29 minute read
Technology, transport and reform | panel discussion
L–R: Craig Shortus, Jessika Loefstedt, Tim Reardon and Lisa Tobin
Technology, transport and reform
Key points:
• Data and information pose one of the greatest changes to the transport industry. • Information and communications technology (ICT) is breaking down the barriers between travel demand and providers, and the user and the network. • Autonomous vehicles (AVs) will only become a reality with appropriate changes.
Panellists:
► Jessika Loefstedt, Manager, Public Policy and
Government Relations, Uber ► Tim Reardon, Secretary, Transport for NSW ► Lisa Tobin, Group General Manager, Technology,
Transurban
Moderator:
► Craig Shortus, Head of Utilities and Infrastructure
Australia, ANZ
Craig Shortus (CS): Transport is something that clearly impacts all of us, whether we’re in the industry or not, and it’s undisputed that technology and data will certainly play a signifi cant role in the future of transport. Whilst we all know technology is a key part of the answer to transport reform, what is less clear is the way forward. The fi rst question I’d like to put to the panel is regarding information and communications technology (ICT). What does this mean for transport?
Tim Reardon (TR): For me, it’s a couple of things.
Firstly, it’s really good to be the Secretary of Transport for NSW and to be asked to sit on this panel – that’s the point we’re heading to in terms of transport being a technology business.
Secondly, I want to acknowledge Mike Mrdak in the audience, who’s been Secretary of the Department of Infrastructure and Regional Development for a long time, and who is a great colleague and friend. The fact that he’s moving to the Department of Communications and the Arts, and I’m here speaking about the link between transport and communication, is also a good
thing. Well done, Mike, for everything that you’ve done for us – you’ll be sorely missed, but we’ll communicate in your new role, no doubt.
The question about ICT is pretty simple: it’s what is in it for customers and what we can do as a government agency to provide a better customer experience. We put out the Future Transport Technology Roadmap that gives a pointer in two areas. Firstly, unlocking how we can get more customer centricity in terms of what products and services we have, while unlocking value in our current system; and secondly, how we can plan for the future in terms of using things such as big data.
What’s next for customers? Over the long term, we have to deliver a mass transit system. Our role may shrink over time, with private sector partners taking on a bigger role, but our core proposition of being an enabler and a facilitator of mass transit will continue over the long term. We are seeing more and more opportunities to unlock value with all the data we have in our ICT systems.
Jessika Loefstedt (JL): Uber is obviously a technology company, and people sometimes find that a little bit challenging because they’re very much in transport and logistics. The Minister for Transport here in New South Wales says quite openly that the future of transport is technology. That’s a really good way of thinking about this, because there are so many different opportunities.
When it comes to the data, there’s a lot of intelligence and a lot of insights that we can share, whether it’s with departments or whether it’s with other private operators. There are a lot of opportunities here to look at user cases and apply the data that we have to help the network as a whole to move better, whether that’s in Sydney, Melbourne, Perth or Rio de Janeiro.
Lisa Tobin (LT): We see transport as a consumer business at the end of the day, and consumer business expects that technology is going to be the interface. Increasingly, we are going to be able to bring together data to deliver a service that suits consumers’ choices and availabilities, and, from my point of view, a service that does that safely, on time and with certainty.
CS: Turning to the theme of measured improvement. Tim, data has overhauled your world. As a policymaker and a project planner, can you tell us what’s changed for you, and what you see moving forward?
TR: It’s evolving quite quickly, so the question is what’s changed and what’s changing. Key for us, as a delivery agency, are the opportunities from precedent service and capital investment. You can do a lot of things differently. It gives you an opportunity to experiment. The largest thing that’s changed for us is the culture of the organisation: customer, culture and collaboration. We talked about these in a Future Transport Summit that we held in April last year. That Future Transport Summit had a vastly different crowd than the one here today. It was very much about allowing people to come along and disrupt us, to provide better customer service and to unlock value.
The culture of the organisation is one of the single biggest changes. You could have had me sitting here talking about Sydney Metro, WestConnex or any other project, but I’m delighted to be having this conversation, because that’s where we’re evolving, and that’s what a lot of government transport agencies will need to do in order to survive. They need to redefine their role, and they need to redefine their role as an enabler and a facilitator of transport services. They don’t have to provide the core delivery of everything. They need to partner, they need to collaborate, they need to contract a whole range of things, and we’re doing that more and more.
