9U8gJ1Q4uY&redir_esc=y#v=onepage&q&f=false  

442 IBM (n.d.). Analyzing the future of cities. Retrieved from: http://www.ibm.com/smarterplanet/us/en/smarter_cities/overview/  
443 USDoT (2016). Smart City Challenge. Retrieved from: https://www.transportation.gov/smartcity  
444 Steve Banker, Chris Cunnane and Clint Reiser (2016). Logistics and Supply Chain Trends to Monitor in 2016. Retrieved 

from: https://logisticsviewpoints.com/2016/01/11/logistics-and-supply-chain-trends-to-monitor-in-2016/  

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The application of Internet of Things (IoT) in the logistics sector has helped considerably in its devel-
opment and is constantly evolving. IoT has revolutionized the supply chain management by connect-
ing in intelligent ways, people, things and data with the use of sensors and has led to major improve-
ment to all stages of the chain (from the manufacturing process until the warehouse). An area that is 
predicted  to  have  a  leading  role  in  the  future  supply  chain  is  the  impact  of  IoT  to  in-transit  visibility 
which can offer several tracking information (i.e. location, identity, weather and traffic conditions, and 
driver  related  to  data  etc.)  by  using  RFID  and  cloud-based  GPS  technologies.  This  offers  the  stake-
holders the opportunity to make efficient decisions that enhance the whole procedure445.  

3.3.6.3  Industry 

The  automotive  industry  is  preparing  for  great  changes  as  far  as  the  ownership  and  automation  of 
personal vehicles is concerned. Connected car technologies are already being used, while the broad 
use of intelligent traffic management  systems will bring together manufacturers and operators respon-
sible for road networks to come up with new solutions for smart mobility in the urban environment446.  

As  far  as  Smart  Cities  are  concerned,  OEMs  are  gradually  operating  as  product  manufacturers  and 
mobility services companies. OEMs are currently investing in new mobility services, like trip-planning 
application up to car-sharing services, while they are also developing next-generation, connected and 
autonomous vehicles447. 

In January  2016, General  Motors Corp., aligned  itself with the rideshare company  Lyft, for  USD 500 
million, while Ford Motor Co. has also been in discussions with Uber and Lyft 448. 

Intel and the City of San Jose are collaborating on a PPP project implementing Intel’s IoT Smart City 
Demonstration  Platform  to  expand  the  City’s Green  Vision initiative.  The  project,  called  Smart  Cities 
USA, will help San Jose’s economic growth, foster 25,000 new jobs, support environmental sustaina-
bility and enhance the life quality of its citizens. The Smart Cities USA public-private partnership, will 
explore and demonstrate how cities can use IoT to improve life for its citizens 449. 

Regarding  the  freight  and  logistics  sector,  the  respective  industry  in  USA  is  highly  developed  and 
competitive. Many international and local companies are operating in this sector, enjoying the benefits 
of  relatively  low  cost  and  regulatory  burdens.  Some  of  the  main  industry  sub-areas  of  the  logistics 
sector, include logistics services  for the planning and  execution of the goods transfer, freight rail, air 
and express delivery services, maritime freight and trucking450. 

Internet of Things (IoT) solutions in the Transportation and Warehousing sector are being developed 
by  various  enterprises  and  governments. During  the  application  of  IoT  in  the  logistics  area,  many 
companies have also been engaged in the  development of relevant systems. Intel, for example, has 
developed an IoT platform for the connection of sensor-tracking technology  with gateways communi-
cating with the legacy data analytics of the customer as well as the management system through an 
API firewall451.  

3.3.6.4  Market 

The development of Smart Mobility in USA enjoys the strategic support of the government. For exam-
ple the “Beyond Traffic 2045” scheme is an invitation to the American public (users, developers, own-

445 Shankar, U. (2016). How the Internet of Things Impacts Supply Chains. Retrieved from: 

http://www.inboundlogistics.com/cms/article/how-the-internet-of-things-impacts-supply-chains/  
446 Deloitte (2015). Transport in Digital Age – Disruptive Trends for Smart Mobility. Retrieved from: 

http://www2.deloitte.com/content/dam/Deloitte/tr/Documents/public-sector/transport-digital-age.pdf  

447 Viechnicki, P., Khuperkar, A., Fishman, T.D., and Eggers, W.D. (2015). Smart mobility: Reducing congestion and fostering 

faster, greener, and cheaper transportation options. Retrieved from: http://dupress.com/articles/smart-mobility-trends/  

448 Flavelle, D. (2016). Car makers see future in ride sharing services. Retrieved from: 

https://www.thestar.com/business/2016/05/27/car-makers-see-future-in-ride-sharing-services.html  

449 Intel PR (2014). San Jose Implements Intel Technology for a Smarter City. Retrieved from: https://newsroom.intel.com/news-

releases/san-jose-implements-intel-technology-for-a-smarter-city/  

450 SelectUSA (n.d). Logistics and Transportation Spotlight - The Logistics and Transportation Industry in the United States. 

Retrieved from: https://www.selectusa.gov/logistics-and-transportation-industry-united-states    

451 Moakley, G. (2016). Smart Freight Technology Powered by the Internet of Things. Retrieved from: 

http://www.intel.com/content/dam/www/public/us/en/documents/solution-briefs/smart-freight-technology-brief.pdf  

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Final Report – International Assessment and Action Plans of the Focus Areas 

ers,  and  operators  of  the  transportation  network),  as  well  as  policy  officials,  to  set  some  baselines 
concerning the shape, size, and condition of that system and discuss how it will meet  the needs and 
goals of the future decades. Beyond Traffic is a draft framework, which mainly aims to stress out the 
critical decision points of the country  with the help of data driven analysis, research, expert opinions 
and public engagement452. 

Some  of  the  key  factors  for  the  development  of  Smart  Mobility  in  general  and  Smart  Cities  include: 
technological  advancements  in  the  field  of  IoT,   cloud,  sensors  and  mobility,  government  initiatives, 
requirement for optimization of energy usage, increasing share of  renewable energy, decrease in op-
erational cost for smart building infrastructures  hyper-urbanization, etc453.  

By the year 2025, 34 cities worldwide are estimated to have a population of more than 10 million peo-
ple.  In  order  for  the  U.S.  urban  centers  to  address  the  increasing  demands  of  all  those  inhabitants 
living,  working, driving and interacting, cities are looking to the Internet of Things (IoT) technology  in 
order to be more flexible in responding to citizens’ needs. It is also estimated that city governments will 
invest nearly USD 41 trillion over the next 20 years so as to upgrade their infrastructure and be able to 
benefit  from  the  IoT.454  However,  the  federally  financed  process  is  limited  to  a  relatively  few  regions 
and communities, and is also limited mainly to road – a fact that also limits the possibilities of environ-
mental benefits. 

According to estimations and analysis made by the International Data Corporation (IDC), U.S. organi-
zations are going to invest more than USD 232 billion in IoT hardware, software connectivity and ser-
vices  in  2016,  while  the  revenues  expected  by  the  IoT  sector  will  present  an  annual  growth  rate  of 
16.1%  over the  2015-2019 period, overtaking the  USD 357  billion  in 2019. The key industries in IoT 
investments in USA are Manufacturing, with USD 35.5 billion, and Transportation with USD 24.9 billion 
in 2016. Additionally, cross-industry investment is estimated to reach USD 31 billion in 2016455. 

3.3.6.5  SWOT Analysis 

Strengths 
  A multitude of demonstrations for smart mobili-

Weaknesses 
  Federally-financed  process  is  limited  to  a 

ty projects exist 

  Strategic  governmental  support,  e.g.  by  the 

Beyond Traffic 2035 scheme 

  Availability  of  a  best  practice  guide  for  smart 

mobility services (DOT) 

  High  number  of  companies  and  initiatives  for 

ride sharing and platooning 

  Fertile  ground  for  companies  due  to  already 

existing number of start-ups 

  Well-established freight infrastructure 
Opportunities 
  Smart  City  Challenge:  The  USDOT  has 
pledged  up  to  USD  40  million  (funding  subject 
to  future  appropriations)  to  one  city  to  help  it 
define  what  it  means  to  be  a  “Smart  City  “and 
become the country’s first city to fully integrate 
technologies  –  self-driving  cars, 
innovative 
connected  vehicles,  and  smart  sensors  –  into 
their transportation network 

relatively few regions and communities 
  Smart mobility services are limited to road 
  Potential  for  smart  mobility  services  in  terms 
of  environmental  benefits  is  very  limited  due 
to limitation to road (no multimodality) 

Threats 
  Potential  lack  of  necessity  towards  develop-
ing  multi-modal  smart  service  systems  be-
cause of high-quality road infrastructure 

  New  businesses  are  entering  competition 
with old industries, leading to layoffs or other 
unwanted social effect, e.g. in the taxi sector 

452 U.S. Department of Transportation (2015). Beyond Traffic: US DOT's 30 Year Framework for the Future. Retrieved from: 

https://www.transportation.gov/BeyondTraffic  

453 Rohan, S. (n.d). Smart Cities Market worth 757.74 Billion USD by 2020. Retrieved from: 

http://www.marketsandmarkets.com/PressReleases/smart-cities.asp  

454 SmartAmerica (n.d). Smart Cities USA. Retrieved from: http://smartamerica.org/teams/smart-cities-usa/  
455 IDC (2016). IDC Spending Guide Finds U.S. Organizations Accelerating Their Investment in the Internet of Things as Mean-
ingful Use Cases Find Their Way to Fruition. Retrieved from: https://www.idc.com/getdoc.jsp?containerId=prUS41547916  

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  Nudging  effect  of  the  smart  city  challenge  and 

its leverage potential 

  Due  to  lack  of  public  transport  infrastructure 

many solutions for smart mobility services 

3.4 

Focus Area 4 – Standardization and Interoperability 

3.4.1  Brazil 

3.4.1.1  General Information 

The Associação Brasileira de Normas Técnicas (ABNT), a non-profit organization founded in 1940, is 
engaged in the preparation of national standards. In 1973 it created the National System of Metrology, 
Standardisation and Industrial Quality (Inmetro), sponsored by the Ministry of Industry and Commerce. 
In 1992, ABNT was responsible for the management of the Brazilian Standardization Process and has 
declared the National Forum for Standardisation. The regulatory System in Brazil included 27 regulato-
ry bodies including ministries and public organisation.456 Brazilian standards whenever possible, follow 
international trends and guidelines (e.g. World Trade Organization), include safety issues and promote 
the participation of the interested parties.457 

ENABLE  (Stimulate  Sustainable  Freight  Transport  Systems  with  Latin-American  Countries,  FP7, 
2009–2011) contributed to improving external relations between the EU and Latin American countries, 
namely Argentina and Brazil, in co-modal and intermodal freight transport. Attention was given to net-
working and building partnerships to strengthen research links between the two regions.458  

Interoperability is not applied yet widely in Brazil. But it can be a great opportunity for logistics trans-
formation of organizations, sharing supply,  distribution and storage  of goods,  without  loss of  autono-
my.  Enable  companies  provide  better  services,  as  well  as  helping  decision  making,  providing  better 
performance and aggregation of value, being an alternative to reduce logistics costs.459  

No  specific  information  could  be  found  on  Research,  Development  &  Innovation,  Industry  or  Market 
activities regarding Standardization and Interoperability in Brazil. 

3.4.1.2  SWOT Analysis 

Strengths 
  National body for Brazilian Standardisation 

Process 

  Projects running for international co-operation 
for co-modal and intermodal freight transport 

Weaknesses 
 

Interoperability  is  not  applied  yet  widely  in 
Brazil. But it can be a great opportunity for lo-
gistics  transformation  of  organizations,  shar-
ing  supply,  distribution  and  storage  of  goods, 
without loss of autonomy 

  Limited say in international negotiations 
  Lack of enforcement 

456 ISO. (2016). Brazil (ABNT). Retrieved from http://www.iso.org/iso/about/iso_members/iso_member_body.htm?member_id=1579 
457 Jornada, J. (n.d.). Technical Regulation in Brazil. Retrieved from 

http://www.inmetro.gov.br/barreirastecnicas/apresentacoes/TechnicalRegulationBrazil.pdf 

458 European Union. (2014). Transport R&D-cooperation with international partner countries. Tranport Research and Innovation 

Portal. 

459 Pereira, E. D., Salum, M. I., and Rodriguez, C. M. (2016). Organizational Interoperability in support of competitiveness. In: 

Brazilian Journal of Operations and Production Management ,Vol.13 (1), pp 58-65. 

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Threats 
  Standardization is mainly dictated due to little 
involvement in international negotiations 

Opportunities 
 

Interoperability is not applied yet widely in 
Brazil. But it can be a great opportunity for lo-
gistics transformation of organizations, shar-
ing supply, distribution and storage of goods, 
without loss of autonomy 
  Lack of legacy of standards 

3.4.2  China 

3.4.2.1  General Information 

China’s standardization system is administrated by the General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ) and managed by the Standardization Administration of the  Peo-
ple’s Republic of China (SAC). Other public and private organizations provide input and participate in 
the process of establishing standards460.  

SAC (China Standardization Administration) is the State Council authorized government organization 
that co-ordinate the national standards drafting process. However, it is the technical committees and 
their  secretariat-organizations  that  are  in  charge  with  the  standards  drafting.  Figure  25  depicts  the 
structure of China’s standardization system.  

Figure 25: China standardization system 

There  are  mainly  4  ministries/ministry  level  organizations  that  are  relevant  to  ITS  standardization  in 
China. Besides the official or governmental organizations, there are also some industry associations or 
local organizations that are also working in this area:  

  SAC (China Standardization Administration)  
  Ministry of Transport  
  Ministry of Information Technology and Industry (MIIT)  
  Ministry of Science461  

460 American National Standards Institute (2015). PRC Standards System: standards Used in China. Retrieved from: 

https://www.standardsportal.org/usa_en/prc_standards_system/standards_used_in_china.aspx 

461 XU, B. (2015). China’s ITS Standardization (Part 1: Main organizations). Retrieved from: 

http://sesec.eu/app/uploads/2015/06/2015_01_SESEC-Report-China-ITS-standardization-report-Part-11.pdf. 

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Chinese standards may be either mandatory or voluntary. Standards of the first category are equal to 
law as do other technical regulations in China. All other standards that do not have these characteris-
tics are considered to  be  voluntary standards. There  are four levels of Chinese  standards  which  are 
hierarchical, as presented in Figure 26 below. 

Figure 26: Levels of Chinese standards462 

As shown in Figure 26 Local Standards enter into Enterprise Standards, Professional Standards enter 
into  Local  Standards  and  so  on.  For  any  product  or  service,  only  one  type  of  Chinese  standard  ap-
plies463. 

The  Chinese  government  is  also  cooperating  closely  with  the  German  DIN  Standards  (the  Chinese 
standards  body,  SAC  cooperates  with  DIN  since  1979  with  the  signing  of  an  official  agreement).  In 
regular exchanges, Chinese and German experts discuss topics such as quality assurance, occupa-
tional health and safety, environmental protection, consumer protection, and the relationship between 
standards and the law.464 

3.4.2.2  Research, Development & Innovation 

The Technical committees relevant to ITS standardization in China are the following:  

 

SAC TC 83 Electronics Business (E-Business) Standardization Technical Committee  

SAC TC 83 Electronics Business Standardization Technical committee is in charge of standardi-
zation  on  EDI,  Open  EDI,  data  element  and  code,  data  structuring  technology,  electronic  docu-
ment  format  (exchange  structure),  processes,  data  maintenance  and  management,  message 
service  and  key  supporting  technologies  in  the  fields  of  EDI,  open  EDI,  paper-based  document 
format,  administrative,  commercial,  transportation  and  industry,  responsible  for  work  related  to 
ISO/TC154, UN/CEFACT, ISO/IEC JTC1/SC32/WG1.The secretariat of SAC TC 83 is  the China 
National Standardization Institute (CNIS). CNIS is under the leadership of SAC.  

 

SAC TC 223 Traffic Engineering Facilities (Highway) Standardization Technical Committee 

SAC TC 223 is in charge of national highway engineering facilities standardization work. The sec-
retariat  of  SAC  TC  223  is  China  Research  Institute  of  Highway,  which  is  under  Ministry  of 
Transport. 

 

SAC/TC 230 National Geographic Information Standardization Technical Committee 

SAC/TC 230 National Geographic Information Standardization Technical Committee is in charge 
of geographic information national standards plan, coordination and management. Its mission is 

462 American National Standards Institute (2015). PRC Standards System: Standards Used in China. Retrieved from: 

https://www.standardsportal.org/usa_en/prc_standards_system/standards_used_in_china.aspx.  

463 American National Standards Institute (2015). PRC Standards System: Standards Used in China. Retrieved from: 

https://www.standardsportal.org/usa_en/prc_standards_system/standards_used_in_china.aspx.  

464 DIN (2016). International Cooperation. Retrieved from: http://www.din.de/en/din-and-our-partners/international-cooperations.  

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to accelerate China geographic information standardizations, promote geographic information re-
sources construction and application, and encourage/coordinate the geographic information shar-
ing. The secretariat of SAC TC 230 is National Administration of Surveying, Mapping, and Geo-
information of China. The famous BeiDou Navigation  Satellite System and standardization  work 
was done by this organization.  

In  addition,  there  is  a  widespread  use  of  RFID  tagging  systems  in  China,  often  installed  as  original 
equipment in newly constructed track beds and / or on the rolling stock of the railway system. There 
are a number of uses, but its use for maintenance purposes seems to be most innovative. 

Small-scale wireless sensor networks and RFID technologies for logistics management and predicted 
maintenance of equipment will be widely used in factories by 2020.  

The  governments’  priorities  for  the  use  of  RFID  technology  are:  Agriculture  and  Livestock,  Defence 
and Security, Environmental Applications, Healthcare and Welfare, Identification, and Transportation.  

Public transportation is another popular sector for RFID technology applications. China has the largest 
smart card transport system in the world465. 

3.4.2.3  Industry 

On 15th Dec 2014, the annual meeting of China National Intelligent Transportation System Standardi-
zation Technical Committee was held in Beijing. 100 experts from the Ministry of Transport, SAC and 
other stakeholders attended this meeting and the main areas of the future standardization work were 
agreed as being:  

 
 
 
 
 

Standards drafting in intelligent transportation and logistics; 
Standards drafting in driving through E-toll system in the highways and city roads; 
Standards drafting in transportation Information security; 
Standards drafting in cooperative intelligent transportation; 
Standards drafting in vehicle safety auxiliary driving system.  

China's  Integration  Intelligent  Transportation  Industry  and  Service  Alliance  (China  ITS  Industry  Alli-
ance)  is  an  non-profit  industry  platform,  composed  of  units  and  organizations  involved  in  the  field  of 
intelligent transportation system who are focusing on the research and development, production, man-
agement, of relevant technology, product and services, aiming to establish a new development mode 
in  ITS  in  China.  Part  of  the  Alliance’s  mission  is  to  promote  standardization  of  integrated  intelligent 
transportation  industry  and  services,  enhance  integrated  intelligent  transportation  applications,  and 
share domestic and international market resources, etc.466 

China ITS Industry Alliance is organized by the Ministry of Transport, and its secretariat is located in 
the Research Institute of Highway. The management of the alliance is one of the efforts of the Ministry 
of  Transport  to  bring  together  different  stakeholders  in  the  ITS  realm  like  IT manufactures,  telecom-
munications and vehicle manufactures.467 

3.4.2.4  Market 

In 2015, the State Council of China issued a guideline on the deeper amendment of its standardization 
system.  Based  on  the  perception  that  the  existing  one  is  considered  to  be  inefficient  and,  at  times, 
unable to keep up with China’s social and economic development, the reformation of the standardiza-
tion system is necessary for the support of the establishment of a consolidated market which is essen-
tial for the upgrade of China’s economy to a medium-high level. 

One of the key elements needed to achieve this change in the standardization system is the unifica-
tion and integration of local and national standards. The Chinese government also plans to promote a 

465 Jung, K., Lee, S. (2015). A systematic review of RFID applications and diffusion: key areas and public policy issues. Re-

trieved from: http://jopeninnovation.springeropen.com/articles/10.1186/s40852-015-0010-z. 

466 C-ITS. (2016).Retrieved from: http://www.c-its.org/english/about.htm.  
467 American National Standards Institute. (2015). PRC Standards System: Standards Used in China. Retrieved from: 

https://www.standardsportal.org/usa_en/prc_standards_system/standards_used_in_china.aspx. 

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system that is developed by the major market players by encouraging alliances in which standards are 
developed  jointly  in  order  to  better  meet market  needs.  Another  goal  of  these  efforts  is  to  reach  the 
country's objectives in terms of innovation.468 

3.4.2.5  SWOT Analysis 

Strengths 
  Own  standard  setting  yields  high  power  of 

Weaknesses 
  Standardization is not pursued with other key 

self-assertion 

industrial nations 

  Standardization  is  used  as  a  means  to  in-

crease foreign economic affairs 

Opportunities 
 

If  standards  are  set  early  on  in  technology 
development,  China  as  an  export-oriented 
nation, could establish international standard 
  Governmental support on future standardiza-

tion work 

  Disagreement  between  central  and 

local 
governments,  as  well  as  between  local  gov-
ernments 

Threats 
  High  uncertainty  of  the  Chinese  economic 

 

situation 
If standards set in China are not accepted by 
the 
the  country 
international  community, 
might suffer from re-bound effects 

3.4.3 

India 

3.4.3.1  General Information 

Under the national Standard body of India - Bureau of Indian Standards (BIS), Transport Engineering 
Division Council (TEDC) develops the standardisation in the field of transport engineering including air, 
water,  road  and  rail  transport;  diesel  engines  for  stationery  application  and  ISO  freight  containers, 
transport  packaging.469  The  latest  programme  of  work  for  TEDC  was  prepared  in  2014  and  are  ar-
ranged, in the sequential  order of the committee number, such as TED  2 Automotive  prime movers, 
transmission system and internal combustion engines and TED 12 Freight containers and pallets etc. 
The  standards  are  updated  regularly.470  Various  exchange  programmes/  projects  exist  to  exchange 
experiences between India and European countries, such as the Seconded European Standardisation 
Expert for India (SESEI) project in 2013 to raise awareness on the European Standardisation System, 
values and assets in India.471 

The Society of Indian Automobile Manufacturers (SIAM) is an important channel of communication for 
the Automobile Industry with various stakeholders (the Government, National and International organi-
sations).  The  Society  works  closely  with  all  concerned  stakeholders  and  actively  participates  in  the 
formulation  of rules, regulations and policies related to the  Automobile Industry.  It provides technical 
regulations such as regulatory framework on vehicles, emission norms, safety regulations, in-use ve-
hicle norms and fuel efficiency data.472  

India is aiming at integrating various modes of transport like bus and Metro service with train schedule 
to provide end-to-end service to commuters so that a passenger, after descending from a train, gets a 
convenient transport to reach the destination.473 

No specific information could be found on research, development & innovation, and market activities 
regarding standardization and interoperability in India. 

468 Hong, W., Cheung, D., Sit, D. (2015). China’s 13th Five-Year Plan (2016-2020): Redefining China’s development paradigm 

under the New Normal. Retrieved from: http://www.ccilc.pt/sites/default/files/chinas_13th_five-year_plan_2016-
2020_redefining_chinas_development_paradigm_under_the_new_normal.pdf.  

469 BIS. (n.d.). Technical Division Council. Retrieved from: http://164.100.105.199:8071/php/BIS/TechnicalDepartments.php. 
470 BIS. (2014). TED Programme of Work. Retrieved from: http://www.bis.org.in/sf/pow/ted.pdf. 
471 EU Standards India. (2016). Seconded European Standardization Expert in India. Retrieved from: http://eustandards.in/#. 
472 SIAM. (n.d.). Regulatory Framework. Retrieved from: http://www.siamindia.com/technical-

regulation.aspx?mpgid=31&pgidtrail=32.  

473 Prabhu, S. (2015). Integrated transportation system for railways soon, but no privatisation. Retrieved from: 

http://www.dnaindia.com/india/report-integrated-transportation-system-for-railways-soon-but-no-privatisation-suresh-prabhu-
2052590.  

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3.4.3.2  Industry 

The  committee-wise  programme  of  work  of Transport  Engineering  Department  (TED)  as  of  2014  in-
cludes474: 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

TED 2 Automotive primemovers, transmission system and internal combustion engines 
TED 4 Automotive Braking systems, steering systems, vehicle testing and performance evalua-
tion 
TED 6 Automotive Body, Chassis, Accessories and Garage Equipment 
TED 7 Automotive Tyres, Tubes and Rims 
TED 11 Automotive electrical equipement and instruments 
TED 12 Freight containers and pallets etc. The standards are updated regularly 
TED 14 Aircraft, Space Vehicles, Air Cargo Handling and Aircraft Electrical and Instruments 
TED 16 Bicycles 
TED 17 Shipbuilding 
TED 18 Inland, Harbour Crafts and Fishing Vessels 
TED 19 Marine Engineering and Safety Ads 
TED 21 Automotive Springs and Suspension Systems 
TED 22 Tranport Tractors, Trailers and Industrial Trucks 
TED 24 Transport Packages and Packaging Codes 
TED 26 Automotive Vehicles Running on Non-Conventional Energy Sources 
TED 27 Electric and Hybrid vehicles 
TED 28 Intelligent Transport System 

Automotive Research Association of India (ARAI) is the government-approved test agency to carry out 
mandatory certification testing. It is also a research association and service provider to carry out spon-
sored  R&D  work,  development  testing  and  dissemination  of  information  and  knowledge  sharing  in 
association with Industry/academia.475 It published automotive industry standards; some of them as of 
August 2, 2016, are listed below:476 

 
 
 

AIS-001 Automotive Vehicles – Rear-view mirrors – Specification 
AIS-007 Information on Technical Specifications to be Submitted by the Vehicle Manufacturer 
AIS-025 Safety and Procedural Requirement for type approval of CNG operated vehicles 

Indian automotive standards are leading as well as lagging technology. For example, Emission norms 
have  led  the  innovation  in  power  train  technology  (from  conventional  engines  –  BSII  to  Fuel 
Cells/Evs/hybrids – BSV), while advanced lighting systems were introduced first on vehicle and stand-
ards are followed later.477 

3.4.3.3  SWOT Analysis 

Strengths 
  National support on automotive standards de-

Weaknesses 
  Standards are not in harmony with tech-

velopment and implementation 

nology development 

  Organisations such as Society of Indian Auto-

  Limited influence in international negotia-

mobile Manufacturers (SIAM) provides technical 
regulations  

tions 

474 BIS. (2014). TED Programme of Work. Retrieved from: http://www.bis.org.in/sf/pow/ted.pdf. 
475 Urdhwareshe, R. (2013). Automotive Industry: Regulations Scenario in India. Retrieved from: 

http://www.iesaonline.org/downloads/IESA_VS2013_ARAI_Rashmi_Urdhwareshe.pdf. 

476 ARAI. (2016). List of published automative Industry Standards. Retrieved from 

https://araiindia.com/hmr/Control/AIS/83201693748AM0_List_of_AIS_published_02_08_2016.pdf. 

477 Urdhwareshe, R. (2013). Automotive Industry: Regulations Scenario in India. Retrieved from: 

http://www.iesaonline.org/downloads/IESA_VS2013_ARAI_Rashmi_Urdhwareshe.pdf. 

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Opportunities 
  With the development/improvement on smarter 
mobility technology or with smart city in place, 
standardisation are required to be speed up or 
upgraded accordingly. TED (Transport Engineer-
ing Department) is responsible for that. 

Threats 
  Standardization  is  mainly  dictated  due  to 
little  involvement  in  international  negotia-
tions 

3.4.4 

Japan 

Transport in Japan has a  long  history. Therefore, all  modes have  developed their own standards on 
the domestic Japanese market. For example, cars drive on the left and the rail gauge is different from 
international standards. 

Regarding road transport vehicle related technologies, one of the main actors is the ITS Standardiza-
tion Committee (see ITS Initiatives in Japan FA1). Especially TC22 (Road Vehicle) and TC204 (ITS) 
are very active. However, most effort is put on standardization of automated driving. This involves not 
only ISO activities but also UN ECE, WP1, and WP29 activities and in the near future ITU-T. In addi-
tion, IEEE will contribute to the standardization of telecommunication needs for automated driving. The 
national standardization committees are under the leadership of corresponding bureaus of Ministry of 
Land Infrastructure and Transport. Concerning the promotion of international standardization a multi-
tude  of  different  Japanese  actors  are  involved.  Under  the  name  “Building  a  safe  and  secure  road 
transport  society  using  cooperative  systems”  the  Cabinet  Secretariat  (CS),  the  Cabinet  Office  (CO), 
the National Police Agency (NPA), the Ministry of Internal Affairs and Communications (MIC), the Min-
istry of Economy, Trade, and Industry (METI), and the Ministry of Land, Infrastructure, Transport and 
Tourism (MLIT) are pushing safe and secure road transportation. 

Japan Ship Technology Research Association (JSTRA) was established by the merger of three asso-
ciations:  the  Shipbuilding  Research  Association  of  Japan,  Japan  Marine  Standards  Association  and 
Japanese Association of the Ship Scrapping Promotion. Since its foundation, JSTRA has been under 
the guidance of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and supported by 
The  Nippon  Foundation  and  many  other  maritime  organizations.  The  keywords  of  JSTRA  are  “ship 
regulations, standards and R&D.” All projects are based on comprehensive and strategic approaches 
through a synergy of these three elements and some projects are closely related to important agendas 
in international organizations such as the International Maritime Organization (IMO), International Or-
ganization for Standardization (ISO) and International Electro-technical Commission (IEC). Such pro-
jects  include  marine  transportation  of  hydrogen  vehicles,  new  generation  standards  of  stability,  pre-
vention of air pollution from ships, assessment of environmental impacts of stain-resistant substances 
and coatings, intra-ship LAN, and improvement of energy efficiency.478 

With  respect  to  mobile  networks  necessary  for  establishing  an  automated  and  connected  transport 
system, many governments, including  the European  Union,  are supporting the  development of a 5G 
network. In Japan, however, this is not the case, since the country tries to push its own solutions. This 
protectionism drastically reduces the possibility of international interoperability of network systems. 

478 JSTRA. (2016). Introduction. Retrieved from http://www.jstra.jp/english/. 

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Figure 27: Organization of ITS Japan and involved parties 

Figure 28: V2V/V2R Standardization in Japan compared to Europe and USA 

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3.4.4.1  SWOT Analysis 

Strengths 
  Many different actors involved (CS, CO, 

NPA, MIC, METI, MLIT, ITS) 

  Anchored in government programs (e.g. 
Society 5.0 – Super Smart Society) 

  Very active ITS standardization (TC22 and 

 

TC204) 
Japan Ship Technology Research Associa-
tion (JSTRA) actively involved in regulation 
and standardization in the maritime industry  

Opportunities 
 

If government uses standardization for for-
eign policy making, then responsibility lies 
with industry increasing their stake 
International collaboration: creates a multi-
tude of links to US standardization 

 

Weaknesses 
  Focus is rather placed on standardization for 
foreign economic policy rather than for in-
teroperability 
Japan does not manage to make standards 
binding 

 

Threats 
  Because of its special role, Japan does not 

 

manage to respond to international stand-
ardisation market needs 
“Island solutions” problem: technologies are 
not interoperable; they cannot be adapted to 
different environments or countries 

  5G standardization is problematic because 

of protectionist approach 

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3.4.5 

South Korea 

3.4.5.1  General Information 

Out of 896 total ISO/IEC  committees, Korea  was a full member of 737 and an  associate member of 
126 in 2010. However, the US, Germany, Japan, Great Britain, France, and China are still leaders in 
standard  setting  in  conventional  industrial  areas.  Also,  they  account  for  80%  of  internationally  set 
standards in ICT industries. In light of these facts, Korea aims at becoming a standard setter for new 
technologies  and  areas  such  as  smart  green  transportation  systems  and  green  intelligent  transport 
systems (G-ITS). Therefore, the KOTI has established four working groups dealing with (1) traffic flow 
control and services; (2) connectivity of new transport modes based on eco-friendly vehicles; (3) con-
nection  of  cloud-  and  network-based  new  transport  infrastructure;  and  (4)  connection  of  mobile  net-
work-based new technologies.479 

Considering  the  country’s  expertise  in  smart  cards,  it  is  no  surprise  that  Korea  engages  in  various 
working groups of the ISO/TC204. It does not only have a big say in the subordinated ISO/IEC 24014 
“Interoperable  fare  management  system  –  Architecture”  but  also  pushes  the  inclusion  of  new  items, 
namely standards in the open payment system and conformance test. On a national  level, there are 
several  standards  equal  to  EU  standards,  the  most  important  one  being  KSX6923.  It  further  aims  at 
developing standards towards an interoperable Asia Pacific Transportation Card to be used across the 
Asian  Pacific  region  by  pushing  compatibility  standards  that  can  be  acceptable  to  the  standards  of 
each country participating. Field tests are undertaken in China, Japan, Korea, and Singapore. 480 

Korean Industrial Standards (KS) are developed and coordinated by the Korean Agency for Technolo-
gy and Standards (KATS). Even though they are not obligatory, KS are frequently referenced in gov-
ernment regulations and technical specifications. There are about 22,760 KS of which 19.000 are ref-
erenced in over 106 types of laws and regulations. These are separated in three categories (product 
standards, procedure standards, and horizontal standards) and are subject for review every five years. 
However,  KATS  reviews  them  more  frequently  in  order  to  harmonize  them  with  international  stand-
ards.481 Apart from KATS, another major stakeholder is the Korean Standards Association (KSA) that is 
the primary distributor of KS. 

The  Korea  Motor  Vehicle  Safety  Standards  Enactment/Revision  Procedure  for  Automobile  Manage-
ment Act and Self Certification System follows UNECE standards for sustainable transportation. Seoul 
is continuously putting efforts into becoming an advanced smart city. It follows the international ISO – 
“Smart Community Infrastructure Metrics” (ISO TC 268/SC 1) guidelines. The Metropolitan Transporta-
tion  Authority  is  a  public  corporation  established  as  a  joint  metropolitan  transport  administration  in 
Seoul, Incheon Metropolitan City and Gyeonggi Province. It is responsible for establishing a compre-
hensive metropolitan public transport plan, conducting consultations and adjustments on metropolitan 
transport policy and administering metropolitan public transport transfer facilities, as well as the metro-
politan  bus  rapid  transit  and  metropolitan  transport  policies  as  delegated  by  union  members.  Seoul, 
Gyeonggi Province and Incheon Metropolitan City dispatched 48 personnel at a ratio of 5:5:3 respec-
tively to do administrative work for their union while sharing general operating costs.482 

Since 2006, logistics service providers can apply for the Logistics Company Certification (as of 2012 
there is also a separate global certificate). The certificate assesses companies on transport, facilities 
and  services  and  has  to  be  renewed  every  two  years.  It  is  organized  and  coordinated  by  the  Korea 
Transport Institute, with operational funds from the government. The incentives for companies to apply 
for this certification include priority entrance to public logistics facilities and reputational benefit. 483 

479 Moon, Y., Kim, S. (2013). International Standardization Strategies for Green Transport System. In: KOTI World Brief Vol. 5, 

(45). Retrieved from: http://www.koti.re.kr/mail/pdf2/world13-45/Focus.pdf. 

480 Lee, K. (2014). Korea Transportation Card and Proposal. Retrieved from http://www.asiaiccardforum.net/news/03-19-2015-

01/data/Korea_SmartCard_Status-AICF-2014-12-05.pdf. 

481 Standards Portal (n.d.). ROK Standards System: Standards Used in Korea. Retrieved from: 
https://www.standardsportal.org/usa_kr/e/standards_system/standards_used_in_korea.aspx. 

482 Sang-Kyu, H., Kim, G.(2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-701, 

Republic of Korea, p. 55. 

483 UNSESCAP. (n.d.). Comprehensive Policy Framework For Logistics:  

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The Ministry of Trade, Industry and Energy (MOTIE) is responsible for setting standards for petroleum 
and petroleum substitutes, and MOE is responsible for regulating air pollution. In 2003, Korea began 
preparing official biodiesel standards. The final standards, drafted in September 2004 by MOCIE, were 
adopted in January 2006 and are very similar to EN14214, the European biodiesel standards.484 

3.4.5.2  SWOT Analysis 

Strengths 
  UNECE standards for sustainable transpor-
tation was included in the Korea Motor Ve-
hicle Safety Standards Enactment 

Weaknesses 
  South Korea only recently started to proac-
tively become involved in international 
standard setting 

  Strong involvement in smart transportation 

card standardization 

  Even though standards are not legally bind-
ing, the majority is referenced in different 
laws and regulations 
Industry standards are reviewed recently in 
order to harmonize them with international 
standardization 

 

Opportunities 
  KOTI has established working groups for 
standardization on different transport-
related issues 

  Because companies are interlinked in huge 
Chaebols (big conglomerates) the necessity 
for standardization is very high, leading to 
many efforts on standardisation 

3.4.6  United States of America 

3.4.6.1  General Information 

Threats 
  Most internationally binding standardization 

done in the US, Europe, and China 

Since  1996,  the  USDoT’s  ITS  Standards  Program  has  cooperated  with  the  industry  and  the  public 
sector  to  determine  where  standards  are  needed  and  facilitate  their  development  and  use.  Since  its 
beginning,  the  program  and  its  partners  have  established  approximately  100  standards,  resulting  in 
greater interoperability among ITS centres, field equipment and traveller information systems. 

For both freight and personal transport, the major focus on standard setting has been the human safe-
ty – for the operators of all transport modes/vehicles, for the persons being transported as passengers, 
and for the people who might be impacted by the operations of said transport  – other highway travel-
lers or those living near airports or rail lines. 

There are industry standards for the equipment and the physical facilities used in the operation of the 
mode  –  rail  strength,  braking  capabilities,  etc.  When  industry  has  been  slow  in  adopting  standards 
which the broadly defined “public” perceives as necessary, regulatory bodies (at federal, state or local 
level) may create regulations to set requirements – such as the recent changes in the methods used to 
record and track hours worked by long-haul truck/lorry drivers. 

The confusion in regulations is created by the fact that certain regulations are set at federal level, such 
as  the  example  just  noted  or  various  environmental  regulations,  at  state  level,  such  as  speed  limits, 

National Logistics Strategy. Retrieved from: http://www.unescap.org/sites/default/files/Logistics_policy_ch4.pdf. 
484 EGNRET.(2016). Korea Biofuels Activities. Retrieved from: http://www.egnret.ewg.apec.org/Archive/me_korea.html. 

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traffic laws, and operator licensing, or at local level, such as restrictions on the applicability of particu-
lar traffic laws or the restrictions on the hours of operation for urban deliveries or port facilities.485 

A representative example of standardization, also mentioned in Focus Area 1, is the SAE Internation-
al’s  new  standard  J3016:  Taxonomy  and  Definitions  for  Terms  Related  to  On-Road  Motor  Vehicle 
Automated Driving Systems, which  is a classification  system identifying  six  levels of automated driv-
ing,  which  range  from “no  automation”  up  to  “full  automation”.  These  levels,  presented  in  Figure  29, 
are  descriptive,  not  regulatory  and  more  normative  and  technical  than  legal,  while  the  elements  de-
scribed indicate minimum rather than maximum system capabilities for each level. This means that a 
particular vehicle may have multiple driving automation features.486  

Figure 29: Summary of SAE International’s Levels of Driving Automation for On-Road Vehicle (Copyright © 2014 SAE Interna-
tional. The summary table may be freely copied and distributed provided SAE International and J3016 are acknowledged as the 
source and must be reproduced AS-IS.) 487 

3.4.6.2  Research, Development & Innovation 

The SPY Car Act  488, mentioned also in the “Connected & Automated Driving” focus area, was based 
on a February 2015 report by Senator Markey, who had surveyed OEMs about cybersecurity threats 
to  safety  and  the  collection  and  storage  of  driving  data,  including  location,  driving  history,  and  user 
data.  The  report  found  that  nearly  all  cars  on  the  market  have  wireless  technologies  and  identified 
several purported weaknesses in the security of connected features in cars. 

The SPY Car Act would require collaboration between the NHTSA and the FTC to implement cyberse-
curity standards for vehicle system and driving data security, including hacking protection and mitiga-

485 Department of Transportation -Intelligent Transportation Systems Joint Program Office. (2005).  

ITS Standards Acquire A New Mission: Transitioning the ITS Standards Program to Align with the USDOT’s New ITS Re-
search Initiatives. Retrieved from: http://library.ite.org/pub/e267a25c-2354-d714-5152-63167e78de7a.  

486 SAE International (2014). Automated Driving Levels of Driving Automation Are Defined in new SAE International Standard 

J3016. Retrieved from: http://www.sae.org/misc/pdfs/automated_driving.pdf. 

487 SAE International (2014). Automated Driving Levels of Driving Automation Are Defined in new SAE International Standard 

J3016. Retrieved from: http://www.sae.org/misc/pdfs/automated_driving.pdf  

488 Markey, S. Edward, J. [D-MA] (2015). Security and Privacy in Your Car Act of 2015 or the SPY Car Act of 2015. Retrieved 

from: https://www.congress.gov/bill/114th-congress/senate-bill/1806/all-info 

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tion,  a  “cyber  dashboard”  display  label  describing  the  vehicle’s  compliance  with  cybersecurity  and 
privacy  requirements,  certain  privacy  standards  including  providing  notice  and  choice  regarding  the 
use and collection of data, and limiting the use of driving data by manufacturers.  

Violations  of  these  privacy  standards  would  be  treated  according  to  Section  5  of  the  FTC  Act.  and 
violators would be punished up to USD 5,000 per violation.489 

Additionally, the ITS Standards Program is currently transitioning activities to align them with ten new 
ITS initiatives being promoted by the ITS Joint Programs Office (JPO). 

Recent progress in ITS standards development (2016) includes.490 

 

IEEE’s publication of IEEE 1609.3-2016 Standard for Wireless Access in Vehicular Environments - 
Networking  Services.  IEEE  1609.3  defines  network  and  transport  layer  services,  including  ad-
dressing and routing, in support of secure WAVE data exchange. It also defines Wave Short Mes-
sages,  providing  an  efficient WAVE-specific  alternative  to  IPv6  (Internet  Protocol  version  6)  that 
can  be  directly  supported  by  applications.  Further,  this  standard  defines  the  Management  Infor-
mation Base (MIB) for the WAVE protocol stack. 

  Publication  of  SAE  International's  publication  of J2735,  Dedicated  Short  Range  Communications 
(DSRC) Message Set Dictionary, for applications utilizing the 5.9 GHz DSRC for Wireless Access 
in  Vehicular  Environments  (DSRC/WAVE)  communications  systems.  This  document  defines  the 
messages, data frames and data elements that make up the messages and is facilitated through 
tables in this document. Additionally, SAE published the J2945/1 On-Board System Requirements 
for V2V Safety Communications standard. This standard focuses on vehicle-to-vehicle (V2V) safe-
ty  communications  systems'  requirements  to  support  a  set  of  six  V2V  Safety  applications.  The 
standards can be purchased from the SAE site at http://store.sae.org. 
IEEE's publication of IEEE 1609.2-2016 Standard for Wireless Access in Vehicular Environments - 
Security Services for Applications and Management Messages and IEEE 1609.12-2016 Standard 
for Wireless  Access  in  Vehicular  Environments  (WAVE)  -  Identifier  Allocations.  IEEE  1609.2  de-
fines  secure  message  formats,  and  the  processing  of  those  secure  messages,  within  the 
DSRC/WAVE system. IEEE 1609.12 specifies allocations of WAVE identifiers defined in the IEEE 
1609™ series of standards. The IEEE 1609.4 WAVE – Multi-Channel Operations standard is also 
published;  this  standard  describes  various  standard  message  formats  for  DSRC  applications  at 
5.9 GHz. 

 

Different types of standards that are of prime importance include standards associated with the appli-
cations (i.e. application layer), 5.9 GHz spectrum allocation (i.e. access layer) and security (i.e. securi-
ty layer). This is because some standards will be dependent on the applications and functionality that 
need to be deployed. It is considered that a minimum set of standards is required in order to deploy 
the  core  functions  of  C-ITS  and  to  deliver  the  applications  which  local  stakeholders  wish  to  deploy 
early.  

The United States is currently developing a WAVE Protocol architecture (focused on a 5.9 GHz radio 
interface  as  opposed  to  supporting  multiple  network  stacks  proposed  by  the  European  Union  (e.g., 
ETSI set of standards which focus on 5.9 GHz 54 CVRIA (2015).491 

The WAVE protocol architecture is separate from the U.S. Connected Vehicle Reference Implementa-
tion Architecture (CVRIA) project. The United States has set aside a 70 MHz spectrum within the 5.9 
GHz band (5.855-5.925 GHz), while Europe a 50 MHz spectrum (5.855-5.905 GHz). However, DSRC 
hardware will likely be able to comply with both the U.S. and European standards, though there will be 
some software differences. It is understood  that the U.S. scenario aims to standardize the interfaces 

489 Pittman, F.P. (2016). Legal Developments in Connected Car Arena Provide Glimpse of Privacy and Data Security Regulation 
in Internet of Things. Retrieved from: https://www.dataprivacymonitor.com/cybersecurity/legal-developments-in-connected-car-
arena-provide-glimpse-of-privacy-and-data-security-regulation-in-internet-of-things/.  

490 USDoT – Intelligent Transportation Systems Joint Program Office. (2016). ITS Standard Program. Retrieved from: 

https://www.standards.its.dot.gov/news.  

491 Office of the Assistant Secretary for Research and Technology, ITS Standards Program. (2016). IEEE 1609 - Family of 

Standards for Wireless Access in Vehicular Environments (WAVE).Retrieved from: 
https://www.standards.its.dot.gov/factsheets/factsheet/80.  

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while  the  EU  scenario  is  creating  an  ITS  station  which  would  manage  all  communications  within  the 
one platform.  

Both the U.S. and EU scenarios focus on 5.9 GHz communications. Nevertheless, many experts ar-
gue that the  EU scenario  has a clearer path towards the use of hybrid communications (through the 
proposed  CALM  approach)  than  does  the  U.S.  scenario.  Thus,  the  EU  scenario  is  considered  more 
integrated and scalable492. 

3.4.6.3  Industry 

Due to the increased consumer demand for data and services in Connected Cars, the industry consor-
tium W3C493 recently announced a new automotive industry-based international collaboration, in order 
to help drivers and passengers to access key operational data through the Web494.  

In  February  2013  OEMs,  chip  and  browse  makers  and  mobile  operators started  working  on  draft 
specifications for vehicle data (i.e.  vehicle identification, speed, tire pressure, battery status and per-
sonalization information). Today's new  Automotive Working Group converts those draft specifications 
to Web standards. The W3C also started working on the Web of Things to boost the development of 
open markets for products and services based on tags, sensors and actuators, etc. 

Along with this standardization effort, the Automotive and Web Platform Business Group will now fo-
cus its attention to the development of requirements on a number of new topics, such as media tuners 
and speech interfaces495. 

3.4.6.4  Market 

The  increasing  demand  for  improved  road  safety  is  one  of  the  most  important  and  primary  factors 
behind  the  development  of  the  world  market  of  intelligent  transport  systems.  According  to  the World 
Health  Organization,  1.25  million  people  die  every  year  due  to  traffic  accidents496.  Moreover,  the  in-
crease of the number of vehicles in all big cities has also increased the demand for upgrading of exist-
ing transport networks. 

The  possibilities  offered  by  the  Intelligent  Transport  Systems  regarding  the  reduction  of  road  acci-
dents, as well as the reduction of fuel consumption and travel delays are also leading to their adoption 
and  use  by  the  traffic  management  systems  and  principles.  However,  the  economic  downturn  elimi-
nates  the  funding  opportunities  for  intelligent  transport  systems,  while  the  lack  of  interoperability  be-
tween existing infrastructure and the advanced intelligent transport systems is probable going to be a 
barrier in the market’s growth. The assessment of the Intelligent Transportation System market is an-
ticipated to reach USD 30.2 bn by the end of 2019497. 

This development and the flourishing of this market requires the simultaneous and direct development 
and  modernization  of  the  relevant  Standardization  System  of  wireless  technologies,  subject  to  and 
from  also  major  players  in  this  market,  such  as  Xerox  Corporation,  DENSO  Corporation, WS  Atkins 
PLC, TomTom NV, etc. 

