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Leadership in Transportation

~ John L. Craig Consulting, LLC

Leadership in Transportation

Monthly Archives: February 2021

The Mobility Ecosystem: the changing landscape and the need for fresh, new ideas (Part 8: Black Swans and Other Risks)

27 Saturday Feb 2021

Posted by John L. Craig in Black Swans, Climate, Construction, COVID-19, Economy, Environment, Funding, Infrastructure, Leadership, Mobility, Mobility Ecosystem, Pandemic, Planning, Resilience, Risks, Scope, Schedule, Budget, Social Justice and Equity, Society, Transportation, Utilities

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While the future can be exciting and an adventure, there are unanticipated events that occur that can disrupt normal flows and operations (Maritz, 2019). On the extreme, there have been catastrophes that seemed “acts of god”, events that are not contemplated in this series of blogs yet provide some context (Maritz, 2019; Gibbons, 2018). More predictable and relevant to our lifetimes, the Cascadia Fault off the coasts of Oregon and Washington is predicted to rupture in the next 50 years and could be the worst North American human disaster on record with significant costs in lives lost and property damage. The damage to roads, bridges, airports, transit, railroads, and navigable waterways will significantly reduce the ability to respond and recover. This event is being studied and planned for (Bauer, et al, 2018; Roth and Thompson, 2018; Sounds, 2019; Steele, 2020).

Risk management is the identification, evaluation, and prioritization of risks followed by methodologies to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. The U. S. transportation industry has enormous risk exposure and among the most risk-prone industries in the world. As such, the federal transportation act—Moving Ahead for Progress in the 21st Century Act or MAP-21 and signed into law in 2012—established the requirement for states to develop a risk-based asset management plan. Risk management is a dynamic process and used routinely within the public and private sectors. Without such plans, organizations can be surprised by events that have negative financial impacts or missed positive opportunities with improved outcomes. The literature on risk management is rich and evolving. A Black Swan is an unpredictable event that is beyond what is normally expected and has the potential for severe consequences. Risks must be identified at the beginning of a project or program, discussed, and updated regularly. Some typical risks might include scope, schedule, and budget issues; safety issues; liability issues; site condition issues; dispute issues; quality issues; workforce turnover or other staffing issues; weather or other delays; contract interpretation disputes; rework; prompt payment; opportunities for additional work; priorities; owner readiness; and so on. Regardless, it is critical to identify risks, actions to prevent or mitigate new risks, probability of occurrence, and a champion/responsible party to take the lead. Various means of identifying the probability of risks are also important such as Monte Carlo simulation.

The Covid-19 Pandemic is a glaring and recent example of positive and negative impacts and could be categorized as a Black Swan. It could not have been anticipated although pandemics are a certainty. As risks do, it is also having positive and negative impacts. For example, remote work and quarantining are reducing CO2 emissions (IEA, 2020;  Figure 9), online shopping continues to increase versus brick and mortar stores (Ali, 2021), costs associated with commuting and office space (Boland, et al, 2020; Ambrose, 2020), and reducing traffic congestion (Ronan, 2021). Some reports are that certain categories of online shopping and delivery increased 50-125 percent in 2020 compared to 2019.  However, already disadvantaged populations are disproportionately negatively affected and transit faces an existential threat in 2021 and beyond due to the reduction of ridership and associated revenues.

As many as 572 airports are also threatened by global warming and associated sea level rise by 2021 (Yesudian and Dawson, 2021). A record number of hurricanes, wildfires and floods cost the world $210 billion in damage in last year, much of it due to global warming. The six most expensive disasters of 2020 occurred in the U.S. (NOAA, 2021; Kann, 2021). There is also the threat of land subsidence that may affect 19 percent of the world population by 2040 (Herrera-Garcia, et al, 2021).

As of this writing, over 30 million U. S. citizens have tested positive for COVID-19 and over 500,000 deaths. That is more than 1 in 9 that have been diagnosed with the disease. Under more normal conditions before the pandemic, there was not a public transit system that was not subsidized. Even with vaccines being fielded, the future of transit ridership and revenues is far from certain. The course for the foreseeable future, without federal help, is to reduce services. Black Swans and other events may be giving us a “pause” to rethink transportation/mobility.

FIGURE 9. Estimated world CO2 reductions during pandemic in 2020. Reductions were 17 percent during the first peak in spring but have declined to 7 percent, the biggest drop ever, over the course of the year, with negligible long-term climate improvements (Sourced from: München, 2020).

As weather patterns change, commodities and other flows are interrupted and delayed. The recent Texas utility debacle from unusual winter weather is yet another risk that could have been precluded and mitigated. People and companies lost heat, potable water and waste water services, and have and are experiencing injuries, death, and economic hardships—a series of cascading failures (Northey, 2021). During the crisis, unregulated utilities charged a market cap price of $9,000 per mega-watt hour  (McGinty and Patterson, 2021). The lack of preparation was made worse by delaying commodities including food and Covid-19 vaccinations. Moreover, Texas utilities were warned 10 years earlier of the preparation needed but they ignored the risks (Blunt and Gold, 2021). This is a failure of leadership.

In addition to individual risks typically identified in risk assessments, there can also be risk correlations between work breakdown structure (WBS) elements, events, risks of projects, across projects, and programs. Some of these might include (modified from Prieto, 2020):

  • “Money Allocated Is Money Spent”
  • Parkinson’s Law – work expands to fill the time allotted
  •  Overconfidence in assessing uncertainties
  • Complexity with hidden coupling – risk events are likely to affect multiple cost elements with the potential for cascading impacts
  • State of technology – common new technologies/materials
  • Common management, staff and work processes
  • Optimism bias and other biases consistently applied
  • Overly simplistic probabilistic cost analysis (PCA)
  • Wages, benefits, payroll taxes Productivity
  • Raw material costs
  • Design development
  • Means & methods
  • Uncertainty factors/known unknowns
  • Budgeting and contingency management strategy and approach
  • Packaging and contracting strategy
  • Schedule precedences
  • Shared/common assumptions
  • Failures/delays at interfaces
  • Location factors
  • Trade actions
  • Regulatory changes/actions
  • Low frequency high impact events of scale
  • Archaeology finds

So risks, associations of risks, and Black Swans can be complicated and reflect the nature of the mobility ecosystem, systems, and systems of systems, in general. Megaprograms and projects (over $1 billion) are particularly prone (Denicol, et al, 2020; Vartabedian, 2021; Garmo, et al, 2015; Irimia-Diéguez, et al, 2014; Zidane, et al, 2013; Flyvbjerg and Bruzelius, 2014).

Dr. “Kevin” Bao also provides an interesting perspective on how leaders should respond to crises and opportunities (Steele, 2021).

Citations

Ali, F. (2021, January 29). US ecommerce grows 44.0% in 2020. Digital Commerce 360. Retrieved February 27, 2021, from https://www.digitalcommerce360.com/article/us-ecommerce-sales/

Ambrose, J. (2020, August 12). BP mulls radical reduction of office space in move to flexible working. The Guardian. Retrieved February 27, 2021, from https://www.theguardian.com/business/2020/aug/12/bp-mulls-radical-reduction-of-office-space-in-move-to-flexible-working

Bauer, J. M., W. U. Burns, I. P. Madin. (2018). Earthquake regional impact analysis for Clackamas, Multnomah, and Washington Counties, Oregon. Oregon Department of Geology and Mineral Industries. Retrieved February 27, 2021, from https://www.oregongeology.org/pubs/ofr/O-18-02/O-18-02_report.pdf

Blunt, K. and R. Gold. (2021, February 19). The Texas freeze: why the power grid failed. The Wall Street Journal. Retrieved February 27, 2021, from https://www.wsj.com/articles/texas-freeze-power-grid-failure-electricity-market-incentives-11613777856

Boland, B., A. D. Smet, R. Palter, A. Sanghvi. (2020, June 8). Reimagining the office and work life after COVID-19. McKinsey & Company. Retrieved February 27, 2021, from https://www.mckinsey.com/business-functions/organization/our-insights/reimagining-the-office-and-work-life-after-covid-19

Denicol, J., A. Davies, I. Krystallis. (2020, February 13). What are the causes and cures of poor megaproject performance? A systematic literature review and research agenda. Project Management Journal. Retrieved February 27, 2021, from https://journals.sagepub.com/doi/10.1177/8756972819896113

Flyvbjerg, B., N. Bruzelius, W. Rothengatter. (2014, July). Megaprojects and risk: an anatomy of ambition. Cambridge University Press. Retrieved February 27, 2021, from https://www.cambridge.org/core/books/megaprojects-and-risk/78B4E0A8FDBEC72919B832D33BECF083

Garemo, N., S Matzinger, R. Palter. (2015, July 1). Megaprojects: the good, the bad, and the better. McKinsey & Company. Retrieved February 27, 2021, from https://www.mckinsey.com/business-functions/operations/our-insights/megaprojects-the-good-the-bad-and-the-better

Gibbons, A. (2018, November 15). Why 536 was ‘the worst year to be alive.’ Science. Retrieved February 27, 2021, from https://www.sciencemag.org/news/2018/11/why-536-was-worst-year-be-alive

Herrera-Garcia, G., P. Ezquerro, R. Tomás, M. Béjar-Pizarro, J. López-Vinielles, M. Rossi, R. M. Mateos, D. Carreón-Freyre, J. Lambert, P. Teatini, E. Cabral-Cano, G. Erkens, D. Galloway, W. Hung, N. Kakar, M. Sneed, L. Tosi, H. Wang, S. Ye. (2021, January 1). Mapping the global threat of land subsidence. Science. Retrieved February 27, 2021, from https://science.sciencemag.org/content/371/6524/34

IEA. (2020, April). Global energy review 2020: the impacts of the Covid-19 crisis on global energy demand and CO2 emissions. Institute of Economic Affairs. Retrieved February 27, 2021, from https://www.iea.org/reports/global-energy-review-2020/global-energy-and-co2-emissions-in-2020

Irimia-Diéguez, A. I., A. Sanchez-Cazorla, R. Alfall-Luque. (2014, March 19). Risk management in megaprojects. Procedia – Social and Behavioral Sciences. 119:407-416. Retrieved February 27, 2021, from https://www.sciencedirect.com/science/article/pii/S1877042814021375#!

