ADB Business Opportunities Seminar

Transport

Vienna, Austria

21 November 2018

Andrew McIntyre

Head, Project Administration Unit

Urban and Social Sectors Division,

East Asia Department

Trends in Transport

Asian countries need sustainable transport systems – trains, buses, ferries, bike paths – that move people in a low-carbon, safe, accessible, and affordable way.

Operational Priorities Transport Sector Contributions

Addressing Remaining Poverty and Reducing Inequalities

Non-income dimensions of poverty and vulnerabilityReduce inequality in access to opportunities Rural access Equitable access and mobility in cities Regional connectivity Ensure transport continues to be an enabler of development

Accelerating Progress in Gender Equality

Improve access of the poor, women and vulnerable Positive effects on the lives of women Transport systems that are safe and accessible for all Rural roads with community employment opportunities Achieve gender targets in transport sector support

Tackling Climate Change, Building Disaster Resilience

Implementing sustainable and urban transportation strategiesClimate- and disaster-resilient infrastructure design Promote low carbon transport modes (urban public transport, railways, inland

waterways, electric vehicles) Ensure climate resilience in project design Achieve climate change targets in transport sector support

Strategy 2030: Key Linkages (Transport Sector, 1/2)

Operational Priorities Transport Sector Contributions

Making Cities More Livable Urban mobility and support mass public transportDeveloping integrated urban plans Continue growth of urban transport sub-sector (public transport, non-

motorized, and ITS (Intelligent Transport Systems)) Expand support for integrated system management and operation efficiency

Promoting Rural Development and Food Security

Improve market connectivity, focus on rural roads Re-strengthen rural transport focus, including links to other sectors Rural roads, tracks and waterways

Strengthening Governance and Institutional Capacity

Strengthen service delivery Effective operation and maintenance of infrastructure Asset management for road, rail, urban transport and ports Utilize financing modalities that best suit type of support Build capacity and institutions able to manage/operate transport systems.

Fostering Regional Cooperation and Integration

Enhance connectivity and cross border infrastructure needsMulti-modal transport links Cross border transport infrastructure and systems (road, rail, ports, logistic

operations, and border crossings). Support for intra- and inter-regional programs

Strategy 2030: Key Linkages (Transport Sector, 2/2)

Historic Developments and Regional Distribution (Transport)

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Road Transport (Non-Urban) Rail Transport (Non-Urban) Water Transport (Non-Urban)

Air Transport Transport Policies and Institutional Development Urban Public Transport

Urban Roads and Traffic Management Multi-Modal Logistics

1990s 2000s 2010 onwards

Average: $880 million/year

16% ADB total

Average: $2 billion/year

26% ADB total

Average: $3.1 billion/year

26% ADB total

72%

11%

3% 14%

79%

15%

2% 4%

Road Transport (Non-Urban) Rail Transport (Non-Urban) Urban Other

69%

11%

12%

8%

Commitments

Transport Investments by Subsector 1990-2021 (loans and grants)

Expected Trends and Opportunities (Transport Sector)

Tech TSG approach

Design and construction Value engineering (tunnels, bridges, metro, rail – international best practices and standards – introduction of new infrastructure to some DMCs)Lifecycle cost (asset management and budget allocation)Quality infrastructure (regional standards for better integration and higher standards)

Road and rail asset management and system operations

Drones (traffic management, geometry and surveys, project design, monitoring and asset management)Smartphones (apps for network assessment, user interface – RoadRoid, WAZE)Financing modalities (support for suitable KPIs – road condition, safety)

Intelligent Transport Systems (ITS)

Conventional ITS (traffic signals, system area control)Advanced ITS/5G (vehicle to infrastructure or vehicle to vehicle communication)Payment systems (contactless payments, real-time road pricing/tolls)Passenger interface and information systems (citymapper app)

Big Data Traffic control and system management (real-time use of large data)Operational control and system efficienciesLogistic services (Uber for freight)

e-Mobility and autonomous vehicles

Transport policy for fleet renewal and uptake of technology (e-vehicles)Infrastructure requirements - charging stations, street furniture.

ITS – Intelligent Transport Systems

• Expand support for ST by

o making existing types of

operations more sustainable

e.g. roads

o building up new types of ST

operations

• “Directional” targets for subsector

lending in 2020

• Explore support for emerging

types of ST

• Approved in 2010, MTR prepared

in 2016

STI operational plan, 2010-20

7

STI-OP: Progress against

targets

STI in wider context• Global agendas – aligned with SDGs, Paris

Agreement

• ADB corporate agendas – aligned with

emerging focus of Strategy 2030, climate

financing, high level technology initiative.