In parallel to the Spy Car Act, analysed in Section 3.1.6.2, legislation has also been suggested, con-
cerning vehicle data privacy and safety, that would require OEMs to develop a privacy policy regarding 

492 Michigan Department of Transportation and Center for Automotive Research. (2016). Global Harmonization of Connected 

Vehicle Communication Standards. Retrieved from: http://www.cargroup.org/?module=Publications&event=View&pubID=129.  

493 The World Wide Web Consortium (W3C) is an international consortium where Member organizations, a full-time staff, and 

the public work together to develop Web standards. W3C primarily pursues its mission through the creation of Web standards 
and guidelines designed to ensure long-term growth for the Web. The Open Web Platform is a current major focus. Over 390 
organizations are Members of the Consortium. W3C is jointly run by the MIT Computer Science and Artificial Intelligence La-
boratory (MIT CSAIL) in the USA, the European Research Consortium for Informatics and Mathematics (ERCIM) headquar-
tered in France, Keio University in Japan, and Beihang University in China, and has additional Offices worldwide. 

494 W3C Press Release Archive (2015). W3C and Automotive Industry Start New Web Standards Work for Connected Cars. 

Retrieved from: https://www.w3.org/2015/02/auto.html.en.  

495 W3C Press Release Archive (2015). W3C and Automotive Industry Start New Web Standards Work for Connected Cars. 

Retrieved from: https://www.w3.org/2015/02/auto.html.en. 

496 World Health Organization (2016). Road traffic injuries.  Retrieved from: http://www.who.int/mediacentre/factsheets/fs358/en/ 
497 Transparency Market Research (2016). Growing Global Intelligent Transportation System Market Looks to Standardization of 

Wireless Technologies, Set to Rise to USD 30.2 bn by 2019, TMR Says. Retrieved from: 
http://www.transparencymarketresearch.com/pressrelease/global-intelligent-transportation-system-market.html.  

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the collection, sharing, and use of driver and vehicle data, file their privacy policies with the Secretary 
of Transportation, acquire reasonable security measures to be protected against hacking and enforce 
on auto manufacturers’ penalties of up to USD 1 million for failing to file a privacy policy or comply with 
an express privacy policy and penalties of up to USD 100,000 for failing to prevent hacking. 

This  suggested  legislation  also  requires  NHTSA  to  create  an  Automotive  Cybersecurity  Advisory 
Council to develop cybersecurity best practices for vehicle manufacturers498. 

Regarding the electric vehicles charging, the Standard applied in North America is the  SAE J1772. It 
concerns  electrical  connectors for electric  vehicles maintained  by  the SAE  International  and  it  covers 
the general physical, electrical, communication protocol, and performance requirements for the electric 
vehicle conductive charge system and coupler.499. Additionally, the Standards used in USA for fuel cell 
vehicles and vehicular hydrogen systems are the SAE J2578 and SAE J2579 respectively.500 501 

3.4.6.5  SWOT Analysis 

Strengths 
  World  leader  in  standardization  because  of 
traditionally  established  system  (a  big,  di-
verse country needs to be standardized) 

Weaknesses 
  Big  inefficiencies  and  redundancies  (espe-
cially  in  logistics  and  delivery)  based  on  a 
lack of standards 

  Federal  system  pushes 

for  country-wide 
standardization  (with  strong  States  leading 
the way, i.e. California, Michigan) 

  Fast implementation of standards because of 

case-based jurisdiction system 

  Long  experience  in  mass  production  pushes 

standardization 

  Centralized  standardization  and  interopera-
bility  activities  of  the  U.S.  DOT  in  the  ITS 
Joint Program Office 

  Automation  standard,  universally  agreed, 

based on SAE typology 

  An  Initial  ITS  Framework  and  Architecture  is 

in place in the USA 

Opportunities 
 

International collaboration framework through 
the  Trilateral  Group  (between  USA,  EU  and 
Japan) focused on connected automation as 
a  mean  of  achieving  maximum  benefits  in 
safety, mobility and environmental impacts 

  Need for declaration at States level only 
  Business 

fragmentation  between 

logistics 

companies 

Threats 
  Full  harmonization  of  standards  is  not  yet 
available (i.e. gaps in connected driving or C-
ITS),  as  regional  differences  exist  in  C-ITS 
hardware  and  software  that  must  be  harmo-
nized irrespective of location (IEEE leads the 
way) 

498 Pittman, F.P. (2016). Legal Developments in Connected Car Arena Provide Glimpse of Privacy and Data Security Regulation 
in Internet of Things. Retrieved from: https://www.dataprivacymonitor.com/cybersecurity/legal-developments-in-connected-car-
arena-provide-glimpse-of-privacy-and-data-security-regulation-in-internet-of-things/. 

499 SAE International (2016). SAE Electric Vehicle and Plug in Hybrid Electric Vehicle Conductive Charge Coupler. Retrieved 

from: http://standards.sae.org/j1772_201602/.  

500 SAE International (2014). Recommended Practice for General Fuel Cell Vehicle Safety. Retrieved from: 

http://standards.sae.org/j2578_201408/.  

501 SAE International (2013). Standard for Fuel Systems in Fuel Cell and Other Hydrogen Vehicles. Retrieved from: 

http://standards.sae.org/j2579_201303/.  

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3.5 

Focus Area 5 – Alternative Fuels Other than Electrification 

3.5.1  Brazil 

3.5.1.1  General Information 

Brazil is considered as a regional pioneer or market leader in establishing ethanol as a transport fuel. 
Brazil’s  ethanol  fuel  program  was  based  on  the  most  efficient  agricultural  technology  for  sugarcane 
cultivation in the world.502 The National Program for Production and Use of Biodiesel (PNPB) is a fed-
eral government program that aims to implement the production and use of biodiesel in a sustainable 
manner,  focusing  on  social  inclusion  and  regional  development,  by  generating  employment  and  in-
come. Its main guidelines are to implement a sustainable program, promoting social inclusion; to en-
sure competitive prices, quality and supply; and to produce biodiesel from different oil sources and in 
different regions.503 In 2005, the law nº 11.097 made it obligatory to add a minimum percentage of bio-
diesel  to  diesel  sold  to  consumers  anywhere  in  the  country.  The  current  blend  is  7%  biodiesel  and 
93% diesel. This measure has saved Brazil from importing 1.2 billion litres of diesel per year. 

Traditionally, Brazilian drivers choose biodiesel when its price is below 70 percent of the price of gaso-
line,  as the biofuel extracted from sugar cane  yields  about 30 percent  less energy  per  litre. Now,  its 
price  surges  and  it’s  comparable  to  conventional  fuel,  which  has  affected  its  use. 504  The  use  of  flex 
vehicles (powered by petrol or ethanol) are in demand and in use in Brazil. Although biofuels (mainly 
ethanol) and natural gas for passenger cars remain important fuel technology in Brazil, natural gas for 
trucks is getting attention and its market is expected to develop.505 Research on the use of biofuels as 
an alternative fuel is taking place in Brazil. 

Besides that, electric vehicles (EV) could also be an option for the sustainable urban transport in Bra-
zil. However, EV market is still immature and has lower demand. Brazil is still the EV producer rather 
than  an  EV  consumer  due  to  its  liberal  structures,  low  switching  costs  for  suppliers,  well-educated 
workers and low entrance barriers for European SMEs.506 

3.5.1.2  Research, Development & Innovation 

Various research on efficient flex fuel vehicles is carried out in Brazil and some vehicle manufacturers 
have tested it on its roads and are in the process of deployment. Petrobras in Brazil is carrying out and 
financing  technical  and  commercial  feasibility  studies  for  the  production  of  advanced  biofuels  (from 
cellulose  crops  and  residues). The  Ministry  of  Mines  and  Energy  has  initiated  to  work  in  partnership 
with  other  national  institutions  in  Brazil  to  provide  substantial  technological  and  financial  support  to 
R&D projects for production, transportation, storage and distribution of hydrogen.507 

Brazil in moving towards a next step on alternative aviation fuels that helps to reduce aviation’s carbon 
footprint. Within  the  action  plan  Flightpath  to  Aviation  Biofuels  in  Brazil,  a  series  of  workshops  were 
carried out from 2012-2013 in  which Boeing,  Embraer, the  São  Paulo Research Foundation  and the 
State University of Campinas came together to support it. In 2015, Embraer and Boeing opened a joint 
sustainable  aviation  biofuel  research  center  in  a  collaborative  effort  to  establish  the  aviation  biofuel 
industry  in  Brazil.  The  center  has  already  started  supporting  regional  initiatives  to  foster  the  aviation 
biofuel  value  chain;  identifying  partnerships  in  universities,  research  and  development  centers  and  

502 Rothkopf, G. (n.d.). A Blueprint for Green Energy in the Americas: Brazil.  
503 De Moura, A. S. (2010). The Biodiesel Program and Sustainable Development in Brazil. Retrieved from 

www.iucnael.org/en/documents/467-regulatory-regime-for-biofuels-in-brazil/file 

504 Freitas Jr., G. (2016). Sugar-Cane Fuel Wins in Brazil as Cheap Ethanol Beats Gasoline. Retrieved from 

http://www.bloomberg.com/news/articles/2016-03-01/sugar-cane-fuel-wins-in-brazil-as-cheap-ethanol-beats-gasoline  

505 Winkel, R., Hamelinck, C., Matthieu, B., Bucquet, C., Ping, S., Cuijpers, M., et al. (2016). Alternative fuels and infrstructure in 

seven non-EU markets - Final report. European Commission. 

506 Meyer, G., Uribe Altuna, M., & Mujika, A. (2015). Electric Vehicle Supply Chain: Global Opportunities for Electric Mobility: 

Brazil. Global Opportunites for European SMEs. 

507 Winkel, R., Hamelinck, C., Matthieu, B., Bucquet, C., Ping, S., Cuijpers, M., et al. (2016). Alternative fuels and infrstructure in 

seven non-EU markets - Final report. European Commission. 

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suppliers for aviation biofuel research in the country; and engaging with government agencies to es-
tablish a national policy for the development and promotion of biofuel.508 

3.5.1.3  Industry 

All buses in Brazil produced by manufacturers such as Mercedes-Benz do Brasil, Scania, Volvo, MAN, 
are equipped with environmentally friendly BlueTec 5-technology (clean diesel technology) and meet 
the PROCONVE P-7 exhaust standard (Deppe, 2013) that lowers limits on emissions of local air pollu-
tants,  including  carbon  monoxide  (CO),  hydrocarbons  (HC),  nitrogen  oxides  (NOX),  and  particulate 
matter (PM). 

The study by D’Agosto et al. (2013), states that the use of CNG dedicated buses and diesel-gas sys-
tems best suits in Brazil (mainly in Rio de Janeiro) where natural gas is available at a competitive price 
with diesel. The same thing occurs for the use of ethanol in buses. The use of hybrid-drive buses is 
suitable at congested large city urban transit. The other fuel options (biodiesel and diesel from sugar-
cane)  can  be  used  across  the  country  without  problems,  if  the  alternative  fuel’s  price  cope  diesel 
price.509 

Renewable Natural Gas (RNG), as an alternative source of fuel, is emerging in Brazil. It is harvested 
from waste product and wastewater, contributing to emissions reduction and with potential generation 
and  application  in  a  decentralised  manner,  which  is  also  suited  to  rural  and  other  off-grid  fuelling  of 
local  fleets.  ABiogás,  a  Brazilian  association  of  companies  with  the  RNG  focus,  is  presenting  a  pro-
posal to the Ministry of Mines and Energy for supported introduction of the fuel, pointing out it needs 
no  additional  refuelling  infrastructure  given  the  country’s  long  established  Compressed  Natural  Gas 
(CNG)  fuel  industry  where  there  are  about  1,693  filling  stations.  Some  companies  are  using  RNG, 
such as CIBiogás (International Centre for biogas) supplied more than 40 vehicles of Itaipu Binacional 
and intends to double capacity by end of 2016.510 

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) of Brazil has set the specifications 
of biomethane  – a natural  gas produced from organic waste and  its application for vehicles (NGVs), 
residences  and  businesses.  The  biomethane  is  an  alternative  and  100%  renewable  fuel,  and  it  has 
been  received  under  the  GNVerde  brand  in  Rio  Grande  do  Sul.  With  the  support  of  the  State  Gas 
Company (Sulgás), it has being tested in vehicles since 2013, but the distribution company was await-
ing  the  decision  of  the  ANP  to  start  selling  this  alternative  fuel,  which  can  be  mixed  with  the  natural 
gas transported by pipelines. The demonstration of the first biomethane powered bus  with GNVerde 
was demonstrated in Rio Grande do Sul in 2015.511  

Recently, Nissan is producing e-Bio Fuel-Cell cars which use Solid Oxide Fuel Cell (SOFC). It offers 
the flexibility of using fuels ranging from natural  gas to ethanol to ethanol-water blends. An on-board 
reformation step is required to extract the hydrogen needed for the SOFC from any hydrocarbon fuel. 
Nissan’s SOFC  initiative is being tested on public road and it is hoped that this biofuel approach fits 
well with local infrastructure (Brazil with lots of ethanol) and can enable lower mobility costs and higher 
driving satisfaction.512  

3.5.1.4  Market 

Cars capable of running on ethanol (such as E100 vehicles) arrived on the Brazilian market in the late 
1970s, when ethanol was cheaper than gasoline. In support of ethanol, Brazil has the National Alcohol 
Program  -Pró-Álcool-  (Portuguese:  'Programa  Nacional  do  Álcool'),  launched  in  1975,  which  was  a 

508 ATAG. (n.d.). A new biofuels research centre in Brazil. Retrieved from http://aviationbenefits.org/case-studies/a-new-biofuels-

research-centre-in-brazil/ 

509 de Almeida  D'Agosto, M., Ribeiro, S., de Souza, C. (2013). Opportunity to reduce greenhouse gas by the use of alternative 
fuels and technologies in urban public transport in Brazil. Current Opinion in Environmental Sustainability. Vol. 5 (2). pp 177-
183. 

510 NGV Global. (2016). Renewable Natural Gas Sector Emerging in Brazil. Retrieved from 
:http://www.ngvglobal.com/blog/renewable-natural-gas-sector-emerging-in-brazil-0222. 

511 NDTV Auto Team. (2015). Current and Upcoming Affordable Cars With AMT in India. Retrieved from: 

http://auto.ndtv.com/news/present-and-upcoming-affordable-cars-with-amt-in-india-766447. 

512 Gross, M. (2016). Nissan’s Fuel-Cell Car Hits the Road in Brazil, Extracts Hydrogen from Biofuel. Retrieved from: 

http://blog.caranddriver.com/nissans-fuel-cell-car-hits-the-road-in-brazil-extracts-hydrogen-from-bio-fuel/ 

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nationwide  program  financed  by  the  government  to  phase  out  automobile  fuels  derived  from  fossil 
fuels, such as gasoline, in favour of ethanol produced from sugar cane. Though sugarcane was criti-
cized as could impact on the price of food, many studies have concluded Brazilian ethanol is far less 
damaging for global food prices.513 Pró-Álcool’s main objectives are (i) to reduce national dependence 
on  oil  imports,  (ii)  to  promote  technical  and  industrial  development  through  ethanol  fuel  production; 
and (iii) to strengthen the sugarcane and sugar sectors. However, in 1990s Brazil became the world’s 
main importer of alcohol fuels for several years, including methanol as there was insufficient ethanol 
available  on  global  markets.514  The  sale  of  ethanol  cars  decreased,  not  only  due  to  fuel  price  differ-
ence, but also in response to a reduction of taxes on gasoline cars. In 2003-2004, flex-fuel technology 
was launched and acted as a game-changing solution and considered as the successful phase in the 
problem-innovation sequence.515 Currently there are several flex-fuel cars in the market that offer mix 
use  of  fuels.  All  the  light  commercial  vehicles  produced  in  Brazil  have  this  bi-fuel  technology  and  at 
least 17 new models imported from Argentina, China, Mexico, Korea and Thailand were adapted with 
this system in order to adapt to the Brazilian need.516 

3.5.1.5  SWOT Analysis 

Strengths 
  Well-established  use  of  bioethanol  as  the 
price was comparatively lower than gasoline 

Opportunities 
  Local  manufacturers  of  vehicles  with  alterna-

tive fuels 

3.5.2  China 

3.5.2.1  General Information 

Weaknesses 
  The sale of ethanol cars decreased, not only 
due  to  fuel  price  difference,  but  also  in  re-
sponse  to  a  reduction  of  taxes  on  gasoline 
cars 

  No  necessity  felt  for  further  development 
because  there  is  a  CO2-free  alternative  that 
gives independence 

  Need  to  strengthen  government  support  for 

alternative fuels 

Threats 
  Potential  for  further  development  of  other 
alternatives such as electrification not used 

More than 200 cities in China will have a population of more than one million by 2030. The increase of 
urbanization  combined  with  motorization  greatly  affects  traffic  congestion,  traffic  deaths  and  injuries, 
air pollution, noise, and energy consumption. In addition, big cities also face difficulties in meeting the 
demand for mobility and  handling air pollution and energy consumption  issues without negatively  af-
fecting economic growth.  

The increased motorization of China has respectively led to significant increases in oil demand and oil 
imports and the Chinese government is adopting a broad range of policies concerning fuel economy of 
new vehicles and the promotion of alternative-fuel vehicles.517 

China's objective is to maintain total energy consumption at around 4.34 billion tons of standard-coal 
equivalent in 2016, and non-fossil fuel consumption is to rise up to 13%. Gas consumption will account 

513 Capitani, D. (2014). Biofuels versus food: How much Brazilian ethanol production can affect domestic food prices? Retrieved 

from: http://ageconsearch.umn.edu/bitstream/170267/2/AAEA%202014_Capitani_paper%204941.pdf 

514 Moreira, J.,Goldemberg, J. (1999). The alcohol program. Energy Policy , Vol. 27 (4), pp. 299-245. 
515 Gee, S., McMeekin, A. (2011). Eco-innovation systems and problem sequences: The contrasting cases of US and Brazilian 

biofuels. Industrial Innovation.Vol. 18 (03), pp 301-315. 

516 The Brazil Business. (2016). Ethanol Market in Brazil. Retrieved from http://thebrazilbusiness.com/article/ethanol-market-in-

brazil. 

517 Peng, Z-R, Sun, J., Lu, Q-C (2012). China’s Public Transportation: Problems, Policies, and Prospective of Sustainability. 

Retrieved from: 
http://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=23FC85FEB6FB25AAB6D24029E8994430?doi=10.1.1.437.2797&re
p=rep1&type=pdf  

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for 6.3% of total energy consumption for 2016 and the proportion of coal consumption will fall below 
63%. On the supply side, the country is expected to produce 3.6 billion tons of standard coal equiva-
lent in 2016, with crude production reaching 200 million tones and gas production reaching 144 billion 
cubic  meters.  Chinese  government  also  targets  to  reduce  energy  consumption  per  unit  of  gross  do-
mestic product by at least 3.4% in 2016, according to the guideline.518 

The  Chinese  government  called  for  efforts  for  the  promotion  of  clean  energy  and  the  reduction  of 
emissions, the optimization of the country's energy structure and the enhancement of the international 
energy cooperation.  

3.5.2.2  Research, Development & Innovation 

In a period when the demand for cleaner fuels and energy diversification is strong internationally, Chi-
na is creating a strategy for the development and promotion of the alternative fuels sector. Apart from 
the great emphasis provided for the electrification of vehicles, the Chinese government is also playing 
a major role by forming initiatives for the promotion of natural gas imports (via pipeline or in the form of 
LNG). 

CNG vehicles widely exist in China (especially in regions rich in gas). In addition, over the last years 
LNG-fuelled fleets have also made their appearance519.  

By the end of 2014, there were 6,955 natural gas stations in China. Among them, the newly-built LNG 
stations decreased by 36.5% compared to the previous year, while CNG stations had a year-on-year 
increase of 0.7%. The fall in the growth of new LNG stations in 2014 was mainly due to a fall in inter-
national oil price, slowing the investment in natural gas stations.520  

3.5.2.3  Industry 

The Chinese OEMs as well as the automotive industries worldwide, draw their attention and their ef-
forts mainly in the electric vehicles field. Sales of such vehicles show increase during the latest months 
in China, as the government offers tax breaks and other incentives to encourage purchases of electric 
vehicles and  plug-in  hybrids.  Additionally,  international  OEMs  are  willing  to  establish  their  alternative 
fuel  vehicle  teams  in  China,  taking  advantage  of  the  country’s  standing  as  the  world's  biggest  auto 
market. 

As for other propulsion systems, in 2015 the CNG station equipment industry had higher market con-
centration.  For  example,  the  top  3  companies  operating  CNG  compressors  for  natural  gas  stations 
account for a combined 64% market share, totally concentrated in Zigong city, Sichuan Province. 74% 
shares of CNG gas storage facility market have been held by Zigong Huaqi Technology Co., Sichuan 
Chuanyou  Natural Gas Technology Co.,  and Zigong  Daye High Pressure Container  Co., all from Zi-
gong city, Sichuan province. 

reform  of  natural  gas  prices, 

Concerning LNG station equipment industry, and with the rapid growth of LNG vehicles and accelerat-
ed  market-oriented 
that  during  2015-
2018 China's investment in LNG stations will rebound, but its growth rate will slow down. As LNG sta-
tions expand from Yangtze River Delta Region, Pearl River Delta Region, and Bohai Economic Rim to 
inland  regions,  the  construction  of  mobile  natural  gas  stations  is  moving  up,  so  that  LNG  station 
equipment market size might increase gradually.521 

is  estimated 

it 

518  Xinhuanet  (2016).  China  sets  energy  use  target  for  2016.  Retrieved  from:  http://news.xinhuanet.com/english/2016-
04/01/c_135244392.htm.  

519 Chen, Y. (2013). Development strategies of the Chinese natural Gas Market. Retrieved from: 

http://www.clingendaelenergy.com/inc/upload/files/Ciep_Paper_2013-07.pdf.  

520 PR NewsWire (2015). China Natural Gas Fueling Station Equipment Industry Report, 2015-2018. Retrieved from: 
http://www.prnewswire.com/news-releases/china-natural-gas-fueling-station-equipment-industry-report-2015-2018-
300144354.html. 

521 PR NewsWire (2015). China Natural Gas Fueling Station Equipment Industry Report, 2015-2018. Retrieved from: 
http://www.prnewswire.com/news-releases/china-natural-gas-fueling-station-equipment-industry-report-2015-2018-
300144354.html. 

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3.5.2.4  Market 

China’s government vehicle emissions are responsible for the 30% of pollution in Beijing. In this con-
text, the government’s policy for alternative fuels can be summarised as following:  

  Strategic  turn  of  China  towards  alternative  fuels  in  order  to  decrease  its  reliance  on  foreign  oil 
while creating great opportunities in natural gas vehicles (NGVs) and in the conversion of coal to 
ethanol. 

  Development of policies for the promotion of alternative  vehicle fuels (AVFs) and alternative fuel 

vehicles (AFVs), including city bus fleets.  

  Plans for the promotion of the number of electric, hybrid and other alternative-fuel-powered vehi-
cles  used  for  public  transport,  at  the  same  time  that  sales  of  such  cars  for  private  use  have  in-
creased in recent months. 

  The Ministry of Transport announced that officials aimed to add 200,000 buses and 100,000 taxis 
powered by alternative fuels by 2020. Last year, 15,000 alternative-fuel-powered buses have been 
added to its roads (at least 30% of government vehicles purchased will have to be fuelled by alter-
native energy sources within the next two years). After 2016, local provinces will also be required 
to meet the same target.  

  China’s promotion of liquefied natural gas (LNG) has created new opportunities for players in the 
natural  gas  vehicle  (NGV)  market.  The  initiatives  of  the  government  aim  at  a  fleet  of  1  million 
heavy-duty NGVs, creating the material and device demands for LNG storage and transportation. 

  Coal-to-ethanol is a very popular and effective system due to the huge quantities of coal available 
in  the  country.  Coal-to-ethanol  presents  great  opportunities  of  large-scale  commercialization,  as 
big energy companies, research institutes are being involved and investing in this sector. 

  China  has  abundance  of  renewable  sources.  It  is  estimated  at  123  billion  gallons  of  gasoline 
equivalent  per  year  (BGGEY)  and  fossil  resources  (coal  and  natural  gas)  worth  360  BGGEY  by 
2020. Nevertheless, logistical obstacles come up, especially regarding biomass and waste collec-
tion.522 

According to data statistics of the “Bulletin of Vehicle Manufacturers and Products” and the “Certificate 
of  Conformity  of  Complete  Motor  Vehicle  Delivered  from  Factory”,  as  of  the  end  of  2014,  China  has 
registered 1,253 new energy vehicle models in the “Bulletin” (including 872 models of battery electric 
products,  369  models  of  plug-in  hybrid  electric  vehicles  and  12  models  of fuel  cell  electric  vehicles), 
and has manufactured a total of 119,502 units of new energy vehicles.  

The implementation of big efforts concerning the vehicles of alternative fuels the output of new energy 
vehicles from China was 84,884 units in 2014 exceeding the numbers in previous years and integrat-
ing a rapid growth trend.  

Despite the increase in new energy vehicle production, in China in 2014, a huge gap between target 
numbers and actual sales volumes exist. The country targeted to reach an accumulative output/sales 
volume  of  500,000  units  of  battery  electric  vehicles  and  plug-in  hybrid  electric  vehicles  in  2015  (the 
goal  for  production  capacity  in  2015  was  2  million),  and  an  accumulative  output/sales  volume  of  5 
million units of battery electric vehicles and plug-in hybrid electric vehicles in 2020”.523 In Figure 30 the 
rates of new energy vehicles types produced in China is presented. 

522 Carole Jacques (n.d). Alternative Fuels in China Can Replace Up to 483 Billion Gallons of Gasoline in 2020. Retrieved from: 
http://www.luxresearchinc.com/news-and-events/press-releases/read/alternative-fuels-china-can-replace-483-billion-gallons-
gasoline  

523 International Energy Agency (IEA) (2015). Hybrid and Electric Vehicles – The electric Drive Delivers. Retrieved from: 

http://www.ieahev.org/assets/1/7/Report2015_WEB.pdf  

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48% 

15% 

0,08% 

15% 

7% 

15% 

PHEV-Bus

FCEV

PHEV - Passenger Car

EV Special vehicle

EV-Bus

EV Passengers car

Figure 30: Share of alternatively fueled vehicles 

Considering  the  above  mentioned  data,  alternative  fuels,  other  than  electrification,  are  of  low  im-
portance and market penetration in China. 

The  LPG  vehicles  are  developing  fast  in  some  countries  through  the  last  years.  Concerning  China, 
Shanghai had nearly all taxis converted to LPGV in the beginning of the 2000s and today all taxis, as 
well as the 80% of buses in Guangzhou are LPGV. Nevertheless, the expansion of LPGV use in China 
(except from Hong Kong) presents some signs of regression524. 

However, China is also pioneering the development of a natural gas-powered truck and bus system.525 
The most important Chinese truck manufacturers have LNG trucks available. However, developing an 
LNG-based transport fuels market has its challenges, especially when it comes to creating a network 
of fuelling stations to ensure the supply of LNG, when most of the trucks and buses are powered by 
diesel or gasoline engines. To be able to handle such problems, the International Finance Corporation 
(IFC) is  providing financing and  expertise to facilitate  some of the first-mover risk of developing Chi-
na’s LNG transport system. In 2013, the  IFC provided a USD 150 million in financing to ENN Energy 
Holdings Limited., a leading gas distributor in China, in order to help develop an LNG fuelling network 
and provide LNG as a transport fuel for the replacement of diesel along China’s major highways 526. 

Replacing conventional gasoline with natural gas vehicles (NGVs) is of major importance for China in 
its  efforts  to  reduce  greenhouse  gas  emissions.  The  period  between  2013  and  2014  was  crucial  for 
China’s gas market, while  arrangements have been done to secure sufficient future pipeline gas im-
ports because of the increasing gap between supply  and demand.  However, there are still problems 
concerning China's NGV development, such as a shortage in natural gas supply and a relatively high 
price ratio of natural gas compared to gasoline527. 

However, China had in 2014 almost 4,900 natural gas fuelling stations to support the increasing use of 
natural gas vehicles, while the Chinese government has also secured the country’s resources by the 

524 Leung, V. (2011). Slow diffusion of LPG vehicles in China—Lessons from Shanghai, Guangzhou and Hong Kong. Retrieved 

from: http://www.sciencedirect.com/science/article/pii/S0301421511002783  

525  GE Reports (2015). How to beat OPEC – Take the Highway to Natural Powered-Gas Trucking. Retrieved from: 

http://www.gereports.com/post/112059724948/how-to-beat-opec-take-the-highway-to-natural-gas-powered/.  

526 GE Reports (2015). How China Is Trucking Into The Age Of Gas. Retrieved from: 

http://www.gereports.com/post/117081848193/how-china-is-trucking-into-the-age-of-gas/.   

527  Wang,  H.  Fang.H.,  Yu,  X.,  Wang,  Ke  (2015).  Development  of  natural  gas  vehicles  in  China:  An  assessment  of  enabling 
factors and barriers. Retrieved from: http://www.sciencedirect.com/science/article/pii/S0301421515002050.  

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30 year natural gas deal with Russia. By 2020, about 3.8 million Chinese cars, trucks and buses are 
expected to use liquefied or compressed natural gas528.  

3.5.2.5  SWOT Analysis 

Strengths 
  Many gas resources available 
 

International  deals  established,  especially 
with Russia 

Weaknesses 
  No extensive production of biofuel crops 
  Despite  high  number  of  gas  resources  there 

is a shortage in natural gas supply 

  Taxis  and  buses  converted  to  LPG  in  big 

  Alternative fuels are priced very high in com-

cities 

parison to gasoline 

Threats 
  Strong  push  of  China  towards  electric  vehi-
cles  puts  lower  priority  on  developing  other 
alternative fuels 

  Well-established 

infrastructure  of  natural 

gas stations in China 

Opportunities  
  China  has  the  world’s  biggest  automotive 
industry increasing the motivation for interna-
to  export  alternatively 
tional  companies 
fuelled vehicles to China 

  Air  pollution  in  big  cities  is  a  big  driver  for 

switching to alternative fuels 

  “Cooling  down”  of  Chinese  economy  devel-
opment may promote further investments 

3.5.3 

India 

3.5.3.1  General Information 

India lags behind international best practices in terms of fuel quality and vehicle emission standards. 
Sulphur levels in fuel remain high, well above the maximum of 10 ppm required for the best clean ve-
hicle technologies to function optimally. Also India does not have any plans of implementing 10 ppm 
sulphur fuels nationwide any time soon.529 

Although LPG and natural gas with CNG used busses remain important fuel/technology in India, appli-
cation of natural gas in locomotives is under investigation.530 

On the positive side the use of alternative fuels along with electric vehicles (EV) are on rise in India. 
The  surge  of  EV  manufacture  in  the  country,  mainly  two  wheelers,  is  seen  after  Indian  government 
supported the EV industry through the ‘National Electric Mobility Plan 2020’ in 2012. 531 Regarding al-
ternative  fuels,  some  parts  of  Indian  cities  use  vehicles  with  CNG,  Ethanol  and  biogas,  but  the  gas 
stations  are  not  enough  to  run  it  effectively  yet.  Jatropha  biofuel  has  been  used  in  India  for  several 
decades  and  a  huge  investment  has  been  done  considering  the  potential  of  GHG  emission  saving 
compared to fossil-based diesel. However, it was a failure as it affected land and water problem. 

No specific  information could be found on Market activities regarding  non-electric alternative fuels  in 
India. 

3.5.3.2  Research, Development & Innovation 

Scania's  research  and  development  in  Bengaluru/Bangalore  has  introduced  Metrolink  coaches  and 
trucks with the design adapted for Indian market and incorporating domestically sourced components 
that  use  alternative  fuels  (ethanol  and  biogas).  Scania  India  introduced  100  bioethanol  and  biogas 

528  Clean  Energy  Compression.  (2014).  Are  Natural  Gas  Vehicles  the  Answer  to  Beijing’s  Nasty  Smog  Problems?  Retrieved 

from: www.cleanenergyfuels.com/compression/blog/beijing-china-natural-gas-vehicles-strategy/.  

529 NTDPC. (2014). India Transport Report. National Transport Development Policy Committee. Routledge. 
530 Winkel, R.et al. (2016). Alternative fuels and infrstructure in seven non-EU markets - Final report. European Commission. 
531 Meyer et a. (2015a). Electric Vehicle Supply Chain: Global Opportunites for Electric Mobility: India. Global Opportunities for 

SMEs in Electro-Mobility. 

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buses as a large pilot facility in Nagpur.532 

In  June  2016,  a  pilot  Programme  to  run  two  wheelers  on  CNG  was  launched  by  the  Government  of 
India, Ministry of Petroleum and Natural Gas. Gas share in India is just 7 percent compared to world 
average of around 24 percent. This initiative aims to be expanded very fast. It is implemented by In-
draprastha Gas Limited (IGL) and one of its parent companies, Gas Authority of India Limited (GAIL). 
The Pilot Programme involves 50 CNG retrofitted two wheelers. As per idle emission test, the hydro-
carbon  emissions  from  CNG  retrofitted  two  wheelers  are  75%  less  and  CO  emissions  are  20%  less 
compared to petrol driven, similar models. The CNG kit for two wheelers comprises two CNG cylinders 
of 4.8 liter  water capacity  each,  which can be filled up to 1  kg of CNG in each  cylinder. The kit  was 
approved  by  the  Automotive  Research  Association  of  India  (ARAI),  and  has  been  retrofitted  in  the 
gearless  scooters,  built  by  Japanese  two-wheeler manufacturer,  Honda  Motorcycles  &  Scooter  India 
Ltd.533 

3.5.3.3  Industry 

Among Indian vehicle manufacturers, Tata motors developed the hydrogen fuel-fitted bus - CNG type 
bus – together with the Indian Space Research Organisation (ISRO). It was demonstrated at the Liq-
uid Propulsion Systems Centre, an  ISRO facility in Mahendragiri in Tamil Nadu. It is considered as a 
leap for the automobile industry for future transportation and it produces zero pollution since the prod-
uct of cold combustion is water.534 

In  India,  expectations  from  the  oil-crop  Jatropha  have  been  high  for  the  production  of  biodiesel. 
Jatropha is promoted as a drought and pest-resistant crop, with the potential to grow on degraded soil 
with a low amount of inputs. These characteristics encourage the Jatropha biodiesel production. How-
ever, experiences in the field show that  Jatropha has failed to survive and/or grow on poor soils and 
that  a  majority  of  the  farmers  planted  Jatropha  on  cropland.  The  plantations  have  not  been  able  to 
tolerate drought as well as expected, and pest attacks have occurred in several cases. Farmers have 
experienced that the crop requires inputs for survival and growth and have used irrigation, fertilizers, 
manure, and pesticides. Later it was discontinued as it failed to provide enough income to the farmer 
and lack of government support.535 Evidently, in the last few years, few stakeholders (from private and 
government  sector)  were  engaged  in  identifying  tree-borne  oilseeds  (neem,  pongamia,  mahua  and 
kusum) as an alternate to jatropha for bio-diesel production, but on an experimental basis. However, 
availability, feasibility and sustainability of tree-borne oilseeds still need to be validated.536  

For advanced bio-fuels, the Indian biofuel industry, both private and public sector, claim to be success-
ful in developing and customizing technology for converting lingo-cellulosic materials in form of wood 
biomass, agricultural (corn cob, bagasse, straw and stover) waste and forest waste. The experimenta-
tions are underway  to process municipal solid  waste, micro-algae and photosynthetic organisms into 
advanced  biofuels.  However,  due  to  the  technological  challenges,  commercial  production  and  eco-
nomic viability remains unclear.537 

532 SCANIA. (2015). Biofuel dream comes true for India. Retrieved from https://www.scania.com/group/en/biofuel-dream-comes-

true-for-india/.  

533 Government of India. (2016).Pilot Programme to run two wheelers on CNG launched by Shri Dharmendra Pradhan & Shri 

Prakash Javadekar. Retrieved from http://pib.nic.in/newsite/PrintRelease.aspx?relid=146451.  
534 The Times of India. (2015). Isro, Tata Motors develop India's first fuel cell bus. Retrieved from 

http://timesofindia.indiatimes.com/business/india-business/Isro-Tata-Motors-develop-Indias-first-fuel-cell-
bus/articleshow/21430268.cms.  

535 Axelsson, L., Franzén, M., Ostwald, M., Berndes, G.,and Ravindranath, N. (2011). Performance of Jatropha biodiesel pro-

duction and its environmental and socio-economic impacts - A case study in Southern India.  

536 Aradhey, A. (2014). India: Biofuels Annual. Global Agricultural Information Network. 
537 Aradhey, A. (2014). India: Biofuels Annual. Global Agricultural Information Network. 

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3.5.3.4  SWOT Analysis 

Strengths 
  Some  parts  of  Indian  cities  use  vehicles  with 

Weaknesses 
  Due to high poverty rate existing attempts for 

CNG, Ethanol and biogas 

alternative fuels are hardly demanded 

  Not enough gas stations to run vehicles with 

alternative fuels 

Opportunities 
  As  per  Auto  Fuel  Policy  2025,  BS-VI  roll  out 
was envisaged for the entire country by 2017, 
BS-V by 2021 and BS-VI by 2024 

Threats 
 

 

India lags behind  international  best practices 
in  terms  of  fuel  quality  and  vehicle  emission 
standards 
India lags behind  international  best practices 
in  terms  of  fuel  quality  and  vehicle  emission 
standards.  Currently,  Bharat  Stage  (BS)  VI 
norms  (equivalent  to  Euro  6  norms)  are  only 
applicable in 13 major Indian cities, while BS 
III are applicable in all cities  

3.5.4 

Japan 

3.5.4.1  General Information 

Japan  currently  spends  around  JPY  350  billion  annually  on  energy-related  R&D.  At  0.07%  of  gross 
domestic product, that is one of the highest rates among industrialized nations. 538 Transport makes up 
around 25% of the final energy consumption in Japan. Different technologies that are currently devel-
oped attempt to increase energy security and resilience by diversifying its energy portfolio while at the 
same time lowering greenhouse gas emissions. 

Japan  is  the  leading  global market for  electric  vehicles.  Vehicle  electrification  is  high  on  the  govern-
ment’s agenda and shows consistent growth. Similarly, even though not as pushed, is hydrogen tech-
nology. For other technologies, such as biodiesel, bioethanol, biomethane, natural gas liquids (NGL), 
and liquefied petroleum gas (LPG).539 

The  Japanese  government  has  set  the  goal  to  reduce  greenhouse  gas  emissions  by  26%  by  2030 
based on 2013 figures. To reach this goal, it set up a Strategic Roadmap for Hydrogen and Fuel Cells 
subsidizing  the  construction  of  hydrogen  stations  and  reviewing  regulations  in  order  to  transition  re-
source-scarce Japan to alternative energy sources. The roadmap was part of the vision of a "hydrogen 
society"  where  fuel  cells  power  homes  and  office  buildings,  as  well  as  cars.540  The  government  esti-
mated that the nation’s hydrogen market could expand to JPY 1 trillion by 2030. 541 The goal is 1,000 
stations and 50,000 FCEVs deployed by 2020, and 5,000 stations and 1 million FCEVs by 2030. 

Another  stream  of  efforts  is  put  on  biofuels.  In  its  2010-plan  the  government  stated  that  it  wants  to 
introduce  500  million  liters  by  2017. When  considering  biofuels,  there  are  two  significant  issues  that 
Japan takes into account: food v. fuel and carbon emissions. Japan has a low self-sufficiency rate for 
food, it imports the majority of the food its citizens consume. As a result, Japanese people are highly 
sensitive to issues of rising food prices, leading to a broad debate within Japan about the use of food 
crops to produce biofuels. This is a major reason why Japan is focusing research efforts on cellulosic 
ethanol technology, which is not seen to compete with food. 

538 Asian Review. (2016). Japan to boost spending on clean energy R&D. Retrieved from: http://asia.nikkei.com/Politics-

Economy/Policy-Politics/Japan-to-boost-spending-on-clean-energy-R-D 

539 European Commission (2016). Alternative Fuels and Infrastructure in Seven Non-EU Markets. Retrieved from: 

http://ec.europa.eu/transport/themes/urban/studies/doc/2016-01-21-alternative-fuels-and-infrastructure-in-seven-non-eu-
markets.pdf. 

540 Edelstein, S. (2015). Japan To Spend USD 385 Million On Hydrogen For 2020 Olympics Deadline. Retrieved from 

http://www.greencarreports.com/news/1096427_japan-to-spend-385-million-on-hydrogen-for-2020-olympics-deadline. 

541 Hagiwara, Y. and Trudell, C. (2015). Japan’s plans to fuel world’s cleanest cars hitting road block. Retrieved from 

http://www.japantimes.co.jp/news/2015/11/30/business/japans-plans-fuel-worlds-cleanest-cars-hitting-road-
block/#.V1VfceSHhjU. 

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The biofuels industry in Japan is less developed than that in Brazil, the US and Europe. However the 
Japanese government has announced a number of measures to accelerate use of bioethanol includ-
ing  increased  collection  of  biomass  resources  and  improvement  of  the  bioethanol  fuel  station  infra-
structure. The aim is to increase bioethanol production from 50,000 kilo litres in 2011 to 6 million kilo 
litres by 2030. This is the equivalent of 10% of the country’s annual gasoline use.542 

3.5.4.2  Research, Development & Innovation 

The Research Association of Hydrogen Supply/Utilization Technology (HySUT) has named two cities 
as testing and demonstration areas for hydrogen technology: Fukuoka and Kitakyushu. The Kitakyu-
shu Hydrogen Town demonstration program includes small vehicles such as FC bicycles and lifts. In 
Fukuoka Hydrogenius, a research institution dedicated to hydrogen technology research, and the Hy-
drogen  Energy  Test  &  Research  Center  (HyTReC)  opened  to  undertake  research  and  also  provide 
R&D support for start-ups. The two cities, Fukuoka and Kitakyushu, are linked by the Hydrogen High-
way (Hy-Life project). 

Another stream of research efforts  is focused on Euglena, a type of algae  – half plant, half animal  – 
that uses photosynthesis to produce fat and oil which is then refined into fuel. Euglena Co., the com-
pany behind the alternative fuel works together with Isuzu Motors and All Nippon Airways. Their plan is 
to commercialize its operations by 2020.543 

Japan Biofuels Supply Limited Liability Partnership was formed to bring together the expertise of sev-
eral companies specializing in biofuels to establish efficient supply and distribution systems of biofuels 
to participating companies.544 

The  aviation  industry  has  set  itself  the  goal  of  halting  growth  in  CO2  emissions  by  2020.  Therefore, 
many  industrial  players  engage in the  development of alternative fuels. Japan Airlines (JAP), for ex-
ample,  started  a  co-operation  with  the  Japan  Aerospace  Exploration  Agency,  Toyo  Engineering  and 
other partners to collaboratively develop a technology that turns hydrogen and carbon monoxide gen-
erated at a waste disposal into jet fuel using catalytic agents. The plan is to blend it with kerosene to 
achieve major cost cuts and thus, become a reasonable substitute to traditional fuels. Eventually, the 
partnership will select a company to commercialize the technology.545 

3.5.4.3  Industry 

Toyota,  Nissan and Honda have joined forces to support the  development of hydrogen station infra-
structure covering not only the establishment of infrastructure but also operational costs and customer 
service. Furthermore project partners will jointly raise awareness regarding these support measures, in 
order to encourage new companies to enter the hydrogen supply  business. Financial assistance  will 
be provided through the Research Association of Hydrogen Supply/Utilization Technology (HySUT). 

Honda’s  strategy  to  develop  stations  and  refuelling  equipment  and  market  them  with  Iwatani  goes  a 
step further. Honda developed the Smart Hydrogen Station along with Iwatani Corp., Japan’s biggest 
hydrogen supplier, to boost supply outside of major cities. However, until today only two stations are 
open  for  testing:  one  in  Saitama  Prefecture  and  one  in  Kitakyushu.  The  installation  cost  of  existing 
hydrogen  stations  is  reportedly  about  JPY  400-500  million  per  unit,  but  Honda  aims  to  reduce  it  by 
90%. The unit can produce 1.5 kg of hydrogen per day and store up to about 18 kg of hydrogen, which 
can fully charge 4.5 FCVs. The installation area of the unit is as small as 7,8 m2, and it can be installed 
in about a day. 546 547 

542 European Biofuels (2016). Global Biofuels – An Overview. Retrieved from: http://www.biofuelstp.eu/global_overview.html. 

543 The Japan Times (2016). Company looks to alga to produce biofuel for jets, automobiles. Retrieved from 

http://www.japantimes.co.jp/news/2016/01/03/business/company-looks-alga-produce-biofuel-jets-automobiles/#.V7WcODXf-
ec. 

544 Japan Biofuels Supply LLP. (n.d.). About JBSL. Retrieved from http://www.jbsl.jp/english/index.html 
545 Nikkei. (2016). JAL plans Japan’s first waste-to-fuel plant. Retrieved from http://asia.nikkei.com/Tech-Science/Tech/JAL-

plans-Japan-s-first-waste-to-fuel-plant. 

546 Hagiwara, Y. and Trudell, C. (2015). Japan’s plans to fuel world’s cleanest cars hitting road block. Retrieved from: 

http://www.japantimes.co.jp/news/2015/11/30/business/japans-plans-fuel-worlds-cleanest-cars-hitting-road-
block/#.V1VfceSHhjU. 

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Both Honda and Toyota are betting on fuel cell vehicles, with Honda’s JPY 7.6 million Clarity fuel cell 
beginning  sales  in  March,  more  than  a  year  after  Toyota  started  delivering  its  JPY  7.2  million  Mirai. 
Honda  expects  to  sell  about  200  cars  per  year,  while  Toyota  plans  to  build  2,000  Mirai  sedans  in 
2016. Toyota is reportedly aiming for 30,000 Mirai sales (12,000 in Japan) by 2020. 548 549 

In  Japan,  Nippon  Yusen  KK  should  become  the  first  company  to  introduce  an  LNG-fuelled  marine 
vessel this year. And Isuzu Motors is developing what will be the first LNG trucks made in Japan.550 

3.5.4.4  Market 

Renewable energy is the largest market in Japan's private-sector spending adding up to a total of JPY 
2,37 trillion. In addition to the JPY 2.26 trillion spent on solar systems, JPY 59.5 billion were spent on 
biomass, JPY 23.5 billion on geothermal, and JPY 22.3 billion on wind power in 2013. Apart from that, 
batteries  and  other  energy  storage  equipment  totalled  just  over  JPY  103  billion  while  efficiency-
enhancing  energy  management  systems  amounted  to  almost  JPY  334  billion.  Japan's  total  private-
sector investment in disaster-resilient renewable energy, storage and energy management is estimat-
ed to be a JPY 4.92 trillion market by 2020 and the core market in National Resilience is expected to 
total  between  JPY  11.8  and  13.5  trillion  in  2020.  Thus,  renewable  energy  generation,  storage  and 
management are estimated between 36% to 42% of core markets in Japan's private-sector expendi-
tures on National Resilience by 2020.551 

In 2014, demand for gasoline was 53 billion litres, and the demand for diesel was 34 billion litres. By 
2020, Japan’s gasoline and diesel demands are forecast to decrease to 47 billion litres and 33 billion 
litres  respectively.  Demand  for  jet  fuel  is  expected  to  decline  slightly  due  mainly  to  improvement  in 
airplane  fuel  efficiency.  Japan’s  transportation  sector  (excluding  railways)  depends  on  fossil  fuel  for 
98% of its energy, followed by electricity (two percent) and natural gas (0.1%). In its 2014 Basic Ener-
gy Plan, the government stated that it will promote diversification of energy sources in the transporta-
tion sector. Biofuels are considered to be an important energy source along with electricity, natural and 
LP gases, and hydrogen. Although the demand for jet fuel is expected to decline, the Japanese gov-
ernment of Japan projects that the proportion of the use of biofuels in jet fuel  will increase in the fu-
ture.552 

The Government of Japan has been expanding its efforts to promote EST in Japan and in the Asian 
region. The main actor is the Ministry of Land, Infrastructure and Transport who included development 
of  EST  in  their  Environmental  Action  Plan.  To  test  EST,  18  model  regions  were  defined:  Sapporo, 
Sendai, Kashiwa City and Nagareyama, Misato City and Yashio, Toyama, Mie Prefecture, Toyota City, 
Kyoto,  Nara  Prefecture,  Machida,  Kobe,  Matsuyama,  Yokohama,  Nagoya,  Osaka,  Okinawa  Prefec-
ture, Ofunato, Tahara.553 

In June 2014, the Japanese government unveiled its Strategic Road Map for Hydrogen and Fuel Cells, 
which  involves  subsidizing  the  construction  of  hydrogen  stations  and  reviewing  regulations.  Further-
more, it decided to partially subsidize hydrogen station operational expenses in order to help stimulate 
new demand for FCVs. In such ways, the Japanese government continues to contribute to the devel-
opment of hydrogen station infrastructure. 