Kann, D. (2021, February 22). Flood risk is growing for US homeowners due to climate change. Current insurance rates greatly underestimate the threat, a new report finds. CNN Business. Retrieved February 27, 2021, from https://www.cnn.com/2021/02/22/business/flood-insurance-climate-change-risk-first-street-foundation/index.html

Maritz, W. (2019, July 22). Critical risk areas for public infrastructure projects – Part 1. Oracle Construction and Engineering Blog. Retrieved February 27, 2021, from https://blogs.oracle.com/construction-engineering/critical-risk-areas-for-public-infrastructure-projects?source=:ad:ba:::RC_BUMK200210P00079:SmartBrief_FY20Q4&pcode=BUMK200210P00079&SC=ADV

McGinty, T. and S. Patterson. (2021, February 24). Texas electric bills were $28 billion higher under deregulation. The Wall Street Journal. Retrieved February 27, 2021, from https://www.wsj.com/articles/texas-electric-bills-were-28-billion-higher-under-deregulation-11614162780

München, L. (2020, November 12). Pandemic leads to decrease in global CO2 emissions. ETH Zürich. Retrieved February 27, 2021, from https://usys.ethz.ch/en/news-events/news/archive/2020/12/rekord-rueckgang-der-globalen-CO2-Emissionen-wegen-Corona.html

NOAA National Centers for Environmental Information. (2021). Billion-dollar weather and climate disasters: overview. NOAA. Retrieved February 27, 2021, from https://www.ncdc.noaa.gov/billions/

Northey, H. (2021, February 24). ‘Cascading failures’ fueled Texas water disaster. E&E News. Retrieved February 27, 2021, from https://www.eenews.net/stories/1063725903

Prieto, B. (2020, December 3). The impact of correlation on risks in programs and projects. PM World Journal. Vol. IX(XII)):1-11. Retrieved February 27, 2021, from https://pmworldjournal.com/article/the-impact-of-correlation-on-risks-in-programs-and-projects

Ronan, D. (2021, February 24). Top bottlenecks less congested last year, but infrastructure needs persist, ATRI finds. Transport Topics. Retrieved February 27, 2021, from https://www.ttnews.com/articles/top-bottlenecks-less-congested-last-year-infrastructure-needs-persist-atri-finds

Roth, S. and J. Thompson. (2018, March 15). Study projects damage from rare Portland Hills quake, Cascadia earthquake. KGW8. Retrieved February 27, 2021, from https://www.kgw.com/article/weather/earthquakes/study-projects-damage-from-rare-portland-hills-quake-cascadia-earthquake/283-528827359

Sounds, S. (2019, September 8). The mega Cascadia earthquake is overdue and could strike the US West coast at any moment, creating huge 30 meter-high tsunami waves within seconds – please prepare for this apocalyptic event. Strange Sounds. Retrieved February 27, 2021, from https://strangesounds.org/2019/09/the-mega-cascadia-earthquake-is-overdue-and-could-strike-the-west-coast-of-the-us-at-any-moment-creating-huge-30-metre-high-tsunami-waves-within-seconds-prepare-for-this-apocalyptic-event.html

Steele, B. (2020, January 27). Getting ready for the next Great Cascadia Subduction Zone earthquake. Pacific Northwest Seismic Network. Retrieved February 27, 2021, from https://pnsn.org/blog/2020/01/27/getting-ready-for-the-next-great-cascadia-subduction-zone-earthquake

Steele, J. (2021, February 22). CEOs should develop an ambivalent mindset in crises, says UAH professor’s research. University of Alabama in Huntsville. Retrieved February 27, 2021, from https://www.uah.edu/news/items/ceos-should-develop-an-ambivalent-mindset-in-crises-says-uah-professor-s-research

Vartabedian, R. (2021, February 22). A ‘low-cost’ plan for California bullet train brings $800 million in overruns, big delays. Los Angeles Times. Retrieved February 27, 2021, from https://www.latimes.com/california/story/2021-02-22/california-bullet-train-dragados-design-changes

Yesudian, A. N. and R. J. Dawson (2021). Global analysis of sea level rise risk to airports. Climate Risk Management 31, 2021, 100266:1-12. Retrieved February 27, 2021, from https://www.sciencedirect.com/science/article/pii/S2212096320300565

Zidane, Y. J. T., A. Johansen, A. Ekambaram. (2013, March). Megaprojects-challenges and lessons learned. Procedia – Social and Behavioral Sciences. 74:349-357. Retrieved February 27, 2021, from https://www.researchgate.net/publication/257718827_Megaprojects-Challenges_and_Lessons_Learned

The Mobility Ecosystem: the changing landscape and the need for fresh, new ideas (Part 7: Maximizing Results with Limited Funding)

20 Saturday Feb 2021

Posted by John L. Craig in Alternative Delivery, Asset & Life Cycle Management, Benefit-Cost or BC, Construction, Design, Funding, Intelligent Transportation Systems or ITS, Internet of Things or IoT, Maintenance, Materials, Multimodal Needs Assessment, Needs Assessments, Operations, Partnerships and Collaboration, Performance Measurement and Management, Planning, Program Management, Program or Project Controls, Project Management, Recycling, Relationships, Return on Investment or ROI, Risks, Safety, Scope, Schedule, Budget, Transportation

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There is never enough funding in any organization to meet the needs, much less the wants. The debates to determine funding and how to allocate it are endless and continue to this day at all levels of government (Ryan, 2021). Typically, the effective use of available funding falls to public sector transportation professionals, unless private-sector owners, in conjunction with private sector partners. Thus, it is important to review some analytic tools, methodologies, and aspects for maximizing results with limited funding. These could loosely be considered part of asset management. A more thorough review of asset management, setting a basis, criteria, and priorities, is on the March 6, 2016, article on this website entitled Transportation Asset Management. This discussion merely augments that discussion and is by no means an exhaustive list. In no particular order, these are some of the more important tools, methodologies, and aspects that can help establish priorities and maximize results with limited funding.

  • Asset Management: Every public and private body is under increasing pressure to justify investment and that it is making the best use of its resources. The essence of asset management is to better prioritize resources to optimize outcomes, basically institutionalizing a business-like approach to managing infrastructure—asset management. The ability to retain, retrieve, and analyze increasing amounts of data in recent decades has enabled evidence-based decision-making on a network scale. Made possible by computers and digital technology, other “big picture” analyses are increasingly emerging to include the discipline of sustainability that facilitates decision-making among economic, social, and environmental realms. Performance metrics also began to evolve at the same time as asset management. The result is a fundamental framework for managing resources or assets:
    • Performance measures: what target is desired and achievable
    • Asset:
      • Inventory
      • Condition
      • Utilization
      • Value in dollars
    • Life-cycle cost prediction: estimate remaining useful life
    • Agency or organization cost
    • User cost
    • Trade-off analysis and investment strategies (by combining the above to produce an optimized budget)—criteria to develop needs priorities
    • Develop an emergency fund for unexpected events
    • Develop program including asset needs priorities with available funding