It is quite cool that our people are out there having a crack with technology. If they fail, they fail faster on an app, or whatever it might be. I’ve got one of the first Opal Cards and it’s about to expire. It feels like only two minutes ago people were saying, ‘Sydney hasn’t got a transport smart card’. Life moves fast. We’re now on to credit cards on the Manly ferry. We talk about the next evolution of transport, and we think we’re in a very exciting space. This area is all about opportunity. It’s not about harnessing and complexity, it’s just good fun, it really is, for a government agency to get into that space. That culture is where we want to get to.
LT: I think that there’s a really good conversation around culture that is starting. We’re often innovating within our own company. More than 40 per cent of our workforce is now in technology, and we are led by a self-confessed ‘tech geek’. As I said before, it’s a consumer business. People expect technology and expect availability.
For us, it’s all about how we experiment. How do we anticipate the next consumer need in delivering transport? That means all types of things for us. It’s very similar to the journey that Transport for NSW has been on. We’re looking at how we can disrupt our industry, how we can disrupt ourselves, and how we make sure that we’re at the forefront of what’s coming next. We spend a lot of time across our company, looking at what our consumers expect. What does the travelling public expect? How do we bring that together with the best of the emerging technology markets, or the right platform? How do we manage all this data?
We have more than 700 kilometres of optic fibre across our assets, and we need to make sure that the fibre, which is responsible for moving the data around 100,000 or more devices that hang off that fibre, is kept secure. To know what that data is doing is a big part of our focus.
I was speaking to an analyst in the market recently, and he was saying that data has no value, unless you bring it together
with analytics, algorithms and artificial intelligence. It’s really about how we make sure we have the best of the emerging technology. How do we make the right bets? How do we learn how to fail fast? How do we experiment within our company and with our partners? How do we take good care of the assets that we are custodians of on behalf of the travelling public?
JL: This is not my first rodeo, I’ve been sitting around the transport sector for a while, and there’s a shift in terms of culture that I’m seeing within some of the bureaucracies, which is really quite fascinating. New South Wales is leading the charge in this space.
For Uber as an organisation, we like to think of ourselves as very consumer-obsessed – we call it a customer obsession. When we talk about disruption, or if we talk about internally disrupting ourselves, it’s funny because the way the Uber culture works is we don’t do anything that the customer doesn’t want. We’ve got what consumers crave, and we’re willing and able to push that bandwidth a fair bit. We wouldn’t have been as successful as we have been over the last five years if no-one had pushed the button to get a ride.
LT: I think that you helped us to make sure that we weren’t resting on our laurels, because we had less momentum when we started in this space a few years ago. Once you look out there and see what’s possible with start-up companies – what they can do and what they can generate – I think the game’s on. Governments, and more traditional-looking companies like us, are out there to compete as well.
JL: That’s what’s really refreshing in dealing with some of Tim’s team on a day-to-day basis. The mentality has shifted from ‘This is where we always stand, so let’s continue doing it this way’, to ‘What do consumers want?’ That’s a real paradigm shift and it’s super important, because if that doesn’t happen well across the nation in the context of dealing with governments and offices, it will hold us back.
A couple of years ago, everyone was running around, saying, ‘Big data! Big data! We need big data! We need to put it in there somewhere, and then someone will figure out what to do with it’. Early on, Uber realised that you need to have a user case. If you don’t have a user case that helps you to achieve an outcome with big data, then you’re not going to get there. A good example of that is the IPA Transport Metric, which we launched with Infrastructure Partnerships Australia (IPA) last year – it’s a measurement tool that lets us look at travel-time data across our different cities.
The feedback we got back from Mike Mrdak, which created a lot of insight, was how powerful it would be to have one tool that measures travel time in the same way across all major metropolitan cities, because we have VicRoads doing it one way and we’ve got Roads and Maritime Services (RMS) doing it another way, for example. Through Uber, we’ve got live sensors on the network on a day-to-day basis, and that creates the consistency to compare measurement. Having that user case, and really understanding what that helps you do, makes a lot of difference.
