Tim Staley, NCS Australia’s Chief Operating Officer and Transport and Logistics Lead explains how the digital revolution will transform Australia’s transport and logistics industry – and why procurement managers should be aware of the trend’s implications.
As the Australian economy adapts to digitisation across industries, the transport and logistics industry stands out as a top contender for the digital revolution. While largely independent, the industry is ripe for major disruption and stands at the cusp of a digital transformation.
The implications will affect all importers, which is why procurement managers should be aware of the trend and its pace of change when judging supply assurance.
Changes in climate, traffic and customer expectations have pushed the transport industry to look into serious changes, to ease traffic and empower citizens to reach their destinations quickly and conveniently through well-connected transport options.
The key to realising these goals and providing commuters with seamless connectivity would be digital innovation and a customer-centric approach to digitisation.
Autonomy in transport
There is a significant rise in connected and autonomous vehicles on the roads in Australia, with varying degrees of automation and connection, such as lane keeping, adaptive cruise control and park-assist.
These and more will shape the future of land transport, addressing problems of driver demand-supply mismatch, traffic management, smart route selection and more, while providing a seamless driving experience.
While the country may not necessarily be prepared for fully autonomous vehicles on the road, partially autonomous capabilities still create an endless scope of possibilities for disrupting transport systems.
From fatigue detection in drivers using AI and sensors, to dynamic route selection based on traffic conditions and crowding, ease of parking, real time traffic updates and even last-mile delivery capabilities, autonomous vehicles will play a huge role in improving the transport systems in this country.
Increased adoption of Mobility as a Service
Up to 46% of the Australian population is willing to adopt Mobility as a Service (MaaS), meaning that the next phase of the transport and mobility sector will be shifted from ownership of private vehicles to users of shared/public vehicles; a shift from transportation to mobility.
While MaaS is an upcoming option in the country – with Uber offering ride-sharing options and e-scooters becoming increasingly accessible – users are still unwilling to give up their private vehicles completely, owing to their convenience, independence and flexibility.
Therefore, MaaS is becoming more of a multi-modal alternative for commuters, especially for social outings as opposed to regular commutes.
Sustainability in transport
Australia aims to achieve net zero emissions by 2050. As part of the plan, the Australian Government has created the Future Fuels and Vehicles Strategy – a technology-led approach to reducing emissions in the transport sector and consequently creating new trends and changes for the industry.
The biggest challenge in achieving this goal is a lack of supporting infrastructure for electric vehicles.
The push from State Governments, as well as rising customer expectations and an increase in electric vehicle adoption across the country, has led to an increased motivation for enabling such infrastructure and implementing strategies and funding programs to support its expansion.
Australia is expected to receive more electric charging and hydrogen refueling infrastructure, significantly growing from its current 3600 charging points across 2100 locations.
AI, connectivity and security: a three-pronged approach to transforming transport
Artificial intelligence is already being used in vehicles to provide a range of technology-led solutions to myriad problems. From fatigue detection using cameras inside the car to object detection using sensors outside of it, AI is a key facet of digital transformation in transport.
Using AI and machine learning efficiently will lead to a seamless, interconnected transport system with effective traffic management and smooth freight logistics and vehicle movement.
This well-connected transport system will also employ IoT-enabled smart infrastructure, supported by 5G, with the ability to crowd-source and put to use real-time information and provide updated routes and recommendations.
This would make a huge difference to the current condition of autonomous vehicle adoption, providing a much-needed layer of safety – a prominent barrier to the larger adoption of autonomous vehicles.
However, the associated risks of cybersecurity threats come with increased dependence on IoT and technology.
The more connected and autonomous our systems, the more access cyber attackers potentially have. These can be malicious, like the disruption of a rail transit system causing commuter mismanagement to the considerably dangerous, like manipulating autonomous vehicles to cause accidents.
Cyber attackers can also exploit enterprise networks and state channels using security loopholes. AI-led automation technologies will enable the land transport sector to manage these cyber threats proactively.
The transport system in Australia is ready for a digital revolution, and the full scope of possibilities is yet to be explored. However, AI, machine learning, IoT and data analytics will play key roles in the disruption.
Australia is already paving the way for the world by exploring autonomy and interconnectivity in transport. The road ahead involves efficient use of available technologies, infrastructure expansion and testing, and a change in user mindset towards adopting the transformed transport network.
To learn more about the key trends driving the Australian transport and logistics industry, download the full report from NCS Australia.