In the “Cool Earth – Innovative Energy Technology Program”, it is stated that in addition to emphasiz-
ing research and development of fuel cells, it will be necessary to promote demonstrations and stand-

547 Nikkei Technology. (2014). Honda sets up Compact Hydrogen Station in Japan. Retrieved from: 

http://techon.nikkeibp.co.jp/english/NEWS_EN/20140923/378241/. 

548 Yahoo News (2015). Japan's Ambitious Hydrogen-Vehicle Plans Stumble, With Bureaucracy To Blame. Retrieved from 
https://www.yahoo.com/news/japans-ambitious-hydrogen-vehicle-plans-stumble-bureaucracy-blame-143000863.html 

549 Autoblog. (2015). Honda 'confused and baffled' by Japan's hydrogen delay. Retrieved from: 

http://www.autoblog.com/2015/12/01/honda-confused-baffled-japan-hydrogen-delay/ 

550 Reuters (2015). Japan pushes LNG for transport to help climate, energy security. Retrieved from: 

http://www.reuters.com/article/japan-lng-transport-idUSL3N0YQ1NI20150618. 

551 DeWit, A. (2016). Japan’s “National Resilience” and the Legacy of 3-11. Retrieved from http://apjjf.org/2016/06/DeWit.html. 
552 USDA Foreign Agricultural Service (2015). Biofuels Annual - Market for Liquid Transport Biofuels Remains Steady as Japan 

Remains Focused on Advanced Fuels. Retrieved from: 
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Biofuels%20Annual_Tokyo_Japan_7-13-2015.pdf. 

553 MLIT. (2016).Environmentally Sustainable Transport. Retrieved from: 

http://www.mlit.go.jp/sogoseisaku/environment/sosei_environment_fr_000061.html. 

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ardization in an integrated manner. Furthermore, it is the program's goal to achieve fundamental cost 
reductions  and  durability  improvements  by  feeding  back  the  outcomes  obtained  in  demonstrations 
utilizing  hydrogen  station  to  basic  research,  while  promoting  active  introduction  of  technologies  as 
public service vehicles. In addition, it is intended to actively participate in discussions on international 
standards regarding fuel quality and hydrogen stations.554 

Japan  also  offers  purchase  incentives  for  fuel  cell  vehicles,  such  as  Toyota's  Mirai  that  are  much 
greater than any offered for battery-electric cars in China, Europe, or the U.S. Buyers in some areas 
can  get  about  JPY  3  million  in  subsidies  for  the  Toyota.  That  amount  is  more  than  triple  the  JPY 
950,000 in incentives offered for the Mitsubishi i-MiEV electric car in Japan. 555 556 

When it comes to biofuel, the Japanese government has identified four different technologies to further 
push their Biofuel Strategy: Ethanol, Biodiesel, Advanced Biofuels, and Biomass. A number of minis-
tries collaborate on Japan’s biofuels policy, but three ministries – the Ministry of Economy, Trade and 
Industry  (METI),  the  Ministry  of  Environment  (MOE),  and  the  Ministry  of  Agriculture,  Forestry  and 
Fisheries  (MAFF)  –  play  major  roles  in  developing  and  implementing  biofuels  policies.  MOE’s  main 
concerns are preventing global  warming and meeting Japan’s commitment to reduce its greenhouse 
gas  (GHG)  emissions.  In  terms  of  energy  security,  METI  is  interested  in  biofuels  as  a  supplemental 
source  of  fuel  and  is  interested  in  analysing  the  cost-benefit  of  shifting  to  renewable  fuels  and  their 
impact on automobiles and infrastructure. METI collaborates with the oil industry to introduce biofuels 
in the market. MAFF’s goal is to revitalize rural communities by producing biofuels domestically from 
existing  sources  (e.g.  sugar  beets,  wheat,  and  rice).  However,  its  focus  has  shifted  to  producing  re-
newable energies (e.g. heat and power) from livestock and wood wastes. 557 

In  2008,  the  Japanese  government  introduced  tax  incentives  to  encourage  the  use  of  bioethanol  by 
amending  the Quality Control of Gasoline and Other  Fuels  Act. The gas tax  is  usually JPY 53.8  per 
litre. Under the special measure, if a fuel contains 3 percent bioethanol, the gas tax is lowered by JPY 
1.6 per litre. This is a fixed-term special measure which is effective until March 31, 2018.  

Also  in  2008,  the  Law  to  Promote  the  Usage  of  Biomass  Resources  to  Produce  Biofuels  came  into 
force. The legislation includes tax breaks and financial assistance for biofuel manufacturers and farm-
ers  producing  feedstock,  such  as  agricultural  cooperatives  and  private  businesses.  The  government 
encourages collaboration of those two groups, and their plans are monitored by MAFF in order to qual-
ify for the benefits. Under the scheme, newly built biofuel facilities that are approved for the program 
by 2016  will  have their fixed property tax reduced by  half for three  years. The redemption period for 
interest – free loans for farmers will be extended by two years, to a total of 12 years, for farmers pro-
ducing feedstock.  

Regarding  natural  gas  vehicles,  in  2008  there  were  about  40,000  vehicles  running  on  natural  gas, 
most of them trucks, mini cars and small vans. However, none of them run on LNG. As for the infra-
structure there were about 350 refuelling stations.558 

Since Japan does not have sufficient natural resources to satisfy their domestic demand, almost all of 
the natural gas is imported. The country is even the world’s largest importer of natural gas, it accounts 
for 35% of the roughly  250 million-ton global LNG market.559 At the moment there is a 4-step market 
reform under way that foresees a full liberalization (2016) of the retail market and a full de-control of 

554 Ministry of Economy, Trade and Industry (2008). Cool Earth-Innovative Energy Technology Program. Retrieved from 

http://www.meti.go.jp/english/newtopics/data/pdf/031320CoolEarth.pdf. 

555 Green Car Reports. (2015). Japan Eases Laws, Boosts Incentives For Hydrogen Fuel-Cell Cars. Retrieved from 
http://www.greencarreports.com/news/1096324_japan-eases-laws-boosts-incentives-for-hydrogen-fuel-cell-cars. 
556 Hagiwara, Y., Trudell, C. (2015). Japan's Plans to Fuel World's Cleanest Cars Hitting Road Block. Retrieved from 
http://www.bloomberg.com/news/articles/2015-11-29/japan-s-plans-to-fuel-world-s-cleanest-cars-hitting-road-block. 

557 USDA Foreign Agricultural Service. (2015). Biofuels Annual - Market for Liquid Transport Biofuels Remains Steady as Japan 

Remains Focused on Advanced Fuels. Retrieved from: 
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Biofuels%20Annual_Tokyo_Japan_7-13-2015.pdf. 
558 Sato, M. (2010). NGV (Natural Gas Vehicle) in Japan. Retrieved from https://eneken.ieej.or.jp/data/3094.pdf. 
559 Negishi, M. (2016). Japan Steps on Gas in Bid to Reshape LNG Market. Retrieved from http://www.wsj.com/articles/japan-

steps-on-gas-in-bid-to-reshape-lng-market-1466325065. 

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electricity  tariff  (2018-2020).  The  LNG  buyers  (=  utilities)  will  be  exposed  to  more  competition  in  the 
domestic market and thus, more pressure for cost reduction.560 

However, gas makes up less than 1% in the transport sector, being below the OECD average of 2%. 
The Japan Gas Association estimates that Japan is to have 500,000 vehicles running on LNG or CNG 
by 2030, about 20% of all trucks. However, the necessary infrastructure still has to be built. After the 
GEJE the government took measures to eventually achieve 10% of the 300,000 trucks on Japanese 
roads to switch to LNG from diesel.  

LPG  accounts  for  about  5%  of  primary  energy  consumption.  Especially,  since  the  Great  East  Japan 
Earthquake (GEJE) the production of LPG rose exponentially. The majority of Japanese taxis run on 
LPG.561 However, the LPG remains a decreasing market that has lost momentum. 

There are no subsidies offered by  the government for NGVs. On the opposite, there is a plethora of 
different restrictions for NGVs and CNG stations. This is also mirrored by the industry which does not 
put any importance on the development of NGVs.562 

Weaknesses 
  Slow uptake of alternative fuels due to lack 

of economic viability 

3.5.4.5  SWOT Analysis 

Strengths 
  Strong government support: tax incentive for 
biofuels (if fuels contain > 3% bioethanol) ef-
fective until 2018, Law to Promote the Usage 
of Biomass Resources to Produce Biofuels 

  Established research and demonstration 

projects for hydrogen infrastructure and suc-
cessful deployment 

  Strong cross-sectoral industry engagement 
 
Joint industry efforts to build infrastructure 
  A lot of innovation by activities in fuel-cell 

technologies 

  Lead developer of hybrid vehicles 

Opportunities 
  A change in perception is seen after the 

Threats 
  Because of low food self-sufficiency rate 

there are ongoing discussion on whether to 
use crops for food or fuel 

  Natural disasters hamper the development 

of alternative fuels 

Fukushima catastrophe 

  National hydrogen market expected to ex-

 

 

pand to JPY 1 trillion by 2030 
Improvements in airplane fuel efficiency will 
decrease demand of jet fuel and proportion 
of biofuels in jet fuel is expected to increase 
Improvements in energy efficiency and di-
versification, especially after the GEJE 

3.5.5 

South Korea 

3.5.5.1  General Information 

South Korea imports 90% of the energy it consumes because the country lacks any substantial natural 
fuel sources.563 To reduce its dependence on energy imports and  reduce air pollution, the country in-
tends to diversify its energy mix and to push alternative fuels. Biodiesel is the primary choice given the 

560 Kutani, I. (2015). Changing Japan’s LNG market. Retrieved from http://rei-lng.com/0915PP/IEEJ.pdf. 
561 Japan LP Gas Association. (n.d.) About JLPGA. Retrieved from http://j-lpgas.gr.jp/en/about/index.html. 
562 Sato, M. (2010). NGV (Natural Gas Vehicle) in Japan. Retrieved from https://eneken.ieej.or.jp/data/3094.pdf. 
563 UNICA. (2010). South Korea seeks to quadruple use of biofuels by 2030. Retrieved from: 

http://www.unica.com.br/news/22711185920333453814/south-korea-seeks-to-quadruple-use-of-biofuels-by-2030/.  

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fact that Korea consumes large amounts of diesel (twice the amount of gasoline) and it has the option 
of producing feedstock domestically. Other than a small amount of ethanol domestically produced for 
testing purposes, there is no ethanol fuel production in Korea. Most ethanol is imported from Brazil.564 

It is also part of a wider Korean plan to cut carbon emissions by 11% (3-8 million tons) over the next 
five  years.565 With  respect  to  cars,  the  government’s  goal  is  to  have  more  than  1  million  eco-friendly 
cars (including BEVs, HEVs, PHEVs, FCEVs) on Korean roads by 2020.566 

South Korea’s energy grid is mostly fossil fuels and nuclear power today, but long-term plans call for 
20%  to  come  from  a  variety  of  renewable  sources,  including  10%  from  fuel  cells.  Despite  familiarity 
with alcohol technologies and uses, Korea has only recently become interested in exploring their po-
tential as an alternative fuel source for the transportation sector. 

In 2013, 33,500 NGVs were registered in Korea.567 

3.5.5.2  Research, Development & Innovation 

As  South  Korea's  energy  policy  paradigm  has  focused  on  the  development  of  green  energies,  the 
government has funded several algae biofuel R&D consortia and pilot projects through the Ministry of 
Science,  ICT  and  Future  Planning’s  Advanced  Biomass  R&D  Center.  Three  major  programs  have 
been  launched  since  2009:  CORE  1  –  Novel  strain  isolation  and  genetic  improvement,  CORE  2  – 
Mass cultivation and harvest of microalgae biomass, and CORE 3 – Conversion of biomass into biofu-
els  and  bioproducts.  Significant  efforts  are  currently  being  put  on  the  development  of  algae-based 
biofuels.568 

Environmental  engineering  researchers  at  Ulsan  National  Institute  of  Science  and  Technology  are 
working on how to turn human waste into biofuel by breaking it down into a dehydrated and odourless 
compost-like material. The material is transported to a digestion tank, where a community of microbes 
convert the waste product into carbon dioxide which is used to feed green algae for biofuel production. 
Methane, which is released as a by-product, is reserved for use as a heating fuel. Researchers hope 
to make the system efficient enough to produce a biofuel that is economically competitive. 569 

3.5.5.3  Industry 

At the moment, there are two models using fuel cell technology available from Korean car manufactur-
ers:  the  Hyundai  Tucson/ix35  Fuel  Cell  Car570  with  600  km  range  and  the  Kia  FCEV  with  a  680  km 
range571  –  the  first  vehicle  to  be  mass  produced  in  2013.  It  sells  at  about  KRW  85  million  mainly  in 
Europe and California. The second generation is believed to be released in 2018 for the 2018 Winter 
Olympics in PyeongChang. The new model shall be available for a reduced KRW 60 million.572 

Beezero, a car-sharing service in Munich, Germany starting in summer 2016, is solely comprised by 
50 Hyundai’s Tucson/ix35 models. It is run by industrial gases company Linde.573 

564 EGNRET.(2016). Korea Biofuels Activities. Retrieved from http://www.egnret.ewg.apec.org/Archive/me_korea.html. 
565 Man, I. (2015). South Korea Plans Big Jump in Fuel-Cell Vehicles. Retrieved from http://www.wsj.com/articles/south-korea-

plans-big-jump-in-fuel-cell-vehicles-1450152058.  

566 Korean Herald. (2015). Korea promotes sales of hydrogen fuel cell cars. Retrieved from: 

http://www.koreaherald.com/view.php?ud=20151215001189.  

567 NGV Global News. (2012). Korean Natural Gas Vehicle Numbers on the Rise. Retrieved from: 

http://www.ngvglobal.com/blog/korean-natural-gas-vehicle-numbers-on-the-rise-0913. 

568 Advanced Biomass R&D. (2016). Company. Retrieved from http://abc.biomass.re.kr/sub020301. 
569 Advanced Biofuels USA. (2016). Scientists Turning Human Waste into Biofuel in South Korea. Retrieved from: 

http://advancedbiofuelsusa.info/scientists-turning-human-waste-into-biofuel-in-south-korea/. 

570 Hyundai. (2016). ix35 FCEV. Retrieved from http://www.hyundai.at/Showroom/SUV/ix35-FCEV.aspx 
571 KIA (2016). Hydrogen Fuel Cell Cars. Retrieved from: 

http://www.kia.com/worldwide/about_kia/eco_dynamics/hydrogen_fuel_cell_cars.do. 

572 Pulse. (2016). Korea to up incentives to be powerhouse in hydrogen, electric vehicle. Retrieved from:  

http://pulsenews.co.kr/view.php?year=2016&no=488893.  

573 Autoblog. (2016). The world's first fuel cell car sharing program launches in Germany. Retrieved from: 

http://www.autoblog.com/2016/04/10/world-first-fuel-cell-carsharing-program/  

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In opposition to other international OEMs, Hyundai did not enter any fuel-cell technology partnerships. 
Moreover, it is facing some disputes with the government since it is solely focusing on FCEVs and not 
developing any BEV at all.574 

In mid-2015, the South Korean government decided to boost the biodiesel blend from 2% to 2.5% and 
to 3% by 2018. Most of the biodiesel produced in the country comes from imported palm oil. Produc-
tion reached 420,000 tons last year which equals almost a third of total demand.575 

In South Korea, the country’s second-largest refiner GS Caltex will invest USD 44 million in a  bio bu-
tanol plant with construction set to begin later this year. The feedstock was not identified.  

GS  Caltex,  the  country’s  second  largest  refiner,  starts  to  build  a  USD  44  million  commercial-scale 
biobutanol facility, during the first half of 2016, based on technology the company has been develop-
ing since 2007. For the bio-based production that has already begun in its pilot facility GS Caltex’s will 
use corn and cassava as feedstock. The facility is also expected to serve as an incubator for other bio-
based start-ups.576 

3.5.5.4  Market 

South Korea already has the world’s largest fuel-cell plant, in Hwasung City occupying only 5,1 acres 
of land but providing 59 megawatts of continuous electricity to the grid. It is managed by POSCO En-
ergy, South Korea’s largest independent power producer.577 

Ulsan,  home  of  Hyundai’s  complex  including  its  fuel-cell  production,  is  on  its  way  to  become  South 
Korea’s pilot hydrogen city producing 60% of its hydrogen demand. In 2013, 140 families began using 
hydrogen  to  meet  all  their  energy  needs.  South  Korea’s  federal  fuel-cell  budget  for  2014  was  USD 
30.9 million. Its annual hydrogen-producing capacity of 1.5 million tons is slightly behind Japan’s (1.8 
million tons) and far behind the U.S. (21 million tons).578 

At  the  end  of  2015,  there  were  about  50  fuel-cell  vehicles  on  South  Korean  roads.  Considering  this 
comparatively  low  number,  the  Ministry  of  Trade,  Industry  and  Energy  has  announced  plans  to  in-
crease this number to 9,000  by 2020 and to 630,000 by 2030 which equals one out of ten cars sold 
annually.  To  reach  these  goals  the  government  is  putting  a  purchase  incentive  in  place  worth  KRW 
27.5 million to each buyer, in addition to tax exemptions. Their goal is to bring down the price of each 
vehicle  to  KRW  35 million,  cut  carbon  emissions  by  4.4  million  tons  and  reduce  5,500  tons  of  other 
pollutants.579 

As  for  infrastructure,  the  number  of  refuelling  stations  is  planned  to  increase  from  10  at  the  end  of 
2015 to 80 by 2020 and 520 by 2030.580 The government will provide KRW 1.5 billion of subsidies per 
station. The time it needs for refuelling is about three minutes. 581 

574 Hybrid Cars. (2016). Hyundai Going Solo on Hydrogen Fuel Cell Vehicles. Retrieved from: 

http://www.hybridcars.com/hyundai-going-solo-on-hydrogen-fuel-cell-vehicles/.  

575 Biofuels Digest. (2016). Biofuels Mandates Around the World: 2016. Retrieved from: 

http://www.biofuelsdigest.com/bdigest/2016/01/03/biofuels-mandates-around-the-world-2016/. 

576 Biofuels Digest. (2016). South Korea’s GS Caltex to start construction on USD 44 million biobutanol plant in H1. Retrieved 

from: http://www.biofuelsdigest.com/bdigest/2016/03/24/south-koreas-gs-caltex-to-start-construction-on-44-million-biobutanol-
plant-in-h1/. 

577 Fuel Cell Cars. (2016). South Korea’s Ambitious Plans for Hydrogen—Power Plants and Cars. Retrieved from: 

http://www.fuelcellcars.com/south-koreas-ambitious-plans-for-hydrogen-power-plants-and-cars/. 

578 Fuel Cell Cars. (2016). South Korea’s Ambitious Plans for Hydrogen—Power Plants and Cars. Retrieved from: 

http://www.fuelcellcars.com/south-koreas-ambitious-plans-for-hydrogen-power-plants-and-cars/. 

579 Korean Herald. (2015). Korea promotes sales of hydrogen fuel cell cars. Retrieved from: 

http://www.koreaherald.com/view.php?ud=20151215001189. 

580 Man, I. (2015). South Korea Plans Big Jump in Fuel-Cell Vehicles. Retrieved from http://www.wsj.com/articles/south-korea-

plans-big-jump-in-fuel-cell-vehicles-1450152058. 

581 Korean Herald. (2015). Korea promotes sales of hydrogen fuel cell cars. Retrieved from 

http://www.koreaherald.com/view.php?ud=20151215001189. 

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Hydrogen-fuelled  bus  will  be  available  by  early  2017.582  The  government  targets  the  shipment  of 
10,000 hydrogen fuelled cars for public transportation with longer mileage, such as buses and taxies, 
for domestic supply and another 14,000 units for exports.583 

When comparing the most relevant alternative fuels, South Korea is the world’s fourth biggest market 
for vehicles running on LPG technology with 2.3 million and almost 150,000 newly registered LPG cars 
in  2014  accounting  for  9%  of  total  new  registrations.584  Also,  about  95%  of  all  taxis  run  on  LPG  ac-
counting for 40% of the total auto-gas consumption. However, most cars introduced ten years ago with 
the  first  wave  of  LPGs  are  phasing  out  and  are  not  replaced  with  new  LPGs.  This  is  mainly  due  to 
price  disadvantages  over  other  fuels.  Therefore,  the  LPG  market  has  been  experiencing  a  slow  de-
cline over the past few  years. However, in 2017 a new system, the LPG Direct Injection engine sys-
tem, developed within the Eco-Star Project is expected to be launched.585 

The country is also catching up on hydrogen technology. However, it is neither a global market leader 
yet nor is the topic high on the government’s agenda. Most of the efforts are undertaken by the indus-
try without governmental support.586 

Korea’s transport sector makes up 2.6% of the domestic gas demand. Out of the around 43,000 regis-
tered CNGs there are about 30,000 buses, accounting for 78% of all CNG vehicles, of which 10,000 
are  deployed  in  Seoul.587  In  March  2016,  the  government  expressed  plans  to  phase  out  all  30,000 
CNG and replace them by FCVs over the next 15 years.588 There are about 2,235 CNG hybrid busses 
currently in operation in Seoul. Compared to conventional compressed natural gas buses, CNG hybrid 
buses can reduce the fuel cost by 34.5% and carbon emissions by 30%.589  

3.5.5.5  SWOT Analysis 

Strengths 
  Strong industrial efforts by major OEMs 
  First mass produced FCEV 
  Academic research in yet unknown fields 
  World’s largest fuel-cell plant 
  Government pushing fuel-cell technologies 
with subsidies, purchase incentives and tax 
exemptions 
Increasing usage of biogas blends and LPG 
(direct injection) for public short- and long-
distance buses 

 

Weaknesses 
  No domestic ethanol production 
  Energy grid is mostly fossil fuels and nucle-

ar power 

  Despite experience with alcohol technolo-

gies, Korea has become aware of potential 
only recently; there is no support from the 
government 

582 Pulse. (2016). Korea to up incentives to be powerhouse in hydrogen, electric vehicle. Retrieved from 

http://pulsenews.co.kr/view.php?year=2016&no=488893.  

583 Pulse. (2016). Korea to up incentives to be powerhouse in hydrogen, electric vehicle. Retrieved from 

http://pulsenews.co.kr/view.php?year=2016&no=488893.  

584 International Energy Agency (2015). Hybrid and Electric Vehicles – The Electric Drive Delivers. Annual Report of the Imple-

menting Agreement for Co-operation on Hybrid and Electric Vehicle Technologies and Programmes, p. 234 

585 Auto-Gas.net (n.d.) Strategies for growing the Autogas market in Korea. Retrieved from http://auto-

gas.net/newsroom/strategies-for-growing-the-autogas-market-in-korea/. 

586 European Commission. (2016). Alternative Fuels and Infrastructure in Seven Non-EU Markets. Retrieved from 

http://ec.europa.eu/transport/themes/urban/studies/doc/2016-01-21-alternative-fuels-and-infrastructure-in-seven-non-eu-
markets.pdf. 

587 NGV Global News (2012). Korean Natural Gas Vehicle Numbers on the Rise. Retrieved from 

http://www.ngvglobal.com/blog/korean-natural-gas-vehicle-numbers-on-the-rise-0913. 

588 Walker, A. (2016). South Korea ditches gas vehicles for fuel cells. Retrieved from 

http://interfaxenergy.com/gasdaily/article/20061/south-korea-ditches-gas-vehicles-for-fuel-cells. 

589 5678 Seol Metropolitan Rapid Transit Corporation. (2016). Organization. Rerieved from 

http://www.smrt.co.kr/main/publish/view.jsp?menuID=002005005. 

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Threats 
  Huge dependency on energy imports: 90 % 

of demand is imported 

Opportunities 
  Dependency on energy imports is a strong 
driver for energy diversification; about 90% 
are imported 

  Government to boost biodiesel blend to 3 % 

by 2018 

3.5.6  United States of America  

3.5.6.1  General Information 

In 2014, greenhouse gas emissions from transportation were considered the second largest factor of 
U.S. greenhouse gas emissions, beyond the electricity sector.  Greenhouse gas emissions from trans-
portation have increased nearly 17% since 1990, mainly due to increased demand for travel. 590 

Figure 31: Greenhouse gas emission from Transportation in USA (Note: Emissions involved in the consumption of electricity for 
transportation activities are included above, but not shown separately (as was done for other sectors). These indirect emissions 
are  negligible,  accounting  for  less  than  1%  of  the  total  emissions  shown  in  the  graph.  Note:  All  emission  estimates  from 
the Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014.) 

EPA's vehicle  greenhouse  gas  rules will  save  consumers  USD  1.7  trillion  by  2025  and  eliminate  six 
billion  metric  tons  of  GHG  pollution.  EPA  and  the  National  Highway  Traffic  Safety  Administration 
(NHTSA) are taking coordinated steps to promote and enhance the production of a new generation of 
clean vehicles from the smallest cars to the largest trucks. 

The  agencies  finalized  standards  to  extend  the light-duty  vehicle  GHG  National  Program for  model 
years  2017-2025.  Together,  the  final  standards  are  projected  to  result  in  an  average  industry  fleet-
wide level of 163 grams/mile of carbon dioxide (CO2) in model year 2025, which is equivalent to 54.5 
miles  per  gallon  (mpg)  if  achieved  exclusively  through  fuel  economy  improvements.  The  program  is 
projected to: 

  Cut 6 billion metric tons of GHG over the lifetimes of the vehicles sold in model years 2012-2025 
  Save families more than USD 1.7 trillion in fuel costs 
  Reduce America’s dependence on oil by more than 2 million barrels per day in 2025 

590  United  States  Environmental  Protection  Agency  (2016).  Sources  of  Greenhouse  Gas  Emissions.  Retrieved  from: 
https://www3.epa.gov/climatechange/ghgemissions/sources/transportation.html.  

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As part of the 2017-2025 standards rulemaking, EPA made a commitment to implement together with 
NHTSA and the California Air Resources Board, a Midterm Evaluation of the longer-term standards for 
model years 2022-2025.591 

EPA is also responsible for the development of regulations, in order to ensure that transportation fuels 
sold in the United States contains a minimum amount of renewable fuel. The Renewable Fuel Stand-
ard  (RFS) regulations  were  developed  in  collaboration  with  distillers,  renewable  fuel  producers  and 
many  other  stakeholders.  The  RFS  program,  which  was  authorized  under  the Energy  Policy  Act  of 
2005 and expanded under the Energy Independence and Security Act  of  2007, sets the foundations 
for major reductions  of GHG emissions from the use  of renewable fuels, for the  reduction  of the  im-
ported petroleum, and for the development of USA renewable fuels sector.592 

3.5.6.2  Research, Development & Innovation 

On June 6, 2016, the Energy Department (DoE) announced USD 22 million investment for the support 
of  research,  development,  and  demonstration  of  innovative  plug-in  electric  vehicle  (PEV)  and  direct 
injection propane engine technologies, as well as community-based projects for the adoption of vehi-
cles that operate on fuels such as biodiesel, electricity, E85, hydrogen, natural gas, and propane, as 
well as the fuelling infrastructure needed to support them. 593 

Led  by  community-based  partnerships  and  key  private  sector  stakeholders,  these  projects  will  help 
promote and develop alternative fuel use nationwide through the collection and sharing of best prac-
tices and lessons learned.594 

As aforementioned in the “Infrastructure” focus area, the Federal Highway Administration invited state 
and  local officials from  all  over the US to suggest routes in their areas  where drivers can charge  up 
electric vehicles and those that run on other alternative fuels, as these vehicles are developing part of 
US transportation network.  

The Fixing America’s Surface Transportation (FAST) Act requires DoT to designate national corridors 
along  major  highways  for  charging  facilities,  i.e.  electric  vehicle  charging,  as  well  as  for  hydrogen, 
propane and natural gas fuelling. 

The use of alternative fuels is a major issue for the US as it has committed to reduce greenhouse gas 
emissions by up to 28% by 2025, and 80% or more by 2050. So, with the promotion of lower-emitting 
vehicles, alternative fuel and zero-emission corridors will help to reduce vehicle exhaust – a significant 
contributor to U.S. emissions.595 

3.5.6.3  Industry 

Besides  government  policies  and  actions  for  the  development  and  promotion  of  alternative  fuels  in 
USA  and,  in  parallel,  U.S.  Environmental  Protection  departments  and  agencies,  there  are  also  non-
governmental  organizations  addressing  fuel-related  trends  and  issues.  Many  of  these  organizations 
represent the Transportation Industry sector. For example, the  American Coalition for Ethanol, which 
is a national organization representing ethanol producers, farmers, commodity organizations, suppliers 
of  goods  and  services  to  the  industry,  rural  electric  cooperatives,  and  others  supportive  of  the  in-
creased production and use of ethanol. 

Regarding hydrogen production and distribution, the major producing states are California, Louisiana, 
and Texas. Up until now, nearly all of the hydrogen produced in the USA is used for refining petrole-

591  United  States  Environmental  Protection  Agency.  (2016).  Regulations  &  Standards:  Light-Duty.  Retrieved 
https://www3.epa.gov/otaq/climate/regs-light-duty.htm.  
592 United States Environmental Protection Agency. (2016). Regulations & Standards. Retrieved from: 

from: 

https://www3.epa.gov/otaq/climate/regulations.htm.  

593  ENERGY.GOV  -  Office  of  Energy  Efficiency  &  Renewable  Energy.  (2016).  DOE Announces  USD  22  Million  in  Funding  to 
Accelerate the Development of Plug-In Electric Vehicles and Use of Other Sustainable Transportation Technologies. Retrieved 
from: http://energy.gov/eere/articles/doe-announces-22-million-funding-accelerate-development-plug-electric-vehicles-and-use.  

594 ENERGY.GOV - Office of Energy Efficiency & Renewable Energy. (2016). DOE Announces USD 22 Million in Funding to 

Accelerate the Development of Plug-In Electric Vehicles and Use of Other Sustainable Transportation Technologies. Retrieved 
from: http://energy.gov/eere/articles/doe-announces-22-million-funding-accelerate-development-plug-electric-vehicles-and-use. 

595 Nadeau, G. (2016). Signs of Things to Come. Retrieved from: https://www.transportation.gov/fastlane/signs-things-come. 

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um, treating metals, producing fertilizer, and processing foods. So, the primary challenge for hydrogen 
production  is  reducing  the  cost  of  production  technologies  to  make  hydrogen  cost  competitive  with 
conventional  transportation  fuels. Both  the  government  and  US  industry  are  working  on  this,  by  also 
funding  and  participating  in  research  and  development  actions  for  the  reduction  of  the  cost  and  the 
environmental  impacts  of  hydrogen  production  technologies.  Hydrogen  manufacturing  research  and 
development  is  important  to  help  the  United  States  move  from  today's  components  and  systems  to 
high-volume, commercially manufactured products. 

Industry  is  also  being  involved  in  legislation  configuration  concerning  issues  of  alternative  fuels.  For 
example,  the  Air  Resources  Board  (ARB)  is  responsible  for  conducting  rulemakings  concerning  the 
adoption and amendment of regulations covering various areas. These rulemakings are brought to the 
responsible board for consideration and an archive of these "formal" rulemaking documents is retained 
by rulemaking action.  

3.5.6.4  Market 

The  Alternative  Fuels  Data  Center  (AFDC),  which  is  a  resource  of  the  U.S.  Department  of  Energy's 
Clean  Cities program,  is  a  source  of  information  about  advanced  transportation  technologies,  while 
also offering transportation decision makers information and tools related to the deployment of alterna-
tive  fuels  and  advanced  vehicles.  The  AFDC  serves  Clean  Cities  stakeholders,  fleets  regulated  by 
the Energy  Policy  Act,  businesses,  policymakers,  government  agencies,  and  the  general  public.  Ac-
cording to the AFDC there are 21,715 alternative fuelling stations available in the USA.596 

Federal  and  State  governments  and  alternative  fuel  providers  (natural  gas,  electricity  and  propane 
providers)  have  legislative  and  regulatory  requirements  related  to  petroleum  reduction  and  the  envi-
ronment.  Consequently,  government  constitutes  the  largest  market  for  alternative  fuels  other  than 
electrification.  Of the government fleets, the Federal government continues to be the largest user of 
alternative  fuelled  vehicles  with  nearly  190,000  vehicles  in  the  fleet  in  2014.  Of these  vehicles,  97% 
were  light-duty  E85  597  flexible  fuelled  vehicles  consuming  just  over  12.8  million  gasoline  equivalent 
gallons of E85.598 

Most fleets acquire flexible fuelled E85 vehicles because of their availability and a growing refuelling 
infrastructure,  but  the  overall  majority  of  alternative  fuel  consumption  remains  in  the  transit  agency 
sector where just over 10,000 heavy duty passenger buses consumed 115 million gasoline-equivalent 
gallons of natural gas in 2014. 

The Federal fleet also consists of vehicles fuelled by ethanol (E85), electricity, natural gas, propane, 
and  hydrogen.  In  2012,  the  U.S.  Postal  Service  phased  out  a  segment  of  their  natural  gas  fleet,  re-
placing them with more cost-effective E85 flexible fuelled vehicles.599 

596 US.DoE. (2016). Alternative Fuels Data Center. Retrieved from: http://www.afdc.energy.gov/.  
597 E85 (or flex fuel) is a term that refers to high-level ethanol-gasoline blends containing 51%-83% ethanol, depending on geog-

raphy and season (see Fuel Properties and E85 Specifications). It can be used in flexible fuel vehicles (FFVs), which are 
available from domestic and foreign automakers 

598 US.DoE. (2016). http://www.afdc.energy.gov/fuels/laws/ELEC/US.  
599 U.S. Energy Information Administration. (n.d). 2014 Alternative Fuel Vehicle Data. Retrieved from: 
http://www.eia.gov/renewable/afv/. 

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Figure 32: Federal fleet AFV inventory by fuel type (Source: US Energy Information, EIA-886 Survey; Federal Automotive Statis-
tical Tool)599 

Figure 33: Total alternative fuel consumption by fleet (Source: US Energy Information, EIA-886 Survey; Federal Automotive 
Statistical Tool)599 

The alternative fuels market in the United States for 2015 is shown in the table below.  

Fuel Type 

Automobiles 

Vans &  
Minivans 

Pickup  
Trucks 

Light Duty  
Trucks & 
SUVs 

Medium and 
Heavy Duty 
 Trucks 

Other  
On Road 

Total 

Compressed 
Natural 
(CNG) 

Gas 

Electricity (EVC) 
Ethanol, 
85 
Percent (E85)1 

0 

68,234 

438,849 

w 

0 

w 

w 

0 

w 

0 

w 

366,601 

w 

w 

0 

0 

w 

0 

6,805 

68,560 

1,652,980 

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Fuel Type 

Automobiles 

Vans &  
Minivans 

Pickup  
Trucks 

Light Duty  
Trucks & 
SUVs 

Medium and 
Heavy Duty 
 Trucks 

Other  
On Road 

Hydrogen (HYD) 
Liquefied  Natu-
ral Gas (LNG) 
Liquefied  Petro-
leum Gas (LPG) 
Diesel-Electric 
Hybrid (DSL)2 
Gasoline-
Electric  Hybrid 
(GAS)3 

0 

0 

w 

0 

w 

0 

0 

w 

0 

0 

0 

0 

102 

0 

w 

0 

0 

0 

0 

w 

0 

0 

w 

0 

0 

Total 

829,791 

354,506 

496,622 

384,536 

6,136 

0 

0 

0 

0 

0 

14 

Total 

0 

120 

3,119 

545 

343,022 

2,075,151 

The U.S. Department of Energy's (DoE’s) Clean Cities program is supporting actions for the elimina-
tion  of  petroleum  use  in  transportation.  With  almost  100  local coalitions involved  in  the  Clean  Cities 
program, consisting of businesses, fuel providers, vehicle fleets, state and local government agencies, 
community organizations etc. nearly 15,000 stakeholders participate in the program and, through their 
collective efforts, are contributing to Clean Cities’ goals and accomplishments. 

Clean Cities coalitions and stakeholders have  saved more than 7.5 billion gallons of petroleum since 
the beginning of this initiative in 1993. They have also helped deploy hundreds of thousands of alter-
native fuel vehicles, fuelling stations as well as facilitate the entry of new transportation technologies 
into  the  marketplace.  Clean  Cities'  efforts  connect  state,  local  and  national  collaborations.  Over  the 
years,  partnerships  and  projects  have  significantly  increased  the  availability  of  alternative  fuels  and 
infrastructure, and enabled a growing number of fleets to choose alternative fuel vehicles (AFVs).  

The  program  has  awarded  nearly  USD  400  million  through  the  U.S.  Department  of  Energy funding 
programs,  providing  resources  to  help  communities  take  over  more  than 500  alternative  fuels  and 
vehicle projects. Close to 260 million people (82% of the total U.S. population) live inside the bounda-
ries of Clean Cities coalitions.600 

3.5.6.5  SWOT Analysis 

Strengths 
  Favorable legislation 
  Abundant domestic supplies of natural gas 
  Very strong standard setting, e.g. by the Cali-

fornia Air Resources Board 

  Many  efforts  put  in  diversification  of  energy 

grid 

Weaknesses 
  The  absence  of  a  national  infrastructure  that 
can  support  public  and  private  use  of  the  full 
portfolio  of  alternative  fuel  is  not  good  for 
cross-state operation 

  U.S.  Government  sector  is  the  only  robust 
market for alternative fuels such as natural gas 
  The marketplace is stagnant for vehicles using 

alternative fuels, other than electrification 

  Consumer 

the  ad-
lack  understanding  of 
vantages  of  using  alternative  fuels  other  than 
electrification 

  Most  government  and  private  resources  are 
focused on electrified vehicle investments 
  Excessive  transport  and  processing  costs  for 
biofuels  thereby  restricting  the  size  of  biofuel 
markets 

600 US DoE. (2016). Clean Cities. Retrieved from:  https://cleancities.energy.gov/  

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Final Report – International Assessment and Action Plans of the Focus Areas 

Opportunities 
  Alternative  Fuels  Data  Center  providing  in-
formation  (on  costs,  impact,  etc.)  for  citizen 
information in use 

  Right  approach  for  the  truck  business,  long 

Threats 
  Electrification  of  vehicles  is  the  primary  focus 
of  private  capital  investment,  thereby  prevent-
ing other alternative fuels from gaining traction 
  Alternative fuels suffer from an image problem 

distance coaches (logistics) 

in comparison to electrification 

3.6  Maturity Degree 

Through the state-of-play analyses as well as the SWOT analyses the maturity degree of an integrated 
transport system could be assessed for each Focus Area in each country under study. An estimation 
of Europe’s state of transport integration was undertaken in addition in order to be able to gain a com-
prehensive understanding of the global state of Focus Areas under study. 

The advancement in each Focus Area was graded on a 5-point scale, reaching from very poor to very 
good. This approach enables an easy comparison of the state of affairs of all Focus Areas in all coun-
tries. All results are accumulated in the following illustration: 

Figure 34: Degree of maturity of the integrated transport system along the focus areas in six countries and in Europe 

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3.7  Porter’s 5-Forces Analysis 

The Porter’s 5-Forces Analysis is a well-established methodology for studying value chain dynamics. It 
has been undertaken within one focus area for each country. It analyses the rivalry among incumbents 
as well as threats from outside, consisting of new market entrants as well as from potential substitutes. 
Furthermore,  it  takes  the  bargaining  power  of  both  suppliers  and  buyers  into  account.  Through  this 
approach  a  characterisation  of  the  changes  in  relevant  industries  and  underlying  dynamics  shall  be 
achieved. 

Figure 35: Porter's 5-Forces Analysis601 

3.7.1  Brazil: Biofuels Value Chain 

Brazil is the one of the largest producer of ethanol fuel and its fuel program is based on the most effi-
cient  agricultural  technology  of  sugarcane  cultivation  in  the  world602  as  it  uses  modern  equipment, 
cheap  sugarcane  as  feedstock  and  reuses  residual  waste  (bagasse)  for  producing  heat  and  power. 
Also the processing of sugarcane into ethanol is remarkably efficient yielding more energy compared 
to standard ethanol plant.603 The low cost of sugarcane and the initiative by The National Alcohol Pro-
gram  –  Pró-Álcool  –  (Portuguese:  'Programa  Nacional  do  Álcool'),  launched  in  1975  by  the  govern-
ment  to  phase  out  automobile  fuels  derived  from  fossil  fuels,  such  as  gasoline,  in  favour  of  ethanol 
produced  from  sugar  cane  –  increased  ethanol  production.  The  state  of  São  Paulo  is  the  main  pro-
ducer  of  ethanol  and  other  producers  are  Goiás,  Minas  Gerais,  Mato  Grosso  do  Sul,  Paraná,  Mato 
Grosso, Alagoas, Pernambuco, Paraíba and Espírito Santo604. The problems in Brazil's ethanol sector 
have started since 2009. Climate changes, investment reduction, high production costs, among other 
reasons, led to a decrease in total production by almost 12% from 2009 to 2011. But in 2013, the initi-
ative  and  the  awareness  raising  programme  emphasized  the  importance  of  ethanol  consumption  in 
terms of joint creation and economic movement in the country increased the ethanol use. 605 

3.7.1.1  Rivalry amongst Competitors 

Due  to  its  early  development  and  40-year  long  experience,  the  biofuel  industry  is  quite  competitive. 
Most ethanol is produced in the state of São Paulo which is responsible for 51% of the national pro-

601 Tylenda, E. (2014). Sustainability and the Five Forces Model. Retrieved from: http://www.sasb.org/five-forces/  
602 Garten Rothkopf (2007). "A Blueprint for Green Energy in the Americas". Inter-American Development Bank. 2008-08-22. 

See chapters Introduction (pp. 339–444); Pillar I: Innovation (pp. 445–482) 
603 Brazil Institute. (2007). The Global Dynamics of Biofuels. Retrieved from: 

https://www.wilsoncenter.org/sites/default/files/Brazil_SR_e3.pdf 

604 Farah, A.(2015). Ethanol Market in Brazil. Retrieved from: http://thebrazilbusiness.com/article/ethanol-market-in-brazil. 
605 Farah, A.(2015). Ethanol Market in Brazil. Retrieved from: http://thebrazilbusiness.com/article/ethanol-market-in-brazil 

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duction – 15 billion litres in 2009 and 11.8 litres in 2011.606 The state of São Paulo is followed by Goiás 
(11.7%), Minas Gerais (9,1%), Mato Grosso do Sul (7.1%), Paraná (6.1%), Mato Grosso (3.5%), Ala-
goas (3.4%), Pernambuco (1.6%), Paraíba (1.43%) and Espírito Santo (0.86%).607 
Sao Martinho Group in Brazil is one of the largest producers of hydrous and anhydrous ethanol. Bio-
sev also produces hydrous and anhydrous ethanol (along with sugar) and supply to large clients from 
diverse  sectors  such  as  Petrobras,  Raízen  and  Ipiranga.  Other  producers  include  Cooperativa  de 
Produtores  de  Cana-de-Acucar,  Acucar  e  Alcool  do  Estado  de  Sao  Paulo  (Copersucar),  Odebrecht 
Agroindustrial  (previously  ETH  Bioenergia),  Raízen,  Cosan,  Biosev  Bioenergia  (Dreyfus),  Bunge, 
GranBio, Petrobas (state-run), BP Biofuels, and Sao Martinho.608 

3.7.1.2  Threat of New Entrants 

Substitute  of  traditional  biofuel  includes  different  production  technologies  by  different  companies. 
GranBio  and  Rhodia  are  producing  bio  n-butanol,  made  from  sugar  cane  straw  and  bagasse,  the 
same  raw  material  that  is  used  to  manufacture  second-generation  ethanol  and  which  is  abundant  in 
Brazil.  Similarly,  Cobalt  Technologies  and  Rhodia  also  announced  the  joint  development  and  opera-
tion  of  a  biobutanol  demonstration  facility  in  Brazil.  609  A  factory  of  Biofuel  from  seaweed  in  Brazil  is 
planning to be set up by Austrian firm SAT on a sugar cane plantation that yields ethanol and produc-
es  1.2  million  litres  of  algae-based  biofuels  annually.610  Corn  ethanol  is  also  available  in  Brazil  by 
Alden, Iowa-based Summit Agricultural Group that started construction of the few corn-based ethanol 
plants  in  Lucas  do  Rio  Verde  in  Mato  Grosso,  an  agricultural  state  in  west-central  Brazil.  The  60-
million-gallon plant is expected to start production sometime in 2017.611 Cellulosic ethanol612, an ethyl 
alcohol produced from cellulose (the stringy fibre of a plant) rather than from the plant's seeds or fruit, 
is also produced in Brazil. Raizen plans to invest USD 102 million in the add-on cellulosic ethanol plant 
that  will be attached to its  Costa Pinto facility  in Piracicaba.613 It is a joint venture  between Shell and 
Cosan, is the world’s biggest producer of cane ethanol and Brazil’s fifth largest company by revenue.614 

3.7.1.3  Threat of Substitutes 

New entrants for bio-fuel in Brazil are those which try to replace its use through electric or gas vehi-
cles. Electric vehicles (EV) could also be an option for the sustainable urban transport in Brazil, but it 
is  still  immature  and  has  lower  demand.  Renewable  Natural  Gas  (RNG)  in  Brazil  is  harvested  from 
waste product and wastewater, contributing to emissions reduction and with potential generation and 
application  in a decentralised manner, which is also suited to rural and other off-grid fuelling of local 
fleets.  The  company  CIBiogás  (International  Centre  for  biogas)  supplied  more  than  40  vehicles  of 
Itaipu Binacional and intends to double capacity by end of 2016. Biomethane vehicles were received 
under the GNVerde brand in Rio Grande do Sul. With the support of the State Gas Company (Sulgás), 
it has being tested in vehicles since 2013, but the distribution company was awaiting the decision of 
the ANP (National Agency of Petroleum, Natural Gas and Biofuels) to start selling this alternative fuel. 
E-Bio Fuel-Cell cars by Nissan are also available in Brazil. 

3.7.1.4  Bargaining Power of Suppliers 

Considering  that  suppliers  to  bioethanol  producers  are  farmers  and  crop  owners,  their  bargaining 
power is considerably low. They have hardly any influence on prices or who to deliver to. 

606 Farah, A.(2015). Ethanol Market in Brazil. Retrieved from: http://thebrazilbusiness.com/article/ethanol-market-in-brazil 
607 http://thebrazilbusiness.com/article/ethanol-market-in-brazil. 
608 Conectas. (2016). Retrieved from: http://www.conectas.org/.  
609 Biofuel Digest. (2013). Brazil’s Big Six in advanced biofuels & chemicals: who’s doing what now? Retrieved from: 

http://www.biofuelsdigest.com/bdigest/2013/09/16/brazils-big-six-in-advanced-biofuels-chemicals-whos-doing-what-now/ 
610 Phys.Org. (2012). Brazil to build first algae-based biofuel plant. Retrieved from: http://phys.org/news/2012-07-brazil-algae-

based-biofuel.html. 

611 Govenors´ Biofuel Colation. (2016). Iowa company breaks ground in Brazil on corn ethanol plant. Retrieved from:  

http://www.governorsbiofuelscoalition.org/?p=16815 

612 Biofuels Digest. (2014). Raizen, Iogen commence cellulosic ethanol production in Brazil. Retrieved from: 

http://www.biofuelsdigest.com/bdigest/2014/12/17/raizen-iogen-commence-cellulosic-ethanol-production-in-brazil/. 
613 Biofuels Digest. (2013). Brazil’s Big Six in advanced biofuels & chemicals: who’s doing what now? Retrieved from: 

http://www.biofuelsdigest.com/bdigest/2013/09/16/brazils-big-six-in-advanced-biofuels-chemicals-whos-doing-what-now/. 