TR: Both Jessika and Lisa have made comments about their interactions with government, and how they go about things. Both Uber and Transurban do it differently, and neither is right or wrong. There have been really good lessons in
Artist’s impression of NorthConnex. Source: Transurban
the last couple of years on how to go about disruption. As a Government department, we keep saying yes until we have to say no, and if we have to say no, then we look at the law and regulation, and where there’s an end point and where there’s a start point. We’re happy to let anyone walk through the door and give us their view on life. Sometimes that will frustrate us or them, and sometimes it won’t. But at the end of the day, you’re teaching us, and we’re teaching you about government and private sector interaction, and the key is always partnership.
From a government agency setting, we just need to be ready. We need to be nimble, agile and all those types of things for the next challenges that will come along.
We’re getting on the front foot. For example, we’re disrupting the bus system with on-demand services. We’ll keep doing that, since we’re the ones who talk about mobility as a service. We think we’re a little bit ahead in our thinking, and I’m sure everyone else will catch up and overtake us, because we’re a government agency, but we are trying to get on the front foot. Part of the reason is because we’ve got a Minister for Transport and Infrastructure who is championing this so hard. His expectations are probably two years ahead of where our delivery capability is at the moment, but may it continue in terms of him dragging us forward. We don’t need a lot of prompting, but having that political champion is quite exceptional.
CS: Let’s jump into data. Not being a ‘tech head’ myself, I did look up a few statistics on data. By 2020, it’s forecast that there will be 40 zettabytes of data, which is equivalent to 43 trillion gigabytes. Every month, 30 billion pieces of content are shared on Facebook, and each month, more than four billion hours of video are watched on YouTube. That’s quite extraordinary. The velocity of this data is obviously increasing, thanks to streamlined technologies and the Internet of Things (IoT). So, my question is: big data often seems to lose its purpose in the sheer scale of information available. Is it about big data, or is it about good-quality information?
LT: It’s about putting smart data in, to get smart data out. It’s a nicer phrase than garbage in, garbage out. The volume of data around is mind-boggling, and it’s an opportunity for industry at this point in time. We now have the technological capability to make sense of that data – parts of it might be technical, but we can select what is valuable.
With consumer design at the centre, we can make sure that we’re pulling the right data together at the right time for the desired outcome. I ponder this every day as I drive into work because I commute over a fairly busy road, and I dream of what’s possible. I sit there every day, watching myself and my fellow drivers as individuals trying to beat the system with imperfect knowledge, and imperfect data. We don’t know what’s around the bend or whether there’s a congestion point further along. We’re all thinking, ‘If I swap lanes, if I go this way, if I go that way,’ which shows that it’s just not possible for one individual, or one small piece of data, to optimise the system.
The possibility with data, as we look forward, is the fact that we now have the computer capability and the technical capability to develop the right algorithms, the right sequences, the right machine learning and predictive analytics. I don’t have to worry about whether I should be in this lane or that lane, or going faster or slower, because I will be given a service and the pressure of making the right choice will go away, because we’re using data more effectively. That’s what binds all of us together – that vision on the hill.
CS: Tim, you have one of the biggest databases going around town.
TR: Yes, and many of them. To your point about zettabytes, we should just know how to take them along slowly. Our operational technology manages smart motorways, the Sydney Coordinated Adaptive Traffic (SCAT) system, the TNS, new railsignal systems, automatic train systems and more, all of which are needed, and all of which need to be upgraded, which is a big job for us. Someone has to build the data so that we’re ready for the next 10 to 20 years.
We’ve just organised ourselves an Open Data Hub so that large swathes of our databases are available. There are now about 3,600 registered users utilising our data for all manner of things. The key now is to get a little bit more sophisticated in the datasets that people need. Some people use our data very effectively, and very quickly, but at the end of the day, it’s all about what’s best for the customer. That should flow into what datasets are needed. We’ve got a massive job to produce all that data, and keeping them updated is a big job.
L–R: Craig Shortus, Jessika Loefstedt, Tim Reardon and Lisa Tobin
LT: We’ve got an opportunity to learn on the way, as well – on smart motorways, for example.
