The operators’ view on the future of road transport

Interview data from 450 transport companies across Europe, the Gulf Cooperation Council (GCC) and Asia, conducted by the International Road Transport Union (IRU), has provided global snapshot survey of the future of road transport.

Published by the IRU, the report states that, in the face of geopolitical and economic uncertainty, technology-driven innovation will be key to meeting the challenges of tomorrow in the road-transport sector.

This topic has topped the agenda of the IRU World Congress, a new global event for transport, logistics and mobility, which opened this week in Muscat, Oman.

Umberto de Pretto, IRU’s secretary general, comments: “The global transport system touches the lives of each of the planet’s seven billion people, from the food we eat to the consumer goods we buy.

“So, it’s perhaps not surprising that many of the issues facing society today are also considered by transport companies to be their biggest challenges. These include some of the main themes that dominate the international agenda, including geopolitics, trade and the environment.”

The survey findings reveal that transport companies are concerned about macro global issues. Over half of the respondents (57 percent) see geopolitical uncertainty as the biggest threat facing the sector – from escalating international trade wars to growing concerns around Brexit.

The risk of global recession and the challenge of keeping up with changing customer demand are jointly seen as the second biggest threats to transport companies at 52 percent.

Tech to provide a safe, successful, sustainable future
Transport companies recognise that developments in technology and innovation will be key to building a safe, successful and sustainable industry in the future. One in three (33 percent) transport companies across every region believe that improving safety will be the biggest innovation opportunity, while one in five cite automation.

In fact, transport companies are extremely optimistic about the timescales for automation – over three quarters (76 percent) of transport companies expect autonomous trucks to become a viable option within the next decade.

Of these, 29 percent believe they will be a reality on the road in the next five years. Transport companies believe the primary benefit of automation will be boosting productivity (50 percent), followed by helping to cut costs (19 percent).

Breaking through the road blocks to digitisation
Barriers to adopting technology persist – with transport companies citing the major challenges to adopting technology driven innovation as cost and investment (71 percent), followed by a limited understanding of the range of emerging technologies available (50 percent).

This suggests that pockets of the industry have yet to embrace new technologies and processes, and that there is still work to do to fix the digital foundations of the industry before technology-driven innovation can be optimised properly.

Gearing up for automation
Similarly, while many transport companies believe autonomous trucks are just around the corner, the reality is that there is still some way to go before they become a safe, secure and sustainable option on our roads.   

While the technology itself is becoming ever more sophisticated, there is a risk that it will be held back by the lack of necessary investment in infrastructure.

De Pretto continues: “For technology to take hold, and for the industry to truly benefit from it, we must ensure we have the foundations in place. This means first getting the basics right, such as full transitioning to digital documentation, improving traceability, security and efficiency.

“We must work harder to join the dots between operators, service providers, manufacturers and governments to nurture a supportive environment for innovation and digitisation.

“We must also push for legislation and policies that encourage all operators to invest in the technology needed to make these innovations the norm. At IRU, our role is to champion the potential of the industry and promote this cooperation, to empower all operators in the sector to seize the great innovation opportunity.”

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Focus on Transport

FOCUS on Transport and Logistics is the oldest and most respected transport and logistics publication in southern Africa.
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