614 Ethanolproducer.com. (2016). Retrieved from: http://www.ethanolproducer.com/.  

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3.7.1.5  Bargaining Power of Buyers 

Carmakers in Brazil that use hydrous ethanol fuels are Fiat, Volkswagen, GM, Ford. The availability at 
different  blend  levels  of  ethanol  has  had  a  strong  impact  over  consumer  choices  and  technologies 
offered in the market by manufacturers.615 Traditionally, drivers choose ethanol to fuel their cars when 
it is below 70 % of the price of gasoline, as the biofuel extracted from sugar cane yields about 30 % 
less energy per litre.616 Until the 2000s, sales of gasoline or ethanol vehicles were driven primarily by 
fuel  prices,  with  ethanol  vehicles  dominating  sales  in  the  1980s,  and  very  strong  sales  of  gasoline 
engines  in  the  1990s.617  As  a  response,  in  2003  flex-fuel  vehicles  (use  of  ethanol-gasoline  mix)  was 
introduced in the market, in order to fulfil consumers’ desire to use a cheaper fuel. Also the Brazilian 
government made mandatory to blend ethanol fuel with gasoline. 

The car sales of flex-fuel vehicles keep increasing  618, currently all light commercial vehicles produced 
in  Brazil  have  the  bi-fuel  technology,  and  at  least  17  new  models  imported  from  Argentina,  China, 
Mexico,  Korea  and  Thailand  were  adapted  with  this  system  in  order  to  adapt  the  Brazilian  need.619 
Between 1979 and 2011, Brazil substituted around 22 million pure gasoline-powered vehicles with 5.7 
million neat ethanol vehicles, 14.8 million flex-fuel vehicles and almost 1.5 million flex motorcycles. 

3.7.1.6  Conclusion 

Brazil’s bioethanol industry is extremely dynamic and can look back on a long history. Its success is 
mainly because of the government's early intervention setting targets for blending traditional gasoline 
with bioethanol. Further reasons for the industry’s success can be attributed to a multitude of different 
beneficial factors, including fertile soil, suitable water, available land, and low  labour costs. However, 
the industry is also extremely vulnerable to a variety of external influences. The recent economic crisis 
and climate change have had a huge impact on the industry. 
There are a handful of corporations, both domestic and international, engaging in tough competition. 
There are a few new entrants who cannot yet compete with the established players. Also, incumbents 
are the major force behind new technologies developed such as cellulose-based or algae-based etha-
nol production. As for substitutes, gasoline poses the biggest threats. Other propulsion systems such 
as battery electric or fuel cell vehicles do not play a role since there is hardly any market for them in 
Brazil. Suppliers, being farmers and crop owners, do not have a big bargaining power since the huge 
established companies have the power to dictate the price. Similarly, the bargaining power of buyers is 
very low, too. The only influencing force seems to be the government regulating the ethanol market. 

615 http://www.theicct.org/sites/default/files/publications/Brazil%20PV%20Market%20Statistics%20Report.pdf. 
616 Freitas Jr., G. (2016). Sugar-Cane Fuel Wins in Brazil as Cheap Ethanol Beats Gasoline. Retrieved from Bloomberg: 
http://www.bloomberg.com/news/articles/2016-03-01/sugar-cane-fuel-wins-in-brazil-as-cheap-ethanol-beats-gasoline 

617 Theicct.org. (n.d.). Retrieved from: 

http://www.theicct.org/sites/default/files/publications/Brazil%20PV%20Market%20Statistics%20Report.pdf. 

618 Unica. (n.d.) Retrieved from: http://www.unica.com.br/noticias/show.asp?nwsCode=83CC5EC9-8E69-4C11-9F0E-

CBDF9B849AE2. 

619 The Brazil Business. (2016). Ethanol Market in Brazil. Retrieved from http://thebrazilbusiness.com/article/ethanol-market-in-

brazil. 

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Rivalry among
competitors

Bargaining power
of buyers

Threat of new
entrants

Bargaining power
of suppliers

Threat of
substitutes

Figure 36: Porter's 5-Forces Analysis on the Biofuels Value Chain in Brazil 

3.7.2  China: Smart Logistics Service Value Chain 

China is focusing on the development of smart mobility in the transportation sector and mostly in the 
freight and logistics area. The widespread adoption of the Internet of Things (IoT) applications in China 
started as early as 2010, with the Smart Cities initiative being a major example. Chinese governmental 
bodies,  such  as  the  National  Development  and  Reform  Commission  (NDRC),  support  the  develop-
ment of Smart Mobility and the central government promoting the development of such technology in 
national policy and investing in the very strong internationally Chinese electronic industry. 
Another  factor  which  promotes  the  adoption  and  use  of  smart  mobility  technologies  in  China  stems 
from the very intense pollution and congestion problems that exist in the country, which makes it im-
perative for solutions that will bring relief to the problem. Only for Beijing, the costs of congestion and 
air pollution are estimated at 7%-15% of the country’s GDP. Efficient transport systems (i.e. bus rapid 
transit)  can  significantly  reduce  air  pollution  and  greenhouse  gas  emissions,  help  reduce  congestion 
and improve traffic safety. 

3.7.2.1  Rivalry Amongst Competitors 

There is still high competition to smart mobility by manual labour and traditional operations, due to the 
current low level of wages. However, the emerging long distance multimodal transport chains (i.e. Silk 
Road)  and  the  constantly  growing  urban  development  of  China  pushes  towards  smart mobility  solu-
tions.  

3.7.2.2  Threat of New Entrants 

The threat of new entries is quite big concerning imported know-how, services and products from Eu-
rope  and  (to  a  lesser  extend)  USA  and  Japan.  Protection  measures  from  government  (that  request 
local cooperation) are in place to control this threat. 

3.7.2.3  Threat of Substitutes 

C-ITS and IoT constitute currently de facto international standards and it is highly unlikely to be substi-
tuted by new, non-compatible technologies. New technologies will build upon those layers. Still, there 
is always the chance of a new invention/technology in these rapidly evolving technological fields.   

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3.7.2.4  Bargaining Power of Suppliers 

Together  with  local  businesses, many  foreign  enterprises, mainly  IT  companies  and  telecommunica-
tion operators, have already started to strongly involve themselves in the field, recognizing the oppor-
tunity and demand and entering partnerships with local companies and key player.  

3.7.2.5  Bargaining Power of Buyers 

The bargaining power is also very high, mainly because such smart logistics solutions are mainly used 
by big (international) logistics companies and enterprises, which recognize the need and stiff competi-
tion coming from abroad. On the other hand there  are the municipalities and citizens in major urban 
centers  (i.e.  Shanghai,  Beijing)  that  face  serious  mobility  problems  (traffic  jams,  bad  air  quality)  and 
have enough funds to invest in and use such solutions. The rural part of China is, however, still lacking 
relevant funds and incentives. 

3.7.2.6  Conclusion 

Even though manual labour is still quite cheap in China and smart logistics services are quite a new 
market, it has already been widely diffused and adopted across China. It is mainly driven by China’s 
need to cope  with  its increasing urbanization and  needs to decrease the heavy pollution. The rivalry 
among smart logistics service providers is still quite, low if not taking the manual labour into considera-
tion. However,  there is  increasing threat of new entrants from abroad against  which the government 
tries to establish protection. Since it is quite a new market itself, there is no threat of substitution at this 
point. As for suppliers, their bargaining power is increasing since they recognized the market potential 
and  enter  into  co-operations  with  main  players.  Some  buyers  have  a  big  bargaining  power  (logistics 
companies). 

Rivalry among
competitors

Bargaining power
of buyers

Threat of new
entrants

Bargaining power
of suppliers

Threat of
substitutes

Figure 37: Porter's 5-Forces Analysis on the Smart Logistics Services Value Chain in China 

3.7.3 

India: Smart Cycle and Auto Rickshaw Hailing Services Value Chain 

Rickshaw transportation plays a big role in Indian cities. With respect to auto-rickshaws, Tier-I cities in 
India (with population greater than 4 million) typically have more than 50,000 vehicles, while in Tier-II 
cities (with population between 1 and 4 million) have between 15,000 and 30,000 vehicles on average. 
It is mainly used for inner-city transportation, to make up for the first- and last-mile connectivity to pub-
lic transportation or to replace private motorized transportation.620 

620 World Resource Institute. (2016). Sustainable Urban Transport in India. Retrieved from: 

http://wricitieshub.org/sites/default/files/sustainable_urban_transport_india_2.pdf. 

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The rickshaw system is mainly based on individuals rather than on fleet companies. This has resulted 
in  a  highly  chaotic  system  that  relies  on  hailing  an  empty  rickshaw  from  the  roadside.  This  is  now 
about to change because of several start-ups offering smart mobility services. These new GPS-based 
services have significantly reduced passengers’ waiting time, fare negotiation to hail autos or staying 
on-hold on phone while booking cabs.621 The increased use of smartphones coupled with low mobile 
tariffs and mobile internet the market becomes increasingly attractive.622 

3.7.3.1  Rivalry amongst Competitors 

The main service providers are Pooch-O and G-Auto who cover most of the network of auto rickshaws 
with  their  services  or  apps.  Similarly  to  Ecocab  (cycle  rickshaw)  services,  auto  rickshaw  drivers  are 
registered with their telephone numbers which is used to order their service. Whereas Pooch-O is run 
by the Delhi government and only available in Delhi, G-Auto is also offered in Gujarat. 

3.7.3.2  Threat of New Entrants 

From 2011-2016, the taxi-app sector has gained huge popularity owing to the many start-ups (interna-
tional  and  domestic)  that  have  entered  the  Indian  market.623  Besides  car  sharing,  an  Indian  online 
transportation network company named Ola is also providing taxi sharing service in 100 Indian cities. 624 
Ola has started a pilot on-demand auto rickshaw services too in Bangalore. Users can select cars of 
their choice.625 

3.7.3.3  Threat of Substitutes 

The  substitute  for  cycle  and  auto  rickshaw  hailing  services  can  be  the  use  of  public  transportation 
apps – TRAFI. It is the international public transport app that helps people plan city journeys and en-
courages  users  to  modify  their  mobility  behaviour  by  giving  options  to  walk  or  to  take  train  when 
streets are congested saving time.626 It gives options for buses, suburban trains, bike and metros and 
gives route suggestion based on convenience and speed.627 
Another substitution threats comes from the increasingly popular ride sharing services, such as Uber-
pool628 that is already offered in many Indian cities (such as New Delhi, Pune, Mumbai, Chennai and 
Jaipur  etc).  After  unsuccessful  attempts,  the  company  decided  to  revamp  its  business  and  design  it 
similar  to  Pooch-O  by  dismissing  its  20%  commissions  imposed  on  drivers.  However,  opposed  to 
Pooch-O, Uber imposes fees on users. Uber applied  to become a radio-taxi operator. Uber services 
are offered in 18 cities.629 

3.7.3.4  Bargaining Power of Suppliers 

Since the introduction of mobile rickshaw hailing services, the  number of empty  trips on the parts of 
the operator has decreased enormously and improved the overall efficiency of the system. Rickshaw 
operators have also increased their income by 25-30% and the number of orders by 1 to 2 calls per 
day  and saved  the  waiting time for customers. Thus, the  developers of smart rickshaw service  apps 
are highly dependent on drivers using their service. To keep its drivers, G-auto offers them subsidized 

621  Gadgets 360°. (2015). Delhi Government to Relaunch PoochO App, Cover 90,000 Auto Rickshaws. Retrieved from: 
http://gadgets.ndtv.com/apps/news/delhi-government-to-relaunch-poocho-app-cover-90000-auto-rickshaws-748216 

622 Move-Forward. (2016). How Mobility Apps are Transforming the Urban Transportation in India. Retrieved from: 

https://www.move-forward.com/how-mobility-apps-are-transforming-the-urban-transportation-in-india/. 

623 Move-Forward. (2016). How Mobility Apps are Transforming the Urban Transportation in India. Retrieved from: 

https://www.move-forward.com/how-mobility-apps-are-transforming-the-urban-transportation-in-india/. 

624 Russell, J. (2015, October 13). India’s Ola Announces Carpooling Service That Matches Customers Within Social Groups. 

Retrieved from Techcrunch network: https://techcrunch.com/2015/10/13/indias-ola-announces-carpooling-service-that-
matches-customers-within-social-groups/. 

625 Ola (2016).Retrieved from: https://www.olacabs.com/fares 
626 Deloitte (2015). Transport in  the Digital Age Disruptive Trends for Smart Mobility. Retrieved from: 
http://www2.deloitte.com/content/dam/Deloitte/tr/Documents/public-sector/transport-digital-age.pdf 

627 Gadgets now. (2016). Public transportation app Trafi unveiled in Bengaluru and Mumbai. Retrieved from: 
http://timesofindia.indiatimes.com/tech/apps/Public-transportation-app-Trafi-unveiled-in-Bengaluru-and-
Mumbai/articleshow/51822582.cms 

628 Uber. (2016). UberPool. Teile deine Fahrt mit anderen. Retrieved from: https://www.uber.com/ride/uberpool/ 
629 https://inc42.com/buzz/uber-resumes-operations-revamped-business-model/ 

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healthcare, insurance and education of their wards.630 Ecocab offers rickshaw drivers several benefits, 
such as free health check-ups, accidental insurance and access to credit financing schemes of leading 
banks.  However,  they  are  also  provided  with  work  uniforms  and  have  to  a  follow  code  of  conduct, 
which, if not followed, can lead to the confiscation of their rickshaw license.631 

3.7.3.5  Bargaining Power of Buyers 

Although cycle rickshaw was a preferred mode of travel in Indian cities, especially for shorter distanc-
es, and also served as an affordable means of travel with environmental benefits,632 problems such as 
inaccessible residential areas and unorganized network of cycle rickshaws existed. 633 The user of cycle 
rickshaw  using  Ecocab  services  benefit  from  an  organised,  intermediate,  public  transport  system  at 
affordable price and saves fuels and time.634 The compact and flexible  design of the cycle rickshaws 
allows them to comfortably pass through narrow  lanes where generally other public transport modes 
find it difficult to reach.635 

3.7.3.6  Conclusion 

Rickshaws are the most important means of transportation in Indian cities. Therefore, it is no surprise 
that  competition  is  quite  fierce  on  the  market.  What  was  a  highly  chaotic  system  seems  to  change 
along with innovations such as mobile rickshaw hailing services. Even though the market is oligopolis-
tic, the main providers are in a fierce battle with each other. This has influences on both the bargaining 
power of suppliers, rickshaw drivers, who benefit from many services offered by the providers to bind 
them.  On  the  other  hand,  customers  benefit  from  reduced  prices  and  increased  service,  thus  their 
bargaining power is high as well. Also the threat of new entrants is really big, since the Indian market 
is quite attractive in consideration of their increasing middle class and rising wealth. Only the threat of 
substitute is comparably low. This can be ascribed to the fact that the market is quite new itself. 

Rivalry among
competitors

Bargaining power
of buyers

Threat of new
entrants

Bargaining power
of suppliers

Threat of
substitutes

Figure 38: Porter's 5-Forces Analysis on the Mobile Rickshaw Hailing Service Value Chain in India 

630 Times of India. (2016). IIM graduate who drives autorickshaw business. Retrieved from: 

http://timesofindia.indiatimes.com/city/nagpur/IIM-graduate-who-drives-autorickshaw-business/articleshow/19027194.cms. 
631 The City FX (2012). Fazilka Ecocabs Offers New Paradigm for Non-Motorized Transport in Indian Cities. Retrieved from: 

http://thecityfix.com/blog/fazilka-ecocabs-offers-new-paradigm-for-non-motorized-transport-in-indian-cities/ 

632 Ecocabs (2016). Ecocabs - World's first dial-a-rickshaw scheme...where technology meets tradition. Retrieved from: 

http://www.ecocabs.org/about/. 

633 Codatu XV. (2016). Fazilka Ecocabs: First “Dial - a - Rickshaw” facility (India). Retrieved from:  http://www.codatu.org/wp-

content/uploads/ASIJA-Fazilka-Ecocabs_World’s-First-Dial-a-Rickshaw-Service_CODATU.pdf. 

634 Codatu XV. (2016). Fazilka Ecocabs: First “Dial - a - Rickshaw” facility (India). Retrieved from:  http://www.codatu.org/wp-

content/uploads/ASIJA-Fazilka-Ecocabs_World’s-First-Dial-a-Rickshaw-Service_CODATU.pdf. 

635 Ecocabs (2016). Ecocabs - World's first dial-a-rickshaw scheme...where technology meets tradition. Retrieved from: 

http://www.ecocabs.org/about/. 

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3.7.4  Japan: High-speed Train Value Chain 

When Japan National Railways (JNR) was privatized in 1987, it  was divided  into seven independent 
regional  railway  companies,  together  known  as  Japan  Railways  Group  (JR  Group).  It  comprises  JR 
Central, JR West, JR East on Honshu island, JR Hokkaido, JR Shikoku, JR Kyushu, and JR Freight. 
Due to privatization, the companies became competitors. This had immediate effects on the operation 
efficiency, service level and ticket prices. The JR Group runs almost all intercity rail services and the 
majority  of  commuter  rail  services.  Shinkansen  are  only  operated  by  JR  and  run  on  separate  tracks 
and  platforms (except from the Akita  and  Yamagata  Shinkansen) on Honshu,  Kyushu and Hokkaido 
islands. The Shinkansen network connects Tokyo with most of the country’s major cities. In total, there 
are seven Shinkansen lines. 

3.7.4.1  Rivalry amongst Competitors 

Apart  from  the  JR  Group  there  are  16  major  private  railways  run  by  financially  independent  compa-
nies. Thus, the national high-speed rail market is an  oligopoly  with minimal competition between the 
former JNR and private companies that cannot compete with them. As for Shinkansen, JR is the only 
operator with no competition at all. 

3.7.4.2  Threat of New Entrants 

The JR Group not only profits from its history of government ownership but also from their long experi-
ence. Due to the extreme costs of establishing the necessary infrastructure to run high-speed trains, 
there  are  no  new  entrants  in  the  foreseeable  future.  Thus,  the  market  structure  is  very  unlikely  to 
change both on the short and on the long run. 

3.7.4.3  Threat of Substitutes 

Recently,  airlines  achieved  major  economical  efficiencies  and  thus  show  a  cost  advantage  in  origin-
destination  pairs  over  500  km.  Even  though  new  innovations,  such  as  car sharing, ride sharing,  etc. 
are increasing their market share, they do not pose a threat to Shinkansen trains since they would only 
offer a more flexible alternative for short distances in urban areas where Shinkansen trains do not run. 
On  medium  distances  there  is  no  threat  either  since  Shinkansen  trains  still  offer  the  best  value  for 
money. 

Regarding freight transportation, railway makes up only 4%  of the overall freight market. Trucks and 
ships remain the most used means of freight transportation. So, neither for the passenger nor for the 
freight market there are considerable substitutes. 

3.7.4.4  Bargaining Power of Suppliers 

The JR Group recently made some efforts to extend their supplier base internationally. However, the 
suppliers  bargaining  power  is  very  low  due  to  the  oligopolistic  market  and  the  concentrated  power 
within the JR Group. 

3.7.4.5  Bargaining Power of Buyers 

Shinkansen  trains  are  very  competitive.  Thus,  railway  is  one  of  the  most  used  means  of  passenger 
transportation. Especially when owning the Japan Rail Pass Shinkansen trains are very cost-effective. 
The cost per kilometre is around JPY 20 for short distances, and decreases to under JPY 10 for long 
distances. For high-speed trains, such as Shinkansen, a supplement fee has to be paid in addition to 
the base fare; they range from around JPY 800 for short distances to around JPY 8,000 for long dis-
tances. Nonetheless, the bargaining power is quite high, mainly due to the citizens’ price sensitivity. If 
there  was  a  considerable  alternative,  consumers  would  compare  alternatives  and  opt  for  the  most 
economical alternative. 

3.7.4.6  Conclusion 

The  formerly  state-owned  JR  group  was  divided  into  seven  privately  owned  enterprises  allocated  to 
different geographical areas. So, even though they were privatized they are not perceived as competi-

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tors. Apart from the JR Group there are 16 train companies. However, the JR Group is the only one 
operating Shinkansen trains. So, there is an oligopolistic high-speed train market and a monopolistic 
Shinkansen market. Since it is extremely expensive to both build the necessary infrastructure as well 
as the trains themselves, the only possibility for new entrants would be to operate services on existing 
tracks  owned  by  the  JR  group.  Hence,  there  is  no  real  threat  from  new  entrants.  As  for  substitutes, 
there  is  only  a  threat  in  long  distances  due  to  air  fares  becoming  cheaper.  For  medium  distances 
Shinkansen are still the most competitive means of transportation. Whereas the suppliers’ bargaining 
power  is  quite  low  because  of  the  JR  groups  standing,  the  buyers’  bargaining  power  is  comparably 
high due to them being very price sensitive and open to switching to substitutes. 

Rivalry among
competitors

Bargaining power
of buyers

Threat of new
entrants

Bargaining power
of suppliers

Threat of
substitutes

Figure 39: Porter's 5-Forces Analysis on the High-speed Train Value Chain in Japan 

3.7.5  South Korea: Smart Mobility Platform Value Chain 

South Korea benefits from different factors. First, the country is quite small. Thus, ride and car sharing 
alternatives are also competitive in inter-city travelling. Second, the coverage of smart devices (such 
as  smartphones)  is  really  high.  Third,  the  country’s  population  has  a  huge  affinity  towards  new  and 
innovative technologies. Fourth, South Korea has a strong IT and electronics industry. Fifth, it does not 
have many cultural differences within  the country. These are all reasons pushing innovation towards 
smart  mobility.  The  main  actor  in  that  business  is  the  Kakao  Corporation  which  has  been  mostly 
known for their communication app KakaoTalk. When Uber faced some legal problems in  South Ko-
rea,  Kakao  Corp.  started  to  enter  the  smart  mobility  market  and  managed  to  outlaw  Uber  by  only 
granting licensed taxi drivers (Uber did not care at that point) the right to register as drivers. However, 
in 2016, Kakao Driver, a service exactly like Uber’s, was introduced together with Kakao Pay easing 
the financial handling of rides. 

3.7.5.1  Rivalry Amongst Competitors 

The  communication  service  provider  Kakao  Talk  extended  its  product  portfolio  by  different  mobility 
services  such  as  Kakao  Navi,  Kakao  Metro,  Kakao  Maps,  Kakao  Bus,  and  Kakao  Taxi.  They  thus 
became a huge competitor of Uber on the South Korean market. One of the reasons for Kakao’s suc-
cess  is  their  understanding  of  the  Korean  market  and  their  customers  who  tend  to  prefer  national 
brands. 

Kakao  has  a  multitude  of  different  competitors  comprising  mainly  international  messenger  applica-
tions, especially from China (Tencent WeChat) and Japan (Line). However, when it comes to mobility 
services Kakao Corp. enjoys a huge share on the Korean market, especially after the company suc-
cessfully acquired many other services such  as SeoulBus.  Another  influential company  in  South Ko-

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rea, Naver (the company has the biggest share in online searches), also offers mapping services and 
thus, enters into competition with  Kakao Corp. However, their product portfolio on the smart mobility 
market is limited to mapping services. 
Since there is only competition in specific fields (Uber in ride sharing and Naver in mapping services) 
the  rivalry  is  quite  low.  The  market  is  dominated  by  Kakao  Corporation  which  offers  a  multitude  of 
different  services  in  one  single  platform  easing  the  usability  and  increasing  the  attractiveness  of  its 
services. 

3.7.5.2  Threat of New Entrants 

Because of the particularity of the Korean market where customers prefer local brands, it is very hard 
for new entrants from abroad to establish business in Korea. This can be seen by Uber facing major 
legal  difficulties.  An  even  more  prominent  example  is  Line,  the  Japanese  subsidiary  of  the  Korean 
brand Naver that is not perceived as Korean. Hence, there is no threat of new entrants in the foresee-
able future. 

3.7.5.3  Threat of Substitutes 

To this point, there are no substitute services to the smart mobility services. Since such services have 
not been on the market for too long themselves,  the likelihood of substitutes in the mid- to long-term 
future is quite high though. 

3.7.5.4  Bargaining Power of Suppliers 

Mobile  application  mobility  services  seem  to  disrupt  the  entire  passenger  transportation  industry. 
However,  suppliers  –  in  this  case  taxi  drivers  (Kakao  Taxi)  and  private  ride  share  providers  (Kakao 
Driver) – seem to not get a big say. Even though Kakao Taxi only allowed licensed taxi drivers to reg-
ister as drivers and thus protected the taxi industry, the application Kakao Driver works exactly against 
this  business  model.  Private  drivers  are  not  only  increasingly  exploited  but  also  push  down  prices 
since they engage in ultimate competition with other drivers and are not required to pay corporate and 
service taxes.  

3.7.5.5  Bargaining Power of Buyers 

As with the majority of new mobile application-based services, consumers have a very high bargaining 
power. This is mainly due  to the mobile  online-to-offline applications services being very sensitive to 
usage behaviour and the comparably fast response rate of technology developers to react on it.  So, 
users  rejecting  or  not  accepting  the  services  (for  whatever  reasons)  will  change  the  whole  develop-
ment of the service. Thus, the bargaining power is extremely high. 

3.7.5.6  Conclusion 

Because  the  smart mobility  service  market  is  a  quite  young  market  it might  be  expected  to  be  quite 
dynamic.  However,  even  though  Korea  has  the  highest  density  of  smartphones  and  a  huge  affinity 
towards new technology it seems to not hold true for its market. This is mainly due to its citizens pre-
ferring local brands. Kakao Corporation, a company that became quite popular based on their mobile 
communication applications successfully turned this into a business opportunity and outlawed interna-
tional  competitor  Uber.  Even  though  Uber  is  still  on  the  market  and  Naver  poses  some  threat  in  the 
mapping service market, Kakao Corporation benefits from its all-in-one platform covering car and ride 
sharing services as well as payment services. Out of all these reasons it is quite hard for both domes-
tic and international companies to enter the market. Since the smart mobility service market is relative-
ly  young,  there  are  no  substitutes  so  far.  How  this  develops  remains  to  be  seen.  As  for  bargaining 
power of suppliers and buyers Kakao Corporation is in a similar position as car and ride sharing ser-
vice providers in other countries. They have a dictating role towards their suppliers but are very sensi-
tive  to  their  users’  behaviour.  Thus,  an  almost  inexistent  bargaining  power  of  suppliers  opposes  a 
huge bargaining power of buyers. 

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Rivalry among
competitors

Bargaining power
of buyers

Threat of new
entrants

Bargaining power
of suppliers

Threat of
substitutes

Figure 40: Porter's 5-Forces Analysis on the Smart Mobility Platforms Value Chain in South Korea 

3.7.6  USA: Automated Driving Value Chain 

The  US  automotive  industry  has  a  long  history  with  many  powerful  companies  and  well-established 
competition. The development towards automation seems to question the established and known val-
ue  chain  due  to  the  entrance  of  new  players  and  substitute  products.  Especially  in  light  of  develop-
ments towards mobility as a service there is a multitude of substitutions. The incumbents comprise of 
the established automotive manufacturers (OEMs) such as GM, Chrysler, and Ford. Since these com-
panies  are  continuously  innovating  their  products,  their  developments  towards  vehicle  automation 
seem  logical.  New  entrants  mainly  comprise  IT  industries  such  as  Google  and  Apple  disrupting  the 
existing  value  chain.  Substitutes  are  ride-sharing  services  as  well  as  public  transportation  providers. 
Suppliers play a critical role in the evolution of vehicle automation. Even though manufacturers push 
brand-specific  quality  and  performance  with  in-house  engineering,  automotive  suppliers  have  played 
and still play a big role in the advancements of driver assistance systems necessary for vehicle auto-
mation.  Buyers  of  automated  vehicles  are  either  individuals  or  car  fleet  operators  including  logistics 
companies. Both groups do not only seem to have high expectations towards this new technology but 
also benefit from increasing choice of companies. 

3.7.6.1  Rivalry amongst Competitors 

Because  of  the  highly  competitive  environment  in  the  automotive  industry,  existing  OEMs  are  con-
stantly striving for competitive advantages. The development of state-of-the-art technology is certainly 
only one them, albeit the most important. Therefore, their efforts for early deployment are quite strong. 
Their biggest challenges are to critically  balance competitive advantage  with first deployment risk, to 
keep new entrants off the market, and to cope with the immense rivalry among established players. 

3.7.6.2  Threat of New Entrants 

New  entrants,  comprised  of  IT  companies  and  start-ups,  are  targeting  the  personal  mobility  market 
because of the industry’s high profitability. Even though these companies do not have any expertise in 
car manufacturing there involvement is expected to have a huge impact on the automotive industry by 
shaking  up  their  interlocked  technology  paths.  Moreover,  IT  industries  have  massive  financial  re-
sources to draw from. 

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3.7.6.3  Threat of Substitutes 

The  threat  of  substitutes  grows  to  the  same  degree  as  technology  for  automated  driving  develops. 
New mobility services, such as ride sharing, are offered by the hour. Both the widespread use of com-
plementary devices, such as smartphones, as well as changing consumer behavior, such as preferring 
using over owning, will further increase their threat. Incumbents will have to find a unique selling prop-
osition  to  be  able  to  counter  the  threat.  Apart  from mobility  services,  public  transportation  poses  an-
other  substitution  risk.  However,  public  transport  use  in  the  US  is  generally  very  low.  Therefore,  the 
threat of substitutes is perceived to be in mid-range based on huge threat of new mobility services but 
only little threat from public transportation. 

3.7.6.4  Bargaining Power of Suppliers 

Suppliers are perceived to be key enablers in the field of automated driving since it is them who have 
the  expertise  in  necessary  recognition  and  decision-making  technology,  such  as  sensors,  cameras, 
radars, etc. However, similar to the current situation their bargaining power  is expected to remain un-
changed  unless  they  manage  to  become  more  prominently  recognizable  among  the  whole  value 
chain. 

3.7.6.5  Bargaining Power of Buyers 

Because automated driving disrupts the entire mobility  behaviour there is  not only high expectations 
from the consumer side but also huge interest by the media. Furthermore, the car is a very emotional 
product (because of the very fact that it tackles the basic need for mobility) resulting in purchase deci-
sions  that  might  not  always  be  fully  rational.  Eventually  buyers  will  decide  over  success  or failure  of 
automated driving. Because buyers will react very sensitively if expectations are not met and emotions 
are not satisfied, they have considerable bargaining power. 

3.7.6.6  Conclusion 

The established value chain of the automotive industry has been stuck in path-dependent trajectories 
until now. Advances in automated driving technologies are changing these developments since it has 
impacts  on  various  levels.  The  incumbents  (OEMs)  do  not  only  have  to  compete  against  their  rivals 
but also to keep of new entrants and substitute products which are increasingly entering the automo-
tive market because of their expectations of high industry profitability. Whereas the bargaining power 
of suppliers seems to remain unchanged, the bargaining power of buyers is quite high since they will 
eventually be the ones to decide if the technology will gain market coverage and who will be the lead-
ing force. Their emotional stake in questions of mobility adds to this fact. 

Rivalry among
competitors

Bargaining
power of buyers

Threat of new
entrants

Bargaining
power of
suppliers

Threat of
substitutes

Figure 41: Porter's 5-Forces Analysis on the Automated Driving Value Chain in USA 

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4 

Best Practices 

Through  the  state-of-play  as  well  as  the  Porter’s  5-Forces  analyses  it  was  possible  to  identify  best 
practices and lessons learned that show a lot of potential to overcome existing barriers within Europe. 
Best  practices  were  identified  in  all  countries  under  study.  These  are  complemented  by  further  best 
practices as identified in the course of undertaking this study in countries outside of this study’s scope. 
They were included as they represent valuable input for the further derivation of action plans. 

The identified best practices do not only span across all Focus Areas but also across the entire value 
chain. This was only possible by constantly keeping the eye on the whole supply chain. To fully under-
stand each of these best practices and to see whether it is feasible for the European Union to transfer 
them to the local context, each of the best practices and lessons learned was examined on whether or 
not a potential transfer is feasible. By presenting the best practices to experts during the 1st Validation 
Workshop they further elaborated, enhanced as well as complemented with new ones. In the following 
all of them are described in detail as well as illustrated in a world map to allow for an easy understand-
ing and comparison. 

4.1 

Focus Area 1 – Connected Driving and Automation of Transport 

4.1.1  Brazil/South Korea/USA: Test Beds for Vehicle Automation 

4.1.1.1  Characterisation 

In  three  of  the  six  countries  under  study  successful  demonstration  projects  at  national  universities 
could be identified. Seoul National University (South Korea), University of Sao Paulo (Brazil) and Mich-
igan  University  (USA)  are  demonstrating  autonomous  and  connected  driving  technologies  on  their 
campuses. 

South  Korea’s  project,  called  Snuber  (SNU  +  Uber),  is  undertaken  on  the  Seoul  National  University 
campus testing different technologies of its  autonomous vehicle prototype. The  Brazilian project CA-
RINA,  the  Intelligent  Robotic  Car  for  Autonomous  Navigation  (Carro  Robótico  Inteligente  para 
Navegação Autônoma), was first tested at Sao Paulo’s University campus in 2013. Together with the 
Michigan Department of Transportation, Michigan University has designed a 13-hectar test field in Ann 
Arbor,  Michigan,  for  autonomous  and  connected  vehicles.  Together  with  OEMs,  students  and  re-
searchers of Michigan University will further develop vehicle automation as well as V2V and V2I con-
nectivity. The test field was opened in July 2015. 

These demonstration projects have been chosen as best practices since the closed and manageable 
campuses,  with  low  complexity,  make  it  easy  to  develop  related  technologies.  Their  controlled  envi-
ronment  allows  self-driving  cars  to  be  further  developed  before  being  deployed  in  real-life  circum-
stances. No such integrated university research, testing and demonstration area has been implement-
ed in Europe so far. 

Method of Implementation 

The South Korean team at the Intelligent Vehicle IT Research Center at Seoul National University has 
been working on vehicle automation for more than a year before its autonomous vehicle was deployed 
in mid-2015. The project is led by Professor Seung-Woo Seo from the Vehicle Intelligence Laboratory 
in the Department of Electrical and Computer Engineering. 636 

In  Brazil  the  University  of  Sao  Paulo’s  Mathematics  &  Computer  Science  Institute  (ICMC)  and  the 
same  university’s  São  Carlos  School  of  Engineering  are  responsible  for  the  CARINA  project.  They 
receive  support  from  FAPESP  and  the  National  Scientific  &  Technological  Development  Council 

636 Jiwon, Y.(2015). SNU Demonstrates Korea’s Firs Automated Taxi Service. Retrieved from: 

http://en.snu.ac.kr/snunews?bm=v&bbsidx=122343. 

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(CNPq) under the aegis of the National Science & Technology Institute for Critical Embedded Systems 
(INCT-SEC).637 

The  test  site  at  Michigan  University  is  a  collaboration  project  between  Michigan  University  and  the 
Michigan Department of Transportation. It was acquired by the university itself and is managed by the 
university’s  Mobility  Transformation  Center.  Its  users  comprise  researchers,  students  and  industry. 
The Ford Motor Company was the first company to use the new facility. 

Financing 

The USD-10 million testing field was purchased by Michigan University from a former Pfizer facility. 

Business Models 

As  soon  as  the  demonstration  projects  prove  to  be  successful  they  are  scaled  up  to  complex  urban 
situations allowing for knowledge transfer to industrial players and new start-up companies (e.g. origi-
nating from the projects) as well as to local decision-makers. 

Technologies Employed 

On  all  three  sites,  vehicle  automation  as  well  as  V2V  and  V2I  connectivity  is  being  tested  and  de-
ployed. At Seoul University’s 4,109-square meter campus, the connected and automated test vehicle 
runs with a maximum speed of 30 km/h which is the limit on the  university’s premises. Although the 
circulation beltway in the campus is a four-lane road with many curves, SNUber did not only follow all 
traffic  rules,  but  also  showcased  fairly  smooth  driving  techniques  that  were  not  much  different  from 
cars with human drivers. Since its launch, technological development has been focussing on the core 
technologies  like  sensors  (LiDAR),  radars,  cameras,  and  dynamic  maps  (incl.  self-generated  high-
precision 3D mapping) that cover 50-80 metres to the front and rear of the vehicle. However, to use 
the  service,  students  are  also  developing  smartphone  applications  in  parallel.  On  average  SNUber 
arrives five minutes after "request a ride" button is pressed on the mobile app.638 

In Brazil, the focus of the testing and demonstration also lies on core technologies including the devel-
opment of a continuous mapping system that improves vehicle control and localization as well as route 
planning and metric maps through its 360° cameras that collect 700,000 data points per second, laser 
sensors, and a twin-lens stereo vision system.639 

Mcity at Michigan University has a huge diversity of real-traffic situations including approximately five 
lane-miles  of  roads  including  two,  three,  and  four-lane  roads  with  intersections,  bike  lanes,  round-
abouts, tunnels, traffic signs and signals, sidewalks, benches, hydrants, fixed and movable buildings, 
street lights, and obstacles such as construction barriers. Furthermore, there are various road surfaces 
(concrete, asphalt, brick, dirt) and curve radii. 

Target User Group 

The target user group covers students, researchers and scholars at all three universities. On the long 
term, research results as well as continuously developed technologies are transferred to real-life situa-
tion.  Additionally,  the  programs  benefit  from  strong  academia-industry  collaboration.  For  example,  at 
Michigan  University  researchers  and  students  are  collaborating  with  automotive  manufacturers  and 
suppliers.  Therefore,  the  results  obtained  not  only  benefit  the  research  institutes  and  the  scientific 
community  but  also  the  automotive  industry  as  well  as  policy  makers  of  local  communities,  regions 
and at national levels. 

Enabling Framework 

MCity in the USA originated out of joint efforts between the Michigan University and the Michigan De-
partment of Transportation. As a private university, Michigan University had the financial resources to 

637 Alisson, E.(2015). Brazilian university tests self-driving taxi service. Retrieved from: 
http://agencia.fapesp.br/brazilian_university_tests_selfdriving_taxi_service/21758/. 
638 Engineers Australia. (2016). Snuber is Korea’s autonomous taxi. Retrieved from:  
https://www.engineersaustralia.org.au/portal/news/snuber-koreas-autonomous-taxi 
639 Alisson, E. (2015). Brazilian university tests self-driving taxi service. Retrieved from: 
http://agencia.fapesp.br/brazilian_university_tests_selfdriving_taxi_service/21758/ 

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purchase the premises from Pfizer and is used by  e.g. Ford. Thus, the project evolved out of a suc-
cessful politics-academia-industry collaboration. 

Other Aspects 

The  testing,  demonstration  and  developing  on  university  campuses  have  a  variety  of  advantages. 
While  the  new  technology  is  continuously  developed,  people  can  also  make  use  of  the  service,  e.g. 
physically impaired people benefit from facilitated mobility possibilities. The goal is to develop technol-
ogy  that can be scaled to  situations  with  increased  complexity such as real-life  urban environments. 
However, as for South Korea, regulation still does not permit autonomous vehicles on public roads. 

4.1.1.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

The  build-up  of  a  demonstration  site  that  resembles  different  scenarios  of  real-life  traffic  situations 
does not pose any specific difficulties and could be quickly implemented. 

Violation of Legal/Regulatory Framework in the EU 

As  long  as  connected  and  automated  driving  technologies  are  only  tested  on  demonstration  sites,  it 
does not violate the European legal and regulatory framework. Only when put into real-life traffic, the 
law requires the driver to be, at least, monitoring the system. Therefore, vehicles with different archi-
tecture, e.g. without steering wheels or pedals, are not yet allowed. 

Necessary Standardization Compliant to EU Standardization Policy 

For the demonstration there is no standardization necessary. 

Available Funding Models 

In  all  best  practices  the  demonstration  projects  are  joint  undertakings  between  public,  being  repre-
sented  by  national,  regional  and  local  authorities,  industry  and  academia.  These  stakeholders  are 
brought  together  to  jointly  push  technological  advancements.  In  terms  of funding  models,  this  would 
also be a good way for such demonstrations to be financed within Europe. 

Public Acceptance due to Cultural Aspects 

Demonstration  activities,  like  the  ones  being  deployed  in  Brazil,  South  Korea,  and  the  USA,  are  not 
open to the public. Only when tested technologies are launched on the consumer market, the general 
public will be affected. 

Availability of Resources/Raw Materials 

In all three cases, demonstration sites are in the vicinity of a major university campus. In the case of 
MCity a former Pfizer site was bought and re-built to the particular needs. This seems also feasible in 
Europe. However, it has to be made sure that the industrial site is located close to research institutes 
or universities. 

Additional Aspects 

Due to the historical evolution the layout of streets in Europe is very complex compared to the planned 
grid  of  US  cities.  This  could  complicate  the  launch  of  autonomous  driving.  Therefore,  the  scaling  ef-
fects guaranteed by these three demonstration projects may not be similarly  transferrable in Europe. 
Furthermore,  many  European  universities  are  not  located  on  campuses  but  integrated  in  their  local 
infrastructure.  

All  proposed  testing  and  demonstration  sits  are  best  practices  since  they  not  only  foster  policy-
academia-industry collaboration but also enable new technologies to be tested and demonstrated in a 
safe environment with reduced complexity. At the same time, developed technologies might be easily 
scalable  to  more  complex  real-life  situations.  Also,  such  test  beds  could  allow  for  strengthening  the 
cross-industrial co-operation between the automotive and IT industry, a terrain in which the European 
Union lags behind. 

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4.1.2 

Japan/USA: Nissan’s Anthropology Research 

4.1.2.1  Characterisation 

Research on automation and connectivity is undertaken in all of Nissan’s research centres in Japan, in 
India (due to strong IT industry), and in its subsidiary in Silicon Valley. In California, special emphasis 
is  put  on  the  inclusion  of  ethnography  and  design  anthropology  as  foundational  components  of  re-
search on autonomous vehicles. In view of the automobile as a deeply and profoundly cultural object 
that  serves  the  basic  need  of  mobility,  the  systematic  study  of  human-machine  interaction  from  the 
viewpoint of the subject, is not neglected as it helps to gain insights into how new technologies might 
interpret or act on those behaviours.640 This is why Nissan’s activities were chosen as a best practice. 

Method of Implementation 

Melissa  Cefkin,  who  was  employed  in  2015  as  the  lead  design  anthropologist  in  Silicon  Valley,  is 
pushing the autonomous car research into the complex web of human-machine interaction: within and 
outside  the  vehicle,  and  in  the  context  of  the  broader  culture.  The  design  anthropology  team  works 
together with roboticists, computer scientists, and electrical and mechanical engineers.641 

Target User Group 

The  design  anthropology  targets  in-house  developers  to  help  shape  Nissan’s  autonomous  vehicles 
and adapt them to the users’ needs. 

Financing 

As part of the in-house research team, the design anthropology team is financed by Nissan itself. 

Technologies Employed 

The main target is to strengthen the involvement of human factors in the development of autonomous 
cars. To do so, different anthropological methods are being employed. The leading research questions 
of the design anthropology team is “How do drivers, passengers, pedestrians, and infrastructures to-
gether  create  the  complex  whole  of  driving  and  how  might  it  affect  urban  infrastructures,  personal 
identities, driving roles, ownership models and socioeconomic systems?642 

Enabling Framework 

For the development of new automotive solutions, Nissan has an in-house R&D department. Looking 
beyond the technological perspective and incorporating the human factors, including psychological as 
well as anthropological, ethnological and sociological perspectives, might be  unusual  but helps build 
better products with improved user experience. 

Other Aspects 

The research team does not only focus on interactions between drivers, but also those between vehi-
cles  and  pedestrians,  bicyclists  and  road  features.  First  results  show  that  drivers,  pedestrians  and 
bicyclists often use “eye gaze” and forms of “direct communications,” such as a hand wave, “to give off 
very clear signals about their intentions” in such situations and that Newton’s Law of Inertia also ap-
plies  to  pedestrians,  skateboarders  and  scooters.  “There  seems  to  be  a  predominant  preference  for 
maintaining  some  sort  of  movement  and  flow,”  Cefkin  says.  “So  when  we’ve  spent  time  observing 
people on the road and sidewalk, there is a very subtle selection of pathways and routes that they use 
to  avoid  interaction  requirements—places  where  they’re  going  to  have  to  stop  and  figure  out,  okay, 
what  do  I  do.”  These  manifestations  of  the  mysterious  human  can  be  at  once  very  subtle  and  very 
sudden, and thus difficult for machines to decipher. Worse yet, humans can elicit unpredictable herd  

640 Nissan Insider. (2016). How anthropology is helping autonomous driving. Retrieved from: http://nissaninsider.co.uk/how-

anthropology-is-helping-autonomous-driving/ 

641 Shade, M. (2015). Melissa Cefkin / A Profile. Retrieved from: https://www.epicpeople.org/melissa-cefkin-a-profile/ 
642 Berk, B. (2015). How Nissan’s Using Anthropology to Make Autonomous Cars Safe. Retrieved from: 
http://www.thedrive.com/article/999/how-nissans-using-anthropology-to-make-autonomous-cars-safe 

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behaviour, wherein one person plays the role of what Cefkin calls “sentinel,” leading a charge against 
the rules or even against everyone’s best interest and others follow or “piggyback” on this behavior. "643 

4.1.2.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

In view of Europe’s long history in anthropological research and availability in most European universi-
ties, there is no lack of know-how. However, there are not a lot of efforts in combining it with techno-
logical research, let alone in industrial R&D activities. 

A  similar  EU  Project  has  already  been  initiated.  Its  title  is  “HFAuto  –  Human  Factors  of  Automated 
Driving”. Similarities and differences as  well as  potentials for advancing it could  be further  assessed 
based on this identified best practice.644 In the context of this project a thorough analysis on the public 
opinion on automated driving based on an international questionnaire which was answered by 5,000 
was undertaken.645 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

As this is an industry activity, no public funding is needed. 

Public Acceptance due to Cultural Aspects 

There  are  no  perceived  obstacles  regarding  public  acceptance  due  to  cultural  aspects.  In  fact,  inte-
grating the anthropological perspective  will even  increase user acceptance of automated driving and 
connected transportation since it will evoke a demand-sided pull of technological progress rather than 
a technology push. Thus, technologies will be better suited to users’ needs. 

Availability of Resources/Raw Materials 

There are no physical resources or raw materials needed. 

Additional Aspects 

From  the  viewpoint  of  the  European  Union  the  integration  of  anthropological  research  can  only  be 
fostered through funding schemes. As in the case of Nissan, the inclusion of anthropology in in-house 
R&D departments of automotive OEMs might rather originate out of intrinsic organizational motivation. 
This will only happen if companies see a competitive advantage. 

4.1.3 

Japan: SIP-ADUS 

4.1.3.1  Characterisation 

The Innovation of Automated Driving for Universal  Services (ADUS) has been defined as one of ten 
key themes in the JYP 2.45-billion Cross-Ministerial Strategic Innovation Promotion Program (SIP)646. It 
is implemented from 2014 to 2018 to influence R&D until 2030. The goal of the program was to reach 
level  2  automation  by  mid-2010s,  level  3  by  early  2020s  and  level  4  by  2030.  Furthermore,  the  pro-

643 Berk, B. (2015). How Nissan’s Using Anthropology to Make Autonomous Cars Safe. Retrieved from: 
http://www.thedrive.com/article/999/how-nissans-using-anthropology-to-make-autonomous-cars-safe. 

644 HFauto (2014). HFauto – Human Factors of Automated Driving. Retrieved from http://hf-auto.eu/ 
645 Kyriakidis, M. et al (2015). Public Opinion on Automated Driving: Results of an International Questionnaire among 5000 

Respondents. Retrieved from http://www.sciencedirect.com/science/article/pii/S1369847815000777 

646 Cabinet Office. (2016). SIP (Cross-Ministerial Strategic Innovation Promotion Program). Retrieved from 

http://www8.cao.go.jp/cstp/english/sip/elevenissues.pdf. 

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gram seeks to establish and harmonize standards, nourish social acceptance, and show the rest of the 
world what a level 3 automated transport system looks like at the Olympic Games in 2020. 647 

With this program, the Japanese government aims at developing and verifying automated driving sys-
tems  develop  basic  technologies  to  reduce  traffic  fatalities  and  congestion,  foster  international  co-
operation, and deploy next-generation urban transportation. As for the development and verification of 
automated driving, the program makes a distinction between driver and vehicle. When it comes to the 
driver,  it  funds  research  in  all  stages  including  recognition,  judgment  and  operation  of  self-driving 
technologies; for the vehicle it focuses on recognition and leaves judgment and operation to industrial 
competition.648 

The program is perceived as a best practice because of its holistic approach by uniting research, test-
ing  and  demonstration  as  well  as  implementation  in  one  single  governmental  programme  and  thus 
manages to bring together a multitude of different stakeholders. 