• MICs – make ADB lending more attractive &

efficient using the available ADB financing

instruments/models

• New financiers – new multilaterals, traditional

donor partners and private sector cooperation

2017-18 Selected innovative projectsLivable cities:

• PAK: Karachi Red Line Bus Rapid Transit Project(David Margonsztern)

• GEO: Tbilisi Metro Extension and Rehabilitation (David Margonsztern)

• THA: Bangkok Mass Rapid Transit Project - Pink and Yellow Lines (Jackie Surtani)

• PRC: Shandong Modern Trolley Bus Demonstration Project (Katherine Guy)

• PHI: Manila transport support (Hiro Yamaguchi)

Climate change:

• BAN: Railway Rolling Stock Improvement (Kaoru Kasahara)

• NAU: Sustainable and Climate Resilient Connectivity Project (Olly Norojono)

Regional cooperation:

• PRC: Multimodal Passenger Hub and Railway Maintenance Project (Anders Pettersson)

Governance and Institutional Capacity:

• BAN: Dhaka Bypass (DBP) Project (Srini Sampath)

• PNG: Sustainable Highlands Highway Investment Program (Olly Norojono)

• IND: Hybrid Annuity Contracts for Roads (Shigehiko Muramoto)

• CAREC: strategy and knowledge support (Dong soo Pyo)

• AZE: Railway Sector Development Program (Jurgen Sluijter)

• PAK: Enabling Economic Corridors Development (Ko Sakamoto) 10

PAK: Karachi Red Line Bus Rapid Transit Project

ADB loan-$242 million; AIIB and AFD loans-$100 million each; GCF loan and grant-$49 million

Issue: Traffic congestion and induced air and noise pollution plague large cities in Pakistan. An informal and inefficient public transport system does not cater for the cities’ mobility needs, notably for the poorest and women.

Approach: Holistic and integrated approach –(i) institutional developments with establishment of mass-transit authorities and BRT operating companies; (ii) stakeholders’ engagement, inclusiveness and bus industry transition program to scrap old, polluting public transport vehicles; and (iii) sound and innovative operational planning [100-km of direct service routes] and financial sustainability.

Innovation/Value Addition: ADB’s loan supports an innovative project design, including full “façade-to-façade” reconstruction of corridors with inclusion of proper sidewalks, bicycle lanes and climate-proofing; universal accessibility; low-emission vehicle technology (CNG-hybrid) with a waste-to-fuel scheme; and intelligent transport systems (real-time passenger information). 11

Trends in Information and Communication Technology

Rapid advances in information and communications technology (ICT) have created tremendous opportunities for economic and social gains in the world’s poorest areas. A key infrastructure of knowledge-based economies, ICT is a driving force for rapidly growing new sectors.

Education; 14; 12%

Energy; 22; 20%

Finance; 10; 9%

Health; 7; 6%Industry and trade; 10; 9%

ICT, 8, 7%

Public Sector Management; 10;

9%

Transport; 26; 23%

Water and Urban, 6, 5%

ICT components included across sectorsin ADB loans/grants (2010-2017)

Operational Priorities Digital Opportunities

Poverty Reduction and Reducing Inequalities

• Education (e-learning, EMIS, model schools)• Health (m-health for NCD, health insurance, health

professionals, telemedicine)• Social protection (national ID, CCT through mobile,

integrated database for social protection )

Gender Equality • Women entrepreneurs ( in digital technology )• Educating girls in digital technologies• Targeted social assistance through identity

Climate Change, Disaster Resilience, and Environment

• Monitoring air/water pollution with remote sensors• Early Warning and Disaster Risk Management • Smart grid with renewable energy, energy efficiency

Making Cities More Livable

• Smart Cities ( intelligent transport system, smart water and waste management, smart control center)

• Energy efficient street lighting, safety with CCTVs

Promoting Rural Development

• E-Agriculture (weather forecast, farming technologies)• Agriculture value chain and e-commerce

Governance and Institutional Capacity

• e-Government (responsive government, transparent and open Government)

Fostering RCI • Cross-border trade, single windows • High tech parks, economic corridors

Expected Trends and Opportunities (ICT in operations)

www.adb.org

For further information please contact

Andrew McIntyre at amcintyre@adb.org

or call +63 2 632 4719

THANK YOU!