      Asset management is quite literally the best of continuous improvement. That process never ends. More discussion can be found on this website under transportation asset management.
  • Scope, Schedule, Budget: This is closely related to Planning, design, below. Regardless, as a program or project is contemplated, a preliminary and final scope, schedule, and budget must be developed. Tied to the next bullet point, it is common for scope to creep or an ill-defined scope to create problems later on. As such, that can lead to schedule and budget problems later. This is especially prevalent in mega and giga programs and projects. The takeaway: spend the time necessary up front to conduct thorough due diligence, planning, risk assessment, and scoping. It is a lot better and a lot less expensive in time, money, and resources to do it right the first time vice the second or more times. Effective and efficient program or project controls are essential to track changes against the baseline contract of scope, schedule, and budget.
  • Planning, Design: There is no substitute for good, solid planning and design. This in no way discounts good construction, maintenance, operations, materials, and other practices. These can all save or optimize dollars when done right. However, many times problems and opportunities missed can be traced back to the beginning of planning and design. It can be a challenge and take time to get input and reviews from construction, maintenance, operations, stakeholders, and partners. It is worth the effort to do things right or as well as possible at the beginning. Otherwise, time and money will be expended later and opportunities will likely be lost. More broadly, open-source engineering can be more valuable economically and in terms of building on standard design specifications. Thus providing more cost-effective projects, more innovation, improved quality, and scalability. (Shepherd-Smith, 2021).
  • Needs Assessments, Criteria, and Priorities: This may appear obvious, and as stated above it is discussed in more detail in other blogs. Regardless, this process is essential in setting priorities for what to do first, second, third, and so on in spending on the highest priorities. While many governments do this, all do not. The larger, more capable governments tend to do this a lot more than smaller governmental, typically more rural, cities and counties. This typically manifests itself in state departments of transportation doing thorough needs assessments while smaller, less populated cities and counties have neither the staff or funding to do this. This can be a problem. This can be similar in non-highway modes. One solution is to generate one multimodal needs assessment for states, cities, and counties. To gain consensus on such a mechanism would be Herculean but not impossible. As it is, each entity has its own way of identifying needs and setting priorities and the challenge increases as governments establish “formulas” in an attempt to equitably distribute funding to the highest needs. This manifests itself in several ways such as donor and donee states relative to the federal Highway Trust Fund, earmarks depending on the power of elected officials, competitive grants which typically leave out smaller, more rural communities, and others. These are all an attempt to do the best we can but they also fall short. The net result—the inability to fund the highest needs. While it is true that federal and state highways carry the vast majority of traffic, the needs of rural communities are of equal importance. So, the idea of a multimodal and multigovernmental needs assessment should be aspired to if not accomplished. There are some rare examples of similar efforts in other areas that have been successful such as the State of Iowa developing one common state-city-county design manual. Also, the State of Nebraska requires an annual needs assessment (with inventory, standard criteria, inspections, estimated scope and cost, etc) for their state highway system so that the state legislature has a target to determine funding. Uniquely, Nebraska law has a variable fuel tax that adjusts the state fuel tax to meet that funding, regardless of impacts such as decreased fuel consumption due to pandemics or other unforeseen events. A system that effectively prioritizes limited funding to address the needs of one seamless transportation/mobility system would be invaluable to our society vice each governmental entity struggling on its own. While this may never be achieved, it is worth aspiring to.
  • Design Exceptions, Practical Design, and Least-cost Planning: Until perhaps the last two decades, the standards for planning and design were fairly rigidly followed, partly due to liability risks of not doing so. That is understandable because of the importance of standards. However, as funding continues to be tight as needs grow, exceptions have increasingly been made. This evolution began as design exceptions to established standards, to somewhat broader exceptions termed practical design, and that has evolved into more recently termed least-cost planning. The core purpose of all is to maximize results with limited funding where a high proportion of benefits can be gained while accepting little or no additional risk. These are of course highly scrutinized for approval but can save considerable dollars. One mega program in Oregon had 275 design exceptions which saved $683 million.
  • Alternative Delivery Methodologies: Alternative delivery methodologies have been around for decades in the form of contracts of which the U. S. Army Corps of Engineers has been one of the more innovative. In 1993 the Design-Build Institute of America (DBIA) agreed upon the term design-build and its use among transportation agencies began to accelerate. Originally established to save time, not money, design-build projects have evolved to save time and money (Figure 8). Other integrated delivery methodologies have also begun to emerge such as design-build-operate, design-build-operate-maintain, construction management-general contractor, public-private-partnerships, and others, each designed for a specific purpose in saving the owner time, money, level of oversight, or all three. The key is that integrated delivery teams can work together, resulting in time and money savings for the owner. Embedded is risk and who has it, but that’s another subject that warrants a paper on its own.
FIGURE 8. Design-build compared to other project delivery methods. Source: DBIA, n.d.
  • Materials: This may seem out of place but it is not. High-strength steel is a good example of allowing wider gaps to be spanned with fewer vertical supports and girders. Superpave asphalt mixes compete effectively with concrete depending on the costs of oil, cement, and other commodities. Likewise, steel can compete against concrete and accrue savings. Fiberglass reinforced-polymer girders and other corrosion-resistant features have also been employed to extend the design life of bridges to at least 100 years (Knapschaefer, 2021). 3D printed bridges and other structures can save on time and labor (U.S. Bridge, 2021).
  • Recycling: Recycling is about saving resources and money. Asphalt, concrete, and steel are regularly recycled by owners and construction contractors, through both on-site and off-site processes. Depending on the strength, bridge girders are utilized on other bridges as appropriate. Old rail cars have been recycled as low cost-culverts where appropriate. One of the more innovative recycling methods being studied is to use old wind turbine blades in bridges as well as buildings, etc., rather than placing them in landfills (Stone, 2021).
  • Engineering Economics: This tool has been around for over 100 years but continues to be relevant although other tools now supplement it and can lead to other conclusions.
  • Life Cycle Costs: This tool has been around for over 100 years although it has been refined during that time. As our perspectives have increasingly become long-term versus short-term or a human lifetime, the life cycle of infrastructure, vehicles, and other assets have taken on additional meaning relative to least-cost decision-making. Therefore, the life cycle cost of any asset is critical to know.
  • Return on Investment (ROI): Commonly known as ROI, this is another analytical tool that can have myriad perspectives. That is the ROI in economic terms, jobs created or sustained, environmental values, social values, and so forth. Regardless, knowing the return on dollars expended is a critical part of decision-making.
  • Benefit-Cost (BC): Benefit-Cost is commonly assessed as a ratio, normally calculated in dollars. Frequently shown as an equation such as a BC ratio of 3:1 or B/C and if the numerator or B is greater than the denominator, then it is concluded to be a benefit. If the numerator or B is less than 1 it is considered a net cost and not a benefit. Nonetheless, this is another important tool in determining investments.
  • Economies of Scale: This is a methodology that can provide a return on scale. For example, “bundling” projects within a region can reduce mobilization and material delivery costs. Conversely, breaking projects up has the potential to increase competition and reduce costs. While this is not a new concept, it is valuable. The term “bundle” is a relatively new term and is now commonly used. Previously, other terms such as “tied projects” were used to describe the same methodology. Buying materials, equipment, and other assets at scale can also provide economies of scale and reduce costs.
  • Multimodal Needs Assessments: Typically, needs assessments have been done by asset or mode with critically important and useful outcomes. As mobility has become increasingly multimodal, the question has become how to conduct needs assessments across all modes. Multimodal planning is common but multimodal needs assessments are largely qualitative, not standardized, and not widely accepted. One of the outcomes in the absence of good, repeatable, and reliable multimodal needs assessments is that funding (federal and state) is distributed based on modal assessments, dominated by highways and bridges, and then a somewhat subjective assessment of how to distribute dollars to each mode. Until we achieve a truly standardized multimodal needs assessment with specific criteria, allocating funds to other modes (such as transit and pedestrians) will be a challenge. Generally, transportation is not a particularly partisan topic at governmental levels, partly because it provides objective information to help determine what funds can or will be appropriated and what the long-term implications may be. This is critical for the built environment in which we live.
  • Operations and Intelligent Transportation Systems (ITS): ITS was one outcome of advancing digital technology. What this allowed was the transportation system to be instrumented with sensors that provide data and information, especially on volume and speed, to a central office that can more quickly and effectively assess and respond to congestion and issues stemming from traffic congestion, crashes, and other incidences. Advanced Traffic Management System (ATMS) is used for traffic management and control and accounts for the most revenue in the overall ITS market. Although the benefit-costs of ITS vary widely from 2-9:1, others exceed 100:1. One ratio used for comparing ITS to more infrastructure is 8:1, a methodology to get more capacity from the existing roadway. The prudent use of ITS technologies can achieve greater benefit at less cost than more concrete, asphalt, and steel. Related, vehicle pricing systems such as electronic toll collection, congestion pricing, vehicle miles traveled, and other road user charging systems can be cost-effective. In addition, transport and supply chain service providers are seeking cost-effective solutions that ITS can provide to boost their productivity, performance, and profits. On e example developed early in Nebraska was a statewide oversize-overweight permitting system that allowed truckers to efficiently route their trucks and cargo and became an effective decision-making tool.
  • Internet of Things or IoT: There are benefits to be gained throughout society by leveraging IoT, including in government, and new opportunities are continually being uncovered to improve services and efficiencies (Center for Digital Government, 2019; AT&T, n.d.; ServiceNow, n.d.; Descant, 2019).
  • Partnerships and Collaboration: It is virtually impossible for any organization to have all the talent, tools, and resources to optimize returns for society, the economy, and our environment. As such, partnerships and collaboration are keys to leveraging the unique strengths of an organization. This is not a new concept, but like the exponential growth of our 4th Industrial or Digital Age, the need is greater than ever before. These strategies continue to grow (Salesforce, n.d.).
  • Program and Project Management: Good program and project management begins and ends with good leadership. The team is all-important since they are the ones that get work done. As such, good leadership can make a team better while bad leadership can destroy a team. This easily translates to improved or decreased performance, costs, and profits. This topic is also discussed in other blogs on leadership, program, and project management on this website. There are many articles and books on program and project management, one of the most prolific and best is Robert Prieto who publishes regularly in PM World. He also authored one of the most comprehensive books on the subject, “Theory of management of large complex projects” (Prieto, 2015). Also, review PMWorld Journal, https://pmworldjournal.com/welcome, and the Project Management Institute (https://www.pmi.org).
  • Risk Management: This is the identification, evaluation, and prioritization of risks followed by methodologies to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. The U. S. transportation industry has enormous risk exposure and among the most risk-prone industries in the world. As such, the federal transportation law—Moving Ahead for Progress in the 21st Century Act, or MAP-21, and signed into law in 2012 (FMCSA, n.d.)—established the requirement for states to develop a risk-based asset management plan. Risk management is a dynamic process and used routinely within the public and private sectors. Without such plans, organizations can be surprised by events with negative financial impact or miss positive opportunities with improved outcomes. The literature on risk management is rich and continues to evolve.
  • Strong Relationships: This is another topic that might seem odd within a discussion of maximizing results with limited funding. However, the adage “a good relationship can make a bad contract better while a bad relationship can make a good contract worse” reflects the importance of strong relationships. It is common to have disputes but resolving them in a fair and amicable way while preserving the all-important relationships is critical. No one really wins when disputes move to litigation. This topic is further discussed in other blogs on this website, including the importance of trust.
  • Safety: This may seem an odd topic within the topic of maximizing results with limited funding but the cost in lives, injuries, and property damage is staggering. As has been stated, virtually every transportation organization has the safety of their employees and traveling public as their highest priority. One of these efforts to improve safety, although for NASCAR racing, has important implications for the traveling public (Midwest Roadside Safety Facility, n.d.; Wikipedia, 2021). The work towards a safer built environment will likely never end.