Method of Implementation 

The programme was launched in 2014 in a joint undertaking between the Council for Science, Tech-
nology and Innovation; the Cabinet Office; the Government of Japan, and industrial partners. The pro-
gramme director is Seigo Kuzumaki from Toyota Motor Corporation. 

Target User Group 

SIP-ADUS  fosters  not  only  R&D  at  all  stages  including  academia  and  industry  but  also  testing  and 
demonstration  and  implementation.  It  thus  covers  technological  development  from  the  early  stage 
through to market penetration. Another target is to push international co-operation. Therefore, it seeks 
constant interaction and communication with other governments and stakeholders outside of Japan. 

Financing 

Out of the JPY 50-billion Cross-Ministerial Strategic Innovation Promotion Program (SIP) programme, 
ADUS receives JPY 2.45 billion financed by the aforementioned responsible actors.  

Technologies Employed 

In order to reach the goal of reducing traffic fatalities and congestion and to evoke a shift towards next-
generation urban transportation, the programme funds different technologies. Technologies that shall 
be Dynamic Map, Connected Vehicles, Security, Impact Assessment, Human Factors, Next Genera-
tion Transport.649 It differentiates between technologies from the driver’s perspective and the vehicle’s 
perspective. As for the driver perspective, it funds research on system security and the driver model. 
As  for  the  vehicle  it  limits  funding  to  the  development  of  technologies  on  recognition.  Technologies 
that shall be developed in this regard cover dynamic maps, predicting information by ITS, and sensing 
capability enhancement. As for technologies to be developed for the reduction of traffic fatalities, the 
programme foresees a push of micro data analyses and simulation technologies as well as emission 
visualization technologies. For the development of next-generation urban transport it takes the system-
ic level into perspective.650 651  

Other Aspects 

Participants of the 1st Validation Workshop of this study raised some further critique on this best prac-
tice.  According  to  them,  the  program  is  very  road-focused  and  does  not  differentiate  between  auto-

647Kuzumaki, S. (2015). SIP Automated Driving System, Retrieved from  https://www.ituaj.jp/wp-content/uploads/2015/07/nb27-

3_web-05-SIP.pdf. 

648 Cabinet Office (2016). Research on technical Requirements for Human Machine Interference (HMI) Related to Safety of 

Automated Driving Systems, Retrieved from http://www8.cao.go.jp/cstp/english/sip_adus/. 

649Mashiko, T. (2016). Autonomous driving technology and IST. Retrieved from: 

https://docbox.etsi.org/Workshop/2016/201603_ITS_WORKSHOP/S04_TWDS_ACCIDENT_FREE_AUTOMATED_DRIVING/
AUTONOMOUS_DRIVING_TECHNO_AND_ITS_MIC_MASHIKO.pdf. 

650 Amano, H. (2016). Latest development in SIP-adus and related activities in Japan: Retrieved from: 

https://higherlogicdownload.s3.amazonaws.com/AUVSI/14c12c18-fde1-4c1d-8548-
035ad166c766/UploadedImages/documents/Thurs/0830-0845%20Amano.pdf. 

651 Kuzumaki, S.(2016). SIP „Automated Driving System“ – Mobility Bringing Everyone a Smile. Retrieved from: http://mic-its-

conference-2015.net/data/pdf/05_en.pdf. 

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mated  and  autonomous  driving.  Furthermore,  the  SIP-ADUS  program  does  not  take  ethical,  liability 
and  regulatory  issues  (also  for  airborne  transportation)  sufficiently  into  consideration,  namely  issues 
related to cybersecurity. However, “Cybersecurity for Critical Infrastructures” is another key theme of 
SIP.652 

4.1.3.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

The Know-how is available, the challenges lies in the integration of different funding schemes in one 
single program. To be able to do it, the European Commission would have to think across Directorates 
General and look for synergies. More collaboration between and within Directorates Generals is need-
ed. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Since the EU already funds research and innovation, testing and implementation of vehicle automation 
and  transport  connectivity,  it  would  not  need  to  allocate  new  funds  but  rather  ensure  a  better  align-
ment and integration of the funds being provided. 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

The  European  Union  already  puts  a  major  part  of  the  overall  R&D&I  expenditure  into  realizing  con-
nected and automated road transport, and given its importance for EU industry funding should not be 
reduced. 

Additional Aspects 

In the saturated European automotive market, profits can only be gained by ongoing innovations. Au-
tomation and connectivity play an important part in the future of automotive vehicles. However, Euro-
pean OEMs are also slow  to react to trends and changing user demand. Therefore, the government 
can  influence  technological  progress  by  funding  technologies  that  are  not  yet  sufficiently  pushed  by 
the industry itself or where it anticipates other countries to take over the market lead in certain tech-
nologies. This can, for example, be evidenced in the realm of electric mobility where Europe is slowly 
been overtaken by China and the USA. Another example is certain technologies within the automotive 
automation and connectivity domain. As can be seen in the best practice, Japan only funds research 
for “judgement” and “operation” within vehicles and leaves “recognition” to industrial R&D.  automated 
driving will be realized integrating on-board technologies on one side and co-operative assist (precise 
digital  map,  data  acquisition  through  radio  communication  and  global  positioning)  on  the  other  side. 
On-board  technologies  are  already  in  product  level  competition  and  car  manufacturers  are  demon-
strating their technologies. Therefore, the scope of SIP-ADUS does neither include on-board technol-
ogies nor the development of prototype automated cars. It focuses on areas of co-operation, such as 
dynamic  map,  connected  vehicles,  human  factors,  impact  assessment,  next  generation  transport, 
security and international cooperation.  

The funding scheme was set up in a way that allows different stakeholders to pull the same string. The 
program is based on a public-private collaboration in which ITS-related ministries and five car manu-

652 Cabinet Office. (2016). SIP (Cross-Ministerial Strategic Innovation Promotion Program). Retrieved from: 

http://www8.cao.go.jp/cstp/english/sip/elevenissues.pdf. 

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facturers  (Toyota,  Nissan,  Honda,  Mazuda,  Subaru)  participate  to  foster  advancements  of  vehicle 
automation and connectivity. 

Based  on  the  experience  in  different  funding  mechanisms  and  the  multitude  of  PPPs  in  Europa,  a 
funding program based on both public and private investment – similar to Japan’s SIP-ADUS – seems 
feasible for the European Union. Not only does Europe have the necessary resources and know-how 
but there are also no regulatory or standardization obstacles.  

4.1.4 

Japan/USA: Variable Message Signs (VMS) and Runway Status Lights (RWSL)  

4.1.4.1  Characterisation 

The  technological  affinity  of  the  Japanese  has  led  to  an  early  and  widespread  use  of  Variable  Mes-
sage  Signs  (VMS)  and  Dynamic  Message  Signs  (DMS)  on  roads  to  facilitate  traffic.  This  holds  also 
true for aviation: Tokyo International Airport (RJTT, Haneda Airport) was the first Japanese airport to 
introduce  the  Variable  Message  Sign  (VMS)  and  Runway  Status  Lights  (RWSL)  in  2012.  VMS  and 
RWSL are autonomous in-pavement lights on runways and taxiways. They tell pilots and vehicle oper-
ators  to  stop  when  runways  are  not  safe.  Embedded  in  the  pavement  of  runways  and  taxiways,  the 
lights  automatically  turn  red  when  other  traffic makes  it  dangerous  to  enter,  cross,  or  begin  take-off. 
The lights provide direct,  immediate  alerts and require no input from controllers. Other  airports soon 
followed suit. In Japan, the technology is currently installed at New Chitose Airport, Tokyo International 
Airport, Osaka International Airport, Fukuoka Airport.653 In the USA, 17 airports were already equipped 
with the technology. The first European airport to introduce  VMS and RWSL is Charles de Gaulle in 
Paris. 

Even  though  such  system  has  already  been  deployed  in  Europe,  it  can  still  be  perceived  as  a  best 
practice since Japan managed to develop such technology earlier than any other country. It took Eu-
rope quite long to also implement these technologies. A wide-scale deployment in Europe is still miss-
ing. 

Method of Implementation 

In 2007, the Runway Incursion Prevention Review Committee was set up by the Japan Civil Aviation 
Bureau  (JCAB).  In  2008  research  and  testing  activities  were  started  at  Dallas  Forth Worth  and  San 
Diego  in  co-operation  between  the  Federal  Aviation  Administration  (FAA)  and  Japan  Civil  Aviation 
Bureau (JCAB).654 In 2009 the development of light fixtures with phased trial operations started which 
became operational in Tokyo in 2012. Fukuoka followed in 2013 and 2014.655 

Target User Group 

The  technology  is  mainly  developed  for  the  smooth  and  automated  operation  of  planes  on  landing 
strips. Therefore the user groups are airport stakeholders such as pilots and air traffic control person-
nel. 

Technologies Employed 

The system consists of LCD panel boards on one or both sides of the runway which light up to indicate 
how  the  pilot  should  proceed.  It  is  a  system  where  Runway  Entrance  Lights  (REL)  or  Take-off  Hold 
Lights  (THL)  are  illuminated  or  extinguished,  automatically  and  independent  of  air  traffic  control  in-
structions  based  on  dynamic  surveillance  capabilities  (multi-lateration).656  Runway  Status  Lights  inte-
grates airport lighting equipment with approach  and  surface surveillance systems to provide a  visual 
signal  to  pilots  and  vehicle  operators.  Airport  surveillance  sensor  inputs  are  processed  through  light 

653 MLIT Civil Aviation Bureau of Japan (2015). JANS installs automated lightning system to prevent runway incursion, Retrieved 

from http://www.mlit.go.jp/en/koku/koku_fr13_000007.html. 

654 IFALPA. (2016). Runway Status Lights. Retrieved from: 

http://www.ifalpa.org/downloads/Level1/Briefing%20Leaflets/Airport%20Issues/16AGEBL01%20-
%20Runway%20Status%20Lights%20(RWSL).pdf. 

655 MLIT Civil Aviation Bureau of Japan (2015).Runway Status Lights (RWSL) in Japan. Retrieved from: 

http://www2010.icao.int/APAC/Meetings/2015%20VisualAids/RWSL%20JAPAN.pdf 

656 Federal Aviation Administration (2013). Runway Status Lights System Description. Retrieved from: 

https://www.faa.gov/air_traffic/technology/rwsl/description/ 

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control logic that commands in-pavement lights to illuminate red when there is traffic on or approach-
ing the runway. Airport Surface Detection Equipment, Model X surveillance data is used to determine 
vehicle and aircraft locations. ASDE-X systems use surface radar, multi-lateration, and in some cases 
ADS-B  (Automatic  Dependent  Surveillance-Broadcast).  Runway  Status  Lights  processes  this  data 
using complex software algorithms with adjustable parameters to control airfield lights in accordance 
with Air Traffic operations, including anticipated separation. Air traffic control operations do not change 
when RWSL is introduced. Additional protocols are added to ensure effective use of RWSL system.657 

Also,  strategies  for  system  failure  have  been  thought  of  such  as  a  potential  mismatch  between  the 
clearance and RWSL system pilots. 

Enabling Framework 

The technology has been developed in a way that it is compatible with existing procedures at airports. 
Therefore, they cannot be perceived as disrupting innovations evoking systemic change but rather  as 
an evolutionary change of the airport infrastructure. 

Other Aspects 

There  is  still  cross-national  harmonization  necessary.  Thus,  it  is  inevitable  that  countries  (and  their 
agencies  -  FAA  -  EUROCONTROL,  JCAB)  have  to  work  together.  Provisions  to  be  included  in  the 
ICAO  PANS  ATM  document  will  provide  international  guidance  on  the  harmonization  of  the  RWSL 
procedures,  referred  to  by  ICAO  as  autonomous  runway  incursion  warning  systems  (ARIWS).  They 
will become applicable in November 2016.658 

4.1.4.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

After  VMS  and  RWSL  were  successfully  installed  at  many  airports  in  Japan  and  the  US,  the  airport 
Charles de Gaulle in Paris soon followed suit. However, the airport remains the only airport in Europe 
so far with this technology. Nonetheless, the knowledge is available, it just needs to be deployed on a 
wider scale. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

No specific standardization has to be developed. 

Public Acceptance due to Cultural Aspects  

Since the general public is not affected by the technology, the question whether the technology is pub-
licly accepted is not of importance in this case. Automation in airborne transportation looks back on a 
long history; therefore the deployment of such systems seems to be a logical progress. 

Additional Aspects 

Since  the  technology  described  here  as  a  best  practice  has  already  been  deployed  at  Charles  de 
Gaulle  in  Paris,  the  feasibility  of  the  technology  itself  is  not  of  relevance.  However,  Paris  is  the  only 
example in Europe so far. Therefore, the challenge lies in the wide-spread diffusion of the innovation 
that would increase all airports efficiency and improve operational proceedings. Since the integration 
of  VMS  and  RWSL  is  quite  expensive,  its  diffusion  is  rather  a  question  of  financing  which  could  be 
established through joint efforts between the European Commission, member states, local municipali-
ties as well as airport owners and operators. 

657 IFALPA (2016). Runway Status Lights (RWSL). Retrieved from: 

http://www.ifalpa.org/downloads/Level1/Briefing%20Leaflets/Airport%20Issues/16AGEBL01%20-
%20Runway%20Status%20Lights%20(RWSL).pdf. 

658 IFALPA. (2016). Runway Status Lights (RWSL). Retrieved from: 

http://www.ifalpa.org/downloads/Level1/Briefing%20Leaflets/Airport%20Issues/16AGEBL01%20-
%20Runway%20Status%20Lights%20(RWSL).pdf 

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4.1.5  USA: California’s Regulatory Framework 

4.1.5.1  Characterisation 

Whilst Nevada became the first state to pass legislation on automated vehicles, California became the 
second in September 2012. California SB 1298 created California's Vehicle Code (VC) 38750, estab-
lishing definitions and authorizing and requiring the California Department of Motor Vehicles (DMV) to 
adopt regulations for the testing and deployment of "autonomous vehicles" on public roads by 1 Janu-
ary 2015.659 The actors involved are the Department of Motor Vehicles (DMV), having set up a commit-
tee  with  California  Department  of  Insurance,  California  Department  of  Transportation  (Caltrans)  and 
California Highway Patrol (CHP).660 

The Californian law which defines terms such as "autonomous technology," "autonomous vehicle" and 
"operator" presently does not prohibit or specifically regulate the operation of autonomous vehicles". It 
permits  current  operation  under  certain  conditions;  imposes  additional  oversight  on  the  operation  of 
vehicles without a human in the driver's seat; and requires that the "manufacturer of the autonomous 
technology installed on a vehicle shall provide a written disclosure to the purchaser of an autonomous 
vehicle  that  describes  what  information  is  collected  by  the  autonomous  technology  equipped  on  the 
vehicle."661 662 

In view of a legislative and judicial decision-making that seems to be always left behind by economic 
and technological developments, California’s regulatory framework was chosen as a best practice as it 
is amended in parallel  with technological progress. Thus, it manages to establish up-to-date jurisdic-
tion and reduce judicial inefficiencies.663 

Method of Implementation 

California was the first state to conduct an in-depth study of the issues that need to be addressed in 
developing regulations for automated vehicle testing  and public operation and achieved the most ro-
bust regulation of autonomous car development in the country which attracts many companies to set-
tle  because  of  the  friendly  legal  environment.  Future  regulatory  packages  are  anticipated  each  year 
based on what is learned about forthcoming manufacturer plans and from experiences with the testing 
and deployment permit application program as implemented.664 

Target User Group  

The California legal framework described here addresses mainly academia and industrial R&D. Also, 
end users benefit from such a regulatory framework since it prospectively also covers liability and ethi-
cal questions. 

Enabling Framework 

Once  Google  announced  its  automated  driving  program  in  2010,  automated  car  research  became 
publicly  visible.  The  first  national  automated  driving  program,  launched  in  1991,  and  demonstration 
project,  initiated  in  1997,  paved  the  way  for  road  vehicle  automation  and  the  political  framework  as 
described above.665 

659 The Center for Internet Society (2016). Automated Driving: Legislative and Regulatory Action. Retrieved from: 

http://cyberlaw.stanford.edu/wiki/index.php/Automated_Driving:_Legislative_and_Regulatory_Action. 

660 Nowakowski, C.,  Shladover, S., Chan, S., Tan, H. (2014). Development of Carlifornia Regulations to Govern the Testing and 

Operation of Automated Driving Systems. Retrieved from: http://docs.trb.org/prp/15-2269.pdf. 

661 Vehicle Code Section 38750, Retrieved from http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=38001-

39000&file=38750. 

662 Nowakowski, C., Shladover, S., Chan, S.,Tan, H. (2014). Development of Carlifornia Regulations to Govern the Testing and 

Operation of Automated Driving Systems: Retrieved from http://docs.trb.org/prp/15-2269.pdf. 

663 Soriano, B et al. (2015). Regulations for Testing Autonomous Vehicles in California. In: Road Vehicle Automation, Meyer, G., 

Beiker, S. (eds.). 

664 Nowakowski, C. et.al (2014). Development of Carlifornia Regulations to Govern the Testing and Operation of Automated 

Driving Systems. Retrieved from: http://docs.trb.org/prp/15-2269.pdf. 

665 Nowakowski, C. et al. (2014). Development of Carlifornia Regulations to Govern the Testing and Operation of Automated 

Driving Systems. Retrieved from: http://docs.trb.org/prp/15-2269.pdf. 

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Other Aspects 

There are still a  number of issues that  need to be clarified in the course of technology development 
that are not sufficiently covered  yet by the California regulation. This is partly because the DMV has 
limited  history  in  regulating  technology-intensive  issues  because  automotive  safety  regulations  have 
been a federal responsibility, managed through NHTSA, so far.  

Additionally,  California’s  legislation  should  be  implemented  on  a  national  level  in  order  to  avoid  the 
need for adaptation to different state legislations. So far, California has acted as an important stand-
ards and legislation setting actor in the past due to its early efforts and manifold experiences. 

4.1.5.2  Feasibility Analysis 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

No specific funding is needed. 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

There are no physical resources or raw materials needed. 

Additional Aspects 

The feasibility analysis of implementing a regulatory framework such as California’s turns out positive. 
Even though the European codification-based law is much slower to be changed than the case-based 
American common law, the early legal coverage of ongoing technological progress is not impossible.  

4.1.6  USA: Connected Vehicle Deployment Program & SPY Car Act 

4.1.6.1  Characterisation 

The Connected Vehicle Pilot Deployment Program is a national effort to deploy, test, and operational-
ize cutting-edge mobile and roadside technologies and enable multiple connected vehicle applications. 
These  technologies  and  applications  have  been  brought  together  in  innovative  ways  to  have  an  im-
mediate  impact:  save  lives,  improve  personal  mobility,  enhance  economic  productivity,  reduce  envi-
ronmental  impacts,  and  transform  public  agency  operations.  USD  45  million  was  foreseen  to  initiate 
the design/build/test phase of the Connected Vehicle Pilot Deployment Program. Selected in 2015, the 
Connected Vehicle Pilot sites include Wyoming, New York City, and Tampa.666 

The three pilot sites include using connected vehicle technologies to improve safe and efficient truck 
movement along I-80 in southern Wyoming, exploiting vehicle-to-vehicle (V2V) and intersection com-
munications to improve vehicle flow and pedestrian safety in high-priority corridors in New York City, 
and deploying multiple safety and mobility applications on and in proximity to reversible freeway lanes 
in Tampa, Florida.667 

To create a system in which connected driving and automation of transportation is fully enabled a lot of 
data is generated. The Security and Privacy in Your Car (SPY Car) Act was developed after a report 

666 Hartmann, K. (2014). The Connected Vehicle Pilot Deployment Program. Retrieved from: 

http://www.its.dot.gov/presentations/pdf/CV_PilotWorkshop_Session2.pdf. 

667 Hartmann, K. (2016). Technical Assistance Events for Concept Development Phase. Retrieved from 

http://www.its.dot.gov/pilots/technical_assistance_events.htm#phase1.  

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on  the  danger  of  cyber  threats  to  safety  and  the  collection  and  storage  of  driving  data  (i.e.  location, 
driving history, and user data) was published. It requires the NHTSA and the FTC to implement cyber-
security standards for vehicle system and driving data security including hacking protection and mitiga-
tion,  a  “cyber  dashboard”  display  label  describing  the  vehicle’s  compliance  with  cybersecurity  and 
privacy  requirements,  certain  privacy  standards  including  providing  notice  and  choice  regarding  the 
use and collection of data, and limiting the use of driving data by manufacturers.668 

The bill shall protect consumers from security and privacy threats to their motor vehicles, and for other 
purposes. Its goal is to (1) create more secure vehicles, and (2) better inform consumers about vehicle 
cybersecurity and the use of driving data. The bill foresees to establish three categories of cybersecu-
rity standards for vehicles—anti-hacking, data security, and threat detection. It sets goals for protecting 
cars against hacks incl. real-time detection and response mechanisms; sets the expectation of secure 
storage of data in all parts of the data pipeline, from on-board and off-board storage to the transmis-
sion  in  between;  protects  consumer  privacy  interests;  prohibits  manufacturers  from  strong-arming 
consumers into accepting data collection by withholding features from consumers.669 

Methods of Implementation 

The  Connected  Vehicles  Deployment  Program  runs  from  2014  to  2020.  The  1st  phase  of  the  pro-
gramme  was  dedicated  to  the  concept  development.  After  this  initial  12-month  period,  the  second 
phase, lasting for 20 months, foresees the design, deployment and testing of technologies. In a third 
stage  of  18  months,  developed  technologies  that  were  proven  successful  shall  be  maintained  and 
further operated. After the  three  phases  technologies  shall be routinely  operated. The programme is 
managed by the Intelligent Transportation Systems Joint Program Office (ITS JPO) at the Department 
of Transportation (DOT) and city authorities of pilot cities chosen (Tampa, NYC, Wyoming).670 

The SPY Car Act was negotiated between 2015 and 2016. The earliest possible date for enactment is 
in 2017. The proposed regulation will take 18 months to formulate, and additional 18 months to reach 
their final forms. 

Target User Group 

The actors involved in the Connected Vehicles Deployment Programme span from the US government 
to the Commerce, Science, and Transportation Committee of the Senate, the Federal Trade Commis-
sion  (FTC),  the  US  Congress  and  the  NHTSA.  Target  user  groups  are  users  of  automated  vehicles 
with  high  automation  levels  as  well  as  municipal  governments  and  communities  responsible  for  the 
local transport infrastructure. 

Financing 

The three pilot cities will receive up to USD 42 million to pilot next-generation technologies. 

Technologies Employed 

The three cities chosen as pilot cities within the Connected Vehicle Deployment Program will focus on 
different technologies. New York City  will  install  Vehicle to  Vehicle (V2V) technology  in up to 10,000 
city-owned vehicles; including cars, buses, and limousines, that frequently travel in Midtown Manhat-
tan, as well as Vehicle to Infrastructure (V2I) technology throughout Midtown. In Tampa the focus lies 
on the reduction of peak rush hour congestion in the downtown area and on protecting pedestrians by 
equipping their smartphones. Additionally, Tampa will measure the environmental benefits. Wyoming 

668 Congress.Gov (2015). A Bill Information (Except Text) for S. 1806 – SPY Car Act of 2015. Retrieved from: 

https://www.congress.gov/bill/114th-congress/senate-bill/1806/all-info. 

669 Crowell morning. (2015). Senator Markey Introduces the spy car act to regulate automotive cybersecurity. Retrieved from: 

https://www.crowell.com/NewsEvents/AlertsNewsletters/all/Senator-Markey-Introduces-the-SPY-Car-Act-to-Regulate-
Automotive-Cybersecurity   

670 Hartmann, K. (2016). Technical Assistance Events for Concept Development Phase. Retrieved from: 

http://www.its.dot.gov/pilots/technical_assistance_events.htm#phase1. 

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concentrates on freight since the I-80 east-west corridor is dominated by heavy-duty commercial vehi-
cles.671 

As  foreseen  by  the  SPY  Car  Act,  motor  vehicles  shall  be  equipped  with  a  "cyber  dashboard"  with  a 
standardized  graphic  to  inform  consumers  about  the  extent  to  which  the  vehicle  protects  individuals' 
cybersecurity and privacy beyond the minimum requirements. 

Enabling Framework 

Similar to the Smart City Challenge (see Focus Area 3) the Connected Vehicle Deployment Program 
is a funding scheme based on competition organized by the Department of Transportation. 

Other Aspects 

According  to  the  Connected  Vehicle  Deployment  Programme,  the  US  relies  on  the  usage  of  Wi-Fi 
instead of a 5G network for an infrastructure enabling connected driving. 
In the SPY Car Act there are still many details to be clarified. If regulations are only an enumeration of 
certain implementation, then the act poses a danger of making the automobile industry lazy and lulling 
consumers  into  a  false  sense  of  security  simply  because  the  cars  they  purchase  met  the  minimum 
standards at a certain point of time. The act would have to be designed in a way that allows for contin-
uous and easy updating. Additionally, regulations need to be broad and able to capture the complexity 
of cyber-attacks.672 

4.1.6.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

The  implementation  of  a  funding  programme  similar  to  the  Connected  Vehicle  Deployment  Program 
does  not  pose  a  big  challenge  for  the  European  Union.  It  is  more  a  matter  of  what  fund  to  take  the 
money from and how to organize it. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

No specific standardization has to be developed. 

Available Funding Models 

To  finance  such  a  programme  different  already  known  funding  models  can  be  used.  These  include 
governmental  funding,  EC-member  state  shared  funding,  PPPs  between  the  European  Commission, 
member states and industry, etc. 

Public Acceptance due to Cultural Aspects 

In  consideration  of  the  positive  effects  that  V2V  and  V2I  connectivity  in  both  passenger  as  well  as 
freight transportation will bring, public acceptance is expected to be quite high of the technology itself. 
As for the test period the general public will not be affected. Thus, the implementation shall not be a 
problem from a cultural point of view. 

Additional Aspects 

Similar to the Smart City Challenge (see Focus Area 3) the Connected Vehicle Deployment Program 
has the potential of having a huge  leverage  effect on other cities. Demonstration cities  were chosen 
according  to  each  cities’  particularities,  so  that  different  technologies  can  be  developed  in  the  best 

671 US.DoT (2016). U.S. Department of Transportation Announces up to USD 42 Million in Next Generation Connected Vehicle 

Technologies. Retrieved from: https://www.transportation.gov/briefing-room/us-department-transportation-announces-42-
million-next-generation-connected-vehicle 

672 U.S. Department of Transportation (2015). U.S. Department of Transportation Announces up to USD 42 Million in Next Gen-

eration Connected Vehicle Technologies. Retrieved from: http://www.cs.tufts.edu/comp/116/archive/fall2015/ofarooqui-
supporting.pdf 

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possible context and scenario. Since the difference among European cities is also really big, this could 
also be a suitable approach for Europe. 

4.1.7  USA: Energy Impact Assessment of Connected and Automated Transport 

4.1.7.1  Characterisation 

This forward-looking programme initiated by the US DOE is based on the assumption that automated 
and connected driving has large potential impacts and uncertainties triggered by the potential disrup-
tion of travel patterns, vehicle use, ownership and design. It seeks to refine bounds on potential ener-
gy consumption implications, at national level, by assessing specific scenarios and implementing na-
tional-level aggregation methods. A further goal is to identify key considerations for encouraging bene-
ficial energy outcomes and for mitigating adverse energy outcomes. In opposition to today’s transpor-
tation systems, future transportation has to be perceived on a system-level rather than a vehicle level. 
It will be a connected, automated system that works in concert across all modes. 673 

The  goal  of  this  multi-national  laboratory  project  is  that  funded  consortia  design  and  execute  robust 
analytical and foundational efforts to define and build-up constituent parts and frame DOE priority op-
portunities and identify opportunities for focused technology demonstrations in conjunction with cities 
or states to spur commercialisation and inform future activities across DOE’s transportation technology 
portfolio.  It  follows  a  multi-scale  approach  (single  vehicles,  small  network,  region  and  nation)  and  is 
currently  expanded  to  be  part  of  Smart  Mobility  which  will  include  decision  science,  infrastructure, 
multi-modal and urban in addition to CAVs.674 

Method of Implementation 

The programme runs from 2015 to 2019, so far more than 10 % were completed. In 2015 and 2016 
foundational efforts were taken at DOE National Labs in Argonne, Idaho and Oak Ridge as well as at 
the National Renewable Energy Laboratory (NREL). In 2017 these efforts were ramped up with part-
ners  at  participating  labs.  As  of  2018,  the  aim  is  to  have  a  large-scale  implementation  with  multiple 
performers. 

The  programme  is  based  on  five  pillars  or  so  called  Focus  Areas:  (1)  Mobility  Decision  Science,  (2) 
Connectivity and Automation, (3) Multi-Modal, (4) Urban Science, (5) Vehicles and Infrastructure. Ad-
ditionally, it is organized along three tasks: (a) Energy Impacts at the Individual Vehicle Level, (b) En-
ergy Impact at the Macro Level, and (c) Secondary Energy Impact. All of these three tasks run in par-
allel over the total programme period. 

Target User Group 

The programme funds multi-lab consortia consisting of key stakeholders, including the DOT, key uni-
versities  with  transportation  research  centres  and  major  cities  or  regions  with  ongoing  DOT-funded 
efforts on mobility 

Financing 

The total project funding amount to USD 3 million of which 100 % are financed by the US DOE. 

4.1.7.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

The know-how is available. Similar to the DOE’s laboratories, the EU also has its own Joint Research 
Centers that could take on this work. The program not only fosters the collaboration between research 
laboratories but also between the DOE and DOT by drawing on previous programs. To design a simi-
lar  program,  the  EC  would  have  to  think  across  DGs  and  look  for synergies.  More  collaboration  be-
tween and within the relevant DG would be required. 

673 Gonder, J. et al. (2016). Assessing the Energy Impact of Connected and Automated Vehicle (CAV) Technologies. Retrieved 

from http://www.nrel.gov/docs/fy16osti/65743.pdf 

674 Rousseau, A. et al. (2016). Connected and Automated Vehicles. Retrieved from 
https://energy.gov/sites/prod/files/2016/06/f33/van022_rousseau_2016_p_web.pdf 

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Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Having a lot of experience with funding models, this new model can be considered an evolution and 
does not require knew knowledge. 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

The  European  Union  already  puts  a  major  part  of  the  overall  R&D  expenditure  into  connected  and 
automated  cars.  Given  that  R&I  resources  are  already  available  and  recognizing  that  the  combat 
against climate change  is  a top priority for the  EU, funding research on how to  save  energy  and re-
duce harmful pollutants is in line with the EU’s goals. 

Additional Aspects 

A funding program similar to this one seems feasible for the European Union. Not only does Europe 
have the necessary resources and know-how but there are also no regulatory or standardization ob-
stacles. Such program could help assess the energy balance if new technologies are implemented. 

4.1.8  USA: Venture Capital Environment 

4.1.8.1  Characterisation 

Venture Capital (VC) is defined as equity or equity-linked investments in, where the investor is a finan-
cial  intermediary.  Venture  Capital  is  short-term money  invested  in  high  risk,  start-up  companies  and 
usually based on high equity returns from the companies financed. Banks are limited by law in terms 
of interests they can charge on loans, mainly because they require the loans charged to be secured 
against hard assets. Since start-ups in today’s information-based economy are usually high-risk under-
takings with little or no hard assets it is very hard for them to receive loans from banks. As an alterna-
tive, private financiers, also known as business angels, are willing to invest in expectance of high re-
turns.675 

Method of Implementation 

The United States has a long history of venture capitalism. What started first on the east coast is now 
an  established  industry  yielding  most  profits  in  technology-driven  Silicon  Valley.  Venture  Capital  has 
developed  as  the  major  boost  behind  innovation  because  of  its  increased  flexibility,  the  capability  of 
rapidly shifting resources among sectors and the possibility to drive innovation. The US maintains the 
lead in global venture capital investments with about 70% of global investments in any year, driven by 
Silicon  Valley,  Massachusetts,  Southern  California  and  NYC.  In  US,  there  is  more  than  double  the 
level of venture investment in Europe, China, India and Israel combined in 2014.676 677 

Target User Group 

The  target  user  group  of  venture  capital  investments is  start-up  companies,  including  spin-offs, from 
universities or bigger industrial corporations that penetrate the market with new innovations. 

Financing 

675 Zider, B. (2016). How Venture Capital Works, Retrieved from https://hbr.org/1998/11/how-venture-capital-works 
676 Ernst & Young (2013). Globalizing venture capital. Retrieved from: 

http://www.ey.com/Publication/vwLUAssets/Globalizing_venture_capital_VC_insights_and_trends_report_CY0227/USD 
FILE/Globalizing%20venture%20capital_VC%20insights%20and%20trends%20report_CY0227.pdf. 

677 Tyabji, H., Sathe, V. (2011). Venture capital firms in Europe vs. America: The under performers. Retrieved from: 

http://iveybusinessjournal.com/publication/venture-capital-firms-in-europe-vs-america-the-under-performers/ 

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Venture  capitalists,  usually  independent  from  financial  or  governmental  institutions,  are  willing  to  put 
money  into  high-risk  companies  expecting  high  returns.  All  costs  and  financing  is  borne  by  private 
investors. 

Business Models 

Since the success of disruptive innovations brought forward by young companies is hard to estimate, 
venture capitalists or business angels invest with expectation of high returns. While business owners 
of  these  high-risk  start-up  companies  benefit  from  easier  access  to  capital  in  comparison  to  bank 
loans, investors yield high returns in case the company and its innovations become successful. 

Technologies Employed 

The venture capital investor needs to have financial know-how and knowledge of the financial as well 
as the specific market that they invest in. Furthermore, it is inevitable to  have a good overview of the 
global market of start-ups and available technologies. 

Enabling Framework 

The prerequisite for the establishment and growth of a venture capitalist environment is a deregulated 
political,  economic  and  financial  system.  The  more  deregulated  the  national  economic  system,  the 
more willing are investors to invest in high-risk projects, as can be evidenced in the US. Cultural and 
social aspects play an important role in creating such a deregulated system and positive venture capi-
talist environment. In the US, for example, companies that fail are not ascribed to personal failure and 
are rather treated as lessons learned and things to avoid in upcoming undertakings. Furthermore, US 
citizens  tend  to  be  more  willing  of  undertaking  initiatives  with  higher  risks  than  their  counterparts  in 
Europe. Lastly, they are used to a deregulated economic system with venture capitalism being deeply 
rooted. However, venture capitalism is on the rise in other parts of the world too as mentioned before.  

Other Aspects 

Different drivers, such as globalisation and the accelerated technological progress, push the develop-
ment towards more deregulated, high-risk, financial undertakings such as venture capitalism. Interest-
ingly,  it  seems  that  there  is  a  correlation  between  countries  that  show  an  increased  rate  of  venture 
capital investments and the creation of new start-ups and innovations brought forward. Other than the 
US, the highest rates of venture capital are yielded in China, India and Israel. 

4.1.8.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Venture capital is already available in Europe, however it is not as commonly used as in the US. 

Violation of Legal/Regulatory Framework in the EU 

Since  the  EU  is  a  free  market  economy  there  is  no  violation  to  the  European  legal  or  regulatory 
framework due to venture capital invested. 

Available Funding Models 

Private European investors do not lack the monetary power to invest in start-up companies. However, 
it seems that they prefer to opt for more traditional saving options. 

Public Acceptance due to Cultural Aspects 

Cultural aspects, habits, values as well as systemic lock-ins play an important role in the creation of a 
venture capitalist environment. One prerequisite is the willingness to take huge risks. Europeans tend 
to be more conservative when it comes to money investment. 

Additional Aspects 

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The  establishment  of  a  venture  capitalist  environment  is  not  a  question  of monetary  availability.  It  is 
rather one of culture, values, mind-set and social acceptability of failure. With respect to the increasing 
globalization  more  and  more  international  investors,  including  venture  capitalists  from  the  US,  are 
coming to Europe when new businesses present themselves. This might either result in local investors 
being  motivated  and  willing  to  invest  or  the  buy-out  of  local  companies  to  the  investors’  countries  of 
origin. Building up a local venture capital culture is thus not only good means for pushing start-ups but 
also to prevent a brain drain to other countries. 

4.2  Focus Area 2 – Transformation of Infrastructure 

4.2.1  Brazil/India: Curitiba Bus Rapid Transit (BRT) System  

The bus system of Curitiba, Brazil, is a model Bus Rapid Transit (BRT) system, and plays a large part 
in making this a livable city. Curitiba has one of the  most heavily used,  yet low-cost, transit systems 
globally.  It  offers  many  of  the  features  of  a  subway  system  (i.e.  vehicle  movements  seamlessly  by 
traffic signals and congestion, fare collection prior to  boarding, quick passenger loading  and unload-
ing, etc.) but it is above ground. Around 70% of Curitiba’s commuters use the BRT to transfer to work, 
reaching the result of congestion-free streets and pollution-free air for the 2.2 million citizens of Curiti-
ba.678 

In India, the modal shift from automobile travel to BRT and NMT (Non-Motorised Transportation) is in 
process and has started in major cities. BRTs projects are running in Pune, Delhi, Ahmedabad, Indore, 
Mumbai,  Hyderabad,  Bangalore,  Chennai,  Coimbatore,  Jaipur,  Madurai,  Nagpur,  Vijayawada  and 
Visakhapatnam. 

4.2.1.1  Characterisation 

Method of Implementation 

Curitiba’s  bus  system  is  composed  of  a  hierarchical  system  of  services.  Minibuses,  routed  through 
residential neighborhoods, transfer passengers to conventional buses in non-perimetral routes around 
the central city and intermediate routes. The backbone of the system is composed of the Bus Rapid 
Transit,  operating  on  the  five  main  arteries  leading  into  the  center  of  the  city.  Buses  running  in  the 
dedicated lanes stop at cylindrical, tube stations with turnstiles, steps, and wheelchair lifts. Passengers 
pay their fares (single fare equivalent to about 40 cents (U.S.) for travel throughout the system, with 
unlimited transfers between buses at terminals) as they enter the stations and wait for buses on raised 
platforms. Instead of steps, buses have extra wide doors and ramps that extend out to the station plat-
form when the doors open. The tube stations provide shelter from the elements, while also facilitating 
the  concurrent  embark  and  disembark  of  passengers,  including  wheelchairs,  efficiently.  Ten  private 
bus companies are paid by the distance traveled to allow a balanced distribution of bus routes. All ten 
bus companies earn an operating profit. The city pays the companies about 1%  of the bus value per 
month and after 10 years; the city takes control of the buses and uses them for transportation to parks, 
or as mobile schools679.  

The most important component of the transit system is known collectively as the “Rede Integrada de 
Transporte” (RIT, "Integrated Transport Network"). This was established in 1980. Some bus services 
are not considered part of the RIT. There are currently 21 terminals (“Terminais”), where passengers 
may transfer between routes. The different categories are designed to complement one another, but 
the  overall  network  resembles  the  classic  "trunk-feeder"  pattern  and  is  not  set  up  to  maximize  the 
number of "oneseat" trips. The RIT, once confined mostly to the city proper (Smith and Hensher) now 
serves eight surrounding municipalities, and carries 250,000 passengers each day who either live or 
work outside of Curitib inctive "tube" stations (Estações-Tubo) that provide high-platform boarding680. In 

678 Joseph Goodman, Melissa Laube & Judith Schwenk (2007). Curitiba Bus System is Model for Rapid Transit. Retrieved from: 

http://www.reimaginerpe.org/book/export/html/344  

679 Joseph Goodman, Melissa Laube & Judith Schwenk (2007). Curitiba Bus System is Model for Rapid Transit. Retrieved from: 

http://www.reimaginerpe.org/book/export/html/344 

680 Leroy W. Demery, Jr (2004). Bus Rapid Transit in Curitiba, Brazil - An Information Summary. Retrieved from: 

http://www.publictransit.us/ptlibrary/specialreports/sr1.curitibaBRT.htm  

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India BRT systems with different designs can be found: 

Existing BRT Systems with segregated lanes:  Ahmedabad BRTS: 13 operational lines with 126 BRT 
stations and a few cabins (all are wheelchair - accessible except two) covering almost 89 km. Fleet of 
220 buses; Delhi BRTS was the 2nd BRT system in India. Currently uses Tata Marcopolo Bus, some 
with AC and some without. The project is now scrapped by AAP Government; Jaipur BRTS is similar 
to Bhopal  BRTS,  also  uses  Marcopolo  buses;  Indore  BRTS  currently  uses  Corona  XL  buses  (AC, 
automatic  doors,  Intelligent  Bus  System  -  iBus)  running  on  10  corridors;  Pune  BRTS  currently  us-
es Tata  Marcopolo buses  was  1st  BRTS  in  India;  in  Rajkot  is  one  line  operational  and  two  lines  are 
under  construction;  Surat  BRTS  is  operational  since  early  2014;  Bhopal  BRTS  currently  uses  Tata 
Marcopolo buses. 

Existing  BRT  Systems  without  segregated  lanes:  Bombay  and  Mumbai  BRTS  currently  uses  King-
Long, Mercedes and Tata buses; these buses are high capacity and thus government has character-
ized them as BRTS. 

Under construction: Bhubaneswar BRTS (2 corridors), Hyderabad BRTS (2 corridors), Visakhapatnam 
BRTS (2 corridors), Bhopal BRTS (3 corridors), Hubli-Dharwad BRTS (1 corridor), Amritsar BRTS (7 
corridors in phase 1), Vijayawada BRTS (6 corridors). 

Planned:  Chennai  BRTS  (1  corridor  planned),  Chennai  RBTW  (15  corridors  planned),  Coimbatore 
BRTS (10 corridors planned), Hyderabad Bus Rapid Transit System (2 corridors planned) 

Target User Group 

Commuters, citizens and tourists. 

Financing 

In Brazil, private bus operators have paid for the creation of the initial infrastructure (in the 1970s), with 
the agreement to provide  the vehicles and run the service  in exchange. With this trade in place, the 
first rapid bus lanes ended up costing 50 times less than rail. Thus, it was an early PPP scheme. 

Curitiba’s transit system is managed by the “Urbanização de Curitiba” (URBS, = "Urbanization of Curi-
tiba"),  owned  privately  but  managed  publicly.  URBS  administers  publicly-owned  transport  infrastruc-
ture, contracts with private companies that operate the buses and monitors their performance. URBS 
establishes schedules and service standards, sets fares, collects revenues and distributes payments 
to the private companies.  

The government has taken a lead role in promoting sustainable urban development in recent decades. 
Recognizing  the  considerable  economic,  environmental  and  social  benefits  of  this  approach,  they 
have promoted investment by cash-poor municipal governments using strong financial incentives681. 

Business Models  

According to the information provided in “financing”, the business model applied in the implementation 
and operation of the Curitiba BRT system is a PPP-type scheme.  

Technologies Employed 

Integrated dedicated bus lanes along the city’s main arteries,  with stations placed on medians along 
the routes. This allows buses to run at speeds comparable to light rail, while dramatically reducing the 
cost682.  

Enabling Framework 

By 1960, the population of Curitiba was beginning to grow significantly and within 20 years it had in-

681 Rizvi A. (2013). Alternative Approaches to Economically Sustainable Mobility in India: Comparing Ahmedabad Bus Rapid 

Transit and Delhi Metro Systems. Retrieved from: http://unhabitat.org/wp-
content/uploads/2013/06/GRHS.2013.Case_.Study_.Janmarg-Delhi.India_.pdf  

682 The Guardian (2015). How Curitiba's BRT stations sparked a transport revolution – a history of cities in 50 buildings, day 43. 

Retrieved from: https://www.theguardian.com/cities/2015/may/26/curitiba-brazil-brt-transport-revolution-history-cities-50-
buildings  

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creased from 120,000 to 361,000. Planners began wondering how to cope with this growth. Realizing 
the  need  for  mass  transit,  planners  called  for  the  development  of  subway  lines,  as  well  as  widened 
streets  for  cars  –  but  construction  would  be  costly  and  time  consuming.  This  is  why  emphasis  was 
given  to  bus  transportation.  The  initial  plan  was  to  create  a  system  that  gave  buses  as many  of  the 
functional advantages of urban train systems as possible. It was thus proposed to integrate dedicated 
bus lanes along the city’s main arteries, with stations placed on medians along the routes, to enhance 
speed and reduce cost683. The transit system in Curitiba has attracted worldwide attention for its note-
worthy accomplishments with limited resources. 

BRT  systems  are  rapidly  developing  in  India  due  to  the  great  congestion  problem  that  the  country 
faces,  leading  also  to  worsening  urban  air  and  noise  quality,  abysmal  traffic  safety  records  (Singh, 
2005), and contributed to increasing energy use and declining mobility and productivity in urban cen-
tres. 

Other Aspects 

The  construction  of  the  Curitiba  Bus  Rapid  Transit  (BRT)  system  started  in  1971  and  lasted  for  4 
years. However, since then, is constantly upgrading and extending.  

The  Curitiba  Bus  rapid  transit  (BRT)  system  is  pioneered  with  high-quality  stations,  overland  bus 
transport  and  real-time  information  systems,  as  well  as  dedicated  lanes  for  buses  and  high-capacity 
vehicles.  Curitiba’s BRT has made a huge impact on a modal shift from automobile travel to bus travel 
and plays a large part in making this a livable city.  It has been estimated that the introduction of the 
BRT had caused a reduction of about  27 million  auto trips per  year, saving about 27 million liters of 
fuel annually. 

4.2.1.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

BRT systems provide faster operating speeds, a rise of passengers’ reliability and quality of service. In 
order to meet these goals, BRT are based on some upgrades of system performance such as exclu-
sive  bus  lanes,  busways,  signal  preference  or  coordination,  traffic  management  improvements  and 
new technologies for increasing the boarding/alighting time rates. 

Since  respective  bus  rapid  transit  systems  already  exist  in  some  European  cities  (i.e.  Paris-France, 
Leeds-UK, Dublin-Ireland, Stockholm-Sweden, etc.) there is no issue concerning either the availability 
of technologies and know-how. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Usually PPP models are being adopted and used.  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

Since  respective  bus  rapid  transit  systems  already  exist  in  some  European  cities  (i.e.  Paris-France, 
Leeds-UK, Dublin-Ireland, Stockholm-Sweden, etc.), resources are available. 

683 The Guardian (2015). How Curitiba's BRT stations sparked a transport revolution – a history of cities in 50 buildings, day 43. 

Retrieved from: https://www.theguardian.com/cities/2015/may/26/curitiba-brazil-brt-transport-revolution-history-cities-50-
buildings 

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Additional Aspects 

BRT systems do not cause high infrastructure costs because bus routes generally run along the same 
platform of private cars. The concept of BRT was created in dense populated cities of South America 
in  the  early  ‘80s,  where  budget  constraints  did  not  allow  constructing  heavy  rail  lines  in  the  demand 
corridors. 

Both BRT and Light Rail Transit (LRT) lines are able to carry 20,000pax/h and their associated com-
mercial speed is estimated to be 25 km/h (up to 80km/h in special implementations such as highways 
or  guided  systems).  However,  the  unit  construction  cost  per  distance  in  BRT  lines  is  less  than  five 
times the associated value in LRT lines684. 

The BRT systems are in direct competition with networks of urban and regional railroads and LRT that 
present a great development mainly in Northern Europe, as well as with the great use and reliance on 
private cars that is a characteristic mainly of Southern Europe. 

4.2.2  China: Maglev/High-Speed Trains 

4.2.2.1  Characterisation 

Method of Implementation 

The Changsha Maglev, or Changsha Maglev Express (is a medium-low speed magnetic levitation, or 
maglev line in Changsha, China). This is China's second maglev line, after Shanghai Maglev, and the 
first domestically built maglev line that uses indigenous technology. The line stretches over 18.55 kil-
ometers  and  runs  between  Changsha  Huanghua  International  Airport,  Langli  station  and  the  high-
speed railway station Changsha South Railway Station. Its rolling stock is designed for a speed of up 
to 120 km/h, currently however it is running with a maximum speed of 100 km/h. 

Target User Group 

Commuters of Changsha,  as  well  as tourists, arriving by  plane,  to  the Changsha Huanghua Interna-
tional Airport. 

