MaaS in rural areas - case Finland
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1 VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD MaaS in rural areas - case Finland ICoMaaS, 1st international conference on Mobility as a Service, , Tampere Jenni Eckhardt, Lasse Nykänen and Aki Aapaoja, VTT; Petri Niemi, Lappeenranta University of Technology
2 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 2
3 Project information Project: Mobility as a Service Concept Promoting Service and Livelihood Development in Rural Areas (Rural-MaaS) Co-funding: development fund of the Ministry of Agriculture and Forestry of Finland Project duration: Project coordinator: VTT Technical Research Centre of Finland Ltd. Project partner: Lappeenranta University of Technology Main content: Identify rural MaaS SWOT + Challenges Create national rural MaaS vision Create business models for rural MaaS Give recommendations for regulation and on technical aspects of rural MaaS Propose solutions for the development of rural MaaS
4 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 4
5 Methodology Literature review Interviews: 30 in total Workshops: Two regional in each of four regions: Lapland, Central Ostrobothnia, South Karelia and Southwest Finland One national consolidation workshop Perspectives on mobility services: Business including tourism and last-mile deliveries Inhabitants who pay for their mobility services Publicly supported/subsidized transportation Map National Land Survey of Finland
6 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 6
7 Strengths Decision-makers are aware of development needs: will, enthusiasm and financial support of state and municipalities is extremely important (health and social services require) Kela: call center system for ride-sharing covers the whole country Opportunities Collaboration of municipalities, ELY Centres and social and health service/care actors and Kela Health, social services and regional government reform and changes in legislation enable reorganization of mobility services Regional and inter-regional collaboration in mobility services: operative planning, procurement, best practices SWOT: stakeholders Weaknesses Silo effect of stakeholders: decision-making, economy, legislation, transport, planning collaboration Contracts and procurement: inflexible, traditional price competition, short-term thinking, incompetence, lack of collaboration Lack of resources and expensive current system: subsidized transportation Threats Reducing support and subvention Law reform (procurement law) leads to poor interpretations and solutions (partial optimization) School transportation under the municipalities responsibility may remain separate from the entity The Transport Code will benefit large companies and small ones will lose out The needs of special groups cannot be taken sufficiently into account Large reforms and uncertain future development stops Inefficient investment allocation Lack of collaboration and separate visions of stakeholders 7
8 Strengths Extensive infrastructure: ICT (developed), road network Digitalization: services, adopting, will Opportunities The needed technology exists, is available and develops continuously Opening of data and connecting open data, use in decision-making SWOT: technology Weaknesses Lack of IT systems and information, accessibility and usability: broadband blind spots, communication between the public sector and consumers Threats 8
9 Strengths Local stakeholders and knowledge Stable situation regarding population and services, good predictability of demand Solidarity, spontaneity (e.g. associations, clubs) Active culture of experimentation and support of authorities Opportunities Possibility of an extensive rail network SWOT: operational environment and context Weaknesses Concentration of business and residents to population centres Inefficiency: thin flows, long distances, low occupancy rates, mobility based on personal cars, seasonal changes Limited infra: poor condition of road network, poor coverage of rail network, accessibility of air traffic Threats Condition and maintenance of the road network deteriorate Population is decreasing and aging in the countryside, urbanization Operational preconditions deteriorate service level drops No new market-based services Change of generation will entrepreneurship continue? Will people with limited means stay outside the services? People without a driving license (e.g. children, youth, elderly) are dependent on the mobility of others 9
10 Strengths Sharing economy and peer-to-peer services: trust Sufficient taxi fleet in each location Subsidized transportation: creates basic transport load for the integration of other transportation Posti Group (Finnish postal service): distribution network during weekdays covering the whole country Opportunities Combining rides and creating travel chains: mobility of people and goods, postal delivery, taxi, sharing services; combining stakeholders in social and health services/care, municipality, ELY Centre and Kela; ambulance buses for non-urgent transportation Improvement of service level (accessibility) due to economies gained through combining transportation and technical solutions Bringing services to customers SWOT: services and market Weaknesses Insufficient resources and expensive current system Conditions of commercial stakeholders in rural areas are more challenging Service offering is limited and no competition (transport and other services) Lack of travel chains and interoperability of modes Threats Support and subvention is decreasing Remarkable rise in costs Taxi services will drop, prices will increase, availability will decrease The Transport Code will benefit large companies and small ones will lose out 10