This is by no means meant to be an exhaustive list and is only intended as a sample. The search to reduce costs is part of continuous improvement and that never ends. There are some very simple changes that cumulatively can have huge impacts including the use of LED bulbs in traffic signals and buildings, the use of highly reflective tape rather than electric lit signs, shutting off computers during overnight hours, and so on. This, again, is in no way a substitute for sound and skilled planning, project development, design, construction, maintenance, and operations, all of which continue to evolve and improve within their own discipline.

The Biden Administration recently announced through their Infrastructure for Rebuilding America grants or INFRA some of the above tools and methods as part of their criteria in addition to other related criteria such as climate change, environmental justice, and racial equity (Ichniowski, 2021). Still, other technologies are being advanced with their own inherent efficiencies (New Hampshire Union Leader, 2021; VIA, n.d.; LeBeau, 2021; Danko, 2021; Ewoldsen, 2021). Other technologies that may seem a bit far-fetched continue to advance and may be part of a transportation future and at less cost (Levy, 2021; Subin, 2021; Halvorson, 2021). Still, other areas are advancing, including space, and may well have cost-effective impacts on our futures on earth (Adams, 2021; Hughes, 2020).

Citations

Adams, R. D. (2021, January 21). AI spacefarers and cosmic testbeds: robust robotic systems forge path for human space exploration. TechRepublic. Retrieved February 20, 2021, from https://www.techrepublic.com/article/ai-spacefarers-and-cosmic-testbeds-robust-robotic-systems-forge-path-for-human-space-exploration

AT&T (n.d.) Creating Better Communities. Government Technology. Retrieved February 20, 2021, from https://media.erepublic.com/document/GT18_HANDBOOK_ATT_Slides_V.pdf

Center for Digital Government. (2019). IoT innovation: how government is uncovering new opportunities. Center for Digital Government sponsored by Cisco. Retrieved February 20, 2021, from https://media.erepublic.com/document/CDG18_WHITE_PAPER_Cisco-IoT-NewOps_V.pdf

Danko, P. (2021, February 3). Arcimoto’s latest stock surge gives it $1B market cap. Portland Business Journal. Retrieved February 20, 2021, from https://www-bizjournals-com.cdn.ampproject.org/c/s/www.bizjournals.com/portland/news/2021/02/03/arcimotos-market-cap-1b.amp.html

DBIA. (n.d.). Why choose design-build? Design-Build Institute of America. Retrieved February 20, 2021, from https://dbia.org/what-is-design-build/

Descant, S. (2019, October 29). Chicago collaboration looks to redefine modern transportation. Government Technology. Retrieved February 20, 2021, from https://www.govtech.com/transportation/Chicago-Collaboration-Looks-to-Redefine-Modern-Transportation.html

Ewoldsen, B. (2021, January 21). New mobility services combined with transit show potential to further accessibility, efficiency, equity, safety, and sustainability. Transportation Research Board. Retrieved February 20, 2021, from http://www.trb.org/main/blurbs/181729.aspx

FMCSA. (n.d.). MAP-21 – moving ahead for progress in the 21st century act. Federal Motor Carrier Safety Administration. Retrieved February 20, 2021, from https://www.fmcsa.dot.gov/mission/policy/map-21-moving-ahead-progress-21st-century-act

Halvorson, B. (2021, February 15). Toyota claims the 2021 Mirai fuel-cell car cleans the air, calls it “minus emissions.” Green Car Reports. Retrieved February 20, 2021, from https://www.greencarreports.com/news/1131268_toyota-claims-the-2021-mirai-fuel-cell-car-cleans-the-air-calls-it-minus-emissions

Hughes, O. (2020, November 25). To the moon and beyond: the robots that are blazing a trail for human space exploration. TechRepublic. Retrieved February 20, 2021, from https://www.techrepublic.com/article/to-the-moon-and-beyond-the-robots-that-are-blazing-a-trail-for-human-space-exploration

Ichniowski, T. (2021, February 17). Biden administration adds new climate objective for INFRA grants. Engineering News-Record. Retrieved February 20, 2021, from https://www.enr.com/articles/51239-biden-administration-adds-new-climate-objective-for-infra-grants

Knapschaefer, J. (2021, January 25). Novel fiberglass birders extend life of Maine bridge. Engineering News-Record. Retrieved February 20, 2021, from https://www.enr.com/articles/51086-novel-fiberglass-girders-extend-life-of-maine-bridge

LeBeau, P. (2021, February 10). United Airlines orders electric vertical aircraft, invests in urban air mobility SPAC. CNBC Evolve. Retrieved February 20, 2021, from https://www.cnbc.com/2021/02/10/united-airlines-orders-electric-vertical-aircraft-invests-in-urban-air-mobility-spac.html

Levy, M.G. (2021, February 12). Researchers levitated a small tray using nothing but light. Wired. Retrieved February 20, 2021, from https://www.wired.com/story/researchers-levitated-a-small-tray-using-nothing-but-light/

Midwest Roadside Safety Facility. (n.d.). The safer barrier. University of Nebraska-Lincoln. Retrieved February 20, 2021, from https://mwrsf.unl.edu/saferBarrier.php

New Hampshire Union Leader. (2021, February 15). State-of-the-art traffic signals installed at 17 Dover intersections. New Hampshire Union Leader. Retrieved February 20, 2021, from https://www.unionleader.com/news/safety/state-of-the-art-traffic-signals-installed-at-17-dover-intersections/article_672c26f7-cfcb-5ea2-bd9f-befb1a46d840.html

Prieto, R. (2015). Theory of management of large complex projects. Construction Management Association of America. Retrieved February 20, 2021, from https://www.researchgate.net/publication/299980338_Theory_of_Management_of_Large_Complex_Projects

Salesforce. (n.d.). Accelerating government innovation through collaboration. Salesforce. Retrieved February 20, 2021, from https://media.erepublic.com/document/GOV19_BRIEF_Salesforce_01_V.pdf

ServiceNow. (n.d.). Redefining service delivery for citizens: best practices and a checklist for success. ServiceNow. Retrieved February 20, 2021, from https://media.erepublic.com/document/ebook-government-modernizing-csm.pdf

Shepherd-Smith, P. (2021, February 10). Open source engineering has a role to play in digital transformation. New Civil Engineer. Retrieved February 20, 2021, from https://www.newcivilengineer.com/opinion/open-source-engineering-has-a-role-to-play-in-digital-transformation-10-02-2021/

Stone, M. (2021, January 8). Today’s wind turbine blades could become tomorrow’s bridges. Grist. Retrieved February 20, 2021, from https://grist.org/energy/todays-wind-turbine-blades-could-become-tomorrows-bridges/

Subin, S. (2021, February 14). Why one big Wall Street banker is betting flying taxis will replace helicopters. CNBC Evolve. Retrieved February 20, 2021, from https://www.cnbc.com/2021/02/14/why-wall-street-banker-thinks-flying-taxis-will-replace-helicopters.html

Thomas, R. (2021, January 29). Lawmakers offer competing priorities for infrastructure plans. The Hill. Retrieved February 20, 2021, from https://thehill.com/policy/transportation/infrastructure/536595-lawmakers-offer-competing-priorities-for-infrastructure

U.S. Bridge. (2020, March 24). The future of 3D printed bridges and construction. U.S. Bridge. Retrieved February 20, 2021, from https://usbridge.com/the-future-of-3d-printed-bridges-and-construction/

VIA. (n.d.). Reimagining how the world moves. VIA. Retrieved February 20, 2021, from https://ridewithvia.com/?utm_source=pardot&utm_medium=email&utm_campaign=newsletter_february_2021

Wikipedia. (2021, January 24). Safer barrier. Wikipedia. Retrieved February 20, 2021, from https://en.wikipedia.org/wiki/SAFER_barrier

The Mobility Ecosystem: the changing landscape and the need for fresh, new ideas (Part 6: Funding)

14 Sunday Feb 2021

Posted by John L. Craig in COVID-19, Environment, Fuel Taxes, Funding, Funding Gaps, Future, Infrastructure, Investing, Needs Assessments, Pandemic, Rural, Society, Sustainability, Transportation, Urban, Vehicle Miles Traveled Tax (VMT)

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While there is never enough money to address the needs, there is not a transportation agency in the Nation that is not struggling with the lack of funding, largely due to the Pandemic 2020-present whether it’s fuel taxes, general funds, bonds, public-private-partnerships, wheel taxes, vehicle registrations, or other funding sources (American Society of Civil Engineers, 2020; Stofan, 2021; NPR, 2020; Jimenez, 2020). Still, are we talking about infrastructure the right way? That is, are we talking to and the about the people that use it (Milberg, 2021)?

