Transport Revolution. NordBalt Seminar, 1-2 September 2011, Mariehamn

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1 Transport Revolution NordBalt Seminar, 1-2 September 2011, Mariehamn Ministry of transport and communications Ministry of employment and the economy Ministry of Finance Ministry of the Environment Sitra Finnish Transport Agency Trafi Tivit Oy RYM Oy

2 The Starting point for the Revolution Big drivers for change take place in the operating environment: International competition of city-regions for location of jobs and operations Increase in service standards demanded by users, and more diverse needs Digitalisation, development of intelligent technologies Urbanisation and dispersion of community structures Climate change Change in population structure, aging, new service needs Severe limitations in public spending - need to do better with less Ministry of Transport and Communications Ministry of Employment and the

3 Ministry of Transport and Communications Ministry of Employment and the Potential for efficiencies in.. Objective Lower transport administration operating costs Cheaper products and services Same quality and service level for customers using fewer resources Better service level and cost savings for customers Organising the administration of work through reform of the authority Approaches Procurement procedures that support efficient production and innovation Innovative, efficient solutions to transport problems, digital services From a productcentred operation to customercentred service concepts

4 Transport Revolution phases Transport policy and development activities The Mind Chart Business-driven research programmes Experimental projects Ministry of Transport and Communications Ministry of Employment and the

5 The Mind Chart A new mindset and approach that supports the delivery of a service level that meets the needs of passengers and transport, is productive and sustainably competitive, and enables the provision of new services. The mind chart shows the essential elements of the new approach. It is the joint view of the working group that drew up the map. The follow-up work will put the new ideas into practice effectively and with agility. Ministry of Transport and Communications Ministry of Employment and the

6 Change of Paradigm We are moving from post-industrial society to digital, ecologically sustainable society The amount of information increases exponentially Utilisation of already existing digital location data will revolutionize transport system development and efficiency improvements New generations have new values and are e.g. ready to utilize digital networking when it improves their service level Totally new solutions are found through thinking outside the box Most of the current practices and ways of working are questioned Roles of transport sector actors will change and new actors will appear Historically acquired benefits are not permanent in the society any longer Liikenne- ja viestintäministeriö Työ- ja elinkeinoministeriö Valtiovarainministeriö Ympäristöministeriö Sitra Liikennevirasto Trafi Tivit Oy RYM Oy

7 Only Basic Service Level is included free for all Political decision on the provision of a publicly funded basic service level for journeys and transport, and the funding for it It is the public sector performance guarantee / service promise to users. Criteria will be established for service levels (e.g. accessibility, journeytime, no interruptions, emissions, safety, price, etc.) Additional services will be provided by the market if there is demand and willingness to pay Ministry of Transport and Communications Ministry of Employment and the

8 MALPE: functional alliance of urban and transport planning MALPE the new strategic planning model - matches the requirements of land use, housing, transport, services and business National MALPE strategy to be drawn up as a cross-governmental report at the beginning of the term Fences between different ministries and levels of central and regional administration must be chopped down Planning will focus on functional regions, so-called commuter belt regions rather than municipalities Ministry of Transport and Communications Ministry of Employment and the

9 Ministry of Transport and Communications Ministry of Employment and the Think first Plan more Role and skill-set requirements of public procurement will change solutions and service levels to be procured instead of products and activities Core role is the clear definition of service levels to be procured Idea concepts for the development of corridors, local transport systems or transport services focus to pre-planning stage Implementation of the service level will include innovative use of multiple approaches and tools Users participate in the planning, evaluation, implementation and development of solutions Good service = reliable service

10 New sources of Funding Additional service acquired by users from the market will complement the basic service level and create added value for users The objective of user charges is to have a steering effect, the income can be earmarked for development of the transport system Increased utilisation of land use charges and other compensation the use or other beneficiary will pay for the transport system development Special project companies as vehicles in exceptional and urgent projects, the parties will pay for implementation over the long term according to agreed shares Ministry of Transport and Communications Ministry of Employment and the

11 Revolutionary services Life cycle models, alliance models and the provision of services based on new kinds of public and private sector cooperation must be experimented with and developed further Incentives to develop operations throughout the term of the agreement Delivering service level requires more broad-based skills than at present New business from added value services Utilisation of transport data will be raised to a new level The traffic data marketplace is the exchange for transport information Mobility profile, personal mobility needs and desire to provide services (e.g. car sharing) Mobility account, which can be used to pay for transport services or receive payments for services provided

12 The Revolution is advancing: pilot projects underway 1. New starting points for planning and setting objectives as well as testing in corridor projects (transport corridors Pori-Oulu and Turku-Tampere) 2. Transport zones in urban district land use and transport planning taking national transport connections into account 3. Transport service experiments based on a multiple service model 4. Sustainable urban logistics Tampere, Logiera 5. Piloting of a public transport concept to steer demand (Metropol) 6. Organising a park and ride system in a local rail project Länsimetro 7. Innovative implementation approaches for a travel centre - Turku 8. Combining procurement of transport services with public funds Kouvola 9. New opportunities for organising public transport Tampere urban district Ministry of Transport and Communications Ministry of Employment and the Economy Ministry of Finance Ministry of the Environment Sitra Finnish Transport Agency Trafi Tivit Oy RYM Oy

13 Ministry of Transport and Communications Ministry of Employment and the Modern revolution provides benefits for all Users of services - better basic services - lower costs - market provided, valueadded services - more alternatives - beneficial health effects Public administration - productivity and cost effectiveness - increases attraction of localities - better and more functional structure to society Providers of services - incentives to develop - development and growth of new business activity - internationalisation Society - lower emissions - potential for economic growth - dynamic business activity - increase in well-being

14 Ministry of Transport and Communications Ministry of Employment and the Important terms in the Mind chart Better with less Performance, sustainability, productivity Well-being Strategic and agile User-centred Service philosophy Service level Performance guarantee Beneficiary pays MALPE Working together Idea concepts Varied approaches Experiments Innovative procurement Market-based services Life cycle models Incentives Thinking outside the box Digitalisation Mobility profile Traffic data marketplace Mobility account

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