Financing 

Construction started in May 2014, the first trial run was done on 26 December 2015, and trial opera-
tions  were  started  on  6  May  2016. Since  the  beginning  of  construction  in  May  2014,  the  project  has 
received an estimated investment of CNY 4.6 billion. 

Technologies Employed 

Magnetic levitation, maglev, or magnetic suspension is a method by which an object is suspended with 
no  support  other 
the  effects  of 
than magnetic 
the gravitational acceleration and any other acceleration. 

fields. Magnetic 

to  counteract 

force is  used 

The  two  primary  issues  involved  in  magnetic  levitation  are lifting  forces:  providing  an  upward  force 
sufficient to counteract gravity, and stability: ensuring that the system does not spontaneously slide or 
flip into a configuration where the lift is neutralized. 

Enabling Framework 

The need of Changsha citizens commuting using low cost Public Transport fare. 

4.2.2.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Available  expertise  and  know-how  already  exists.  For  example,  Transrapid 05  was  the  first  maglev 
train  with  long  stator  propulsion  licensed  for  passenger  transportation,  while  also  the  world's  first 

684 Canales C., Estrada M., Thorson L., Robuste F. (2006).  
 Public Transport Policies in Europe: Implementing Bus Rapid Transit Systems in major European Cities.  

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commercial  maglev  system  was  a low-speed  maglev  shuttle that  ran  between  the  airport  terminal 
of Birmingham  International  Airport and  the  nearby Birmingham  International  railway  station between 
1984 and 1995. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

What makes the case of the Changsha Maglev Express in China different and maybe worth duplicat-
ing in Europe, is the combination of advanced technology application (such as the maglev levitation) 
and the end offer of an affordable product to the public by controlling some other parameters, such as 
the speed of train. In this case also, the main – if not the only – problem is probably the lack of suffi-
cient financial resources. 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

There is no obstacle concerning the availability of resources. 

4.2.3  Japan: Demand-responsive Infrastructure Development 

4.2.3.1  Characterisation 

As an answer to demographic change, which is an increasing problem in Japan, more and more im-
portance is put on paratransit mobility. It refers to demand-responsive, door-to-door transport services 
not  only  for  the  elderly  but  also  for  the  physically  handicapped.  Paratransit  transportation,  e.g.  mini-
buses,  acts  as  a  gap  filler  between  public  buses  and  private  automobiles.  It  fosters  the  inclusion  of 
people with a lack of agility, including the elderly and the physically impaired and additionally poses a 
solution for the last-mile problem. 

Method of Implementation 

Demand Responsive Transport (DRT) is a public transport system, which  provides the user  with the 
advantages of both public transport and taxi services. More than 200 of the 1700 local governments in 
Japan have introduced the DRT, using mainly mini buses. 

Target User Group 

Mainly people lacking agility, i.e elderly or physically impaired, without excluding all citizens. 

Financing/ Business models 

Public-private partnerships  

Technologies Employed 

Development  of  Information  and  Communication  Technologies  (ICT)  services  for  citizens  and  fleets 
administrators 

Enabling Framework 

The aging of Japan is thought to outweigh all other nations, as the country  allegedly has the highest 
proportion of elderly citizens. According to 2014 estimates, 33.0% of the Japanese population is above 
age 60, 25.9% are aged 65 or above, 12.5% are aged 75 or above. 

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4.2.3.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

There is no problem  concerning the availability of expertise in the field  of ICT technologies or know-
how  concerning  the  management  of corresponding  DRT systems,  as  it  is  already  a  practice  used  in 
some European countries and expanding.  

Violation of Legal/Regulatory Framework in the EU 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Public-private partnerships  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

No issues occur regarding the availability of resources. 

Additional Aspects 

The most important issue for the further development of DRT systems in Europe is to ensure the ration 
between its cost for the users and its operation and bringing together in PPP’s all the necessary ac-
tors. 

4.2.4  Japan: National Resilience & Disaster Risk Management System 

4.2.4.1  Characterisation 

Private-sector national resilience spending was mainly undertaken for earthquake-proofing of building 
and  equipment,  reinforcement  of  transport  systems  (roads  and  railroads),  disaster-relief  robotics, 
communications resilience, and training of specialist leadership.  

Method of Implementation 

To be better suited for future disasters, Japan introduced a disaster risk management (DRM) system 
after  that,  roads  are  increasingly  developed  to  serve  as  damage  mitigation  by  acting  as  secondary 
barriers  or  dikes  and,  thus,  preventing  debris  from  flowing  into  inland  urban  areas.  The  Great  East 
Japan  Earthquake  (GEJE)  has  made  Japan  a  world  leader  in  building  resilience  in  critical  energy, 
water, transport and other lifeline infrastructures. 

Private sector National Resilience spending was mainly undertaken for earthquake-proofing of building 
and  equipment,  reinforcement  of  transport  systems  (roads  and  railroads),  disaster-relief  robotics, 
communications resilience, and training of specialist leadership. 

Target User Group 

All citizens and tourists 

Financing 

Public-Private financing 

Technologies Employed 

  Earthquake-proofing of building and equipment; 

  Reinforcement of transport systems (roads and railroads);  

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  Disaster-relief robotics;  

  Communications resilience. 

Enabling Framework 

Japan  is  a  highly  earthquake  prone  country,  often  affected  by  such  disasters  resulting  in  the  loss  of 
many human lives and the destruction of infrastructures. 

4.2.4.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Resilience of Infrastructure is a major issue also in EU, currently developing and evolving, while a set 
of  guidelines  are  being  now  developed  through  the  RESOLUTE  project 685.  Thus,  this  is  a  rapidly 
emerging  area  already  in  Europe,  meaning  that  expertise  and  relevant  technologies  are  already  de-
veloped or in progress. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Public-private Partnerships 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

There are no issues regarding the availability of resources. 

4.2.5  Japan/South Korea: Transit-oriented Development  

Transit oriented development (TOD) is generally defined as “moderate to high-density residential de-
velopment that also includes employment and shopping opportunities and is located within easy walk-
ing  distance  of  a  major  transit  stop”  (Parker,  McKeever,  Arrington,  &  Smith-Heimer,  2002).  Planners 
hope  that  TODs  will  enhance  transit  use,  increase  housing  opportunities,  promote  walking  and  bicy-
cling, and facilitate neighborhood revitalization686.  

Transit-oriented  development  (TOD)  is  a  very  important  focus  point  in  the  development  roadmap  of 
Asian cities. TOD is expected to make a big difference in the long-term sustainability of urban living, 
focusing  also  on  energy  efficiency.  In  South  Korea,  one  urban  project  is  centred  on  the  Multi-Mode-
COEX-Station that is integrating different transport modes. In the past, two-dimensional road planning 
for  surface  roads  or  raised  highways  was  more  emphasized  but  recently  the  focus  has  been  put  on 
three-dimensional urban planning reducing transfer congestion by  adding underground and  high-rise 
walkways. In Japan, one successful transit-oriented development project is the Shibuya Hikarie area 
centred  on  railway  lines.  The  goal  was  to  build  an  “urban  core”  integrating  culture,  entertainment, 
commerce, transportation, work, and housing. 

4.2.5.1  Characterisation 

Method of Implementation 

A ToD is ideally an integral part in a city’s effort to determine a hierarchy of urban centers integrated 

685 Resolute (2016). Resilience Management Guidelines and Operationalization Applied to Urban Transport Environment. Re-

trieved from: http://www.resolute-eu.org/ 

686 Lund, H. (2007). The Reasons for Living in a Transit-Oriented Development, and Associated Transit Use. Retrieved from: 

http://www.tandfonline.com/doi/pdf/10.1080/01944360608976757  

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with the transport network. A successful ToD system often includes the integration and access to the 
transit station, supports the proper use of land, while also ensures and promotes the development of 
an environment that allows people to comfortably walk around it687. For example, the Shibuya Hikarie 
project  in  Japan  is  one  of  the  first  Redevelopment  Projects.    Shibuya  is  a  central  area  located  in  a 
valley with several railway stations. Hikarie redevelopment project hasn’t just built an “urban core” to 
connect public spaces located on different levels, but has also become Shibuya’s new cultural, enter-
tainment, and commercial hub, as it integrates features, like the ones listed below (indicatively): 

-  Multi-use Theater that serves as a cultural information dispatching; 

-  Sky Garden that serves as a public interactive open space; 

-  Vertical Pedestrian Connector.688  

Another  very  important  example  of  ToD  development,  is  also  the  BRT  system  of  Curitiba  in  Brazil, 
which is described in details above. 

Target User Group 

The target user group covers the commuters of each city (i.e. the commuters of the Shibuya area, as 
well as their tourists. 

Financing 

Use of public investments or investments based on PPP schemes. In particular, the Shibuya Hikarie 
project is a PPP project, integrating 3 project types: 

-  Rail/Station Construction & Improvement; 

-  Infrastructure Improvement and 

-  Real Estate Development.689 

Technologies Employed 

Technology is playing an increasing role in enriching ToD and making it more appealing to future gen-
erations.  Technology-driven  ToD  provides  the  passengers  real  choices  in  real  time  so  that  they  can 
make informed transportation decisions. Under this perceptive, information can be considered as the 
biggest currency of technology in TOD690. 

Enabling Framework 

The  growing  problems  regarding  traffic  congestion,  long  commutes,  air  pollution,  greenhouse  gas 
emissions,  foreign  and  domestic  oil  prices  and  availability  and  various  other  problems  that  plague 
mainly  and  usually  urban  areas  are  at  the  basis  of  the  further  development  and  expansion  of  ToD 
systems. 

4.2.5.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

The  Know-how  is  available  regarding  the  development  of  such  ToD  systems  in  Europe.  European 
players have the required technology and expertise already developed - in a great extent- not only for 
development of ToD systems but also for their enrichment with "smart solutions" and "smart technolo-
gies” that will make the infrastructure more accessible to young people and future generations. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU.  

687 Huang, C., Mehndiratta, S. (2015). Transit-oriented development — What does it take to get it right? Retrieved from: 

http://blogs.worldbank.org/transport/transit-oriented-development-what-does-it-take-get-it-right  

688 http://www.nikken.co.jp/en/solutions/tod.html  
689 Nakawake, T. (2016). Rail-integrated Urban Development Japanese Experience and Its Implications. Retrieved from: 

https://www.bcj.or.jp/en/what/src/srilanka01_04.pdf  

690 Raine, A., (2010). Technology-Driven Transit-Oriented Development. Retrieved from: 

http://web1.ctaa.org/webmodules/webarticles/articlefiles/Tech-Driven_TOD.pdf  

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Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

It is widely viewed that TOD can lower infrastructure costs over the long term but the initial ToD infra-
structure  cost  can  be  considerable  and  can  require  extensive  investment.  So,  probably  a  number  of 
funding  sources  are  required.  This  means  that  where  the  use  of  public  investments  is  not  enough, 
investments can be made based on PPP schemes. 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

Urban public transport development falls under the subsidiarity principle and thus is within the respon-
sibility of the European Union’s member states and local governments. Considering that it is the back-
bone of European cities a major part of their overall expenditure is already put into the development 
and progress of public transport. Considering the high urbanisation rate and the trend towards a high-
er share of public transport, there are, however, still big market opportunities attracting private invest-
ment.  

4.2.6  South Korea: Gyeongin Ara Waterway Project 

4.2.6.1  Characterisation 

To further evoke a modal change, the Gyeongin Ara Waterway Project was initiated by K-Water. The 
19 km long and 80 km wide water way connects the Han River and the West Sea and enables trans-
portation of 250 containers in one shipping; thus, reducing environmental costs compared to road and 
railway. The project further aims to prevent the Gulpo River from flooding and to create leisure space 
for local residents. This shall be achieved by involving experts of tourism and culture from the planning 
stage.  Eight  spectacular  waterfront  sceneries  are  being  created  and  at  the  entire  19  kilometer  Ara 
Waterway will become a bicycle road, inline road and pedestrian walk. 

Method of Implementation 

The  Gyeongin  Ara  Waterway  Project  consists  of  several  sub-projects  concerning  container,  steel, 
sand,  vehicle  and  passenger  port,  logistics  complex  and  waterside  place,  etc.  It  is  a  large-scale  na-
tional project that aims to contribute to the national economy by securing national competitiveness 691. 

The  Waterway  will  connect  Han  River  with  the  Gulpocheon  Bangsuro  with  80m  width  and  14km 
length, which was built for prevention of damages from frequent floods of the areas near Gulpocheon. 
It is expected to resolve the logistics problem of the metropolitan area and reduce the transportation 
costs by transporting cargos and passengers from the West Sea to Han River via the Waterway. 

The  implementation  of  this  project  started  in  1995,  but  once  delayed  as  civil  groups  raised  issues 
about its economic feasibility. However, the DHV of Holland, the advanced organization with expertise 
in  waterways,  has  reviewed  the  plan  since  2004.  The  results  of  the  review  stated  that  the  plan  was 
economically  feasible.  During  the  process  of  the  project  implementation  based  on  the  results  of  the 
review, KDI re-evaluated the plan in 2008, proving that the plan was economically feasible. 

Target User Group 

Logistics companies, organizations, as well as citizens from surrounding areas. 

Financing 

Governmental financing 

691 K-water (2016). GyeongIn Ara Waterway Projects. Retrieved from 
http://english.kwater.or.kr/eng/busi/project01Page.do?s_mid=1190  

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Technologies Employed 

Development  of  technologies  related  to  the  logistics  and  constructions  field;  technologies  related  to 
water resources management system (K-Water project). 

Enabling Framework 

The region where the Waterway is located suffers from growing logistics costs due to traffic conges-
tions. The project will save the logistics costs by improving the logistics and transportation system that 
is concentrated only on roads, and develop near-sea transportation from Seoul to China and Japan. 

In addition, the Waterway will serve as the new water leisure space in the metropolitan area, as it will 
complete the network of culture, tourism, and leisure connected to the Han River Renaissance Initia-
tive.  

Additionally, as issues such as the global warming and the environmental pollution are gaining higher 
attention,  the GYEONG-IN  Waterway  Development  Project  also  has  eco-friendly  meanings,  as  it  will 
reduce 74,000 tons of CO2¸ emission per year in 2020.  

In general, it will significantly contribute to the nation’s overcoming the economic crisis by creating the 
production promotion effect worth KRW 3 trillion, and creating 25,000 jobs and is expected to stimulate 
the economy.  

4.2.6.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

There  is  no  problem  concerning  the  availability  of  expertise  in  the  field  of  relevant  technologies  and 
know-how in the European area. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Governmental or EC funding; 

PPP schemes  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

No issues regarding the availability of resources. 

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4.2.7  South Korea: Urban Traffic Improvement Promotion Act 

4.2.7.1  Characterisation 

Urban Traffic Improvement Promotion Act issued in 2010 sets the goals of ensuring smooth traffic and 
to  promote  convenience  in  urban  areas,  improving  traffic facilities  and  increasing  efficiency.  The  act 
states that anyone who intends to undertake any project within an urban traffic improvement district or 
within a traffic zone of an urban traffic improvement district shall formulate a traffic impact analysis and 
improvement plan.692  

Method of Implementation 

If projects larger than a certain size are planned, a Traffic Impact Assessment is conducted to analyze 
various traffic facilities and traffic volume in and around business sites or diagnose various problems in 
anticipation  of  expected  transportation  needs  within  one  year,  five  years,  and  ten  years.  Thus,    a 
smooth, pleasant, and safe urban travel can be secured based on appropriate traffic measures and an 
improved  transportation  environment.693  Other  measures  include:  Transportation  Impact  Assessment 
System, Financial Traffic Penalty System694, establishment of a mass transit-oriented urban traffic sys-
tem, and an aggressive vehicle demand management. 

Target User Group 

The intended final recipient of this effort is the citizens of the country, as the objective of this procedure 
is  to  take  appropriate  measures  and  precautions,  to  put  in  place  projects  that  will  not  cause  traffic 
problems and inconvenience to the residents. 

Financing 

Public financing 

Enabling Framework 

Due to the heavy traffic system in South Korea’s urban areas, the Urban Traffic Improvement Promo-
tion Act is imperative in order to avoid additional loading of the traffic network as well as the creation of 
further sources of discomfort for the citizens such as infrastructural problems. 

4.2.7.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

There is no need of any particular technologies  or expertise involved in applying this Act, except the 
specific expertise required by the actors who  need to prepare and submit the Traffic Impact Assess-
ment, in order to be able to make a complete analysis of the project that they want to implement and to 
conduct the assessment of its expected impacts. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

For enabling and implementing such a process, the mobilization of mainly the state apparatus of the 
country  (and  throughout  Europe)  is  required.  In  this  respect,  the  funding  of  such  a  process  mainly 
concerns the respective country. 

692 Ministry of Land, Infrastructure and Transport (2010). Urban Traffic Improvement Promotion Act. Retrieved from 

http://elaw.klri.re.kr/kor_service/lawView.do?hseq=18768&lang=ENG     

693 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-

701, Republic of Korea, p. 31    

694 Hwang, S. and Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-

701, Republic of Korea, p. 21.    

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Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

The  resources  needed  for  the  organization  and  implementation  of  such  a  procedure  is  part  of  the 
budget and the organization plan of each government. 

4.2.8  USA: Beyond Traffic 2045 

4.2.8.1  Characterisation 

Beyond  Traffic  is  an  invitation  to  the  American  public—including  the  users,  developers,  owners,  and 
operators of the transportation network and the policy officials who shape it—to have a frank conver-
sation about the shape, size, and condition of that system and how it will meet the needs and goals of 
our nation for decades to come. 

In  a  Google  Fireside  Chat,  Anthony  Foxx  (the  U.S.  Secretary  of  Transportation)  and  Eric  Schmidt 
(Google Chairman) discussed a new analysis from the U.S. Department of Transportation's draft Be-
yond Traffic framework, which anticipates the trends and choices facing US transportation system over 
the next three decades.695 

Method of Implementation 

Beyond  Traffic  is  a  draft framework for  the future;  it’s  not  prescriptive.  It  does  not  aim  to  reach  con-
crete policy solutions. Instead, it focuses on the critical decision  points that the US face, through the 
analysis of data-driven, research, expert opinions, and public participation. 

It  is  the  start  of  a  national  conversation  where  big  questions  are  being  asked,  trends  are  examined, 
and concrete answers are aimed at. 

Beyond  Traffic was  launched  in  early  2015  to  foster  a  national  dialogue  about  the  shape,  size,  and 
condition of US transportation system and how it will need to meet the needs and goals of the nation 
for decades to come.696 

Target User Group 

The purpose of this process is to identify in depth the needs of the US Transportation system and to 
provide guidelines for the required actions in the next decades, while of course to ensure the engage-
ment of all relevant actors for common actions. The successful outcome of this initiative will benefit all 
actors constituting the US Transportation system, from legislators to the end users. 

Financing 

Co-operation between public and private actors 

Technologies Employed 

Non applicable  

Enabling Framework 

The dramatic population growth anticipated in Beyond Traffic (70 million more people living in the U.S. 
by  2045)  will  occur  in  11  rapidly  expanding  metropolitan  areas,  where  transportation  infrastructure 
already struggles  to cover  the current  demand. In this context, the dialogue  initiated by the “Beyond 
Traffic  2045”    will  allow  citizens,  elected  officials,  Metropolitan  Planning  Organization  executives, 
transportation industry partners, business owners, and community leaders to bring their region-specific 
experience  to  discussions  about  the  challenges  identified  and  potential  solutions  to  those  challeng-

695 U.S. Department of Transportation (2015). Beyond Traffic: US DOT's 30 Year Framework for the Future. Retrieved from: 

https://www.transportation.gov/BeyondTraffic       

696 U.S. Department of Transportation (2015).  U.S. Department of Transportation Announces Beyond Traffic Megaregion Fo-
rums. Retrieved from:  https://www.transportation.gov/briefing-room/us-department-transportation-announces-beyond-traffic-
megaregion-forums  

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es. 697 

4.2.8.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

No particular technology is needed for the implementation of this initiative. The only thing required is 
the collection of the expertise of transport experts - from all relevant transportation sectors - as well as 
the valuable contribution of end users and citizens. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU.  

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Public financing or application of PPP schemes 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects 

Availability of Resources/Raw Materials 

The  resources  needed  for  the  organization  and  implementation  of  such  an  initiative  are  part  of  the 
budget and the organization plan the corresponding national authorities. 

4.2.9  USA: Livability Initiative  

4.2.9.1  Characterisation 

Livability is about connecting the quality and location of transportation facilities to wider opportunities, 
like  access  to  good  jobs,  affordable  housing,  quality  schools  and  safer  streets.  The  FHWA  supports 
livable communities through the funding of transportation related projects, such as Context Sensitive 
Solutions,  and public  involvement initiatives that  help people to  live closer to jobs, save households’ 
time and money and reduce pollution698. 

Method of Implementation 

The  FHWA  supports  livable  communities  through  a  long-standing  Sustainable  Communities  partner-
ship699  together  with  the  U.S.  Department  of  Housing  and  Urban  Development  (HUD),  the  U.S.  De-
partment of Transportation (DoT) and the U.S. Environmental Protection Agency (EPA). In 2009, these 
agencies started cooperating in an effort to help communities nationwide to improve access to afford-
able housing, increase transportation options, and lower transportation costs while also protecting the 
environment. 

The  FHWA  livable  communities’  initiative  is  pursuing  coordinated,  place-based  policies  and  invest-
ments that increase transportation choices and access to public transportation services for all Ameri-
cans. The FHWA Livability Initiative has the following objectives: 

  Provide  more  transportation  choices to  decrease  household  transportation  costs,  reduce  our  de-

pendence on oil, improve air quality and promote public health. 

697 U.S. Department of Transportation (2015).  U.S. Department of Transportation Announces Beyond Traffic Megaregion Fo-
rums. Retrieved from:  https://www.transportation.gov/briefing-room/us-department-transportation-announces-beyond-traffic-
megaregion-forums 

698 USDoT – Federal Highway Administration (2016). Livability Initiative – What is Livability? Retrieved from: 

http://www.fhwa.dot.gov/livability/ 

699  The  Partnership  for  Sustainable  Communities works  to  coordinate  federal  housing,  transportation,  water,  and  other  infra-
structure investments to make neighborhoods more prosperous, allow people to live closer to jobs, save households time and 
money,  and  reduce  pollution.  The  partnership  agencies  incorporate  six  principles  of  livability  into  federal  funding  programs, 
policies, and future legislative proposals. 

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  Expand location- and energy-efficient housing choices for people of all ages, incomes, races and 

ethnicities to increase mobility and lower the combined cost of housing and transportation. 

 

Improve economic competitiveness of neighborhoods by giving people reliable access to employ-
ment centers, educational opportunities, services and other basic needs. 

  Target federal funding toward existing communities – through transit-oriented and land recycling – 

to revitalize communities, reduce public works costs, and safeguard rural landscapes. 

  Align  federal  policies  and  funding to  remove  barriers  to  collaboration,  leverage  funding  and  in-

crease the effectiveness of programs to plan for future growth. 

  Enhance the unique characteristics of all communities by investing in healthy, safe and walkable 

neighborhoods, whether rural, urban or suburban. 

The goal of adopting these principles is the coordination of the distribution of transportation funding in 
a way that will enhance the livability of States and communities across the United States. 

Target User Group 

States, communities and regional jurisdictions, citizens 

Financing 

Livability  is  one  of  the  5  strategic  priorities  for  the  US  Department  of  Transportation,  which  helps 
communities succeed such aims by issuing grants to eligible recipients for planning, vehicle purchas-
es,  facility  construction,  operations,  etc.  DoT  administers  this  financial  assistance  according  to  the 
federal transportation authorization, which was launched at 2012. There is a large number of programs 
and grants within the Department of Transportation that support projects enhancing or related to liva-
bility700. 

Many Federal livability funding programs require matching funds from recipients that range from 10% 
to 50%.  

For example, on December 4, 2015, the President signed the Fixing America's Surface Transportation 
(FAST)  Act  into  law  (Pub.  L.114-94).  The  FAST  Act  amended  the  Surface  Transportation  Program 
(STP)  contained  in  23  U.S.C.  133,  and  changed  the  program  name  to  the  Surface  Transportation 
Block Grant Program (STBG).   The FAST Act funds many Livability transportation programs.  

The Federal share is governed by 23 U.S. Code § 120. It is generally 80%. The Federal share for pro-
jects  on  the  Interstate  System  is  90%,  unless  the  project  adds  lanes  that  are  not  high-occupancy-
vehicle or auxiliary lanes. For projects that add single occupancy vehicle capacity, that portion of the 
project  will revert to the 8o% level.  An  upward sliding scale adjustment is available  to  States having 
public  lands.  States  may  use  a  lower  Federal  share  on  Federal-aid  projects  as  provided  in  23  U.S. 
Code § 120. 

Business Models 

Direct  federal  investment,  as  well  as  funding  partnerships  with  States,  communities,  and  the  private 
sector 

Technologies Employed 

Various technologies are being developed and employed in different livability initiatives, such as: 

1.  3D Engineered Models: Schedule, Cost and Post-Construction 

Using 3D engineered models enables the highway community to effectively connect a project’s design 
and  construction  phases.  EDC-3  promotes  the  expansion  of  3D  applications  to manage  roadway  in-
ventory and assets, improve schedule and cost management, and create accurate as-built records. 

2.  Geosynthetic Reinforced Soil-Integrated Bridge System (GRS–IBS) 

700 US Department of Transportation (n.d.). Grants and Programs. Retrieved from: 

https://www.transportation.gov/livability/grants-programs  

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Geosynthetic reinforced soil-integrated bridge system technology can help meet the country’s demand 
for small, single-span  bridges by  delivering  low-cost,  durable structures that can be built  with readily 
available equipment and materials. A GRS-IBS project can be built in weeks instead of months, saving 
time and cutting work zone congestion. 

Enabling Framework 

Encouraging livable communities—places providing people access to affordable and environmentally 
sustainable  transportation—is  a  policy  shift  for  DoT.  Over  the  last  50  years,  transportation  spending 
has  often  been  poorly  coordinated  with  other  infrastructure  investments  resulting  in  auto-dependent 
residential communities, where access to job opportunities and basic amenities is insufficient and cost-
ly.  

So,  the  livable  communities  initiative  addresses  these  and  other  related  issues  to  show  how  the  US 
government will pursue coordinated policies and investments that increase transportation choices and 
access to public transportation services for all US citizens701. 

Other Aspects 

There are a number of best practices that the Federal Livability Initiative has highlighted: 

Indicative Case Study: Transit-oriented development leads to fewer personal vehicles. Arlington Coun-
ty, VA implemented transit-oriented policies to increase development density along transit lines. While 
there has been a 1% per year growth in population, VMT has not increased. This equates to a 20-30% 
percent  vehicle  miles  of  travel  (VMT)  per  person  reduction  from  1980  to  2005.  In  fact,  47%  of  com-
mute trips in the county  are taken by transit,  walking, or biking compared to the regional  average of 
29%. Newtown Pike Extension Project videos are now  available  on FHWA’s Livability  website under 
the Livability Videos tab. The two videos show how effective transportation planning, project develop-
ment, and design preserved and enhanced the quality of life in the Davis Park Community.702 

Indicative Best Practice Livability and Sustainability Tools: U.S. Livability and Sustainability Programs 
have also developed best practices that pertain to innovative tools that can be used by communities 
interested in enhancing their communities:703 

Strategic  Highway  Research  Program  (SHRP2):  SHRP2  was  authorized  by  Congress  to  address 
some of the most pressing issues facing the nation's highway system: safety, infrastructure renewal, 
reliability, and capacity. SHRP2 is administered by the Transportation Research Board of the National 
Academies under a Memorandum of Understanding with the FHWA and the American Association of 
State Highway and Transportation Officials. 

Sustainable  Highways  Tool  (INVEST):  INVEST  (Infrastructure  Voluntary  Evaluation  Sustainability 
Tool)  is  a  practical,  web-based  collection  of  best  practices  criteria  that  allow  states  to  evaluate  and 
improve sustainable practices in their transportation projects. The use of the tool is voluntary and can 
be used by States or other project sponsors to measure the sustainability of their projects. 

4.2.9.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Technologies used and developed through projects concerning Livability are not of novelty in Europe. 
However, some technologies probably need to be updated or adapted to the needs of each initiative.  

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

701 US Department of Transportation (n.d.). Livability 101. Retrieved from: https://www.transportation.gov/livability/101  
702 See http://www.fhwa.dot.gov/livability/resources/ 
703 http://www.fhwa.dot.gov/livability/fact_sheets/transdevenviron.cfm 

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Available Funding Models 

To realize Livability projects, different funding models could be thought of such as Public Private Part-
nerships. 

Public Acceptance due to Cultural Aspects 

Despite  the  relatively  ease  of  this  initiative’s  implementation,  the  main  barrier  existing,  to  implement 
such practices in Europe, lies mainly in the urban planning of European cities that is mostly inflexible. 
Thus, such areas are slow to change, while there is also no homogeneity of business districts in many 
areas. 

Additionally, in most European countries, historic heritages also emerge, often preventing the redistri-
bution of land use. 

Such aspects, including issues of public acceptance due to cultural reasons, make difficult the applica-
tion of such initiatives in Europe. 

Availability of Resources/Raw Materials 

No issues occur regarding the availability of resources. 

4.2.10  USA: MIT Changing Places 

4.2.10.1 Characterisation 

The “Changing Places Program” of MIT is working on the development of new strategies for cities to 
meet the major challenges of the future. The aim of the program is to create places where people live 
and work, connecting these places by building better mobility systems.704 

Method of Implementation 

Through the “Changing Places Program” of MIT new models are being investigated for urban architec-
ture  and  for  personal  vehicles  to  be  more  responsive  to  the  unique  needs  of  individuals  though  the 
application of smart systems. 

The idea is that rather than separating systems by function - water, food, waste, transport, education, 
and  energy  –  they  should  be  considered  holistically.  The  cities  need  dynamic,  networked,  self-
regulating systems, taking under consideration  also complex interactions. For this to  be successfully 
realised,  the  deployment  of  emerging  technologies  should  take  place,  in  order,  to  develop  a  holistic 
system for  cities  that  will  be  able  to  support  the  stability  of  their  government,  energy,  mobility,  work, 
and public health networks. 

Target User Group 

The final application of the currently researched models and technologies is to be used  by all citizens 
who use the country’s Transportation system. 

Financing 

The research and investigation phase – that is the current phase of this initiative – is being financed by 
the MIT.  

Technologies Employed 

The  goal  is  the  development  of  technology  able  to  understand  and  respond  to  human  activity,  envi-
ronmental  conditions,  and  market  dynamics.  They  are  interested  in  finding  optimal  combinations  of 
automated  systems,  just-in-time  information  for  personal  control  as  well  as  interfaces  to  persuade 
people to adopt sustainable behaviors. 

Enabling Framework 

The current methods of city design are considered to be antiquated, as they are based on designs of 

704 Changing Places (2016). Our Mission. Retrieved from http://cp.media.mit.edu/what-we-do/  

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centralized  networks  to  deliver  drinking  water,  food,  and  energy.  These  networks  are  also  used  to 
facilitate transportation. 

However, such  infrastructure design  is becoming increasingly obsolete, resulting  in more congested, 
polluted, and unsafe cities. Citizens are spending more of their time commuting, and communities are 
becoming increasingly isolated. This leads to a lot of cities not being able to function effectively. 

4.2.10.2 Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

A basic factor for European actors, who wish to implement and/or apply a relevant program or study in 
Europe, is the need to consider the adoption of an entirely different way of planning and organizing a 
city. In order for this to be achieved, optimal combinations of automated systems need to be investi-
gated, just-in-time information for personal control, as well as interfaces to convince people adopting 
sustainable behaviors. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Public financing could be used or PPP schemes can also be applied.  

Public Acceptance due to Cultural Aspects 

The implementation of a completely new and innovative redesign  of a city may  result in public reac-
tions related also to cultural aspects (i.e. reactions due to historical or religious reasons. 

Availability of Resources/Raw Materials 

The availability of resources concerning the implementation of such a research program does not pose 
a  big  problem.  However,  the  implementation  of  new  strategies  and  models  on  the  redesign  of  cities 
need long-term organization and co-operation between a multitude of different stakeholders. 

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4.3 

Focus Area 3 – Smart Mobility Services, Freight, and Logistics 

4.3.1  Brazil: Uber for Trucks 

4.3.1.1  Characterization 

‘Uber  for  Trucks’  is  the  platform  that  helps  Brazilian  truckers  find  cargo  for  empty  trips  and  find  the 
most  efficient  routes.705  The  Brazilian  logistics  firm  is  using  mobile  technology  to  connect  companies 
that need freight services to more than 100,000 independent truck drivers. CargoX, a Brazilian startup, 
began to operate ‘Uber for Trucks’ since March 2015 and expects 50 million reais (USD 15.4 million) 
in  revenue  in  the  first  year  (Business  Insider  2016).  Brazil  reportedly  has  an  excess  of  between 
300,000  and  350,000  vehicles,  with  trucks  running  empty  40  percent  of  the  time,  so  the  goal  of  this 
app is to reduce the number of empty trucks on the highway, increasing revenue for truckers and re-
duce costs for freight owners.706 The firm does not own the trucks but the network. A similar application 
existed  earlier  as  well  in  Brazil  such  as  TruckPad,  which  was  created  in  2013  and  which  has  more 
than 481,000 truck drivers active across Brazil but it carries small loads of individuals and small and 
medium-sized companies/small cargo transport.707 

Method of Implementation 

CargoX has a network of 150,000 trucks. It had raised a total of USD 14 million by July 2016 and in-
tends to use the funds to accelerate technology development and continue scaling the business.708 In 
nine months since its operation, TruckPad has enlisted more than 230,000 owner operators. TruckPad 
provides  the  smartphone  app  and  infrastructure  for  Brazil’s  independent  truckers,  and  it  is  moving 
350,000 shipments and 1B Brazilian Reais (~USD 300M) in shipments per month from 4,000 partici-
pating shippers and carriers.709 

Target User Group 

Brazilian  independent  truck  drivers,  that  represent  55%  of  truck  drivers  in  Brazil,  are  the  target  user 
group of Uber for Trucks. 

Financing 

CargoX, as a start-up, has raised a total of USD 10 million through Series B financing. The new fund-
ing  for  CargoX  was  led  by  Goldman  Sachs,  with  participation  from  existing  investors  including  Valor 
Capital  Group,  Agility  Logistics,  Lumia  Capital  and  former  DHL  Express  US  CEO  Hans  Hickler  and 
Salazar.710 The  startup  Truckpad  was  supported  by  ‘Abril  Plug  and  Play’  and  ‘Plug  and  play  Interna-
tional Accelerator’ (incubators).711 

Technologies Employed 

The mobile application service Truckpad was used and proper infrastructure was developed to operate 
it.  

Other Aspects 

TruckPad's  smartphone  dependency,  though,  can  limit  it  for  applications  requiring  inter-city  satellite 
connectivity and anti-theft equipment. So far, the limitations of the smartphone did not have a big im-

705 Demos, T. (2016). Brazilian Logistics Startup Raises USD 10 Million From Goldman, ex-Uber Exec. Retrieved from:  

http://www.wsj.com/articles/brazilian-logistics-startup-raises-10-million-from-goldman-ex-uber-exec-1469024053.  
706 Ha, A., (2016). Goldman Sachs leads USD 10M investment in Brazilian trucking startup CargoX. Retrieved from: 
https://techcrunch.com/2016/07/20/goldman-sachs-leads-10m-investment-in-brazilian-trucking-startup-cargox/. 
707 Bastos, T. R. (2016). "Uber dos caminhões" quer revolucionar o transporte de cargas no país. Retrieved from: 

http://revistagloborural.globo.com/Noticias/Infraestrutura-e-Logistica/noticia/2016/06/aplicativo-quer-revolucionar-o-transporte-
de-cargas-no-pais.html.  

708 FIMSMES. (2016). CargoX Raises USD 10M in Series B Funding. Retrieved from: http://www.finsmes.com/2016/07/cargox-

raises-10m-in-series-b-funding.html  

709 Lanctot, R. C. (2015). Brazil’s Uber for Truck. Retrieved from: https://www.linkedin.com/pulse/brazils-uber-trucks-roger-c-

lanctot?trk=v-feed. 

710 Ha, A. (2016). Goldman Sachs leads USD 10M investment in Brazilian trucking startup CargoX. Retrieved from: 
https://techcrunch.com/2016/07/20/goldman-sachs-leads-10m-investment-in-brazilian-trucking-startup-cargox/ 

711 Angel.co (2016). Track Pad. https://angel.co/truckpad  

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pact on the TruckPad's growth (Lanctot 2015). It has reduced the number of mostly empty trucks trav-
elling the roadways. Beside North America (California and New  York) (Graham 2015), its target mar-
kets are Mexico, India and the Phillipines.712 Some of the examples are Uber for Truck India by theKar-
rier (on demand truck service)713. 

4.3.1.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Know-how  is  available  in  Europe  but  interaction  between  logistics  stakeholders  is  necessary.  The 
foreseen timeframe of this service’s implementation is by 2030. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There  is  little  or  no  standardization  necessary  in  terms  of  heavy  goods  vehicles’  weight  and  dimen-
sions.714  

Available Funding Models 

No specific funding is needed and further funding models for a service such as ‘Uber for Trucks’ need 
to be explored.  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects.  

Availability of Resources/Raw Materials 

The resources are already available in terms of infrastructure and ICT.  

Additional Aspects 

For the efficient freight services and reducing number of empty trucks running on the roads, interaction 
between logistics stakeholders has to be improved and the horizontal co-operation synergies between 
stakeholders  and  companies  need  to  be  enhanced.  This  could  be  achieved  by  pushing  progress  to-
wards the establishment of a common pan-European logistics management platform built on the phys-
ical internet in a collaborative economy. 

4.3.2 

India: Smart Cycle and Auto Rickshaw Services 

4.3.2.1  Characterisation 

Cycle  and  auto  rickshaws  are  the  preferable  public  transport  for  short  to  medium  distance  travel  in 
India. Various mobile and web applications has enhanced its use more effectively as well as efficiently.  

Method of Implementation 

In  order  to  strengthen  and  promote  the  existing  rickshaw  network,  a  community  based  initiative  was 
taken with the use of Ecocab service. The rickshaw drivers are registered in the dial-a-rickshaw facili-
ty,  using  Ecocab  app  or  direct  web  app,  with  their  contact  details  and  can  be  contacted  through  the 
facility. For the longer distance travel within the city Indians use auto rickshaw, but have the hassles of 
waiting by roadsides. . The network of auto rickshaws are well organised through Pooch-O and G-Auto 
services or apps. Similar to Ecocab services, auto rickshaw drivers are registered with contact details 
in Pooch-O and G-Auto, and are accessible by a dial. The Delhi government runs the apps Pooch-O 
and the backend data of the app is handled by Delhi Integrated Multi-Modal Transit System Ltd. 

712 Lanctot, R. C.( 2015). Brazil’s Uber for Truck. Retrieved from: https://www.linkedin.com/pulse/brazils-uber-trucks-roger-c-

lanctot?trk=v-feed. 

713 Peer, N. (2015). India’s Uber for trucks TheKarrier bags USD 230K funding. Retrieved from https://www.techinasia.com/india-

thekarrier-funding.  

714 European Commission (2016). Roads: Weights and dimensions. Retrieved from: 

https://ec.europa.eu/transport/modes/road/weights-and-dimensions_en.  

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Target User Group 

It is targeted for cycle and auto rickshaw users in small cities. 

Financing 

Private investors are active in developing and implementing the services. 

Technologies Employed 

It requires smart phone, mobile and web applications. 

Other Aspects 

The increased use of cycle rickshaw has reduced the number of empty trips on the parts of the opera-
tor  and  improved  the  overall  efficiency  of  the  system.  Rickshaw  operators  have  also  increased  their 
income by 25-30% by 1 to 2 calls per day and saved the waiting time for customers. Also the increase 
in the use of rickshaw travel has replaced cars for shorter distances and saved fuel consumption up to 
3 litres a day and related emissions.715 

4.3.2.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Know-how  is  available  and  the  initiative  such  as  Smart  Cycle  and  Auto  Rickshaw  Services  is  easily 
applicable which support local mobility innovation hubs. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary.  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects and public are 
well aware on NMT and smart mobility services. 

Availability of Resources 

Resources are available 

Additional Aspects 

This best practice motivates the initiatives on smart mobility services and the support for the local mo-
bility innovation hubs that answer culture-specific mobility demand. 

Bike sharing and car sharing apps are well used. Cycle rickshaws are only used in tourist areas and 
for  shorter  distances.  The  demand  for  cycle  rickshaws  can  enhance  developing  own  smart  mobility 
services for culture-specific mobility demand. 

4.3.3 

South Korea: Uiwang ICD Dry Port 

4.3.3.1  Characterization 

Dry ports are logistics facilities that can carry out inter-modal transportation among roads, rails, ports 
and airports. Intermodal transport offers door-to-door service through the integration of various modes 
of transport in the logistics chain, improved coordination and services, and the development of inter-
modal interfaces. Inland logistics bases are divided into multimodal logistics terminals and inland con-
tainer  bases.  One  such  multimodal  logistics  terminal  was  built  in  five  districts  in  South  Korea.  The 
Uiwang Dry Port is the largest dry port in South Korea and is located 25km from Seoul. 

715 Arya, S., Nair, A. (2013). IIM graduate who drives autorickshaw business. Retrieved from: 

http://timesofindia.indiatimes.com/city/nagpur/IIM-graduate-who-drives-autorickshaw-business/articleshow/19027194.cms  

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Method of Implementation 

Uiwang  ICD  has  the  capacity  of  1.3  million  Twenty  Foot  Equivalent  Unit  (TEU)716  and  has  container 
yard of 417 m2.717  In 2006,  more than 2 million (TEU) containers were handled at Uiwang ICD. Fur-
ther, the road mode share was approximately 75%, except for a drop in 2008. The rail mode share of 
throughput handled by the ICD was about 25% in 2010, even though the ICD was running over capac-
ity.  

Considering the movement of goods in the same single loading unit or road vehicles that successively 
used rail and road transport modes; and the use of railways for transport from the Uiwang ICD to sea-
ports has helped ease road traffic congestion and reduce vehicle emissions. The role of the Public and 
Private Infrastructure Investment Management Center (PIMAC) in connecting port and ICD with high-
capacity railway can even reduce road congestion. An expansion of the ICD's capacity would further 
enhance the environmental benefits, as would an increase in the rail mode share of freight.  

Target User Group 

The Ministry of Land, Transport and Maritime Affairs (MLTM) is the regulatory authority responsible for 
the planning, construction,  and management of dry  ports in the Republic of  South Korea. MLTM en-
courages private sector investment in the development of dry ports and logistics centers. Other stake-
holders are the Korean Railroad Company and private transportation companies. 

Financing 

The Korean Railroad Company and private transportation companies have invested in the Uiwang ICD 
through public-private partnership. 

Enabling framework 

In  1980,  the  South  Korean  government  initiated  a  policy  to  develop  inland  logistics  centers,  also 
known  as  dry  ports,  and  Uiwang  Inland  Container  Depot  (ICD)  dry  port  was  operated  in  1993.  It  in-
cludes all necessary functionalities to meet the requirements of trade. It has rail capacity of 36 trains 
per day along with road transportation. The utilization of its capacity shows that the road mode and rail 
mode share of throughput handled by the ICD was approximately 75% and 25% respectively. 718 

Other aspects 

Some of the success factors of Uiwang ICD are: Relief of Traffic Congestion by large volume of Rail-
road Transport (Capacity of daily Railroad Transport : 2,600 TEU), Utilization as Clearance Depot for 
Capital Region’s Import/Export Container cargoes (Curtailment of cost and time), Perform the Function 
of CY/CFS at Inland as Ports (Relief of Accumulated cargo at Ports) and Operate an Information sys-
tem  of  transportation  logistics  for  efficient  and  fast  customer  (Supplying  Logistics  Information  at  real 
time).719 Some of other the dry ports in Asia are in Thailand, India, China and Nepal.720 

4.3.3.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Europe  has  necessary  technologies  and  know-how  available  to  multi-modal  freight  services  through 
dry port. The implementation of similar service as ‘Uiwang ICD dry port’ in Europe  could be done by 
2020. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

716 Choedhary, H. K. (2014). The role of “Dry Port” in the intermodal maritime transportation network. Retrieved from: 

http://linershipping24.blogspot.de/2014/12/the-role-of-dry-port-in-intermodal.html  

717 Uiwang ICD (n.d.). Retrieved from: http://unnext.unescap.org/swi-icd.pdf  
718 Chowdhury, H. K. (2014). The role of “Dry Port” in the intermodal maritime transportation network. Retrieved from: 

http://linershipping24.blogspot.de/2014/12/the-role-of-dry-port-in-intermodal.html  

719 Uiwang ICD. Retrieved from: http://unnext.unescap.org/swi-icd.pdf  
720 Chowdhary, Humayun Kabir 2014. The role of “Dry Port” in the intermodal maritime transportation network. Retrieved from: 

http://linershipping24.blogspot.de/2014/12/the-role-of-dry-port-in-intermodal.html 

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Necessary Standardization Compliant to EU Standardization Policy 

Common standardisation and interoperability is necessary, which is not a major issue. 

Available Funding Models 

Like several stages in intermodal transport development, such as in port infrastructure, there might be 
a potential of overinvestment, duplication and redundancy as many inland locations would like to claim 
a stake in global value chains. This might happen in Western Europe where an abundance of inland 
terminals, particularly within the Rhine/Scheldt delta, which indicates an over competitive environment 
and the ambitions of local and regional authorities to establish logistics hubs for Europe. 721 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects.  

Availability of Resources/Raw Materials 

Resources would play a greater role within containerized trade with inland terminals, depending on the 
regional  characteristics.  This  implies  a  set  of  repositioning  strategies  where  inland  terminals  play  a 
fundamental role. To improve the efficiency of this repositioning, better cargo rotation opportunities are 
to be provided.722 

Additional Aspects 

A  large  concentration  of  dry  ports  are  around  the  Rhine/Scheldt  delta,  which  is  Europe's  most  im-
portant  gateway region  with a total container throughput of 23.2 million TEU in  2011, and  where the 
function of satellite terminals is prominent. Almost every European port has an inland terminal strategy 
as a way to secure hinterland traffic and has the strong reliance of more local container volumes on 
trucks. As road haulage in Europe plays a major role in shaping competition among load centres of the 
same multi-port gateway region for the immediate hinterland, intermodal transport is slowly but surely 
acquiring a strategic role as well. In northwest Europe, rail networks and rail-based dry ports are being 
challenged by barge transport and bimodal barge/truck terminals which are taking up a very prominent 
role in dealing with gateway traffic, particularly in the Benelux, northern France and parts of Western 
Germany.723  Proper  location  and  infrastructure  for  dry  ports  in  Europe  pushes  integration  of  multi-
modal freight services (e-freight) to increase efficiency and eco-performance. 

4.3.4  USA: Smart City Challenge 

4.3.4.1  Characterization 

The vision of the Smart City challenge in the USA is to bring innovative ideas from cities around the 
country  that  include  integrated  and  efficient  transportation  network.  It  provided  incentive  through  a 
funding competition amongst the participating cities. 

Method of Implementation 

The USDOT Smart City Challenge allowed many stakeholders and companies to come together and 
collaborate  to  define  and  implement  country  based  smart  city.  1,400  local  officials,  companies,  aca-
demics  and  non-profit  associations  joined  the  first  webinar  on  the  smart  city  challenge.  800  people 
participated in the Smart City Forum, 300 companies expressed interest in partnering, 78 applications 
received for the Smart City Challenge, 7 Smart City Challenge Finalists were announced at South by 
Southwest  (SXSW)  and  1  Smart  City  Challenge Winner  was  crowned.724  82%  of  applicants  included 
vehicle automation concepts as part of their Smart City Vision and many applicants identified opportu-
nities for scaling automated vehicles to connect disadvantaged communities.725 

721 Rodrigue, J., Notteboom, T. (n.d.). Dry Ports in European and North American Intermodal Rail Systems: Two of a Kind? 

Retrieved from: https://people.hofstra.edu/jean-
paul_rodrigue/downloads/RTBM%20Dry%20Ports%20Rodrigue%20Notteboom.pdf  

722 ebd. 
723 ebd. 
724 USDoT (2016). Smart City Challenge. Retrieved from: https://www.transportation.gov/smartcity  
725 Cronin, B.  (2016). Beyond Traffic: The Smart City Challenge. Automation in the Smart City. 