In 2019 the U. S. federal government spent $96 billion on building and updating infrastructure, $67 billion was transferred to states. In 2017, the most recent data available, state and local infrastructure spending totaled $162 billion excluding these federal transfers. At the same time there has been a shift toward increased spending on operations and maintenance and away from spending on new capital projects. Some estimates are that roughly 2/3 of dollars go to keep infrastructure functioning (i.e. maintenance, repair, replacement, or system preservation) while roughly 1/3 of dollars go to upgrades (i.e. new capital projects). While this allocation can be disputed depending on the audience and perspective, keeping infrastructure functioning (system preservation) is the highest and best use of dollars and most economical in serving the public good. How dollars are best allocated for system preservation and new capital projects needs to be continually assessed, typically on an annual basis in conjunction with needs assessments and specific criteria. The current (2017) American Society of Civil Engineers, or ASCE, Report Card identifies an estimated $2 trillion gap in the $4.6 trillion needs required to achieve a state of good repair over the next 10 years (American Society of Civil Engineers, 2017). For surface transportation alone the gap is estimated to be $1.1 trillion gap in the over $2 trillion needs over the next 10 years. Perhaps more sobering, the world is facing a $15 trillion infrastructure gap by 2040 (George, et al, 2019).

Since the creation in 1919 by the State of Oregon, the fuel tax has been the primary federal and state funding mechanism  for transportation/mobility infrastructure for over 100 years. The past two decades have seen a decline in those fuel tax revenues as a result of little or no increase in many fuel taxes, improving fuel efficiency, alternatives fuels, and now a pandemic. To close those gaps, general funds, wheel taxes, vehicle registrations, bonds, and other sources have been used. Still the gaps exist.

A question: should the US align with the UN’s “people first” model for public-private infrastructure projects? The model evaluates projects on five criteria (United Nations Economic Commission for Europe, 2016):

  • Increasing access and promoting equity
  • Improving environmental sustainability
  • Improving project economic effectiveness
  • Ensuring replicability
  • Engaging all stakeholders

While there is important movement in this direction, it probably comes down to whether the needs of all stakeholders can be reconciled—consultants, builders, financiers, politicians, businesses, the public and others—that oversee infrastructure development and come to consensus on what they are doing. These can be powerful interests and getting people to work together, much less collaborate and come to consensus, will continue to be a challenging task to scale up the funding to meet growing needs.

So, what is the likely funding source for the future? That is unknown. A few years ago many believed that a Vehicle Miles Traveled (VMT) tax being tested over the past two decades in Oregon and other states would prevail and might yet. However, emerging technologies, declining personal car ownership, electric vehicles, alternatives fuels, remote work, changing business models, sustainability, climate change, access, equity and social justice, and future physical infrastructure needs may warrant new funding sources. Regardless, it is clear a new, reliable, and sustainable transportation/mobility funding model is needed that balances urban, rural, and multimodal needs and with an eye to the future. This includes a review of criteria for allocating funds, taking into account the needs of urban and rural communities, connecting roads and modes, and the capabilities of smaller communities who do not have the staffs to accommodate the substantial federal processes. The federal government must partner with states, communities, and other partners and entities to make funding and its allocation as effective and efficient as possible. While traffic is much higher with more costly infrastructure needs in urban areas, there are also critical needs in rural areas although there is less traffic (NAFB, 2021).

The funding space is also changing. Black Rock Chairman and Chief Executive Officer, Larry Fink, in his 2020 letter to CEOs has stated “In the near future—and sooner than most anticipate—there will be a significant reallocation of capital” (Fink, 2020). This is driven by their investors demand for investments that are sustainable and that will limit climate change. Black Rock is the world’s largest asset manager with $17 trillion under management, has said its clients are looking to double their environmental, societal, and governance (ESG) investments in the next five years. Institutional investors have said they will stop investing in companies that are not sustainable (CISION PR Newswire, 2021; Losavio and Tsai, 2021). This has implications for transportation, infrastructure, and mobility. To that extent it is not a surprise that stocks such as Tesla experienced dramatic growth in 2020 as investors look for positive and sustainable environmental, societal, governance, and economic outcomes.

Citations

American Society of Civil Engineers, ASCE. (2017). ASCE. Retrieved February 14, 2021, from https://infrastructurereportcard.org/wp-content/uploads/2016/10/2017-Infrastructure-Report-Card.pdf

American Society of Civil Engineers, ASCE. (2020). Status Report: Covid-19’s impacts on America’s infrastructure. ASCE. Retrieved February 14, 2021, from https://www.infrastructurereportcard.org/wp-content/uploads/2020/06/COVID-19-Infrastructure-Status-Report.pdf

CISION PR Newswire. (2021, January 7). The $120 trillion investment trend transforming Wall Street. CISION. Retrieved February 14, 2021, from https://www.prnewswire.com/news-releases/the-120-trillion-investment-trend-transforming-wall-street-301202526.html

Fink, L. (2020). Larry Fink’s 2020 letter to CEOs: A fundamental reshaping of finance. BlackRock. Retrieved February 14, 2020, from https://www.blackrock.com/us/individual/larry-fink-ceo-letter

George, A., R. Kaldany, J. Losavio. (2019, April 11). The world is facing a $15 trillion infrastructure gap by 2040. Here’s how to bridge it. World Economic Forum. Retrieved February 14, 2021, from https://www.weforum.org/agenda/2019/04/infrastructure-gap-heres-how-to-solve-it/

Jimenez, F. (2020, September 17). Impact of COVID-19 on state transportation revenues. LAO-Legislative Analyst’s Office. Retrieved February 14, 2021, from https://lao.ca.gov/Publications/Report/4268

Losavio, J. and O. Tsai. (2021, January 18). 4 big infrastructure trends to build a sustainable world. World Economic Forum. Retrieved February 14, 2021, from https://www.weforum.org/agenda/2021/01/four-big-infrastructure-trends-for-2021/

Milberg, E. (2021, January 8). Are we talking about infrastructure the right way? SmartBrief. Retrieved February 14, 2021, from https://www.smartbrief.com/original/2021/01/are-we-talking-about-infrastructure-right-way

NAFB. (2021, January 30). Rural coalition sends letter to Biden on infrastructure. KTIC. Retrieved February 14, 2021, from https://kticradio.com/agricultural/rural-coalition-sends-letter-to-biden-on-infrastructure/

NPR. (2020, August 3). States are broke and many are eyeing massive cuts. Here’s how yours is doing. NPR KIOS. Retrieved February 14, 2021, from https://www.npr.org/2020/08/03/893190275/states-are-broke-and-many-are-eyeing-massive-cuts-heres-how-yours-is-doing

Stofan, J. (2021, February 9). Bumpy road ahead for Florida transportation projects. News4Jax. Retrieved February 14, 2021, from https://www.news4jax.com/news/florida/2021/02/09/bumpy-road-ahead-for-florida-transportation-projects/

United Nations Economic Commission for Europe-UNECE. (2016, July). Promoting people first public-private partnerships (PPPs) for the UN SDGs. Inter-Agency Task Force on Financing for Development. Retrieved February 14, 2021, from https://www.un.org/esa/ffd/wp-content/uploads/2016/01/Promoting-People-first-Public-Private-Partnerships-PPPs-for-the-UN-SDGs_UNECE_IATF-Issue-Brief.pdf

The Mobility Ecosystem: the changing landscape and the need for fresh, new ideas. (Part 5: Some Other Technology Advances)

13 Saturday Feb 2021

Posted by John L. Craig in 3D Printers, 5.9 GHz, 5G, Artificial Intelligence (AI), Augmented Reality (AR), Autonomous Vehicles, Cloud Services, Communications, Connected and Autonomous Vehicles (CAV), Cyber-security, Drones, Future, Global Positioning Systems (GPS), Intelligent Infrastructure, Internet of Things or IoT, Lidar, Machine Control, Materials, Mobility Ecosystem, Robotics, Safety, Smart Cities, Solar, Technology, Transportation, Vehicle-to-Vehicle (V2V), Virtual Reality (VR)

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There is a mounting need from city and road planners to evolve current ground-based infrastructure, especially across transportation networks (Deruytter, 2020). There are a number of technologies, and collections of technologies, that are changing and impacting the mobility space. In Part 4, this writer neglected to acknowledge one of these leading transportation technology centers that is bringing the industry together to develop transportation and mobility solutions—the Infrastructure Automotive Technology Laboratory, or iATL, and iATL Partner Alliance in Georgia. The Intelligent Transportation Society of America (ITSA)—Smarter, Greener, Safer—began in 1991 and has been a primary convention and driver for use of transportation technologies in the intervening 30 years. Below is a brief scan of some of these technologies, each of which could warrant a book to provide a complete coverage.