On the Monash Freeway upgrade, as part of CityLink in Victoria, we’ve leveraged the data and used technology to deliver far greater traffic volumes. We’ve effectively increased the capability of the road, as if we added another half a lane just by introducing technology and using data better. We’ve got lots of opportunities to experiment as we refresh these data platforms.
JL: Travel-time data is one thing, but another thing is what we have in the phones that are in the cars. We’ve got the telematics in those phones that can potentially ascertain road quality in the future, for example.
CS: Let’s move on to everyone’s favourite: personal autonomy versus autonomous vehicles (AVs). When would we see AVs roaming the streets, and is the excitement about the concept well ahead of where we’re likely to see the network?
LT: We see autonomous vehicles roaming the streets now. There are a number of trials across Australia, and across the world. We’re running a trial at the moment on CityLink in Melbourne, partnering with a number of car makers and the Victorian Government, which is an individual trial on a controlled roadway.
You need to get to a critical mass before the true promise of autonomous vehicles becomes real, because only once they’re working in concert – in a platoon – exchanging information with each other, and exchanging information with the road infrastructure, the promise will become true. We still think that’s 10 or more years away.
JL: I agree, it will probably be 10, 15 or 20 years before autonomous vehicles are operating on that scale. But they’re out there and happening right now. At Uber, we have three large trials underway in the United States. We don’t want to be in the sandpit, we don’t want to be in someone’s car park, and we don’t want to be in a controlled environment, because what we do know is that we’re not learning if we are in this type of environment. We need to be in an environment where the technology can interact and interrelate with other vehicles and infrastructure, whatever it might be. The key thing, when it comes to autonomous vehicles, is that we need to change behaviour. What’s really interesting with Uber, and with ride sharing as a platform in the first instance, is that we need to get used to not owning our own car, which goes to Tim’s point earlier about mobility as a service. So, we need to get used to not owning our own car, and we need to get used to not being afraid of sitting in a car with someone else. That kind of shift in attitude and behaviour is really a necessity to get autonomous vehicles into the market at scale, in the medium to long term.
LT: Yes, the debate is about how much that is partly generational.
JL: Absolutely.
LT: It’s also very much about how government engages in a debate. I saw a report recently in regards to the German Government, which has now defined rules for autonomous cars – this will be more of a catalyst and should drive the adoption faster. There was also something recently about the United States Senate looking to legislate for a faster ramp-up, as well as exemptions and safety legislation. It’s clear that this is a fastmoving market. Uber is an example of not waiting for all the rules to be 100 per cent defined, and I think we’ll continue to see that across the market. We need to experiment and we need to stay close to what’s happening in the market. We need to engage across the board, because there isn’t yet a clear winner, outcome or timeline for autonomous vehicles.
TR: We’re behaving quite a bit like a private sector participant. We’ve got a driverless shuttle bus trial going on at Olympic Park at the moment, and we like to have a whiz around on it. We’re not waiting around for the regulation and law, either. The National Transport Commission is looking at the broader frameworks, and states will get on with their own laws pretty quickly. That’s the end point of the discussion and not the start of it. There will be bumbling around on autonomous vehicles for the next few years, and there will be a bit more critical mass, but we should all explore behaviours in urban areas, and regional areas for that matter. We think
that there are great opportunities for regional areas for a whole range of trials and tests.
The things that Transurban is looking at are great in terms of getting closer to the reality of what we have available on the motorways, but we will play a fairly direct role, and a disruptive role, in how that works for a whole range of vehicle types.
This is parallel to the question of what the objective around safety and congestion is. That answer will take a while to emerge. I’m not sure about the timeline, so it’s interesting to hear Lisa and Jessika talk about 10 and 20-year timeframes. The law, regulation and insurance might be the limiting factors on rushing progress. I think that there could actually be business models, commercially, that will be available. If you ask us about some of our new infrastructure, like a transit way, starting to think about autonomy in those environments could be a little bit sooner than we think.
CS: So, will I have to teach my seven-year-old twins how to drive?
LT: I don’t know. I’m not teaching my teenage children to drive. CS: Tim, over the years we’ve seen various transport plans. Is Future Transport just another plan? Or is it really going to change how we travel in the future, bearing in mind that New South Wales is forecast to have a couple of extra million people over the next 20 years?