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Target User Group 

Stakeholders  for  smart  city  challenge  include  local  officials,  companies,  academics,  and  non-profit 
associations. 

Financing 

The USDOT has pledged up to USD 40 million to the city which defines the "Smart City’ for the coun-
try and also fully integrates innovative technologies – self-driving cars, connected vehicles, and smart 
sensors – into their transportation network.726 Columbus, the winner of the challenge, was able to grab 
the prize money. It also received USD 10 million from Paul G. Allen’s Vulcan Inc. and additional USD 
90 million that the city has already raised from other private partners to carry out the plan. 727 Also, sev-
en Smart City finalists (out of 78 cities) were awarded USD 100,000 to support concept development 
and planning activities. 

Enabling Framework 

The  U.S.  Department  of  Transport  (USDOT)  issued  the  Smart  City  Challenge  in  December  2015  to 
encourage cities to put forward their best and most creative ideas for innovatively addressing their own 
challenges. 78 cities participated and developed visions and plans addressing how emerging transpor-
tation, data, technologies, and applications can be integrated with existing systems in their city. They 
took into consideration the transportation challenges  – including challenges identified by the USDOT 
in its 2045 Beyond Traffic report. Altogether 7 smart cities finalists  - Austin, San Francisco, Portland, 
Pittsburgh, Kansas, Columbus and Denver were selected in March 2016 and the at the end Columbus 
won the Smart City Challenge in June 2016.728  

Other Aspects 

The 7 finalists of Smart City Challenge took the initiative to demonstrate that the future of transporta-
tion is not just about using technology to make the systems safer and more efficient but using the ad-
vanced tools to make life better for all people, especially those living in underserved communities. 

The challenge winner, Columbus, plans to work on reshaping the city to harness the power and poten-
tial of data, technology,  and creativity to reimagine how people and goods move throughout the city. 
Its collaboration between public, private and non-profit sectors is the perfect example of how they con-
nect the residents and  all  communities.  Its multimodal transportation system will  not only benefit the 
people of central Ohio, but potentially all mid-sized cities. It plans to deploy three electric self-driving 
shuttles to link a new bus rapid transit center to a retail district, connecting more residents to jobs, and 
also use data analytics to improve health care access in a neighbourhood that currently has an infant 
mortality rate four times that of the national average, that allows them to provide improved transporta-
tion options to those most in need of prenatal care.729  

4.3.4.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Know-how is available in the European cities but direct implementation of the concept as ‘US: Smart 
city challenge’ might be difficult in EU level. Business cases for smart city challenges can be formed 
for one city in a country. 

Violation of Legal/Regulatory Framework in the EU 

The best practice does not violate the legal or regulatory framework in the EU. 

726 Smart City Challenge (2016). New: Secretary Foxx Announces Additional Advanced Transportation Technology Grants at 

White House Frontiers Conference. Retrieved from: https://www.transportation.gov/smartcity  

727 US Department of Transportation. (2016). U.S. Department of Transportation Announces Columbus as Winner of Unprece-
dented USD 40 Million Smart City Challenge. Retrieved from: https://www.transportation.gov/briefing-room/us-department-
transportation-announces-columbus-winner-unprecedented-40-million-smart  

728 Cronin, B. (2016). Beyond Traffic: The Smart City Challenge. Automation in the Smart City. 
729 US Department of Transportation. (2016). U.S. Department of Transportation Announces Columbus as Winner of Unprece-
dented USD 40 Million Smart City Challenge. Retrieved from: https://www.transportation.gov/briefing-room/us-department-
transportation-announces-columbus-winner-unprecedented-40-million-smart  

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Necessary Standardization Compliant to EU Standardization Policy 

The necessary standardization is available.  

Available Funding Models 

In order to develop a business case for smart city challenge in Europe, it is required to create funding 
competition  for  smart  and  sustainable  city  development  that  triggers  leverage  effects  within  the  EU 
and that leads to the establishment of a European transportation platform for mutual learning and ex-
change of experiences.  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects.  

Additional Aspects 

Europe requires co-ordination on EU-wide transport related data management and digital services and 
form a platform where public, private and non-profit sectors collaborate for citizen’s efficient mobility. 
This will lead to strong collaboration among stakeholders to strengthen transportation network. 

4.4 

Focus Area 4 – Standardization and Interoperability 

4.4.1 

South Korea: Smart Transportation Card 

4.4.1.1  Characterisation 

The Smart Transit Cards and Integrated Fare Collection System, also known as T-Money, is a unified 
fare  smart  card  system  used  for  public  transportation.  It  is  an  integrated  fare  collection  system  that 
provides nationwide compatibility and allows users to pay for almost all kinds of public transport with a 
single  card.  It  is  based  on  a  re-chargeable  series  of  cards  and  other  smart  devices  used  for  paying 
transportation fares.730 

Method of Implementation 

The T-money card can be used to pay for public transportation, including bus, train, and taxi service, 
and  also  as  e-money  to  make  purchases  such  as  car  sharing,  at  vending  machines,  convenience 
stores, and museums, to pay fines or taxes, and even as a mileage or membership card. As of March 
2009, customers used T-money for 30 million public transit transactions per day (15.4 million bus and 
14.6 million subway transactions) within the Seoul metropolitan area, 18 million T-money smart cards 
have been issued, with T-money accepted at the reader terminals of 19,750 buses; over 8,000 subway 
terminals;  73,000  taxi  cabs;  21,000  vending  machines;  and  8,300  convenience  stores,  fast  food 
stores, and parking garages.731 The card users can also build mileage points that can be used to pay 
fares later on.732 

Target User Group 

The Smart Transit Cards are targeted to everyone. The only prerequisite is a bank account and credit 
card. Since it can  be used for a variety of different services it is not  limited to  a certain  group  of the 
population. 

730 Korea Smart Card Co., Ltd.  (2016). Retrieved from http://eng.koreasmartcard.com  
731  Ezell,  S.  (2010).  Explaining  International  IT  Application  Leaderhip:  Intelligent  Transportation    Systems.  Retrieved  from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf.  

732 Korea4Expats.com. (2016)T-money - Transit Smart Card. Retrieved from http://www.korea4expats.com/article-tmoney-seoul-

transit-smart-card.html  

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Financing 

It was developed by Korea Smart Card Co., Ltd., a joint venture spearheaded by The Seoul Metropoli-
tan  Government  and  including  LG  Group,  credit  card  companies,  and  smaller  telecommunications 
companies and financially supported by the Asian Development Bank.733 

Enabling Framework 

The T-money card was launched in April 2004 for paying transportation fares in and around Seoul and 
other cities in South Korea. T-money terminals are installed at stations in the same year and slowly its 
facilities were extended, such as refilling services and use in shops. Since then it has made substan-
tial progress, it is now useable nationwide and for many other services (as mentioned above). 

Other Aspects 

As Seoul’s subway system has moved from paper tickets to smart cards, it has eliminated the need for 
450 million paper magnetic stripe tickets at a savings of KRW 3 billion per year.734 It thus contributes 
enormously to the country’s sustainability. The successful system was already exported to New Zea-
land, Malaysia, Mongolia, and Colombia.735 

4.4.1.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Know-how is available. A similar system has been implemented in the Netherlands, the Dutch Public 
Transport  Smart  Card.  It  works  like  London’s  Oyster  Card,  however,  it  can  be  used  throughout  the 
entire country. Whereas the South Korean Smart Card is also useable for purchases at vending ma-
chines and in shops, the Dutch OV-chipkaart is only useable for public transportation. To establish a 
single transportation system the challenge for Europe would be to create a single card that is interop-
erable and useable EU-wide for both transportation, including public transportation as well as individu-
al mobility options such as car sharing, and shopping. 

Violation of Legal/Regulatory Framework in the EU 

Disparities in national legislations and tax systems might hamper the EU-wide roll-out of such system. 
Considering  that  such  system  would  have  to  be  implemented  on  EU-level,  the  different  regulatory 
systems  would  therefore  have  to  be  harmonized.  Privacy  protection  laws  have  been  introduced  in 
Austria, Belgium, Denmark, France, Germany, Luxembourg, the Netherlands, Spain and Sweden.736 

Necessary Standardization Compliant to EU Standardization Policy 

Most  standardization  on  intelligent  transport  systems  is  undertaken  internationally  by  ISO.  For  the 
operation  of  a  smart  fare  system  the  “ISO/TC204  Intelligent  Transport  Systems”,  and  especially  the 
subordinated ISO/IEC 24014 “Public Transport Interoperable fare management system” is applicable. 

Public Acceptance due to Cultural Aspects 

There  are  no  perceived  obstacles  regarding  public  acceptance  due  to  cultural  aspects.  The  easier 
access of public transportation across Europe would, in fact, facilitate passengers moving across the 
continent and add to their convenience. However, in comparison to other parts of the world, Europe-
ans tend to be very careful with their data. Handing over their payment details to a company outside of 
their country might reduce the overall acceptance. Guaranteeing data security is therefore pivotal for 
such an integrated fare collection system to be rolled out EU-wide. 

733 Hwang, S., Kim, G. (2014). 50 Praxes for Better Transport in Korea, The Korea Transport Institute, Gyeonggi-do, 411-701, 

Republic of Korea, p. 14. 

734  Ezell,  S.  (2010).  Explaining  International  IT  Application  Leaderhip:  Intelligent  Transportation    Systems.  Retrieved  from 

http://www.itif.org/files/2010-1-27-ITS_Leadership.pdf.  

735 Sojung, Y. (2016). Korean transport systems gain international recognition. Retrieved from 

http://www.korea.net/NewsFocus/Business/view?articleId=138090.  

736 OECD (2016). OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data. Retrieved from: 

https://www.oecd.org/sti/ieconomy/oecdguidelinesontheprotectionofprivacyandtransborderflowsofpersonaldata.htm  

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Availability of Resources 

The resources are available since such card does not require different materials as the already used 
cards with magnetic stripes or chips. 

Additional Aspects 

Smart transportation with easy and convenient payment services prospectively encourages citizens to 
use public transportation. This will further strengthen the shift towards sustainable transportation. 

4.4.2  USA: NHTSA/SAE Standards 

4.4.2.1  Characterisation 

The  NHTSA  standards  are  a  classification  system  identifying  six  levels  of  automated  driving,  which 
range from “no automation” up to “full automation”. Similar automation levels were published by SAE 
in 2014. 

The NHTSA standards, first published in 2013 within its Policy on Automated Vehicles, are a classifi-
cation system identifying six descriptive levels of automated driving which range from “no automation” 
up  to  “full  automation”.  In  2014  similar  automation  levels  were  published  by  SAE.  In  opposition  to 
standards set by the German Federal Highway Institute (BASt) in 2010 the NHTSA could reach global 
visibility and influence. It is assumed that the BASt did not manage to make their standards more visi-
ble  simply  because  of  a  timing  issue.  NHTSA  levels  of  automation  played  a  big  role  in  international 
SAE standards setting. Jurisdiction orients law-making along the NHTSA levels of automation. 

As  the  auto  industry  wanted  to  establish  fully  autonomous  cars  as  quickly  as  possible  on  the  roads, 
NHTSA, SAE and BASt wanted to simplify the path to this goal not only from a technical but also from 
a legal and commercialisation perspective.737 

Method of Implementation 

On 20 September 2016, the DOT issued a Federal policy for automated vehicles to lay a path for the 
safe testing and deployment of new auto technologies. This policy should help to harness the benefits 
of transformative technologies as it provides a framework for how to do it safely.  

The policy tries to provide safety assurance and facilitate innovation by means of four key parts. Vehi-
cle performance guidance uses a 15-point Safety Assessment to set clear expectations for manufac-
turers  developing  and  deploying  automated  vehicle  technologies.  Model  state  policy  delineates  the 
Federal and State roles for the regulation of highly automated vehicle technologies as part of an effort 
to build a consistent national framework of laws to govern self-driving vehicles. Finally, the policy out-
lines options for the further use of current federal authorities to expedite the safe introduction of highly 
automated  vehicles  into  the  marketplace,  as  well  as  discusses  new  tools  and  authorities  the  federal 
government may need as the technology evolves and is deployed more widely. 

This Policy also emphasizes that semi-autonomous driving is too dangerous to realize as drivers are 
not able to retake control of the vehicle fast enough in safety-critical situations.738  

Financing 

Projects and Researches are financed through Department of Transportation (DOT). 

Targeted User Group 

Future users of automated cars will be developers, manufacturers, general public, politics and jurisdic-
tion. 

737 Hars, A. (2016). Fatal Tesla accident exposes fundamental flaws in the levels of driving automation framework.Retrieved 

from: http://www.driverless-future.com/?cat=9. 

738NHTSA. (2016). U.S. DOT issues Federal Policy for safe testing and deployment of automated vehicles. Retrieved from: 
https://www.nhtsa.gov/About-NHTSA/Press-Releases/dot_federal_policy_for_automated_vehicles_09202016 

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Other Aspects 

The  standards  are  rather  descriptive,  not  regulatory,  and  more  normative  and  technical  than  legal. 
They have been criticized for favouring a gradual evolution of their systems towards fully autonomous 
driving and by doing so putting too much focus on the technological perspective while neglecting the 
human factor. It was also suggested during the 2nd Validation Workshop that the human factor shall be 
heavily increased in standard setting.  

4.4.2.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Considering that similar standards have already been issued by the German Federal Highway Institute 
in 2010, the expertise within Europe is available. The goal is to take on the lead in international stand-
ard setting by building on the existing knowledge. 

Violation of Legal/Regulatory Framework in the EU 

New standards have to follow the usual standardisation procedures in the EU as well as other (interna-
tional) binding ratifications such as the Vienna Convention. 

Additional Aspects 

If there is too much standardization in Europe, companies are discouraged from innovation; too little 
standardization discourages investment. National protectionism makes it hard to establish international 
standards; they are in fact used for protectionist reasons.  Therefore, the costs and benefits of stand-
ardization both in Europe and internationally need to be analysed in each individual case and for each 
innovation put forward.  

4.5  Focus Area 5 – Alternative Fuels Other than Electrification 

4.5.1  South Korea: Ulsan Hydrogen 

4.5.1.1  Characterisation 

Ulsan, home of Hyundai’s complex including its fuel-cell production, is on its way to become Korea’s 
pilot  hydrogen  city  producing  60%  of  Korea’s  hydrogen  demand  for  power  plant,  residential  use, 
transportation and portables, mainly through petrochemical complex to renewable sources. 

Method of Implementation 

Using the advanced and developed petrochemical industry in Ulsan, it is supporting green industries 
by utilizing by-product gases (CO2, H2) from petrochemical complex to renewable sources. 

Target User Group 

Citizens of Ulsan at first and then expanded in the whole country. 

Technologies Employed 

Petrochemical  complex  to  renewable  sources.  Collection,  purification  and  transfer  of  by-product  gas 
and percolation to: 

  Green Polymers and 

  Green energy 

Enabling Framework 

Petrochemical industry covers 55% of the total industrial output in Ulsan. 

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Other aspects 

Conformity of by-product H2Industry: 

  Recycling 

o  Reutilization of by-product H2as Eco-friendly Energy source; 

o  Transformation of by-product CO2to Eco-friendly product. 

  CO2 reduction 

o 

Innovative and ultimate route to reduce CO2 

o  Profits as CERs(certified emission reductions)  

  Conformity (Policy) 

o  Compatibility to Nation’s policy “Low carbon & green growth” 

o  Achievement of original technology based on by-product gases 

o  Upgrade chemical industry by a higher value-added technologies 

  Ulsan’s condition 

o  Hub of petro-chemistry and transportation industries 

o  Regional merits to get by-product gases with large industrial complex 

o  Representative city to lead nation’s new energy and high value industries 

4.5.1.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

There is some lack of expertise and know-how  in the area of processing hydrogen  that needs to be 
covered, mainly due to lack of appropriate framework.  

However,  there  are  currently  some  important  initiatives  towards  the  hydrogen  industry,  such  as  the 
HyER,  the  European  Association  for  Hydrogen  and  fuel  cells  and  Electro-mobility  in   European   Re-
gions  
the   EU 
established  
sion  in  2008.  HyER  supports  the  deployment  and  uptake  of  hydrogen  and  fuel  cell technolo-
gies  and  electro-mobility  in  Europe. 

(formally   HyRaMP),   was  

 collaboration   with  

in 

Violation of Legal/Regulatory Framework in the EU 

Lack of appropriate legal framework concerning the use of hydrogen cars 

Necessary Standardization Compliant to EU Standardization Policy 

Standardization issues will probably need to be resolved. 

Available Funding Models 

Government or other EU funding; PPP schemes  

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

Hydrogen  can  be  produced  from  a  wide  range  of  renewable  energy  sources,  providing  low  or  zero 
emission  energy  to  all  energy  consuming  sectors.  Efficiently  producing  hydrogen  from  renewable 
sources  is  a  key  enabler  for  these  developments.  Traditionally,  hydrogen  has  been  produced  from 
fossil sources by steam methane reforming of natural gas.  

However, there are also alternative hydrogen generation technologies that could be further investigat-
ed and developed in order to promote and develop the hydrogen industry.  

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Additional Aspects 

Some additional aspects that need to be taken under consideration are the following:  

  Limitation of the use and production of hydrogen cars; 

  Security issues concerning the use of hydrogen cars; 

  Lack of financial resources. 

4.5.2  USA: California’s Zero Emission Vehicle (ZEV) Program 

4.5.2.1  Characterisation 

Mobile sources account for well over half of the emissions which contribute to ozone and particulate 
matter and nearly 40% of the greenhouse gas emissions in California. The Air Resources Board of the 
California  Environmental  Protection  Agency  (ARB)  has  been  a  leader  in  developing  programs  de-
signed to reduce emissions from such sources. In order to meet California's air quality standards and 
greenhouse gas emission reduction goals, the transformation away from petroleum, regarding the use 
of cars, has been defined as a critical point 

In this context, ARB has adopted a new approach to passenger vehicles (namely cars and light trucks) 
by  combining  the  control  of  smog-causing  pollutants  and  greenhouse  gas  emissions  into  a  coherent 
coordinated  package  of  standards.  This  approach  also  includes  the  support  and  acceleration  efforts 
concerning the numbers of plug-in hybrids and zero-emission vehicles in California. 739 

Method of Implementation 

The  main  implementation  method  of  the  ZEV  program  is  the  regulation  setting.  The  ZEV  regulation 
has  historically  been  based  on  reducing  criteria  pollutant  emissions.   Based  on  emissions  modeling 
results  for  the  light  duty  vehicle  sector  in  2050,  and  the 2009  ZEV  Technology  Review,  the  staff  is 
currently working now on adjustments to the regulation to focus on plug-in hybrids and pure ZEVs in 
order to enhance the development of such technologies for large scale market penetration. 740 

OEMs are required to have a certain amount of ZEV in their fleet;  otherwise they are  not allowed to 
sell any cars in California. 

The  ARB  has  also  adopted,  in  coordination  with  the  United  States  (U.S.)  Environmental  Protection 
Agency (EPA) and National Highway Traffic Safety Administration (NHTSA), the Advanced Clean Cars 
(ACC) program in 2012. This program, is combing the control of smog-causing pollutants and green-
house  gas  (GHG)  emissions  into  a  single  coordinated  set  of  requirements  for  model  years  2015 
through 2025. The goal of ACC is to assure the development of environmentally superior passenger 
cars  -  and  other  vehicles  as  well  -  that  will  continue  to  offer  their  owners  the  expected  perfor-
mance, utility, and safety, while also saving them money and fuel. 

Target User Group 

Citizens of California and USA in general 

Financing 

The programme is publicly financed by the Federal State of California. 

Technologies Employed 

The success of the ZEV program and of the ACC program in particular, requires regular assessment 
of the state of technology related to the clean vehicles aforementioned, industry parameters, and the 
consumer market, so as to ensure the maximum benefits possible. That’s the reason  why, ARB  has 
(co) sponsored research projects to support this kind of development.  

739 California Environmental Protection Agency – Air Resources Board (2016). 2010-2012 Zero Emission Vehicle (ZEV) Regula-

tory Activities. Retrieved from: https://www.arb.ca.gov/msprog/zevprog/zevprog.htm  

740 California Environmental Protection Agency – Air Resources Board (2016). Zero Emission Vehicle (ZEV) Program. Retrieved 

from: https://www.arb.ca.gov/msprog/zevprog/zevprog.htm 

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Enabling Framework 

The really heavy traffic system of California (i.e. over  23 million registered  vehicles, over 797 million 
miles driven every day and over 37 million gallons of gasoline consumed each day, according to 2000 
data),  as  well  as  the  effect  this  had  to  the  breathing  air  of  Californians,  is  what  urged  the  ARB  and 
other relevant bodies to commit to this program. 

4.5.2.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

Under this program no technologies are being developed but their research and development is sup-
ported, mainly through sponsoring.  

Violation of Legal/Regulatory Framework in the EU 

No violation of the EU Legal/Regulatory Framework  

Necessary Standardization Compliant to EU Standardization Policy 

There is probably no standardization necessary.  

Available Funding Models 

Public financing or application of PPP schemes 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

The European Union already puts a big part of the overall R&D expenditure into the research concern-
ing the clean vehicles and the reduction of emissions. Therefore, the resources are already available. 

4.5.3  USA: Clean Cities 

4.5.3.1  Characterisation 

The U.S. Department of Energy’s (DoE’s) Clean Cities program is supporting actions for the elimina-
tion  of  petroleum  use  in  transportation. With  almost  100  local  coalitions  involved  in  the  Clean  Cities 
program, consisted of businesses, fuel providers, vehicle fleets, state and local government agencies, 
community organizations etc. nearly 15,000 stakeholders participate in the program and through their 
collective efforts are contributing to Clean Cities’ goals and accomplishments. 

Method of Implementation 

These  stakeholders  share  information  and  resources,  inform  public  policy,  educate  the  public,  and 
collaborate on transportation projects741. 

Target User Group 

US citizens. Clean Cities works with large corporate fleets (Coca Cola, Best Buy, etc.) to cut petroleum 
use. The initiative provides fleets with resources, expertise, and support to incorporate alternative fuels 
and fuel-saving measures into their operations. 

Financing 

The program has awarded nearly USD 400 million in matching funds through U.S. Department of En-
ergy funding  opportunities and  leveraged  resources  to  help  communities  lay  the  foundation  for  more 
than 500 alternative fuels and vehicle projects. 

741 Department of Energy (2016). Clean Cities. Retrieved from https://cleancities.energy.gov/  

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Technologies Employed 

Fuel Economy Technologies 

In  2012  alone,  Clean  Cities  activities  --  which  include  idle-reduction  measures  and fuel  econo-
my improvements -- helped prevent nearly 7 million tons of greenhouse gas emissions. That’s equiva-
lent to taking nearly 2 million cars off the road for an entire year. 

Alternative Fuel and Advanced Vehicle Aggregating Initiatives 

In 2016, the U.S. Department of Energy announced awards for two projects totaling USD 2.9 million to 
support  aggregate  purchasing  models  for  plug-in  electric  and  other  alternative  fuel  and  advanced 
technology  vehicles,  subsystems,  alternative  fuels,  and  refueling/charging  infrastructure.  Through 
these two awards, the  Aggregated Alternative Technology Alliance  and CALSTART coordinated, ag-
gregated  purchasing  among  national  and  regional  partners  will  maximize  collective  buying  power. 
These projects will address two major barriers to the growth in production and sales of alternative fuel 
and advanced vehicle technologies: manufacturers' uncertainty around demand and buyers' high up-
front  costs.  Awardees  will  work  with  fleets  and  other  buyers  to  consolidate  orders  and  develop  best 
practices for procurement aggregating initiatives. 

Enabling Framework 

Clean Cities dates back to the Alternative Motor Fuels Act of 1988 and the Clean Air Act Amendments 
of 1990. These laws, which encouraged the production and use of alternative fuel vehicles (AFVs) and 
the reduction of vehicle emissions, led to the creation of the Alternative Fuels Data Center (AFDC) in 
1991.  The  AFDC's  mission  was  to  collect,  analyze,  and  distribute  data  used  to  evaluate  alternative 
fuels and vehicles. 

In 1992, the enactment of the Energy Policy Act of 1992 (EPAct) required certain vehicle fleets to ac-
quire AFVs. Subsequently, DOE created Clean Cities in 1993 to provide informational, technical, and 
financial resources to EPAct-regulated fleets and voluntary adopters of alternative fuels and vehicles. 

In 2014, greenhouse gas emissions from transportation were considered the second largest factor of 
U.S. greenhouse gas emissions, beyond the electricity sector.  Greenhouse gas emissions from trans-
portation have increased nearly 17% since 1990, mainly due to increased demand for travel, making 
the need for programs like Clean Cities more urgent. 

Other Aspects 

As mentioned above, Clean Cities has awarded nearly USD 400 million through its funding opportuni-
ties for hundreds of projects across the country to reduce petroleum use in transportation. These pro-
jects have included among other initiatives the following ones: 

-  Introducing all-electric and hybrid electric vehicles into public and private fleet 

-  The conversion of conventional vehicles to run on natural gas and propane 

-  Installing refuelling infrastructure 

-  The installation of idle-reduction equipment in school buses and tractor trailers 

-  Developing E85 (85% ethanol, 15% gasoline) fuelling stations along busy transportation corridors. 

Furthermore, the Alternative Fuels Data Center (AFDC), which provides information, data, and tools to 
help  fleets  and  other  transportation  decision  makers  find  ways  to  reduce  petroleum  consumption 
through  the  use  of  alternative  and  renewable  fuels,  advanced  vehicles,  and  other  fuel-saving 
measures, is an outcome of the Clean Cities program. The site also provides tips for drivers on max-
imizing  fuel  efficiency.  FuelEconomy.gov  was  created  in  response  to  DoE's  requirement  under  the 
1975 Energy Policy and Conservation Act to publish and distribute an annual fuel economy guide for 
consumers742. 

742 Department of Energy (2016). Clean Cities. Retrieved from https://cleancities.energy.gov/ 

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4.5.3.2  Feasibility Analysis 

Availability of Technologies and Know-how within the Necessary Timeframe 

There is no issue regarding lack of expertise and/ or technologies. 

Violation of Legal/Regulatory Framework in the EU 

No violation of the EU Legal/Regulatory Framework  

Necessary Standardization Compliant to EU Standardization Policy 

There is no standardization necessary. 

Available Funding Models 

Public-Private-Partnerships 

Public Acceptance due to Cultural Aspects 

There are no perceived obstacles regarding public acceptance due to cultural aspects. 

Availability of Resources/Raw Materials 

Despite the fact that the European Commission and European countries have invested in the limitation 
of petroleum use and the reduction of the respective pollutants in recent years, such an initiative could 
still flourish in Europe considering the remaining lack of alternative fuels production (i.e. biofuels). 

Additional Aspects 

In addition, another obstacle can be considered the great emphasis given in Europe on the develop-
ment  of  electrification  rendering  alternative  fuels  and  their  development  and  use  of  secondary  im-
portance. 

4.6  Additional Best Practices from Countries outside of the Study’s 

Scope 

4.6.1  Singapore: Electrified Automated Shared Mobility 

(Focus Area 1, 2, 3, 5) 

The start-up company Nutonomy, a MIT-spinoff, started to offer its service with six vehicles in the 2.5-
km2  university  district  One-North  in  2016.  Until  the  end  of  the  year  the  company  plans  to  deploy  12 
vehicles  with  a  whole  fleet  until  2018.  The  company’s  goal  is  to  reduce  vehicles  from  900,000  to 
300,000. The service is ordered via a Smartphone app, similar to other car and ride sharing services. 
In  September  2016  Nutonomy  partnered  with  Grab  (see  Transport  Network  Companies  in  Manila, 
Philippines). Around 40,000 drivers are registered in Singapore.743 So far the vehicles only manoeuvre 
their passenger between fixed pick-up and drop-off spots and there is always a human driver in case 
of system failures and a technician for data analyses. As compensation the ride is for free though. For 
their service Nutonomy uses the Renault Zoe and Mitsubishi i-MiEV, both fully electric vehicles.744 

Singapore’s steady climate without any hazardous weather conditions, its advanced infrastructure and 
the acceptance of its population to follow traffic rules is very beneficial for testing self-driving vehicles. 
Also from a market perspective car and ride sharing  business models promise to be  very fruitful be-
cause only around 15% of Singapore residents own a car, owing to the high taxes and fees. 745 

This serves as a best practice since it is the first and only example that brings together the three big-
gest trends in mobility: automation, electrification and Mobility as a Service. 

743 Yuniar, R. W. (2016). Grab Joins nuTonomy to Offer Self-Driving Taxis in Singapore. Retrieved from 
http://www.wsj.com/articles/grab-joins-nutonomy-to-offer-self-driving-taxis-in-singapore-1474598345 

744  Hein,  C.  (2016).  In  Singapur  fahren  die  Taxis  nun  selbst.  Retrieved  from  http://www.faz.net/aktuell/wirtschaft/neue-
mobilitaet/selbstfahrende-taxis-in-singapur-14405490.html 
745 Kirk, M. (2016). Why Singapore Will Get Self-Driving Cars First. Retrieved from 

http://www.citylab.com/commute/2016/08/why-singapore-leads-in-self-driving-cars/494222/ 

191 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

4.6.2  Canada: Mobility Ecosystem in Toronto City Planning  

(Focus Area 2) 

In view of the fast growing shared mobility systems in urban regions in the last decade, Toronto City 
introduced a new innovative mobility master planning process. The process incorporates a quantitative 
mobility analysis and infrastructure assessment process, and addresses people-oriented needs while 
redesigning scarce public spaces and the mobility delivery system.  Considering the impact of shared 
mobility  options  on  city  policies  and  planning  practices,  the  model  reinforces  the  low-carbon  option 
while addressing environmental and health benefits as well as social equity in mobility planning for all 
users.  Urban  designers  involved  in  the  process  argue  that  “smart  mobility  planning  only  emerges  if 
inhabitants participate through a transparent process that includes, for example, networking capabili-
ties that link inhabitants to government policy making, smart open-crowdsource data, and an appropri-
ate mobility assessment and implementation process”. 

The eco-system equally focuses on the following six aspects of urban mobility: 

1.  Sociability: Reinventing Multimodal Mobility with Social Innovation 

2.  Smart Growth: Integration of Land-use and Mobility 

3.  Smart and Easy Access for All Mobility Users 

4.  Safety First Approach 

5.  Recommended World Class Infrastructure 

6.  Smart Use of Energy, Environment and Healthy Planning 

This example is exceptional because this newly created planning model takes into account two ques-
tions that have been neglected in traditional urban mobility planning processes so far: “(1) What quan-
titative process in mobility planning can take into account the optimum size of infrastructure or services 
while maximizing social, environmental and economic well-being of inhabitants?; and (2) what policies 
can create a mobility ecosystem that keeps “sustainable mobility as core” service and provides incen-
tives to integrate innovative mobility options through the rethinking of land-use strategies and the real-
location of public space or assets toward space and time efficient modes?”746 

4.6.3  Philippines: Transport Network Companies (TNC) in Manila 

(Focus Area 3) 

The country looks back on a long history on shared transport, so the underlying concept of newly aris-
ing shared mobility concepts are culturally deeply ingrained. Car ownership accounts for only 20% of 
overall urban transport. Traditional forms of shared mobility include Jeepneys for up to 20 passengers 
and  Asian  Utility  Vehicles  (AUVs)  with  capacities  for  8-10  passengers. Whereas  AUVs  are  operated 
on main urban roads between pick-up and drop-off locations, Jeepneys are hailed by riders at the road 
side. Most Jeepneys are rented by individual drivers from large fleet owners. Taxis make up 35% of all 
vehicles  in  Manila  which  since  2013  can  be  hailed  via  the  GrabTaxi  app  in  addition  to  conventional 
roadside hailing. Shortly after, in February 2014, Uber accessed the Filipino mobility market and be-
came a competitor of Grab which until then extended its services by GrabCar (ride sharing) and Grab-
Bike (motorcycle sharing). 

The TNC market is one of the fastest growing smartphone markets and, similar to uprisings in Europe, 
face regulatory and legal problems. However, users are increasingly willing to use the service because 
of its organization and cost transparency (taxi drivers often turn off the taximeter and negotiate prices 
with customers). However, this is limited to mid and high-income users because, first, these new ser-
vices are about 10 times as high as Jeepneys and AUVs and, second, not only require users and driv-
ers  to  have  smartphones  to  be  able  to  access  the  service  but  also  bank  accounts  and  credit  cards 
because of their integrate payment service. The problem is that only 31% of Filipinos have bank ac-
counts,  4%  access  to  credit  cards,  and  21%  smartphones.  Therefore,  these  services  have  added  to 

746 Karim, D. M. (2017). Creating an Innovative Mobility Ecosystem for Urban Planning Areas. In Meyer, G., Shaheen, S (Eds.). 

Disrupting Mobility. Springer. 

192 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

mobility  inequality  (inequality  of  access)  excluding  the majority  of  the  Philippine’s  population.  Similar 
phenomena can be found in Jakarta and Bangkok. In addition, the growing market triggers more car 
sales and thus, increases congestion.747 On a positive note, Grab, the World Bank, and the Philippine 
Department of Transportation and Communication (DOTC) launched the OpenTraffic initiative in Ma-
nila and Cebu City to use data about speeds, flows, intersection delays etc. and make them available 
to transport planners. 

4.6.4  Australia: Freight Labelling & EDI Standard 

(Focus Area 4) 

Considering the highly fragmented nature of Australia’s transport and logistics industry, the Australian 
Logistics Council (ALC) and Global Standards One Australia (GS1 Australia) have officially launched 
the  new  “Australian  Transport  Standards  for  Freight  Labelling  and  Electronic  Data  Exchange  (EDI)” 
based on GS1 Open Global supply chain standards. Its goal is to improve interoperability and visibility 
across multiple  transport  carriers  by  providing  a  common  tracking  identifier  to  all  parties,  to  improve 
productivity  and  reduce  costs  in  the  supply  chain  by  automating  manual  processes  and  to  reduce 
waste caused by relabelling freight as it travels across a multi-leg supply chain. 

Developed by the ALC Supply Chain Standards Work Group for the Australian Transport & Logistics 
Industry, it provides guidance to industry on how to physically identify and label logistic and transport 
units to support efficient transport management processes from origin to destination. Each label has a 
“license  plate”  known  as  a  Serial  Shipping  Container  Code  (SSCC)  for  common  identification  of  the 
logistic or transport unit across different buyers and providers.748 

747 Schechtner, K., Hanson, M. (2017). Shared Mobility in Asian Mega-Cities – The Rise of Apps. In Meyer, G., Shaheen, S 

(Eds.). Disrupting Mobility. Springer. 

748 GS1 Australia (2016). Australian Freight Labelling Standards Launched. Retrieved from https://www.gs1au.org/for-your-

industry/trade-and-transport/australian-freight-labelling-standards-launched/ 

193 

                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

4.7  Best Practices Summarised 

Best practices and lessons learned were identified in all countries under study, even where the maturi-
ty  degree  was  rather  small.  Nonetheless,  as  can  be  seen  in  Figure  42,  there  is  a  strong  correlation 
between  the  maturity  degree  in  a  certain  Focus  Area  of  a  country  and  the  number  of  best  practices 
identified in that very country. 

As can be seen, many best practices were identified in Focus Area 1, especially in the USA. This is in 
line  with  the  previous  findings  of  a  very  high  maturity  degree  in  connected  transport  and  automated 
driving. In Focus Area 2 a  multitude of different positive examples were found  in Asia. Due to social 
drivers such as the huge urbanization  rate as well as demographic change a transformation of infra-
structure is strongly pushed by different stakeholders. Also in Focus Area 3 a number of smart mobility 
services are being developed. Here the analysis shows that cultural peculiarities and differences play 
an  important  role  for  the  success  of  such  systems. This  has  to  be  taken  into  account  for  a  potential 
transfer  of  smart mobility  solutions  to  Europe.  Regarding  Focus  Area  4  there  were  three  completely 
different  best  practices  of  which  two  identify  successfully  implemented  standardization  measures  to 
increase the interoperability between different modes. In Focus Area 5 three best practices were iden-
tified of which two are governmental programs in the US that deal with fostering the uptake of green 
vehicles (including electrification) and one on hydrogen in South Korea that shows how to successfully 
manage energy resources across different industries. 

Figure 42: Best practices and lessons learned of integrated transport system along the focus areas in selected countries 

194 

 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

5 

Action Plans 

Whereas  lot  1’s  goal  is  to  identify  barriers  within  the  European  Union  that  hamper  the  development 
towards a single and innovative European transport system, lot 2 of the study deals with the interna-
tional assessment by finding best practices with which these barriers can be overcome. Based on lot 
1’s analysis not only the status quo of different activity fields was defined but also overarching goals 
for these activity fields were set.  The worldwide best practices found through lot 2’s international as-
sessment were translated into actions on how to overcome barriers by transferring those best practic-
es  to  the  European  context  that  have  proven  to  be  feasible  for  Europe  (see  Feasibility  Analysis). 
These proposed actions shall help attain the goal by providing solutions on how to overcome the hur-
dles.749 

Once action plan per focus area was established as follows. All action plans are illustrated in a twofold 
manner. First, detailed action plans are given in tables that consist of all the relevant information. Sec-
ond,  the  information  has  been  visualised  as  roadmaps  that  shall  help  communicate  the  plans  more 
efficiently.  Within  the  visualised  roadmaps  all  best  practices  are  directly  transferred  from  the  world 
map continuing  with the colour code followed throughout this study. The actions derived out of each 
best practice are given in the black boxes above the corresponding best practice. 

In line with the preceding parts of the study the entire value chain was taken into account for both pas-
senger and freight transportation as well as across all transport modes. Because best practices could 
be found across the entire value chain also actions for each of the following categories were derived: 

-  R&D&I 
-  Demonstration 
-  Manufacturing 
-  Skills and Education 
-  Business Models 
- 
-  Standardization & Interoperability 
-  Policies & Incentives 
-  Public & User Awareness 
- 

Legislation & Regulation 

Infrastructure 

As can be seen in the following tables for all actions a time frame it was determined on whether it shall 
be  taken  by  2020,  2030  or  2050.  Additionally,  responsibilities  are  assigned  to  each  action  and  Key 
Performance Indicators (KPIs) defined to continuously keep track of each action’s prospective success 
or failure. 

The derived action plans raise no claim to completeness as actions were only defined based on identi-
fied  best  practices  or  lessons  learned  in  Brazil,  China,  India,  Japan,  South  Korea  or  the  USA.  Addi-
tional actions, for which there is no corresponding best practice (e.g. proposed by experts during the 
Validation Workshops), are defined as potentials for international collaboration within chapter 6. 

749 The action plans contain only the abbreviation for each hurdle; for the explanation please see the annex. 

195 

 
 
                                                      
Final Report – International Assessment and Action Plans of the Focus Areas 

5.1  Focus Area 1 – Connected Driving and Automation of Transport 

The overall goal of this focus area is to increase energy efficiency, reduce CO2 emissions and increase road safety. An overview of more detailed goals, the sta-
tus-quo as well as on actions to be taken can be found in the following table.  

Goal 

Status Quo 

Action 

Category 

R&D&I, 
Demonstration  

test  beds  and 
Build 
demonstration 
fields 
that  allow  for  compre-
hensive  research  and 
testing  of  high-level 
(SAE  levels  4  &  5) 
automation 
allowing 
for  an  easy  transfer  to 
real-life situations 

Time 
Frame 

2020 

Re-
sponsi-
bility 
member 
states, 
commu-
nities, 
cities 

Hurdle 
ad-
dressed 
FA1-02, 
FA1-12 

Measurement 

  Number of 

demonstration 
projects 
  Number and 
budget of 
demonstration 
programmes 
  Implementation 
in real-life situa-
tions 

Best Prac-
tice 

Bra-
zil/South 
Korea/USA: 
Test Beds 
for Vehicle 
Automation 
& Connec-
tivity in 
Urban Envi-
ronments 

Activity 
Field 

Technology 
develop-
ment for 
high level 
automated 
and con-
nected driv-
ing in com-
plex situa-
tions 

Infrastruc-
tural Devel-
opment 

Fully integrated 
system with 
autonomous 
(highest auto-
mation level) 
and connected 
(V2V, V2I, 
V2X) vehicles 
implemented 
including com-
plex situations 
such as urban 
contexts 

Infrastructure 
for an automat-
ed and con-
nected traffic 
system that 
allows for max-
imum accessi-
bility, efficiency 
and road safety 

Whereas highway 
situations are 
already mastered 
pretty well, more 
complex urban 
situations still 
challenge self-
driving systems. 
R&D and demon-
stration projects 
are being under-
taken; however 
they are not pub-
licly deployed yet 
Lack of infor-
mation on type 
and scale of 
changes required 
and uneven de-
ployment across 
member states. 
Stakeholder 
groups are hesi-
tant to invest be-
cause of unclear 
lending criteria 
and uncertainties 
of investment 
returns 

Wide-scale installation 
of VMS and RWSL 
that are independent 
of air traffic control 
instructions 

R&D&I, Infra-
structure 

2030 

industry 

  Number of 

airports with in-
stalled 
VMS/RWSL 

Ja-
pan/USA: 
VMS and 
RWSL at 
airports 

196 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity 
Field 

Human 
Factors 

Regulatory 
Framework 

Goal 

Status Quo 

Action 

Questions re-
garding Hu-
man-Machine-
Interaction and 
human factors 
are fully re-
solved 

Regulatory 
framework for 
high degree 
automated and 
connected 
driving is in 
place when 
vehicles are 
mature for 
market launch 

Unclear user ac-
ceptance, willing-
ness to pay and 
business case 

Because of reac-
tive legislation 
processes fast-
developing tech-
nological progress 
is not sufficiently 
covered by juris-
diction 

Build networks for 
demand-oriented de-
velopment of automa-
tion and connectivity 
technology with a spe-
cial focus on the hu-
man factor in order to 
meet societal needs 
Establish necessary 
regulatory framework 
for testing and use that 
is responsive to novel 
technology develop-
ment 
Resolve privacy issues 
concerning the storage 
of driving data and set 
cybersecurity stand-
ards 

Category 

R&D&I 

Time 
Frame 

2020, 
2030 

Re-
sponsi-
bility 
re-
search, 
industry 

Measurement 

  Accessibility 
  Usability 

Hurdle 
ad-
dressed 
FA1-04 

Best Prac-
tice 

Ja-
pan/USA: 
Nissan’s 
Anthropol-
ogy Re-
search 

Legislation & 
Regulation 

2020, 
2030 

EC 

  Speed of regu-
latory coverage 
of technological 
progress 

USA: Cali-
fornia’s 
Regulatory 
Framework 

FA1-02, 
FA1-10, 
FA1-11 

Legislation & 
Regulation 

2020 

EC 

Assess energy impact 
of connected and au-
tomated transport 

R&D&I 

2030 

Multi-
Stakeholder 
Co-
operation 

Stakeholders 
from demand 
and supply 
sides coordi-
nate their in-
vestments and 

Roles of opera-
tional stakehold-
ers is unclear and 
investment is very 
low due to weak 
business cases, a 

Integrate research, 
testing and implemen-
tation in one compre-
hensive programme to 
bring together different 
stakeholders 

R&D&I, 
Demonstra-
tion, Legisla-
tion & Regula-
tion, Policies & 
Incentives 

2030 

EC, 
member 
states 

USA: Con-
nected 
Vehicle 
Deploy-
ment Pro-
gram & 
SPY Car 
Act 
USA: DOE 
Funding of 
Energy 
Impact of 
Connected 
Automated 
Vehicles 
Japan: SIP-
ADUS 

  Performance of 
jurisdiction re-
garding cyber-
security 
  number of 

cyberattacks 
  all cases cov-

ered? 

  Reduction of 

GHG emissions 
by transport due 
to automa-
tion/connectivity 

  Assessment of 
intensity of col-
laboration be-
tween govern-
ance, research 
and industry 

FA1-01, 
FA1-02, 
FA1-06, 
FA1-08, 
FA1-11 

197 

 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity 
Field 

Goal 

Status Quo 

Action 

Category 

actions such 
that innovation 
is accelerated 

lack of best prac-
tices that serve as 
guides as well as 
due to low user 
acceptance and 
willingness to pay 

Create environment to 
encourage high-risk 
investments 

R&D&I, Busi-
ness Models, 
Legislation & 
Regulation, 
Policies & 
Incentives 

Time 
Frame 

2030 

Integrate the three 
current revolutions in 
mobility (automation, 
electrification, MaaS) 
in a single business 
model 

2020 

Manufacturing, 
Business 
Models, Infra-
structure 

Re-
sponsi-
bility 
EC, 
member 
states, 
industry 

Measurement 

  Money invested 
(e.g. venture 
capital) 

  sectoral turno-

ver 

  number of high-
risk projects im-
plemented 
Industry    Failure rate 

  Traffic Fatalities 
  Changing Be-

haviour 

  Environmental 

balance 

Best Prac-
tice 

USA: Ven-
ture Capital 
Environ-
ment 

Hurdle 
ad-
dressed 
FA1-01, 
FA1-09, 
FA1-10 

Singapore: 
Electrified, 
Automated, 
Shared 
Mobility 

198 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 43: Action Plan on Connected Driving and Automation of Transport 

199 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

5.2  Focus Area 2 – Transformation of Infrastructure 

The overall goal of this focus area is to enable a modal shift rather than the optimization of all transport modes.  An overview of more detailed goals, the status-
quo as well as on actions to be taken can be found in the following table. 

Activity Field  Goal 

Status Quo 

Action 

Category 

Funding 

Availability of 
funding even 
where risk is 
high 

Business 
Models 

Shortage of 
funding due 
to high capi-
tal costs and 
uncertainty 
towards long-
term perfor-
mance 

Strengthen 
business mod-
el-driven de-
velopment and 
implementation 
of new trans-
portation infra-
structure 

Time 
Frame 
2020 

Responsibility  Measurement 

EC, Member 
states 

Policies & 
Initiatives 

2030 

EC, member 
states 

Provide effec-
tive funding for 
infrastructure 
and urban 
planning pro-
grammes 

Business 
Models 

2020 

EC, Member 
states 

Transformation 
of Infrastruc-
ture 

New innova-
tions are 
integrated 
into existing 
infrastructure 
that have 
successfully 
lead to a 
modal shift 

Infrastructural 
development 
develops 
along path-
dependent 
trajectories; 
long invest-
ment periods 
reduce will-
ingness to 
invest in 
revolutionary, 

Establish Eu-
ropean analy-
sis tools that 
foresee traffic 
development 
and anticipate 
implications of 
infrastructure 
development 
Create a policy 
framework for 
integrated 

Legislation & 
Regulation, 
Policies & 

2020 

EC, member 
states, cities 

  Topics raised 
  solutions found 
  problems re-

USA: Beyond 
2045 

FA2-06 

200 

Best  Prac-
tice 
China: High-
speed trains/ 
Maglev 

Hurdle 
addressed 
FA2-01 

USA: Livabil-
ity Initiative 

FA2-01 

FA2-02 

South Korea: 
Urban Traffic 
Improvement 
Promotion 
Act 

  Price perfor-
mance statis-
tics; 

  Willingness to 
payoff suggest-
ed Public 
Transport cost 
by average 
traveler. 

  successful es-
tablishment of 
such pro-
gramme; num-
ber of funded 
projects, sum of 
funding pro-
gramme, solu-
tions/result be-
ing put out 
  Usage of tools 
by relevant 
stakeholders; 
  Usability rating 
of the tools by 
stakeholder 
representatives. 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity Field  Goal 

Status Quo 

Action 

Category 

Time 
Frame 

Responsibility  Measurement 

Best  Prac-
tice 

Hurdle 
addressed 

high-risk 
projects  

development 
of infrastruc-
tures for multi-
modal 
transport op-
tions 
Further devel-
op BRT sys-
tems 

Establish an 
emergency 
and disaster 
risk manage-
ment plan to 
increase resili-
ence 
Evoke modal 
shift towards 
waterborne 
transportation 

Initiatives 

solved 

Infrastructure 

2020 

Infrastructure 

2030 

EC, member 
states, urban 
planning, 
communities, 
cities 

EC, member 
states, urban 
planning, 
communities, 
cities 

  Number of BRT 

systems; 

  Sustainability of 
these systems; 
  Number of pas-
sengers’ occu-
pancy. 

  ability to cope 

with crisis situa-
tions, success-
ful establish-
ment of such 
plan 

Infrastructure 

2030  member 

states, regional 
authorities, 
communities, 
cities, 

Create a holis-
tic infrastruc-
ture planning 
process that 
takes in ac-

Infrastructure, 
Policies & 
Initiatives 

2020  Municipalities 

Japan/South 
Korea: 
Transit-
oriented De-
velopment 

FA2-01 
FA2-03 
FA2-07 

FA2-02 
FA2-08 

Japan: Na-
tional Resili-
ence & Dis-
aster Risk 
Management 

South Korea: 
Gyeongin 
Ara Water-
way Project 

Canada: 
Mobility Eco-
system in the 
Toronto City 
Planning 

201 

 

 

livability/life 
quality 
  usage of rec-
reational and 
entertainment 
facilities 
involvement of 
citizen in plan-
plan-
ning/designing 
process 
sufficient cov-
erage of all 
areas 

 

  equal funding 
of all areas 

 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity Field  Goal 

Status Quo 

Action 

Category 

Time 
Frame 

Responsibility  Measurement 

count all 
spheres of life 
in an integrat-
ed way 

Develop  new 
strategies 
re-
garding  urban 
planning 
for 
cities  to  meet 
the major chal-
lenges  of  the 
future 

Directly include 
citizens in 
infrastructure 
planning and 
transformation 
process 

Involvement of 
citizens into 
infrastructure 
development 

New infra-
structure 
meets the 
needs of 
citizens 

Citizens not 
sufficiently 
involved in 
infrastructural 
development;  
mostly a 
supply-sided 
approach 
neglecting 
the user per-
spective 

Best  Prac-
tice 
Process  

Hurdle 
addressed 

USA:  Chang-
ing  Places  at 
MIT 

R&D 

2020 

academia 

 

 

 

 

successful 
implementa-
tion of 
planned pro-
jects 
sufficient cov-
erage of all 
areas 
topics brought 
from R&D to 
market 
integration of 
different areas 
achieved or 
not 

R&D&I,  
Demonstration,  
Infrastructure 

2020, 
2030 

EC, member 
states, com-
munities, cit-
ies, urban 
planning 

  VEC groups 
covered; 
  Quality of ser-

vice per group; 

Japan: De-
mand-
responsive 
Infrastructure 
Development 

202 

 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 44: Action Plan on Transformation of Infrastructure 

203 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

5.3  Focus Area 3 – Smart Mobility Services, Freight, and Logistics 

The overall goal of this focus area is to improve air, land and waterborne transport management systems. An overview of more detailed goals, the status-quo as 
well as on actions to be taken can be found in the following table. 