  • Vehicle-to-Vehicle (V2V) and Vehicle to Infrastructure (V2I): These are the two primary connected vehicle areas and encompass CAV (connected and automated vehicle). The advantage of V2V is to gain capacity from infrastructure and improve safety (NHTSA, n.d.). This technology may also enable increased speeds and reduce travel time. V2I is beginning to advance as a means of further advancing capacity, safety, and speed. Both V2V and V2I offer the potential to expand other technologies such as battery charging while moving, autonomous routing of vehicles, and providing intelligent infrastructure with the capability of autonomously sending condition and other reports back to a central office for planning and response for repair or replace (RoboticsBiz, 2020; 3M, n.d.).
  • Intelligent Infrastructure: In addition to being able to send condition and other reports for action to a central office, emerging AI technologies are allowing for self-healing materials that repair themselves (Flower, 2020; Mazzarol, 2012; McFarlane, 2015; McMillan, 2017; ScienceDirect, n.d.).
  • Internet of Things or IoT: Infrastructure and transportation agencies are leading the way in adopting many IoT technologies, and that will continue. Why? Because they provide tangible results (Center for Digital Government for Spectrum Enterprise, 2019).
  • 3D Printers: These printers have existed for some time but are expanding for construction. This includes the printing of the small 3D plastic models for completing concrete bridges to the printing of steel bridge models (U.S. Bridge, 2020). The basic limitation is only the size of the printing machine and whether that is cost effective.
  • Materials: Whereas 3D printers are limited by the size of the printing machine, new research is revealing the possibility of rationally designing materials to specification at the micro and macro scale and with broad engineering applications (Jenett et al, 2020). Plus, traditional materials continue to be improved such as ultra-high performance concrete (Carter, 2019).
  • Artificial Intelligence (AI): This is a leading technology of technologies, combining various technologies into new ones that can perform tasks thought to be science fiction. One of these is “robotic swarms” of meta materials that turn into buildings, vehicles, bridges—delivered in boxes by drones (Jenett, 2020; Wyss Institute, n.d.). The technology currently exists and the U. S. Army has initiated this development in partnership with the private sector including the Massachusetts Institute of Technology. Still others are in use such as Building Information Technology or BIM. Others include AI-driven asset management for bridges, monitoring the condition of assets on a real and near-real time basis (Stone, 2021). Yet another focuses on road maintenance (Holliday and Frick, 2021). Ford Motor Company has expanded to leverage AI and machine learning to predict and prevent traffic crashes (Mendoza, 2021). The future of AI is enormous in the transportation and mobility space, and society as a whole (The Washington Post, n.d).
  • Virtual (VR) and Augmented Reality (AR): Beginning in the gaming business, these technologies continue to rapidly develop, especially in the design and construction arenas. A recent augmented reality innovation by VW and Mercedes Benz enhances safe navigation through an AR blue line down the center line of the lane, allowing the driver to stay focused on the road ahead (Ligon 2021).
  • Robotics/Drones: These technologies have been in development and use for decades. Like other technologies that reduce the requirement for labor (typically the largest single cost for many organizations) within the mobility space these technologies are increasingly used for terrestrial and aquatic inspections of all kinds, vegetation planting, surveying, aerial photography, movement and delivery of materials, and others. There is continuing discussion on the use of drones, including the potential to lease air space above roads and perhaps generating a new revenue source (Skorup and Harland, 2020;  Pressgrove, 2021).
  • Machine Control: Expanding on robotics and drones that are currently used is the programming of autonomous earthmoving and other equipment, surveying, inspections, etc., on construction sites (TopCon, n.d.; UK Plant Operators, n.d.). These have been in use for some years and allow for greater efficiency at a lower cost. Using currently available technology, other systems are emerging for other activities such as hauling dirt, delivery and placement of materials. Expanding on this area, some years ago the University of Nebraska developed remotely controlled orange work zone barrels to move without the labor required for moving each barrel (Bauer, 2004). This technology could be adopted to other systems, such as the Lindsay Company Road Zipper which moves concrete Jersey barriers on a near-real time basis to adjust lanes and contra flows in conjunction with traffic flow needs, separate bicycle from vehicle traffic, adjust to the needs of construction zones, etc. In effect, this could be done remotely or autonomously. The options are endless and open to continued innovation.
  • Cloud services: There are a growing number of organizations that are leveraging the cloud for more efficient operations. Among them is Amazon Web Services (AWS) which has a growing presence in the transportation and mobility space (Silver, n.d.). Municipal and state agencies continue to expand use of cloud services for construction oversight and other activities (Yoders, 2021).
  • 5G: This technology holds tremendous promise as it increases the speed and capacity of communications essential to the mobility ecosystem (Abbosh and Downes, 2019). The Internet of Things or IoT is a driver of 5G with three broad categories of use: enhanced broadband, massive IoT sensing, and critical IoT. The massive IoT sensing alone will allow 10 times more devices to connect at 100 times the energy efficiency compared to LTE-Advanced (Little, 2019).  Smart cities are being advanced thanks to 5G and other technologies (CBS Interactive Inc., 2020; Abbosh and Downes, 2019). 5G and its capabilities are expanding as this is written. 5G and AI will continue to drive mobility development.
  • Lidar: This technology has been around for some years, allowing for rapid 3D surveying by law enforcement, surveying by drones, autonomous vehicles, improving safety, enhanced BIM (Building Information Modeling), and other diverse applications that go on and on (Shacklett, 2021). One recent application makes transportation infrastructure more efficient and safer (Clark, 2021).
  • Global Positioning Systems (GPS): Although around for decades, GPS is worth mentioning because of its importance in pinpointing locations, navigation, and its ease of use (available on smartphones and many other devices). This is critical for many technologies including autonomous vehicles.
  • 5.9 GHz: This bandwidth had been identified for public safety with important uses in the transportation arena. However, recently the Federal Communications Commission or FCC has given this bandwidth away for other commercial purposes. This sorely complicates an important safety tool for the transportation industry (Fisher, 2020).
  • Communications, integrated and interoperable-voice and data: The most common lesson-learned following disasters is the difficulty of communicating between all parties in both voice and data (FEMA, 2020; FEMA, 2014; OnSolve, n.d.; U.S. Fire Administration, 2015). As such, many states have developed more robust and interoperable communications systems. Nonetheless, effective communications is literally a key to success in responding to man-made or natural disasters and will need to be continually improved and maintained.
  • Solar: Solar power is developing slowly, but surely, as one of the most important renewable energies. For over 100 years, petroleum-based fuels and electricity generation have been separate industries. Oil was for vehicles, coal and water were for electric power. Drillers versus miners, petrostates versus power utilities. With EVs the distinction between petroleum-based fuels and power markets is blurring. Solar power is rapidly becoming the cheapest form of energy in much of the world, which means that as power markets grow to meet the new demand from EVs, oil is being largely displaced by power from the sun. For nearly 20 years, the International Energy Agency has underestimated the rise of solar power. Every year, their estimates expected the rate of solar growth to plateau, but every year it grew (Figure 7).
FIGURE 7. Sunshine may be the new oil. Every year solar was projected to plateau, and every year it set new records. (Sources: International Energy Agency, BloombergNEF, Auke Hoekstra, in “Peak Oil is Suddenly Upon Us” by Tom Randall and Hayley Warren, Bloomberg Green December 1, 2020)

Solar roadways have been developed in France these past few years. It was recently announced that the first solar roadway to come on line in the U. S. will be in Georgia (Cooke, 2017; Edelstein, 2020).

  • Cyber-security: There is an arms race going on to hack and secure data. As technology has developed so has the need for adequate cyber-security. It is wise to have one, if not at least two, backup systems to protect transportation/mobility systems, including autonomous vehicles. Every organization continues to struggle with enhancing security (Center for Digital Government, 2020).

There are literally thousands of other technologies and associated tools in the transportation/mobility industry, and other fields, that continue to be developed, some proprietary and some not, in an effort to increase sales/profits and benefit-cost. A scan of printed and electronic trade journals, conferences, proposals, and sales presentations reflects the stunning scale of these developments. A brief scan reveals advanced and integrated project and program management, data collection and workflow automation, big data and analysis, remote piloted aerial and aquatic vehicles or drones, machine learning, Lidar, ground penetrating radar, geomatics, geophysics, Reality Mesh Services (i.e. 3D models out of unordered photographs or laser scans), Building Information Modeling (BIM) across the project life cycle while incorporating Reality Capture for Digital Twins and integrated for Asset Management, and many, many others.

This also does not discount the importance and value of the myriad existing methodologies that continue to advance, have been around for years, and that can increase system efficiency. Just a few include data collection and analysis, signal timing, static signing, variable message signs, 511, video cameras, radar, roadway weather notifications, traffic operations centers and infrastructure sensors, materials, recycling, planning, design, construction, maintenance, operations, and so on.