11 Current challenges to rural mobility Actors The silo effect of publicly subsidized transportation Unclear cost sharing between responsible stakeholders No stakeholder responsible for developing and coordinating mobility services in municipalities/regions Challenging to identify good service combinations also from the society s point of view Incompetence and lack of expertise in organizing and planning mobility (tendering, IT) Health, social services and regional government reform and the Transport Code create uncertainty that will complicate the development and combination of publicly subsidized services, at least until the end of 2018 Expenses of publicly subsidized transportation are unsustainable Too high a service level when considering the system as an entity Technology Operational environment and context Incompetence and lack of Lack of a common will and rules expertise in organizing and Slowly changing attitudes/unwillingness toward new solutions planning mobility (tendering, IT) Irregular transportation demand (e.g. school transportation, seasonal changes) Services and market Freight/business goes first (e.g. infra investments) Restricted market Poor service level of public transport Evenings and weekends have an even poorer service supply Public transport does not fulfill accessibility requirements Centralized services may lead to growth in transportation (partial optimization of costs, environmental aspect) 11
12 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 12
13 Rural MaaS vision Ensure for everyone adequate mobility services and accessibility relative to well-being, cost-efficiently with an appropriate service level
14 Objectives Collaboration and combination Combining publicly subsidized transportation (social and health services/care, Kela, municipality) Utilizing transport service centres Developing travel chains (flexibility, ease) Connection between national and municipal/regional level development Adequate service level considering the system as an entity Services and market Accessibility of mobility is important for parity (taking special groups and people without a driving license into account) Transport services for all and on a one-stop-shop principle Developing the attractiveness of public transport (bus, train ); on-demand (and autonomous) transport Technology and information Interoperability and integration of stakeholders and transport modes (one-stop-shop principle) Research and development More extensive pilots On-demand (and autonomous) transport 14
15 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 15
16 Potential solutions: Collaboration and combination Collaboration: Municipalities, social and health services/care, ELY Centres and Kela Public and private sector and people (PPPP) Also international Interoperable payment and ticket systems Service level, delivery frequencies and destinations should be agreed upon jointly Combining different transport services (individual, group, deliveries) Services open to all Mobility services included at strategic level, and in the development projects of municipalities
17 Potential solutions: Services and market Transparency and synchronization of demand and offering On-demand transportation, suitable vehicles Mobility service shops and platforms include the routes, schedules and prices of services, easy to use and adopt, travel chains Comprehensive customer profiles for publicly subsidized transport Service classes with time windows Mobile service vehicles: e.g. health nurse services, diabetes counseling and dental care Sharing economy, digital solution
18 Potential solutions: Planning and decision-making Innovative procurement Legislation and decision-making that support mobility services Also combining the mobility of people and goods Personal mobility budget for publicly subsidized social and health service/care transportation? Kilometer-based zones with different service levels? Capacity of private cars exploited in sharing services Including cars owned by municipalities and companies Analyze air traffic; seasonal changes of demand Commuting, park & ride Pricing logic: taxi including both people and a parcel?
19 Potential solutions: Technology and information Informing the public about mobility services Availability, content, attitude change Safe and secure payment system Charging afterwards in the most economical way for the customer Payment by credit card or by identification IT know-how development among different stakeholders, e.g. municipalities, transport operators etc
20 Rural-MaaS project Methodology SWOT + Challenges Vision & objectives Solutions Conclusions 20
21 Conclusions Collaboration at all levels required Legislations: changes, should be analyzed as an entity, guidance needed to avoid interpretation, encourage to collaborate New pilots: impact assessment, quantitative data, best practices, toolkit Training related to changes for the public sector and service providers Particular characteristics of rural areas need to be taken into account: e.g. legislation and financing Digitalization of data and utilizing open/defined interfaces Zones for different service levels? Join MaaS ecosystems (partners, networks) Sharing economy (i.e. cars and rides) is expected to take off Great potential for increased efficiency: collaboration, open-minded development and innovative solutions
22 Thank you! Questions? VTT Technical Research Centre of Finland Ltd Jenni Eckhardt Senior Scientist Tel Eckhardt, J., Nykänen, L., Aapaoja, A. & Niemi, P (2017) Liikkumispalvelut maaseudun elinvoimaisuuden ja saavutettavuuden mahdollistajana [Mobility as a Service as an enabler for livelihood and accessibility of rural areas] (in Finnish only). VTT research report VTT-R
23 TECHNOLOGY FOR BUSINESS
Business models for MaaS
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