Project Report, Prepared for Industry Canada, Transportation Branch,
by John W. Cowan of KPMG, Montreal, March 31, 1997
– 73076/JWC/06/fap

Contents

I. INTRODUCTION

The objective of this paper are three-fold:

• To outline the major types of information technology (IT) which are available to the transportation industry today.
• To review how these technologies are applied to various modes and business sectors in the transportation industry.
• To identify future issues and developments for technology and transportation

The report is divided into two main sections. The first section oulines the six major types of information technology available today for use in the transportation industry. The second section provides details on the various applications of the above technology to transportation. Overall, the report provides a synopsis of the state-of-the-art in information technology as applied to transportation.

II. TYPES OF INFORMATION TECHNOLOGY

The following 6 primary types of information technology are currently employed in the transportation industry:

• EDI – Electronic Data Interchange
• GPS – Global Positioning Systems
• GIS – Geographic Information Systems
• AEI – Automatic Equipment Identification
• MC- Mobile Communications
• EFT- Electronic Funds Transfer

The various technologies are often combined creating new applications for the transportation industry.

A. Electronic Data Interchange – EDI
EDI is defined as the computer to computer exchange of data by independent business entities in a standardized electronic form. EDI is employed to allow the automatic processing of data from information exchanges between independent business entities. It enables shippers, carrierrs, and related parties to communicate efficiently via an electronic medium, enabling the operation of a seamless transportation system.
EDI facilitates the movement of goods:

• from: initial customer request – e.g. request for package pick-up via telephone/modem
• through: equipment supply and pickup – e.g. request routed electronically to courier company,
• through: efficient cargo handling by carriers – e.g. package tracked through its journey via bar-coded and satellite tracking,
• to: ultimate destination and customer – e.g. receipt confirmed by electronic signature,
• including: invoicing, documentation, and financial transactions -e.g. payment made directly from the financial institution to courier company, using direct debit.

The major benefits of EDI are as follows:

• Minimizes manual data entry—the same entry, such as company name and date not repeated for each step.
• Increases transaction speed—the electronic highway is faster than the post of fice.
• Increases accuracy—there is less chance of mistakes being made, usually associated with repetitive data entry.
• Lowers communications costs—communication via telephone lines is cheaper than by courier or the post office, and is paperless.
• Enables automatic data processing—information already entered or retrieved can be employed in other data processing or communications activities.
• Promotes simplification of procedures— it avoids repetition and allows for the development of a simplified standard format for documentation, payment systems etc.
• Increases productivity and efficiency—fewer people are required for data entry and operations, less storage space is required for paper and documents, and data transmission is much faster.

B. Global Positioning Systems – GPS
Global Positioning Systems (GPS) use satellites to track in real time the location of vehicles or equipment. The technology was developed by the US Department of Defense as a world-wide navigation and positioning resource for military and civilian use. Today its benefits are enjoyed by shipping companies, aircraft operators, trucking companies and others in freight and passenger transportation.

GPS is based on a constellation of 24 satellites orbiting the earth over twenty thousand kilometers high. These satellites act as reference points so that air, water and ground vehicles can "triangulate" their position. It is much like a high-tech version of the Boy Scout technique of taking compass bearings from mountain peaks or fixed objects in order to locate a point on a map.

DGPS (Differential GPS) is a further refinement on GPS, and enables greater location accuracy, up to +/- 10 m. It achieves this by filtering out the natural and man-made errors that creep into normal GPS measurements . DGPS receivers on board aircraft, boats, truck, survey vessels, etc. enable operators to pinpoint their location very accurately. This is extremely useful for off-shore exploration, survey activities, truck operations, aircraft operating in remote areas where location accuracy is very important.