Literature Cited

3M Road Safety. (n.d.). What is Vehicle-to-Infrastructure (V2I) communication and why do we need it? 3M. Retrieved February 13, 2021, from https://www.3m.com/3M/en_US/road-safety-us/resources/road-transportation-safety-center-blog/full-story/~/what-is-vehicle-to-infrastructure-v2i-communication-and-why-do-we-need-it/?storyid=021748d7-f48c-4cd8-8948-b7707f231795

Abbosh, O. and L. Downes. (2019, March 5). 5G’s potential, and why businesses should start preparing for it. Harvard Business Review. Retrieved February 13, 2021, from https://hbr.org/2019/03/5gs-potential-and-why-businesses-should-start-preparing-for-it

Bauer, S. (2004, April 30). Robotic traffic cones hit the road. ABC News. Retrieved February 13, 2021, from https://www.nbcnews.com/id/wbna4872379

Carter, T. (2019, May 2). Corps of Engineers grant Virginia company exclusive commercial license for Cor-Tuf ultra-high performance concrete. TechLink. Retrieved February 13, 2021 from https://techlinkcenter.org/news/corps-of-engineers-grant-virginia-company-exclusive-commercial-license-for-cor-tuf-ultra-high-performance-concrete/

Center for Digital Government. (2020). Delivering services citizens can trust: how the city of Seattle became a privacy-first organization. Active Network. Retrieved February 13, 2021, from https://media.erepublic.com/document/CDG19_CASE_STUDY_Active_Network_Seattle_V.pdf

CBS Interactive Inc. (2020). 5 Successful Smart City Projects. CBS Interactive Inc. Retrieved February 13, 2021, from https://static.cbsileads.com/direct/whitepapers/TR_5_successful_smart_cities.pdf

Center for Digital Government. (2019). Infrastructure and transportation: government finds its IoT footing. Spectrum Enterprise. Retrieved 13 February, 2021 from https://media.erepublic.com/document/CDG18_REPORT_Spectrum2_V.pdf

Clark, D. (2021, January 26). Analysis touts lidar sensor efficiency, safety. Transportation Today. Retrieved February 13, 2021, from https://transportationtodaynews.com/news/21212-analysis-touts-lidar-sensor-efficiency-safety/

Cooke, L. (2017, February 7). First Wattway solar road pilot in US pops up in rural Georgia. InHabitat. Retrieved February 13, 2021, from https://inhabitat.com/first-wattway-solar-road-pilot-in-us-pops-up-in-rural-georgia/#popup-898928

Deruytter, M. (2020, December 18). Intelligent infrastructure in transport & mobility: paving the way for a smarter and safer future. ITProPortal. Retrieved February 13, 2021 from https://www.itproportal.com/features/intelligent-infrastructure-in-transport-and-mobility-paving-the-way-for-a-smarter-and-safer-future/

Edelstein, S. (2020, December 6). Georgia gets first solar roadway in the US. Green Car Reports. Retrieved February 13, 2020, from https://www.greencarreports.com/news/1130542_georgia-gets-first-solar-roadway-in-the-us

FEMA. (2020, August 3). Disaster emergency communications. FEMA. Retrieved February 13, 2021, from https://www.fema.gov/about/offices/field-operations/disaster-emergency-communications

FEMA. (2014). Lesson 3. communicating in an emergency. FEMA. Retrieved February 13, 2021, from https://training.fema.gov/emiweb/is/is242b/student%20manual/sm_03.pdf

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Flower, T. (2020, June 30). Intelligent infrastructure explained. RailUK. Retrieved February 13, 2021, from https://railuk.com/featured/intelligent-infrastructure-explained/

Holliday, J. and S. Frick. (2021, January 27). Podcast: The role of AI in the future of roads maintenance with FMConway and Roadbotics. The Engineers Collective. Retrieved February 13, 2021 from https://theengineerscollective.podbean.com/e/the-role-of-ai-in-the-future-of-roads-maintenance-with-fmconway-and-roadbotics/

Jenett, B, C. Cameron, F. Tourlonousis, A. Parra Rubio, M. Ochalek, N. Gershenfeld. (2020, November 18). Discretely assembled mechanical metamaterials. ScienceAdvances AAAS. Retrieved February 13, 2021, from https://advances.sciencemag.org/content/6/47/eabc9943

Ligon, L. (2021, January 12). Driver experience with augmented reality head-up display. Fox10 News. Retrieved February 13, 2021, from https://www.fox10tv.com/news/daily_dot_com/driver-experience-with-augmented-reality-head-up-display/article_7e8b7e62-553c-11eb-9a2d-a36148115811.html

Little, A. (2019, September). 5G and IoT: the time to act is now. Sprint Business. Retrieved February 13, 2021, from https://connect.bizjournals.com/rs/673-UWY-229/images/5G%20and%20IOT%20eBook.PDF

Mazzarol, T. (2012, June 23). Intelligent infrastructure: when roads and vehicles talk to each other. The Conversation. Retrieved February 13, 2013, from https://theconversation.com/intelligent-infrastructure-when-roads-and-vehicles-talk-to-each-other-7865

McFarlane, D. (2015, March 9). What makes an intelligent infrastructure asset. Infrastructure Intelligence. Retrieved February 13, 2021, from http://www.infrastructure-intelligence.com/article/mar-2015/what-makes-intelligent-infrastructure-asset

McMillan, F. (2017, December 21). The rise of self-healing materials. Forbes. Retrieved February 13, 2021, from https://www.forbes.com/sites/fionamcmillan/2017/12/21/the-rise-of-self-healing-materials/?sh=596e514f64c3

Mendoza, N.F. (2021, January 21). Smart city: Windsor is first Canadian city to launch Ford Safety Insights Platform to reduce crashes. Tech Republic. Retrieved February 13, 2021 from https://www.techrepublic.com/article/smart-city-windsor-is-first-canadian-city-to-launch-ford-safety-insights-platform-to-reduce-crashes/

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The Mobility Ecosystem: the changing landscape and the need for fresh, new ideas. (Part 4: Economics of Autonomous Vehicles)

06 Saturday Feb 2021

Posted by John L. Craig in Autonomous Vehicles, Business Transformation, Clean Energy, Collaboration, Connected and Autonomous Vehicles (CAV), Dynamic Transportation Management, Economics, Electric Vehicles, Future, Government & Policy, Internet of Things or IoT, Mobility, Mobility as a Service, Mobility Ecosystem, Relationships, Ride Sharing, Safety, Smart Cities, Society, Strategic Planning, Technology, Transportation

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Motorized vehicles began with the advent of electric vehicles as evidenced by the first recorded powered vehicle fatality in the United States in 1899, from an electric taxi (see Part 2 of this series). Technology advances in the intervening 100 plus years have given rise to fully autonomous vehicles which are on the horizon.

The summary (abstract) provided by Clements and Kockelman (2017) is superb and provided in full.

“Connected and fully automated or autonomous vehicles (CAVs) may soon dominate the automotive industry. Once CAVs are sufficiently reliable and affordable, they will penetrate markets and thereby generate economic ripple effects throughout industries. This paper synthesizes and expands on existing analyses of the economic effects of CAVs in the United States across 13 industries and the overall economy. CAVs will soon be central to the automotive industry, with software composing a greater share of vehicle value than previously. The number of vehicles purchased each year may fall because of vehicle sharing, but rising travel distances may increase vehicle sales. The opportunity for heavy-truck drivers to do other work or rest during long drives may lower freight costs and increase capacity. Personal transport may shift toward shared autonomous vehicle fleet use, reducing that of taxis, buses, and other forms of group travel. Fewer collisions and more law-abiding vehicles will lower demand for auto repair, traffic police, medical, insurance, and legal services. CAVs will also lead to new methods for managing travel demand and the repurposing of curbside and off-street parking and will generate major savings from productivity gains during hands-free travel and reduction of pain and suffering costs from crashes. If CAVs eventually capture a large share of the automotive market, they are estimated to have economic impacts of $1.2 trillion or $3,800 per American per year. This paper presents important considerations for CAVs’ overall effects and quantifies those impacts.”

See Table 1 for a summary of the economic impacts of autonomous vehicles.

TABLE 1. Table 1. Summary of economic effects (industry- and economy-wide) (source: Clements, L. M. and Kockelman, K. M., “Economic effects of automated vehicles”, Transportation Research Record: Journal of the Transportation Research Board Volume 2606, Issue 1, January 2017, pages 106-114)

In the columns headed “Dollar Change in Industry” and “Percent Change in Industry,” signs “+” and “-”, respectively, denote a gain and a loss for the industry, whereas the industry-specific total for the dollar change in industry is the sum of their absolute values. Figures in the “$/Capita” columns and provided as overall total represent the sum of net economic benefits enjoyed by consumers.

According to an estimate by Intel Corporation and Strategy Analytics, announced in June 2017, the economic effects of autonomous vehicles will total $7 trillion in 2050 (Figure 6). The dollar amount represents a newly created value or a new ‘passenger economy’, calculated based on the assumption that fully automated Level 5 vehicles will be on the roads by 2050.

Figure 6. Global service revenue generated by autonomous driving in 2050 (US$ millions) (source: Lanctot, R. Strategy Analytics, Accelerating the Future: The Economic Impact of the Emerging Passenger Economy, June 2017)

They also assumed that consumers and businesses will use Mobility-as-a-Service (MaaS) offerings instead of owning cars, and those who had been commuting to work by car will become passengers and spend the commuting time doing something else. Furthermore, transportation companies suffering from a serious labour shortage – such as long-haul truck operators and home delivery service providers – will introduce autonomous driving services, thereby enabling them to change their business models drastically. As such, the estimate reflects a very broad range of potential effects, which also include a wide variety of new commercial services such as onboard dining and retailing (Tomita, 2017).

Advancements continue almost daily. CNN Business (Farland, 2020) reports a self-driving and electric robotaxi from Amazon’s Zoox can travel up to 75 mph and never has to turn around, reversing directions as needed to navigate crowded city streets. In an effort to become a leader in this sector, China is advancing autonomous vehicles quickly, including fully autonomous highways (Metha, 2019; KPMG International, 2019).

There are a myriad of challenges to realize fully automated vehicles and that will require an accumulation of massive quantities of data and learning processes to enable the development of AI capable of coping with navigating the rules, laws, traffic control devices, unique infrastructure, and nuances in each city, county, and state, not to mention internationally. Moreover, developing soft infrastructure, including laws and regulations, and setting rules for liability arising from accidents involving autonomous vehicles will be challenging. Similar to the open ITS architecture established by USDOT, there is a need to establish AV architecture within the U. S., if not internationally.