Activity 
Field 
Develop 
business 
case 

Goal 

Status Quo 

Action 

Category  Time 

Efficient busi-
ness cases 
and programs 
in place 

Business cases 
lack initiative 

Create competition for funding 
of smart and sustainable urban 
traffic development that trig-
gers multiple planning and that 
leads to mutual learning and 
exchange of experiences 

R&D&I, 
Business 
models 
and Poli-
cies & 
Initiatives 

Frame 
2020 

Respon-
sibility 
EC 

Sufficiently include cultural 
particularities in business 
models 

Business 
Models 

2020 

Industry 

Operators are 
unwilling to share 
data due to mis-
trust and unclear 
liability 

Push integration of multi-modal 
freight services (e-freight) to 
increase efficiency and eco-
performance 

2020 

Standard-
isation 
and in-
teropera-
bility 

Cities, 
commu-
nities, 
regions 

Integration of 
new services 

Wide-scale 
integration of 
new mobility 
services in-
cluding public 
passenger 
transportation 
as well as end-
to-end freight 
services 

Foster R&D programmes on 

Business 

2020 

Re-

  New mobility 

Brazil: 

FA3-C1 

204 

Hurdle 
addressed 
FA3-A1, 
FA3-A4 

Best 
Practice 
USA: 
Smart 
City Chal-
lenge  

Philip-
pines: 
Transport 
Network 
Compa-
nies 
(TNC) in 
Manila 
South 
Korea: 
Uiwang 
ICD Dry 
Ports  

FA3-A5,  
FA3-C2, 
FA3-C3 

Measurement 

  Leverage 
effect 

  successful 
deploy-
ment/impleme
ntation 
  number of 

participants in 
challenge 
  timely imple-
mentation 
  services meet-
ing the need 
of citizens 
  number of 
users 

  uptake of new 

services 

  Efficiency rate 
  emission re-
duction rate 
  modal share in 
logistics (also 
year-on-year 
change to see 
progress) 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity 
Field 

Goal 

Status Quo 

Action 

transfer of transport sharing 
between passenger and freight 
transportation 

Category  Time 

models 

Frame 
2030 

Respon-
sibility 
search, 
industry 

Support local mobility innova-
tion hubs and initiatives on 
smart mobility services that 
answer culture-specific mobili-
ty demand 

Business  
models 

2020 
2030 

Industry 

Hurdle 
addressed 

FA3-B1 

Measurement 

services avail-
able 

  efficiency rate 
  accuracy of 

real-time data 

  degree of 
open data 
  Number of 

services avail-
able 

  services meet-
ing specific 
demand 

Best 
Practice 
Brazil: 
Uber for 
Trucks 

India: 
Smart 
Cycle and 
Auto 
Rickshaw 
Services 

205 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 45: Action Plan on Smart Mobility Services, Freight, and Logistics 

206 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

5.4  Focus Area 4 – Standardisation and Interoperability 

The overall goal of this focus area is  to identify appropriate regulatory framework conditions. An overview of more detailed goals, the status-quo as well as on 
actions to be taken can be found in the following table. 

Activity 
Field 
Collabora-
tion be-
tween 
stakehold-
ers and 
modes 

Goal 

Status Quo 

Action 

Category 

Effective col-
laboration and 
sharing of in-
formation 
among stake-
holders and 
across trans-
portation 
modes 

Poor collaboration 
between stake-
holders because 
of ineffective 
communication, 
commercial rival-
ry, incompatible 
mode-specific 
objectives as well 
as lack of trust 
and cost sharing 
models  

Legislation & 
Regulation 

Further pan-European 
co-operation between 
engineers and tech-
nology developers in 
order to accelerate 
European standardisa-
tion 

Time 
Frame 
2030 

Respon-
sibility 
EC, 
member 
states 

Interopera-
bility & 
Compatibil-
ity 

National stand-
ards are har-
monized to 
increase in-
teroperability 
and compatibil-
ity 

Protectionist be-
havior of member 
states and inef-
fective harmoni-
zation at EU level 

Guarantee direct com-
pliance for open data 
standards across all 
member states 

Standardisa-
tion 

2020 

EC 

Measurement  Best  Prac-

tice 
USA: 
NHTSA/ 
SAE stand-
ards 

South Ko-
rea: Smart 
Transporta-
tion Card 

 

visibility of 
European 
standardi-
sation 
  European 
standards 
replicated 
in global 
standardi-
sation 
intensity of 
co-
operation 
between 
member 
states 
  number of 
member 
states par-
ticipating 

 

  number of 
member 
states 
where 
standard is 
imple-
mented 
  number of 
interopera-
ble applica-
tions 

Hurdle 
addressed 
FA4-08 

207 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Increase efficiency of 
freight transportation 
through digitalization 
and end-to-end ser-
vices 

Standardisa-
tion 

2020 

 

  efficiency 
rate 
customer 
satisfaction 
freight 
labels used 
across dif-
ferent mo-
dalities 

 

Australia: 
Freight 
Labelling & 
EDI stand-
ard 

208 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 46: Action Plan on Standardisation & Interoperability 

209 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

5.5  Focus Area 5 – Alternative Fuels Other than Electrification 

The overall goal of this focus area is  to become independent from oil imports and reduce of greenhouse gas emissions in all transport modes.  An overview of 
more detailed goals, the status-quo as well as on actions to be taken can be found in the following table. 

Activity 
Field 
Supply 

Goal 

Status Quo 

Action 

Shift towards 
sustainable 
alternative fuels 
is reached 
because they 
are more com-
petitive than 
conventional 
fuels 

High production 
costs of infra-
structure for alter-
native fuels and 
retail prices keep 
conventional fuels 
more competitive 

Motivate local stake-
holder (businesses, 
authorities, mobility 
providers, etc.) to shift 
from fossil fuels to 
green energy by fos-
tering collaboration 
with other stakehold-
ers (e.g. by setting up 
a regional PPP) 

Category 

Policies & 
Initiatives 

Time 
Frame 
2030 

Respon-
sibility 
EC, 
member 
states, 
communi-
ties, cit-
ies,  

Manage energy re-
sources across differ-
ent industries 

Manufacturing 

2030 

member 
states, 
industry 

Measurement  Best  Prac-

tice 
USA: Clean 
Cities 

South Ko-
rea: Hydro-
gen Indus-
try in Ulsan 

  establish-
ment of a 
PPP, 
amount of 
money in-
vested in 
PPP 

  participants 
successful 
 
collabora-
tion 

  number of 
alternative-
ly fueled 
vehicles 
deployed 
  decrease 
of energy 
prices for 
alternative 
fuels 
  amount of 
energy 
produced 
competi-
tiveness 
with tradi-
tional 
forms of 
energy 

 

Hurdle 
addressed 
FA5-05 
FA5-03 

210 

 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Activity 
Field 

Goal 

Status Quo 

Action 

Design forward-looking 
and effective climate 
policies to reduce 
emissions 

Policies & 
Initiatives 

Effective poli-
cies and initia-
tives resulted in 
a high share of 
alternative fuels 
in overall ener-
gy market 

Minimal uptake of 
alternative fuels 
because of inef-
fective policy 
measures 

Category 

Policies & 
Initiatives 

Time 
Frame 
2020 

Respon-
sibility 
EC 

Hurdle 
addressed 

Measurement  Best  Prac-

tice 
USA: Cali-
fornia’s  
California’s 
Zero Emis-
sion Vehi-
cles (ZEV) 
Program 

  Number of 
policies & 
Initiatives 
  Effective-

ness of 
programs 

  Successful 
of imple-
mentation 
of initia-
tives 
  Number of 
vehicles 
due to initi-
ative 

211 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Figure 47: Action Plan on Alternative Fuels (Other than Electrification) 

212 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

6 

Potentials for International Co-operation 

Based on best practices potentials for international co-operation have been suggested during the 1st 
Validation Workshop. General aspects as well as best practices were brought up by participating ex-
perts and then categorized if raised topic should be transferred to Europe or vice versa. Additionally, 
fields  where  international  collaboration  would  be  beneficial  for  furthering  the  level  of  integration  in 
transport systems have been proposed. The following table gives an overview of the findings. 

World  EU 
  Create a comprehensive 
urban mobility European 
challenge based on 
knowledge gained from the 
Smart City Challenge as a 
motivation to smart mobility 
development 

  Further analyse why Colum-
bus won the Smart City 
Challenge and keep track on 
how citizens are continuous-
ly engaged 

  Transfer the Clean Cities 

coalitions paradigm with the 
cooperation between differ-
ent member states and cre-
ate a common standardiza-
tion system for successful 
implementation 

  Avoid the concentration on 
one single propulsion sys-
tem to mitigate risks by fol-
lowing a multi-fuel approach 
(such as in Brazil or US) 
starting with investments on 
relevant intercity corridors 

  Transfer knowledge about 

liability issues which impede 
adoptions of automated driv-
ing, multimodal ticketing etc. 

  Create an enabling frame-

work for MaaS applications 
by SME’s (e.g. car sharing, 
carpooling, last mile delivery 
by private’s, etc.) with a fo-
cus on the citizen as the en-
trepreneur such as in the US 

World  EU 
  Establish international co-

World  EU 
  Export knowledge of inte-

grated traffic and transport 
management to other parts 
of the world 

  Take on lead in internation-
al standard setting by build-
ing on knowledge gained 
within the EU 

  Export successful business 
models to other parts of the 
world 

operation on high-speed rail 
technologies and systems 

  Foster international co-

operation on standardized 
and interoperable smart so-
lutions with joint projects 

  Support peer-learning be-
tween cities, national gov-
ernments, business opera-
tors, etc. 

  Twin international with EU 

programs (e.g. Smart Cities, 
CiViTAS, …) to increase ef-
fectiveness 

  Take further action on in-
cluding connectivity into 
standards for automation 
levels as e.g. brought for-
ward by the EU-JPN-US Tri-
lateral Working Group 

  Take further account of the 
greening aspect of transpor-
tation 

  Push the inclusion of user 
acceptance both for pas-
senger and freight transpor-
tation across the value 
chain 

  Further strengthen devel-

opment towards intermodal 
transport solutions, espe-
cially in the urban context to 
create smart cities 

213 

 
 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

Along with these results new suggestions brought forward by experts who participated in the 2 nd Vali-
dation Workshops  to  enhance  the  potential  of  international  co-operation.  This  could  be  achieved  by 
grouping these suggestions within four high-level clusters: 

1)  Strengthening  of  the  EU  competitiveness:  Measures  strengthening  the  excellence  and  attractive-
ness of research and innovation in the European Union will ultimately support its economic and indus-
trial competitiveness. Within the context of international cooperation this will be enabled by global net-
works  and  cooperation  facilitating  the  access  to  external  sources  of  knowledge.  Thus,  novel  ap-
proaches and ideas for measures supporting the development and implementation of innovations  that 
advance the integration of the European transport system can be derived and transferred to Europe. 
Further,  agreements  on  common  practices  and  policies  on  technological  and  industrial  objectives, 
common R&D policy objectives and regulatory conditions will optimize the conduction of research and 
the exploitation of results.  

2)  Addressing  market  access  issues:  Measures  to  facilitate  the  access  to  existing,  new  or  emerging 
markets including specific trade or development issues will be derived.  

3) Contribution to addressing global challenges: Global societal challenges can be tackled more rapid-
ly by developing and deploying effective solutions within international collaborations and by optimizing 
the use of international and European research infrastructures. 

4) Identification of global players and programs: The identification of key actors and main R&D&I pro-
grams including financing models within the focus areas in each country will enable initiating effective 
global  networks  and  collaborations  and  offer  the  opportunity  for  joint  initiatives  or  harmonization  in 
R&D&I activities. 

In  the  following  table  the  outcomes  are  consolidated  to  deliver  an  overview  of  all  additional  recom-
mendations for international co-operation. 

214 

 
Final Report – International Assessment and Action Plans of the Focus Areas 

High-Level Cluster 1: 
Strengthening the EU 
competitiveness 

FA 1: 
Connected  Driving 
&  Automation  of 
Transport 
  Continuously 
penetrate the 
world market with 
new product and 
service innova-
tions 

FA 5: 
Alternative Fuels 

General 

  Further assess 
alternative fuel 
solutions in other 
countries (e.g. 
South Korea’s 
(hydrogen indus-
try 

  Conduct a Make-
or-Buy analysis 
on different al-
ternative fuels for 
the European 
Union 

  Export knowledge 
of integrated traf-
fic and transport 
management to 
other parts of the 
world Competitive 
corporations and 
fast-flexible up-
take of new ideas 

  Create PPP in 

R&I 

FA 2: 
Transformation  of 
Infrastructure 

  Create an ena-

bling framework 
for MaaS appli-
cations by 
SME’s (e.g. car 
sharing, carpool-
ing, last mile de-
livery by pri-
vate’s, etc.) with 
a focus on the 
citizen as the en-
trepreneur such 
as in the US 
  Create alterna-
tive ways of 
funding, with the 
direct involve-
ment of citizens 
or by using 
crowdfunding-
like methods 

FA 3: 
Mobility 
Smart 
Services, Freight & 
Logistics 
  Create an ena-

bling framework 
for MaaS applica-
tions by SME’s 
(e.g. car sharing, 
carpooling, last 
mile delivery by 
private’s, etc.) 
with a focus on 
the citizen as the 
entrepreneur 
such as in the US 

  Further 

knowledge and 
deployment of 
the physical in-
ternet 

  Export successful 
business models 
to other parts of 
the world 

FA 4: 
Standardisation  & 
Interoperability 

  Take on lead in 
international 
standard setting 
by building on 
knowledge gained 
within the EU 

  Reduce historical-
ly grown stand-
ards and imple-
ment single 
standards and to 
increase stand-
ardisation effi-
ciency 

  Strengthen EU 
role in defining 
standards in the 
international sce-
ne 

  Create a roadmap 
on standardiza-
tion 

  Decrease national 
standardization 
motivated by pro-
tectionism and in-
crease European 
standardization 
  Include citizens’ 
needs into stand-

215 

 
Final Report – International Assessment and Action Plans of the Focus Areas 

High-Level Cluster 2: 
Addressing market 
access issues 

High-level Cluster 3: 
Contribution to ad-
dressing global chal-
lenges 

  Understand re-

sponsibility of au-
tomated systems 
by also including 
cultural factors 

  Study the ac-

ceptance of self-
driving capabili-
ties by users 
(across all 
modes) in view of 
cultural particular-
ities 

  Harmonize freight 
ship automation 
based on traffic 
automation start-
ing from EU har-
monization 
  Increase exper-

tise in artificial in-
telligence 

  Create a frame-
work for sharing 

ards, define re-
sponsibilities and 
create a frame-
work for flexible 
performance 
standardization 
(e.g. responding 
to changing 
needs) 

  Promote stand-

ardisation issues 
in order to create 
an “open” market 
  Increase transfer 
of solutions be-
tween passenger 
and freight as well 
as across modes 

  Support the up-
take of innova-
tion results from 
R&D to market 

  Develop regula-
tion on shared 
mobility by pric-
ing shared vehi-
cles (e.g. similar 
initiative in Sao 
Paulo) 

  Create a com-
prehensive ur-
ban mobility Eu-
ropean chal-
lenge based on 

  Create a com-

prehensive urban 
mobility Europe-
an challenge 
based on 

  Develop mobility 
standards to 
combat climate 
change 
  Push global 

  Avoid the con-
centration on 
one single pro-
pulsion system 
to mitigate risks 

  Establish interna-

tional co-
operation on 
high-speed rail 
technologies and 

216 

 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

standard setting 
for alternative 
fuels 

  Set up standards 
for a plan B (e.g. 
in case of system 
break-down) 
  Develop stand-
ards for trans-
shipment and au-
tomation across 
modes (stand-
ards, infrastruc-
ture, ownership) 

knowledge 
gained from the 
Smart City Chal-
lenge as a moti-
vation to smart 
mobility devel-
opment 

  Further analyse 
why Columbus 
won the Smart 
City Challenge 
and keep track 
on how citizens 
are continuously 
engaged 

  Push technologi-
cal progress of 
smart mobiles to 
increase the in-
clusion of the 
disadvantaged 
and to reduce 
emissions 

and protection of 
personal (trip) da-
ta 

  Compare roles of 
automated vehi-
cles in public 
transport 
  Transfer 

knowledge about 
liability issues 
which impede 
adoptions of au-
tomated driving, 
multimodal ticket-
ing etc. 

knowledge 
gained from the 
Smart City Chal-
lenge to Europe 
as a motivation 
to smart mobility 
development 

  Further analyse 
why Columbus 
won the Smart 
City Challenge 
and keep track 
on how citizens 
are continuously 
engaged 

  Transfer the 
Clean Cities 
program with the 
cooperation be-
tween different 
member states 
and create a 
common stand-
ardization sys-
tem for success-
ful implementa-
tion 

 

Increase infra-
structure securi-
ty (e.g. for terror-
ism issues), in-
cluding also 
cyber security 

by following a 
multi-fuel ap-
proach (such as 
in Brazil or US) 
starting with in-
vestments on 
relevant intercity 
corridors 

  Foster R&D in 

byprod-
ucts/waste use-
able as alterna-
tive fuels 
  Support devel-
opment of sus-
tainable, safe so-
lutions based on 
Hydrogen 
  Transfer the 

Clean Cities coa-
litions paradigm 
with the coopera-
tion between dif-
ferent member 
states and create 
a common 
standardization 
system for suc-
cessful imple-
mentation 

  Avoid the con-
centration on 
one single pro-

systems 

  Foster interna-

tional co-
operation on 
standardized and 
interoperable 
smart solutions 
with joint projects 

  Support peer-

learning between 
cities, national 
governments, 
business opera-
tors, etc. 

  Twin international 
with EU programs 
(e.g. Smart Cit-
ies, CiViTAS, …) 
to increase effec-
tiveness 

  Take further ac-
tion on including 
connectivity into 
standards for au-
tomation levels 
as e.g. brought 
forward by the 
EU-JPN-US Tri-
lateral Working 
Group 

  Take further ac-
count of the 

217 

Final Report – International Assessment and Action Plans of the Focus Areas 

High-level Cluster 4: 
Identification of global 
players and pro-
grammes 

  Create a bilateral 
programme be-
tween EU and 
Japan based on 
SIP-ADUS  

pulsion system 
to mitigate risks 
by following a 
multi-fuel ap-
proach (such as 
in Brazil or US) 
starting with in-
vestments on 
relevant intercity 
corridors 

  Further the col-
laboration with 
the International 
Civil Aviation 
Organization 
(ICAO) and In-
ternational Mari-
time Organiza-
tion (IMO) to 
foster standards 
on alt. fuels 

  Further the col-
laboration with 
the International 
Civil Aviation Or-
ganization 
(ICAO) and In-
ternational Mari-
time Organiza-
tion (IMO), espe-
cially to foster 
standards on al-
ternate fuels 

greening aspect 
of transportation 

  Push the inclu-
sion of user ac-
ceptance for pas-
senger and 
freight transporta-
tion across the 
value chain 

  Strengthen de-
velopment to-
wards intermodal 
transport solu-
tions, esp. in the 
urban context to 
create smart cit-
ies 

  Take further ac-
tion on including 
connectivity into 
standards for au-
tomation levels 
as e.g. brought 
forward by the 
EU-JPN-US Tri-
lateral Working 
Group 

  Increase the co-

operation with the 
Int. Transport Fo-
rum 

218 

 
 
 
Final Report – International Assessment and Action Plans of the Focus Areas 

7 

Conclusions 

This Final Report summarizes the findings of the international assessment within the study “Towards a 
Single and Innovative European Transport System” that develops action plans on how to create an inte-
grated  European  transport  system.  The  overall  goal  of  the  study  is  to  identify  barriers  within  Europe 
(lot 1) and to find best practices in the international arena (lot 2) that can be potentially translated to the 
European  context  to  overcome  these  barriers.  Subject  of  this  report  is  the  international  assessment 
conducted  as  part  of  the  contract  concerning  “International  assessment  and  action  plans  of  the  focus 
areas”, i.e. Lot 2 of the original call for tenders. 

The  Focus  Areas  on  which  this  report  is  built  mirror  five  thematic  transport  research  areas  in  accord-
ance with the Strategic Transport Research and Innovation Agenda (STRIA): (1) connected driving and 
automation  of transport,  use of automated optimization of traffic flows, (2) transformation of infrastruc-
ture to address connectivity, resilience, new fuels and energy efficiency, (3) smart mobility services (in-
cluding provision and use of data, and urban mobility), freight and logistics, (4) standardization and in-
teroperability, and (5) alternative fuels other than electrification. 

In light of the growing globalization with increasing co-operation between nation states and the elimina-
tion of cultural and political differences, learning from each other not only creates opportunities for inter-
national  collaboration  and  transfer  of  knowledge  but  also  reduces  redundancies  and  the  likelihood  of 
taking faulty measures. Therefore, analysing other countries’ best practices and lessons learned of suc-
cessful transportation initiatives and activities comes in beneficial. The countries in focus  – Brazil, Chi-
na,  India,  Japan,  South  Korea  and  United  States  of  America  –  represent  both  highly  industrialized  as 
well as industrializing nations with different challenges. 

This study’s first step was the examination of the state of play in selected countries that serves as the 
fundament  for  the  identification  of  best  practices.  To  be  able  to  draw  a  complete  picture  the  analysis 
was conducted in a systematic way along the transportation value chain from research to industry and 
market  across  all  transport  modes.  The  results  were  mainly  gained  through  desktop  research  and  by 
drawing on the expertise of so-called “ambassadors” for all Focus Areas in the  countries under study. 
Despite of the wide variety of sources with quite diverse levels of details, it has been achieved to gener-
ate an overall picture allowing for a comparison of selected countries and for a transfer of findings into 
SWOT analyses illustrating each country’s transportation system’s strengths, weaknesses, opportunities 
and  threats.  Based  on  these  the  degree  of  maturity  of  their  integrated  transport  system  has  been  as-
sessed and rated on a five-point scale processed in a world map to guarantee a fast and easy under-
standing  as  well  as  world-wide  comparison.  Additionally,  the  outcomes  have  been  juxtaposed  to  the 
European situation. 

It is no surprise that the transport systems of the countries in focus represent a broad spectrum of ma-
turity levels.  They  not  only have  different industrialization levels  – from developing to industrializing to 
newly  industrialized  and  highly  industrialized  countries  –  but  also  very  diverse  histories  with  different 
path-dependent  developments.  Also  from  a  cultural  point  of  view,  the  willingness  and  acceptance  of 
integrated transport solutions by citizens and users differ from country to country. 

That  is  why  each  country  has  their  specific  challenges  to  cope  with.  However,  due  to  the  increasing 
globalization there is more and more collaboration between nation states. This holds true where interna-
tional  market  access  is  concerned  (e.g.  in  the  automotive  industry)  as  well  as  in  standardization 
measures. Also, political, economic, ecological and societal drivers of innovative transportation are often 
similar. Here, only little differentiation along the industrialization level can be undertaken. Especially due 
to  the  ratification  of  international  policies  many  countries  follow  the  same  goals,  for  example  when  it 
comes  to  the  reduction  of  greenhouse  gas  emissions.  Not  only  through  active  goal  setting  but  also  in 
view of the user perspective many countries face the same problems asking for technological solutions 
and infrastructural shifts. These similarities span across many different aspects, foremost demographic 
change  and  aging  society.  Especially  for  energy-related  issues,  the  establishment  of  resilient  systems 
that help reduce the dependence on energy imports further boosts developments towards a more sus-
tainable traffic system including the energy grid, the reduction of congestion and traffic fatalities as well 

219 

Final Report – International Assessment and Action Plans of the Focus Areas 

as  the  reduction  of  air  pollution  and  dependence  on  imports.  Interestingly,  the  prospective  hosting  of 
major world sporting events, such as the Olympic Games, act as a  driver since countries are eager to 
show off their technologies.  

Figure 48: Degree of maturity of the integrated transport system along the focus areas in six countries and in Europe 

The main findings and results are depicted in a graphic to give an overall image of the global situation 
regarding  tendencies  and  progress  towards  an  integrated  transportation  system  (Figure  48).  It  can  be 
seen  that  the  USA  and  Japan  are  leading  in  almost  all  of  the  analysed  focus  areas,  not  just  for  road 
transport, but for several of the modes. This is mainly because of early technological advancements and 
the interplay of different beneficial legal, economic and societal factors. Especially in Focus Area 1 Ja-
pan  has  a  lot  of  expertise  that  stems  from  the  fact  that  technological  advances  have  a  very  fertile 
ground, e.g. in robotics. Additionally, since the Great East Japan Earthquake the government expressed 
an urgent need for building up resilient infrastructures. There is not only very strong governmental sup-
port but also strong academic and industrial research, especially regarding ITS activities, and advanced 
involvement in international standard setting. Japan successfully manages to turn its opportunities into 
strengths. The major setbacks in Japan are its seemingly miss-out on  exporting opportunities partially 
due to its manifold island solutions in transportation that are not applicable widely. 

The  favourable  situation  in  the  USA  is  mainly  due  to  its  integrated  way  of  thinking  enabling  cross-
industrial  collaborations  and  the  early  inclusion  of  legal  questions.  Also,  the  availability  of  many  test 
beds comes in beneficial for the uptake of technologies in automation, connectivity, interoperability, and 
smart mobility services. The competitive situation results in an innovation environment that continuously 
pushes technological progress, particularly in the information and communication technologies such as 
big  data  analytics  that  are  at  the  heart  of  smart  and  integrated  transportation  systems  of  the  future  – 
almost  all  major  players  in  this  field  are  located  in  the  U.S.  This  is  also  supported  by  a  trial-and-error 
culture that does not attribute mistakes to personal failures. Furthermore, there are many funding oppor-

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tunities both from the government as well as the private sector due to a multitude of venture capitalists 
ready to invest in high-risk companies. The main hurdles the US has to deal with are the increasing sell-
out of knowhow to China, a lack of infrastructure especially for telecommunication networks because of 
the government opting for improving the satellite system instead, a focus on roads that neglects other 
transport modes and the uptake of multi-modal transportation solutions. For the topic of automated and 
connected road transport, both Japan and the US have entered a trilateral cooperation with the Europe-
an Union to foster international cooperation and participation. 

China and Korea benefit from their relatively favourable traffic environments. However, in both countries 
opportunities  have  yet  to  be  exploited.  The  biggest  drivers  in  China  are  the  enormous  air  pollution  in 
urban regions. Clearly its production capabilities, market size and export-oriented economy are all bene-
ficial  for  further  progress,  too.  Its  abundance  of  resources  is  very  favourable  for  the  development  of 
propulsion  systems  running  on  alternative  fuels.  Recently,  China  has  enjoyed  many  advances  in  IT-
related  industries  as  well  as  in  the  provision  of  innovative  services  and  smart  mobility  solutions.  The 
country mainly suffers from the cooling down of its economy and the slow uptake of new technologies. 
Furthermore, the federal system and the different technological levels between provinces lead to huge 
differences between urban centres and rural areas as well as between the developed coastal area and 
the inner land. 

In Korea the geographical situation and societal drivers for innovative transport solutions are very simi-
lar to the Japanese situation. However, in opposition opportunities are not  turned into strengths as suc-
cessfully. Nonetheless, the SWOT analysis shows that the country leads in smart mobility services be-
cause  of  its  widespread  and  nation-wide  integration  of  services  that  span  across  multiple  transport 
modes  as  well  as  across  passenger  transit  and  logistics  solutions.  The  biggest  obstacle  towards  an 
integrated transport system is its rigid economic system based on business conglomerates that prevent 
the  creation  of  innovative  start-ups.  Additionally,  the  country  suffers  from  a  lack  of  resources  and  its 
ongoing dispute with North Korea. 

Compared  to  these  four  countries  Brazil  and  India  are  lagging  behind  in  almost  all  infrastructural  and 
traffic-related questions due to poor framework conditions. Both countries suffer from a very disadvan-
tageous environment based on exploding traffic volumes in highly chaotic traffic systems, and a lack of 
infrastructure.  From  an  economic  point  of  view  both  countries  have  very  high  poverty  rates  that  de-
crease  the  economic  viability  of  new  technologies,  weak  automotive  industries,  and  a  non-existent 
ground for innovative start-ups. The missing government support and the in part low education rate add 
to this situation. 

However, the two countries also excel in specific aspects. Brazil’s competitive advantage is definitely its 
long  experience  with  bioethanol  production  and  its  abundance  of  resources.  Due  to  the  government’s 
desire to increase public security there have been a number of developments pushing tracking technol-
ogies,  both  of  individual  vehicles  and  freight.  India  benefits mainly  from  its  strong  IT  industry  that  has 
already  brought  forward  a  multitude  of  different  smart  mobility  services  responding  to  the  country’s 
transport particularities. The huge acceptance of these new technologies can be attributed to the wide-
spread  diffusion  of  smartphones  that  in  many  cases  enable  anybody  independent  of  social  status  to 
access online services. 

To bring these results in the context of the study’s overall goal the EU’s situation has been assessed, 
too. We came to the conclusion that despite enormous differences among European countries, the EU’s 
overall situation is perceived to be either as advanced as other countries (Focus Area 1 and 2) and or in 
the middle range of analysed countries (FA 3, 4, 5) but never lagging behind. 

In the context of step 1 of this study also a Porter 5-Forces has been undertaken. For one industry per 
country that stood out in the state of play analysis, a Porter’s 5-Forces analysis was undertaken show-
ing the respective industry’s market dynamics. Chosen industries cover all focus areas except stand-
ardisation and interoperability. 

Brazil’s bioethanol industry is extremely dynamic mainly because of the tough competition between a 
handful of incumbents who are the major force behind new technologies developed. There are only a 

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few  new  entrants  who  cannot  yet  compete  with  the  established  players.  As  for  substitutes  gasoline 
poses the biggest threats. Other propulsion systems such as battery electric or fuel cell vehicles do not 
play a role since there is hardly any market for them in Brazil. The bargaining power of both suppliers 
and buyers is very low. The only influencing force seems to be the government regulating the ethanol 
market. However, the industry is also extremely vulnerable to a variety of external influences such as 
the recent economic crisis and the climate change that have had huge impact on the industry. 

In  China  smart  logistics  services  are  quite  a  new  market  which  has,  however,  already  been  widely 
diffused  and  adopted  across  the  country.  The  rivalry  among  smart  logistics  service  providers  is  still 
quite low if not taking the manual labour into consideration. However, there is increasing threat of new 
entrants from abroad against which the government tries to establish protection. Since it is quite a new 
market itself, there is no threat of substitution to this point. As for suppliers, their bargaining power is 
increasing since they recognized the market potential and enter into co-operations with main players. 
Whereas  a  few  big  players  (logistics  companies)  on  the  buyer-side  have  huge  bargaining  power, 
smaller companies do not have much. 

India’s rickshaws are the most important means of transportation in domestic cities. Therefore, it is no 
surprise  that  competition  is  quite  fierce  on  the  market.  What  was  a  highly  chaotic  system  seems  to 
change  along  with  innovations  such  as  mobile  rickshaw  hailing  services.  Even  though  the  market  is 
oligopolistic, the main providers are in a fierce battle with each other. This has influences on both the 
bargaining power  of suppliers (rickshaw drivers)  who benefit from many services offered by  the pro-
viders to bind them. On the other hand customers benefit from reduced prices and increased service, 
thus their bargaining power is high as well. Also the threat of new entrants is of relevant size since the 
Indian  market  is  quite  attractive  in  consideration  of  their  increasing  middle  class  and  rising  wealth. 
Only the threat of substitute is comparably low. This can be ascribed to the fact that the market is quite 
new itself. 

Opposed  to these dynamic industries,  Japan’s high-speed rail market is quite rigid.  It is  dominated by 
seven enterprises that originated out of the formerly state-owned JR group through privatisation. Even 
though they were privatized they are not perceived as competitors. Apart from the JR Group there are 
16 train companies. However, the JR Group is the only one operating Shinkansen trains. So, there is an 
oligopolistic  high-speed  train  market  and  a  monopolistic  Shinkansen  market.  Since  it  is  extremely  ex-
pensive to both build the necessary infrastructure as well as the trains themselves, the only possibility 
for new entrants would be to operate services on existing tracks owned by the JR group. Hence, there is 
no real  threat from new  entrants.  As for substitutes, there  is only a threat  in long distances  due to air 
fares  becoming  cheaper.  For  medium  distances  Shinkansen  are  still  the  most  competitive  means  of 
transportation. Whereas the suppliers’ bargaining power is quite low because of the JR groups standing, 
the  buyers’  bargaining  power  is  comparably  high  due  to  them  being  very  price  sensitive  and  open  to 
switching to existing and prospective substitutes. 

Despite the fact that South Korea’s smart mobility service market is quite young a market, it is similarly 
rigid.  This  is  mainly  due  to  its  citizens  preferring  local  brands.  Kakao  Corporation,  a  company  that 
became quite popular based on their mobile communication applications successfully turned this into a 
business  opportunity  and  outlawed  international  competitors,  e.g.  Uber.  Even  though  Uber  is  still  on 
the market, Kakao Corporation benefits from its all-in-one platform covering car and ride sharing ser-
vices as well as payment services. Out of all these reasons it is quite hard for both domestic and inter-
national  companies  to  enter  the  market.  Since  the  smart  mobility  service  market  is  relatively  young, 
there are no substitutes so far. As for bargaining power of suppliers and buyers Kakao Corporation is 
in a similar position as car and ride sharing service providers in other countries. They have a dictating 
role towards their suppliers but are very sensitive to their users’ behaviour. Thus, an almost inexistent 
bargaining power of suppliers opposes a huge bargaining power of buyers. 

In  the  US  the  digitalisation  led  to  substantial  disruptions  in  the  path-dependent  automotive  industry. 
Especially,  advances  in  connected  and  automated  driving  technologies  are  changing  these  develop-
ments since they have impacts on  various levels. The incumbents (OEMs) do not only have to com-
pete against their rivals but also to keep off new entrants and substitute products which are increasing-

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ly entering the automotive market because of their expectations of high industry profitability. Whereas 
the  bargaining  power  of  suppliers  seems  to  remain  unchanged,  the  bargaining  power  of  buyers  is 
quite high since they will eventually be the ones to decide if the technology will gain market coverage 
and who will be the leading force. 

Biofuels in Brazil 

Smart Logistics Services in China 

Rivalry among
competitors

Rivalry
among
competitors

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
suppliers

Threat of
substitutes

Bargaining
power of
suppliers

Threat of
substitutes

Smart Cycle & Auto Rickshaw Services in India 

High-Speed Trains in Japan 

Rivalry among
competitors

Rivalry among
competitors

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
suppliers

Threat of
substitutes

Bargaining
power of
suppliers

Threat of
substitutes

Smart Mobility Mobile Platforms in Korea 

Automated Driving in USA 

Rivalry among
competitors

Rivalry among
competitors

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
buyers

Threat of new
entrants

Bargaining
power of
suppliers

Threat of
substitutes

Bargaining
power of
suppliers

Threat of
substitutes

Figure 49: Results from Porter's 5-Forces analyses for one value chain per country under study 

Based on the state-of-play, SWOT and Porter’s 5-Forces analyses best practices and lessons learned 
on integrated transportation were identified in step 2 of the study, as summarized in Figure 50. A total of 

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32 best practices and lessons learned were identified across all focus areas. However, most best prac-
tices could be identified in Focus Area 1 and 2. Due to the study’s approach to take into consideration 
the whole value chain, best practices were identified  in all areas including legislation, policies, funding 
programmes,  R&D  efforts,  business  models,  application  of  technologies  and  demand-oriented  exam-
ples. Once identified, they were characterized and analysed in terms of their feasibility for the European 
situation.  Best  practices  could  be  found  in  all  countries  except  from  China  where  only  one  lesson 
learned was identified. The lesson learned in China is that business cases shall not be avoided in the 
advancements of technologies towards new forms of transportation. Even when new means of transpor-
tation turn  out very successful, their operation can only  be operated continuously  if they  yield positive 
monetary  returns,  e.g.  through  profitable  business  solution  or  alternatively  through  continuous  public 
funding. 

In addition, four best practices outside of the six countries under study where added to provide addition-
al input for proposed actions. These were found in Singapore, Canada, the Philippines and Australia.  

Figure 50: Best practices and lessons learned of integrated transport system along the focus areas in selected countries 

In  case  overlaps  where  found,  single  best  practices  were  not  analysed  separately  but  consolidated  in 
order  to  provide  insights  into  differences  of  the  implementation  approach  across  countries.  The  most 
striking examples for this case are the transit-oriented development in Japan and South Korea; the de-
ployment of test beds for automated and connected driving in Brazil, South Korea, and the US; as well 
as the implementation of Variable Message Signs and Runway Status Lights at  Japanese and US air-
ports. 

The  analysis  shows  strong  coherence  with  the  preceding  assessment  of  each  country’s  maturity  de-
gree. The number of best practices identified within a certain focus area strongly correlate with the ma-
turity  degree assigned to the same focus area across analysed countries. The higher the maturity  de-
gree the more likely it was to find best practices in the specific country and focus area. 

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Despite the fact that electrification is particularly exempted from the analysis it has become clear in step 
1 and 2 of the study that it is an aspect that shall not be neglected since most countries under analysis 
as well as Europe have decided to opt for the development of this technology rather than other propul-
sion  systems.  In  fact,  it  is not  only  perceived  as  one  of  the  three  big  automotive  revolutions  (together 
with automation/connectivity and sharing) but also of growing relevance for other transport modes. Even 
though  the  topic  has  not  been  specifically  addressed  in  Focus  Area  5,  it  was  included  in  other  Focus 
Areas where its impact was perceived to be rather big (e.g. Focus Area 2) or where it made up an im-
portant part of a best practice (e.g. Singapore: Electrified Automated Shared Mobility). 

As a final step, the study provided inputs to the development of action plans for the establishment of an 
integrated  transport  system  in  Europe.  Here,  lot  2  drew  on  lot  1’s  identified  barriers  within  Europe. 
Where the feasibility analysis of best practices returned positive results, one action plan per focus area 
was defined on how to overcome existing barriers through the transfer of experiences in selected coun-
tries to Europe. For each best practice an action was identified. Different actions to be taken were bun-
dled into activity fields for each of which the status quo was identified based on lot 1’s results. Besides 
the  description  of  the  current  situation  goals  were  derived  that  are  attained  if  all  actions  were  taken. 
Decision-makers  can  draw  on  these  established  action  plans  with  regards  to  what  part  of  the  value 
chain the specific action tackles, who is responsible for the action to be taken, what action to prioritise, 
and to disclose timely interdependencies between the actions themselves. Thus, roadmaps can be built 
on how to reach a single and innovative European transport system with milestones in 2020, 2030 and 
2050. In line with preceding results, the actions span across the entire value chain. 

It  can  be  seen  that  the  lack  of  stakeholder  collaboration,  especially  cross-border  collaboration  within 
Europe as well as insufficient cross-country interoperability seems to be the biggest hurdle. In the anal-
ysis of the six selected countries this was a minor problem, mainly due to the fact that in comparison to 
the European Union all countries under study do not comprise different nation states within their respec-
tive legislation. Similarly  important for Europe is  a stronger  interplay  of  politics,  research, industry  and 
the  user  such  that  systemic  change  is  shaped  by  all  relevant  spheres  of  society  without  one  lagging 
behind, e.g. not having sufficient regulation on innovated technologies. A further action to be taken fore-
sees  the  fostering  of  user-oriented  technology  design  and  citizen-oriented  infrastructure  design.  It  can 
be shown that the early inclusion of the user or citizen in the development process – may it be products, 
services or constructions – is pivotal for the success of the specific project. New, more effective funding, 
e.g. funding models with leverage effects that motivate investment beyond the funded project, are nec-
essary to support the development towards a single and innovative transport system. Even though this 
lies  for  most  parts  within  the  responsibility  of  public  sponsors  such  as  the  European  Commission  or 
member  states,  it  would  also  be  advantageous  if  private  grant  providers  invested  where  risk  is  very 
high. This, however, would ask for a cultural shift since European investors tend to be comparably con-
servative about their investments. Recognizing that this is a rather long-term goal, it is advisable to es-
tablish tools to anticipate the impact of projects to be undertaken, especially  where perceived implica-
tions are rather big. The assessment shows that most actions can be taken either until 2020 or 2030 as 
they are built on current best practices. As for responsibilities, the majority of actions are to be taken by 
the European Commission, member states and municipalities. 

Furthermore,  the  study  also  pointed  out  potentials  for  international  co-operation  between  Europe  and 
countries under study. In a first approach recommendations were given on which best practices or les-
sons learned shall be transferred to Europe, where Europe shall export its expertise to other countries 
or where measures are to be taken in a joint effort. In a second stage these results along with findings 
from the action plans were further processed into high-level clusters. These high-level clusters  are (1) 
the strengthening of the  EU competitiveness, (2) market access issues, (3) the  contribution to  dealing 
with global challenges and (4) the identification of global players and programmes for enabling collabo-
ration, cooperation and joint initiatives. 

All results were validated by international and European experts in two Validation Workshops in different 
stages  of  the  study.  Through  this  approach  outcomes  were  not  only  verified  or  falsified  but  also  en-
hanced by additional input, especially for the identification of potentials and recommendations for inter-
national co-operation.  

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Through  the  involvement  of  European  stakeholders  in  the  Validation Workshops  it  became  clear,  too, 
that  there  is  a  growing  need  to  overcome  the  lack  of  stakeholder  collaboration  and  cross-country  in-
teroperability in Europe. This is illustrated by the amount of additional recommendations on standardisa-
tion  spanning  over  all  clusters.  To  guarantee  worldwide  interoperability,  which  is  inevitable  in  today’s 
globalised  world,  there  is  no  alternative  as  to  undertake  standardisation  on  an  international  level.  As 
mentioned above, Europe suffers from the unique situation of having to deal with a multitude of different 
legislations.  However,  it  could  turn  this  obstacle  into  an  opportunity  by  pushing  international  standard 
setting based on experiences from efforts taken regarding inner-European harmonisation. Once this has 
been  achieved,  a  shift  of  focus  from  harmonisation  and  interoperability  between  different  nations  to 
harmonisation and interoperability between different transport modes would add to the advancement of 
all high-level clusters in Europe. 

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8  Annex 

The following table contains all barriers identified by lot 1 including the identification code as well as 
the full title of the barrier as given in the State of Play and Analysis of Barriers – Final Report. 

Barrier Code  Title 

FA1-01 

Difficult acceptance and hesitance to invest from driver stakeholder groups 

FA1-02 

Little knowledge among public authorities about the type and scale of changes re-
quired to the physical road infrastructure 

FA1-03 

Unclear business case and “sensibility case” for C-ITS deployment in urban areas 

FA1-04 

Unclear user acceptance, willingness to pay and 
business case for C-ITS services 

FA1-05 

Long waiting period and high penetration rates are required until benefits such as 
optimization of traffic flow materialize 

FA1-06 

Unclear role for operational stakeholders for enhanced traffic management 

FA1-07 

Road Safety concerns from C-ITS and Automation 

FA1-08 

Uneven deployment of C-ITS across EU-28 

FA1-09 

Unclear lending criteria to finance C-ITS measures 

FA1-10 

The “Hybrid” Issue: Uncertainties about investment into C-ITS communication infra-
structure? 

FA1-11 

Liability, legislation and insurance related aspects 

FA1-12 

Unclear risks between interaction with non-equipped and equipped vehicles 

FA2-01 

Funding gap in the development or improvement of transport infrastructure 

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Barrier Code  Title 

FA2-02 

Risk-averse policies 

FA2-03 

Challenges to incorporate new technologies and innovation into already existing 
infrastructure networks 

FA2-04 

Timing of the standardisation process 

FA2-05 

Large number of agents implied with different priorities and visions (Fragmentation) 

FA2-06 

Incompatible and inflexible policies and regulatory frameworks 

FA2-07 

Unequal and limited ERTMS deployment across Europe 

FA2-08 

Information gap and uncertainties on climate behaviour 

FA2-09 

Limited demand of new fuels and lack of innovative business models 

FA3-A1 

Stakeholders do not collaborate well with each other 

FA3-A2 

Insufficient availability of open data 

FA3-A3 

Underutilisation of (real-time) data in spatial/urban planning 

FA3-A4 

Fragmented responsibility and/ or lack of coordination with respect to transport-
related data management and digital services 

FA3-A5 

Systems, services and data lack interoperability (lack of standards) 

FA3-B1 

New mobility services so far are little integrated in MMITS 

FA3-B2 

The quality of data is insufficient making MMITS very inconvenient 

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Barrier Code  Title 

FA3-B3 

On-demand mobility services require new legislation and funding schemes 

FA3-C1 

Logistics sharing: the bundling of freight does not materialize due to a lack of coop-
eration and trust among the logistics stakeholders 

FA3-C2 

Little work towards a freight system based on synchromodality, including a lack of 
use of ICT and data governance 

FA3-C3 

Unsystematic urban freight data collection and management and lack of internaliza-
tion of environmental impacts of 
logistics operations (eco-performance) 

FA4-01 

Poor collaboration between stakeholders 

FA4-02 

Low levels of information sharing 

FA4-03 

Few recognized business and operational models for horizontal collaboration 

FA4-04 

Poor collaboration between modes 

FA4-05 

Incompatible standards and regulations 

FA4-06 

Inadequate flexible ICT 

FA4-07 

Insufficient recognition of the role of modular units in facilitating inland and air 
transport 

FA4-08 

Inadequate trans-shipment technology 

FA4-09 

Weak market dynamics 

FA5-01 

Insufficient supply 

FA5-02 

Low demand 

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Barrier Code  Title 

FA5-03 

Innovation chain discontinuities and lack of investment 

FA5-04 

Insufficient policy support 

FA5-05 

High retail cost 

FA5-06 

Weak user acceptance 

FA5-07 

Dominance of the existing system 

FA5-08 

Fragmented market across Europe 

FA5-09 

Short-term policies 

230