TR: We’re preparing the Future Transport Strategy right now, and it allows us to have a think about how we’re going to move across New South Wales in 40 years’ time. That’s quite breathtaking, because the Government is allowing us to look that far out. We’re in concert with the Greater Sydney Commission, which is looking at a plan for growing Sydney. That’s 20 years’ worth of what the reform, infrastructure and services pipelines might be, and then some broad beams after that out to 2056.
New South Wales will have 11 million people in it, and Sydney will have eight million. Melbourne will be the same at eight million. It’s quite extraordinary to think about in those terms. It will have its own unique forms of density, and there will be ongoing discussions and debate about that.
To be clear, it’s not just another plan. We did the Long-Term Transport Master Plan in 2012, which was for 20 years. We said we were going to refresh it after fi ve years, and here we are, doing what we said we would do. The reason we rushed the plan refresh a little bit earlier than we thought is because we ran
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out of projects. That’s a phenomenally happy problem to have. For a government agency to have enough capital and political support to actually get on with every project within a 2012 LongTerm Master Plan is quite extraordinary. As a sidebar example, we’re buying metro trains, suburban trains, intercity trains and regional trains, all at the one time. We used to buy one train type every decade, so it is quite breathtaking in terms of scale. We need to refresh, and we need to do it now, because everyone in this room wants to know about the F6 Extension, Sydney Metro West and every other project we have after that. People want to know how Western Sydney Airport will look, and what road and rail links we’ll have around there. They will demand it; the investment community, the professional services community, the broader New South Wales community, and all our customers will want to know about it and they’ll want to know about it immediately.
What comes out of it will be beyond our capacity to deliver in the short to medium term, but the prioritisation process at Infrastructure NSW will tell us where government may invest over the next fi ve to 10 years, and that’s a good, proper process.
It’s good to be given the opportunity to think 40 years out. The only thing we know is that some of it will be right, and some of it won’t be. It will be digitised, so it will be updated far more frequently, and that’s a credit to the people who have worked on it. Future Transport is a prime example of how we’re doing things very differently.
Jessika Loefstedt – Manager, Public Policy and Government Relations, Uber
Jessika Loefstedt is a the Head of Public Policy for Uber in Australia and New Zealand. Her experience spans the public and private sector, having worked in the senior ranks of national government as well as the private sector. Prior to joining Uber, she worked for a number of transport and infrastructure ministers, both at a state and federal level.
Tim Reardon – Secretary,Transport for New South Wales
Tim Reardon is the Secretary of Transport for New South Wales, the lead agency of the transport cluster, which employs over 25,000 people. The role covers the planning and delivery of transport services and infrastructure, including trains, buses, roads and traffi c, freight and ports, light rail and point-to-point services. He is accountable for delivering the largest transport infrastructure pipeline in a generation, including $41.4 billion over the coming four years, and driving reform to make the network better integrated, more customer-focused and effi cient. Mr Reardon has over 25 years’ experience in the public and private sectors, here and abroad.
Lisa Tobin – Group General Manager Technology, Transurban
Lisa Tobin joined Transurban in February 2013 as Group General Manager Technology, and has overall responsibility for the technology strategy.
Transurban manages and develops urban toll road networks in Australia and the United States. Technology plays a critical role in these operations and the planned growth of Transurban.
The scope of technology at Transurban extends from the gantry to the back offi ce systems, and controlling the safe operation of roads and tunnels. It is responsible for defi ning and delivering the portfolio of projects needed to create organisational capability and change, and partners with the business to provide insight and expertise to optimise Transurban’s investment in technology.
Prior to joining Transurban, Ms Tobin was at Australia Post, where she was responsible for technology strategy, development and services to support the national retail division. Previously, Ms Tobin held a number of senior technology roles across the fi nancial services industry, and focused on setting strategy and delivering technology capability to bring new business models to market.