The advent of fully automated driverless vehicles will have a tremendous impact on our society, bringing fundamental changes to the entire economic and social systems. When fully automated vehicles come into operation, they will become a major means of mobility for the elderly and infirmed in rural areas, in addition to agriculture uses. Urban areas will likely experience the greatest changes, the number of cars owned for personal use will drop, eliminating congestion and the need for parking spaces, and car-sharing services will continue to grow.

Companies are investing enormous money in both electric and autonomous vehicles. For example, Microsoft is investing $2 billion in Cruise, that is majority owned by GM, for a valuation of over $30 billion (Colias, 2021). Apple and Hyundai-Kia are planning to start production of a fully autonomous electric car in 2024 (Lebeau, 2021). It is interesting to note that the smart phone market is about $500 billion annually of which Apple has roughly one-third of that market. By contrast, the mobility market is about $10 trillion annually so Apple would only need two percent of that market to match their iPhone business. It is little wonder the interest in the autonomous and electric vehicle space.

Although some estimates are that it will be at least 2040 before fully autonomous vehicles will be dominant, how should we cope with these forthcoming changes? How should we redesign and change the urban and rural infrastructure and landscapes, land use, and the economic and social systems?

There are test beds spreading around the nation in an effort to bring these and other technologies to market—Contra Costa County California formed a Transportation Authority (CCTA) and developed the leading facility in the nation—GoMentum (https://gomentumstation.net), the University of Michigan established Mcity some years ago (https://mcity.umich.edu), Waymo is planning a test facility in Ohio (Moderation Team, n.d.), and Missouri just formed a Missouri Center for Transportation Innovation (https://mcti.missouri.edu). These test beds, and other efforts, reflect the drive toward an autonomous and safe mobility ecosystem future. What do they have in common? They are built on partnerships and collaboration. Of course, the National Academies Transportation Research Board (https://www.nationalacademies.org/trb/transportation-research-board), U. S. Department of Transportation, state departments of transportation, universities, and the private sector represent the best minds around and continually add to our body of knowledge on all aspects of mobility and transportation.

Autonomous marine, freshwater, river, air, truck, and train vessels

This discussion does not even mention other modes and types of autonomous vehicles such as marine, riverine, freshwater, trucks, trains, planes, drones or unmanned aerial vehicles, aircraft, or space craft. Although they share many of the same challenges as cars and similar vehicles, many of these are likely years away before widespread use. Nonetheless, they are on the horizon. Of course, the elimination/reduction of operators will require careful planning to help people find other jobs in addition to negotiations with unions, changes in business models, and changes in society. The following links provide more information on these topics.

“What Will the Autonomous Ship of the Future Looks Like?” Smithsonian Magazine: https://www.smithsonianmag.com/innovation/what-will-autonomous-ship-future-look-180962236/

“The Marine Corps is eyeing a long-range robot boat that can nail targets with kamikaze drones” Task & Purpose: https://taskandpurpose.com/news/marine-corps-long-range-unmanned-surface-vessel-contract/

“A New Generation of Autonomous Vessels Is Looking to Catch Illegal Fishers” Smithsonian Magazine: https://www.smithsonianmag.com/innovation/new-generation-autonomous-vessels-looking-catch-illegal-fishers-180976336/

“Autonomous Shipping: Trends and Innovators in a Growing Industry” Nasdaq Technology: https://www.nasdaq.com/articles/autonomous-shipping%3A-trends-and-innovators-in-a-growing-industry-2020-02-18

“The Future of Autonomous Aircraft” TechXplore: https://techxplore.com/news/2020-12-future-autonomous-aircraft.html

“Xwing Unveils Autonomous Flight System for Regional Planes” VentureBeat: https://venturebeat.com/2020/08/20/xwing-unveils-autonomous-flight-system-for-regional-planes/

“Rail in on the way to autonomous trains” International Railway Journal: https://www.railjournal.com/opinion/rail-autonomous-trains

“Autonomous vessels on inland waterways” De Vlaamse Waterweg: https://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupMeetingDoc&docid=38717

“Automated Trucking, A Technical Milestone That Could Disrupt Hundreds of Thousands of Jobs, Hits the Road” CBS News 60 Minutes: https://www.cbsnews.com/news/driverless-trucks-could-disrupt-the-trucking-industry-as-soon-as-2021-60-minutes-2020-08-23/

“Robots exploring on their own and self-piloting spacecraft are a long way off, says NASA computer scientist” Arizona State University News: https://news.asu.edu/20200220-discoveries-autonomous-spacecraft-baby-steps

Citations

Clements, L.M. and K.M. Kockelman. (2017, January 1). Economic effects of automated vehicles. Research Record: Journal of the Transportation Research Board. Retrieved February 6, 2021, from https://journals.sagepub.com/doi/abs/10.3141/2606-14

Colias, M. (2021, January 19). Microsoft bets bigger on driverless-car space with investment in GM’s Cruise. The Wall Street Journal. Retrieved February 6, 2021, from https://www.wsj.com/articles/microsoft-bets-bigger-on-driverless-car-space-with-investment-ingms-cruise-11611064940#

KPMG International. (2019). 2019 autonomous vehicles readiness index: assessing countries’ preparedness for autonomous vehicles. KPMG International. Retrieved February 6, 2021, from https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/02/2019-autonomous-vehicles-readiness-index.pdf

Korosec, K. (2017, June 1). Intel predicts a $7 trillion self-driving future. The Verge. Retrieved February 6, 2021, from https://www.theverge.com/2017/6/1/15725516/intel-7-trillion-dollar-self-driving-autonomous-cars

Lanctot, R. (2017, June). Accelerating the future: the economic impact of the emerging passenger economy. Strategy Analytics. Retrieved February 6, 2021, from https://newsroom.intel.com/newsroom/wp-content/uploads/sites/11/2017/05/passenger-economy.pdf

LeBeau, P. and Reeder, M. (2021, February 3). Apple and Hyundai-Kia pushing toward deal on Apple Car. CNBC. Retrieved February 6, 2021 from https://www.cnbc.com/2021/02/03/apple-and-hyundai-kia-driving-towards-deal-on-apple-car.html

McFarland, M. (2020, December 14). This robotaxi from Amazon’s Zoox has no reverse function. CNN Business. Retrieved February 6, 2021 from https://www.cnn.com/videos/business/2020/12/14/zoox-robotaxi-amazon-orig.cnn-business

Mehta, Ivan. (2019, April 15). How China’s new highway for self-driving cars will boost its AV ambitions. The Next Web. Retrieved February 6, 2021, from https://thenextweb.com/cars/2019/04/15/how-chinas-new-highway-for-self-driving-cars-will-boost-its-av-ambitions/

Moderation Team. (n.d.). Waymo to open new autonomous testing facility in Ohio. Self Driving Cars 360. Retrieved February 6, 2021, from https://www.selfdrivingcars360.com/waymo-to-open-new-autonomous-testing-facility-in-ohio/

Tomita, H. (2017, December 17). Awaiting the realization of fully automated vehicles: potential economic effects and the need for a new economic and social design. VOXEU CEPR. Retrieved February 6, 2021, from https://voxeu.org/article/potential-economic-and-social-effects-driverless-cars

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  • February 2016
  • January 2016
  • September 2015

Categories

  • 3D Printers
  • 5.9 GHz
  • 5G
  • Alternative Delivery
  • Artificial Intelligence (AI)
  • Asset & Life Cycle Management
  • Augmented Reality (AR)
  • Autonomous Vehicles
  • Batteries
  • Benefit-Cost or BC
  • Biological Diversity
  • Biomimicry
  • Black Swans
  • Business Transformation
  • Clean Energy
  • Climate
  • Cloud Services
  • Collaboration
  • Communications
  • Connected and Autonomous Vehicles (CAV)
  • Construction
  • COVID-19
  • Cyber-security
  • Design
  • Drones
  • Dynamic Transportation Management
  • Economics
  • Economy
  • Education
  • Electric Vehicles
  • Environment
  • Extinction of Species
  • Fuel Taxes
  • Funding
  • Funding Gaps
  • Future
  • Gas-Fueled Vehicles
  • Global Positioning Systems (GPS)
  • Government & Policy
  • History
  • Homo sapiens
  • Infrastructure
  • Intelligent Infrastructure
  • Intelligent Transportation Systems or ITS
  • Internet of Things or IoT
  • Interstate
  • Investing
  • Leadership
  • Learning and Success
  • Lidar
  • Machine Control
  • Maintenance
  • Management
  • Materials
  • Mobility
  • Mobility as a Service
  • Mobility Ecosystem
  • Multimodal
  • Multimodal Needs Assessment
  • Needs Assessments
  • Oil
  • Operations
  • Owner
  • Pandemic
  • Partnerships and Collaboration
  • Pedestrians
  • Performance Measurement and Management
  • Planning
  • Program Management
  • Program or Project Controls
  • Project Management
  • Recycling
  • Relationships
  • Resilience
  • Results
  • Return on Investment or ROI
  • Ride Sharing
  • Risks
  • Robotics
  • Rural
  • Safety
  • Scope, Schedule, Budget
  • Smart Cities
  • Social Justice and Equity
  • Society
  • Solar
  • Strategic Planning
  • Sustainability
  • Team-Building
  • Technology
  • Transportation
  • Trust
  • Urban
  • Utilities
  • Vehicle Miles Traveled Tax (VMT)
  • Vehicle-to-Everything (V2X)
  • Vehicle-to-Infrastructure (V2I)
  • Vehicle-to-Vehicle (V2V)
  • Virtual Reality (VR)

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