The transportation industry is among the foremost adopters of information and communication technology (ICT) tools in its daily operations. Technology has been used in the industry for meeting signalling requirements, maintaining passenger records and relaying information related to the location of vehicles. The industry is now looking to further enhance the efficiency of its daily operations using the latest communication technologies.

To this end, it is imperative to have an adequate transportation infrastructure to de­­­­termine a country’s overall economic deve­­lopment as it caters to one of the basic requirements, that is, movement of goods and people. Many countries have developed multimodal integrated transportation systems to support the transportation and lo­gistics requirements of industries like auto­­mobiles, pharmaceuticals, FMCG and retail.

India has an extensive transport system comprising roads, railways, metro rails, ports and aviation. It boasts of over 4.7 million km of road network, one of the largest worldwide. As far as aviation is concerned, the country is among the five fastest growing markets globally with 275 million new passengers being added every year. The country also has an extensive railway network and well-developed port infrastructure. Moreover, many Indian cities have established urban metro rail networks to cater to the ever-increasing passenger traffic. The government has also increased its efforts to enhance intercity connectivity through high speed and bullet trains. Most of the players in the transportation industry have adopted ICT to streamline operations and lower costs.

Key applications

Technology has been implemented in the transport sector for several years to help improve safety and efficiency. The industry has been using permanent inductive loops and temporary pneumatic road tubes since the 1960s for gathering traffic data. In fact, these are still the most commonly used instruments in the road sector. Data collected from these devices is analysed for monitoring traffic flow and predicting future traffic volumes.

In train operations, communication tech­­nologies for signalling are of critical importance. Most railway systems use com­munication-based train control (CBTC) to track the movement of trains and manage train timetables. Wi-Fi-based CBTC helps in tracking through the global positioning system (GPS) devices ins­talled in these trains. GPS-based tracking of trains and cargo ships is one of the most widely used communication technologies in the industry. However, traditional communication systems are giving way to modern and more efficient technologies. Wi-Fi-based CBTC is likely to be re­pla­ced with 4G as the technology gains more acceptance. Pilot projects in this regard are being carried out in many countries except India.

The most transformational use of technology has been the online reservation facility for all modes of travel, which helps commuters book tickets at their own convenience. In order to ensure smooth operations, many enterprises have put a robust IT system in place. As a result, they have moved to mobile ticketing services, through which commuters can use their mobile phones for paperless ticketing. Digital technologies are challenging the traditional systems used in the transportation industry. Since there has been significant technology adoption in almost all other areas, commuters are demanding a similar experience from the transportation industry as well. There has been a proliferation of smartphone applications within the transportation industry, which aims to increase interactivity and networking among transport users. Many companies have launched mobile applications for commuters that allow them to manage their reservations and check train, metro and bus schedules using their phones. There is a huge potential of digital technologies in the transportation industry, which is waiting to be explored.

Evolving technologies

Owing to the growing smartphone penetration, various enterprises have been leveraging digital technologies such as cloud, big data analytics and internet of things to target the end-consumer. For instance, many airports have deployed intelligent sensors that allow automation in the entire process chain, including check-ins, airport baggage handling and loading in the aircraft. Similarly, ports are also leveraging big data analytics to carry out predictive maintenance and optimising the use of port equipment to boost overall operations.

Digital technologies are interacting with transport technologies, leading to systems that have the potential to change the way these services are being delivered to end-users. Transportation enterprises are making significant investments in building intelligent transport systems that integrate various modes of transport to offer seamless services. Besides, enterprises are enabling real-time information exchange among the modes of transport and users by using ICT tools and ubiquitous cellular networks. Integrated transport information services available on an individual’s mobile phone can help provide people with a well-connected smart journey or trip planner services as per their daily schedule. Enterprises are also experimenting with solutions such as common cards that can be used across various modes of transport such as metro trains and buses, as well as outside the transportation system.

Further, digital technologies are creating many opportunities for new entrants that may cause a restructuring of the in­dus­­trial structure and the methods by which transport is provided to end-users. For instance, taxi aggregators such as Uber and Ola use a combination of cloud computing and mobile applications to allow commuters to rent space and hire a driver in someone else’s car. While these ventures are still very new and cater to a small consumer segment, they have the potential to disrupt traditional business models in the long term.

Key challenges

Although having a robust IT and telecom infrastructure is a key requirement for enterprises in the transportation industry, there are several challenges associated with this. These include the high costs asso­ciated with maintaining a vast IT set-up. Since IT is not their core strength, these enterprises need a dedicated team to oversee the IT infrastructure. Moreover, most transportation industries are not very keen on adopting cloud and maintaining their data in-house, as significant proportion of their expenditure goes into setting up data centres. Another key challenge is the changing system requirements. As transportation enterprises ex­pand their networks, they also need to enhance their IT capabilities, which  further increase their IT expenditure.

In addition, many enterprises struggle with the issues related to technology obsolescence. Since technology is rapidly evolving, enterprises need to replace outdated solutions with the latest ones. In such a scenario, companies need  to  evaluate the current technology landscape before undertaking any IT upgrade. A related challenge is vendor apathy. As technologies evolve, vendors tend to shift their focus from making spare parts to manufacturing new equipment for the already supplied systems. Therefore, enterprises may find it difficult to address any breakdowns in their existing set-up.

Further, ensuring security of information and communication infrastructure has emerged as a key challenge for the industry, which collects large volumes of data from diverse sources on a daily basis. Therefore, enterprises need to execute adequate security measures to prevent the misuse of data.

The way forward

Owing to transport network expansion, IT and communication requirements of enterprises will also increase. Moreover, with ubiquitous cellular network coverage and smartphone penetration, it is crucial for enterprises to reinvent their business models to cater to the changing consumer needs. In order to deliver the services, intelligent transport systems will need to integrate different modes of transport. While the transportation industry has been among the early adopters of technology, there is huge scope for incorporating technology in daily operations. More­over, rapid technological advancements make it essential for companies to meet customers’ expectations. Going forward, these enterprises are likely to opt for greater technology adoption to im­pro­ve efficiency as well as maintain the uptime of their services. The role of ICT will be critical in overcoming the pressure on the existing transportation infrastructure. To this end, ICT can play a key role in reducing congestion without building entirely new transport infrastructure by making the existing system respond more efficiently to consumer demands.