Craig Shortus – Head of Utilities and Infrastructure Australia, ANZ
Craig Shortus, Head of Utilities and Infrastructure Australia, ANZ, has been with ANZ for over 15 years and is responsible for the bank’s coverage of its utility and infrastructure (both economic and social) customers in Australia. Mr Shortus heads a team of 11 executives who are represented in the state capitals. As head of the coverage team, Mr Shortus is responsible for managing the bank’s overall relationship with its institutional customers, including funds and their inbound investments into Australia.
As part of Mr Shortus’s career at ANZ, he has held other roles on the coverage business side, including spending two years with ANZ in Hong Kong managing both key Asian infrastructure customer names, and was Chief Executive Offi cer of the Hong Kong branch.
Mr Shortus’s philosophy with his customers, and the team’s approach, is to engage and lead from a relationship contact point and be the customer’s advocate across the bank and with key stakeholders.
Prior to joining ANZ, Mr Shortus spent 10 years with New South Wales Treasury Corporation, where he was responsible for managing the state’s large-scale asset fi nancing, and running the corporation’s Debt Capital Markets business.
Sydney Airport at forefront of innovation in airport infrastructure
A heightened customer focus and significant investment program will deliver a positive step change in the customer experience.
With 43 million passengers each year and growing fast, Sydney Airport’s significant investment in infrastructure is improving the customer experience and positioning it to meet unprecedented demand. The goal: to make the ‘Syd’ experience easier, faster and more enjoyable.
‘Sydney Airport is focused on transforming our customers’ experience through every step of their journey,’ says Kerrie Mather, Managing Director and Chief Executive Officer, Sydney Airport. ‘We’re investing in our roads, terminals and airfield to get people on their way faster, and [to] provide a great airport experience in the process.’
The infrastructure program is the largest since preparations for the 2000 Olympics, and it is improving aviation capacity, ambience and dwell areas, and operational efficiencies.
Mather says the program is informed by customer needs. ‘We do extensive airline and passenger surveys to understand and prioritise investments with the biggest impact. Everything is about listening and responding to customers, and getting the best result for a wide range of stakeholders.’
Much is at stake. Sydney is Australia’s busiest airport by passenger movements, and in 2016, its international passenger growth was the highest in 12 years – up 8.9 per cent to 14.9 million people. In the first half of 2017, international traffic grew a further 7.7 per cent, particularly due to demand from Asia and the Middle East.
‘Sydney Airport is competing very effectively internationally to attract new airlines, new destinations and increased services,’ says Mather. ‘The result is increased tourism and trade for Sydney and Australia, which is good for jobs and the economy.’
A key focus of infrastructure investments is making airport access easier, no matter how people choose to travel.
Airport road improvements are a year ahead of schedule, and the road changes in partnership with the New South Wales Government will ultimately improve traffic flows in and around the airport. New electronic wayfinding signs will improve navigation, and will respond dynamically to traffic flows by making changing lanes and following directions simpler.
‘Only 10 per cent of passengers use paid parking at the airport, but our location means the roads around the airport are in high demand,’ says Mather. As well as taxis, limousines, buses and ridesharing cars at the airport, a great deal of commuter traffic flows past the precinct. ‘It’s important [that] all customers have the best choice of transport options and price points,’ says Mather.
Greater use of public transport is a feature of the program. Two hundred extra trains to Sydney Airport will run each week by the end of 2017; new ridesharing zones have been introduced; a new pedestrian/cycle path for Terminal 1 has been built; and ground transport interchanges are being upgraded to support extra bus services.
While there is a great deal of activity to improve access, the terminal experience is being enhanced too. Following T1 International’s retail transformation, a similar revamp is underway at T2.
Meanwhile, new technology will complement the infrastructure. Automated check-in and biometrics promise to transform the passenger experience.
More real-time information on travel times and taxi queues will be introduced after this technology is successfully implemented at security screening and passport control. The airport’s open-data strategy will also empower customers to plan their trip by making important information available on their mobile.
Mather says such technology will shape Sydney Airport’s future. ‘Technology is changing every aspect of our industry and it’s vital [that] we ensure our infrastructure allows us to deliver on our customers’ evolving needs,’ says Mather. ‘Good infrastructure makes everything work more efficiently – and when you take the stress out of flying, passengers better enjoy airports and their journey.’ ♦
To learn more about Sydney Airport, visit www.sydneyairport.com.au.
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