The major benefits of GPS include the following:

• It is a free navigation system enabling high degree of accuracy for navigation and location determination. The US government is responsible for the satellite operations and does not intend to impose any user charges.
• It enables aircraft and helicopters can operate in low visibility conditions e.g. fog or land in areas without artificial lighting.
• It allows marine vessels to operate without radar and conventional aids to navigation. Major light stations and fog horns become redundant.
• It provides accurate location references, especially useful for surveys and offshore exploration.
• It enables the precise location and tracking of vehicles, packages and containers. This benefits trucking and courier companies whose customers want to keep track of where their packages are located. Today, it is possible for the customer to track a package via his/her own computer and modem. It is becoming increasingly popular, especially for major shippers using courier companies.
• It allows sophisticated high density traffic systems (e.g., commuter rail,: couriers) to operate safely and efficiently. Accurate vehicle location is extremely important in high-density urban transport systems, in order for them to work efficiently and avoid accidents and other unsafe operating conditions.

C. Geographic Information Systems—GIS
Geographic Information Systems (GIS) enable electronic maps to be produced for highway and railway networks. They also provide electronic charts for marine navigation. Unlike conventional maps, electronic maps and charts can be integrated with other technology, such as Automated Equipment Identification (AEI), to create useful applications such as routing and tracking programs. These are becoming more and more popular with trucking and courier companies, who depend on the technology to improve their efficiency and safety.

Electronic maps can be easily altered and manipulated via the use of computers, enabling more specialized applications to be achieved e.g. displaying rig and vessel locations for off-shore activities or rail car locations in particular corridors.

Currently, electronic maps are being developed for major highway and rail systems in the US. Electronic charts are also used by Canadian marine carriers on the Great Lakes and by Coast Guard.

GIS, when combined with other communications technologies, form an integral component for the following applications.

Routing systems – truck
Allows trucking companies to plan the most efficient long distance routing with various pick-up/drop-off combinations.

Vessel traffic systems – air and marine
Allows real time location of vessels in a port or restricted waterway. This allows VTS operators to inform ships what route they should use to avoid collisions or groundings.

Navigation systems – air and marine
Provides pilots with accurate landing/take-off routings and instructions to avoid collisions or crashes, especially in remote areas or during periods of limited visibility.

Cargo tracking – intermodal
Enables container owners or shippers to locate their containers on a map on a real time basis.

GIS provide the following benefits:

• They allow for extremely accurate map production.
• The maps can be updated quickly with new information.
• Maps and charts can be corrected by carriers/operators to best reflect their operations.
• GIS provides for route and trip planning potential when integrated with real time traffic monitoring systems.
• Trip planning after commencement is also possible, enabling trucks to take different routes to make more efficient pick-ups, avoid traffic congestion, accidents or other travel impediments ahead.
• It allows for greater operating efficiency and reduced idle time, by increasing the capacity utilization of vehicles, vessels, aircraft, etc.

D. Automatic Equipment Identification—AEI
With Automatic Equipment Identification (AEI) systems, transport equipment (e.g., truck trailers, rail cars, containers) can be equipped with individual electronic transponder. Each transponder has a unique code. The code is detected by an interrogation unit, usually located at the terminal gates or at fixed points along route.

Details of vehicles or containers/packages detected by the interrogation units are recorded and/or sent to central location for data processing. Data could include, vehicle number, weight, time at locations, weight in motion, etc. This data in turn can be used in other EDI applications, such as customs declarations, fuel tax payments, etc. Automated vehicle identification (AVI) incorporates similar technology as AEI.

AEI provides the following benefits:

• Equipment and vehicles can be tracked and time/location data used in other processes.
• It increases the speed and accuracy for equipment/vehicle identification.
• Reduces manpower, errors and delays associated with manual tracking.
• Increases container and vehicle turn around time, leading to greater operating efficiencies.
• Integral for tracking and positioning systems currently employed by container port operators, trucking companies, couriers and rail companies.

E. Mobile Communications—MC
Mobile Communications (MC) consists of two-way voice and data communications between a moving vehicle and a terminal or ground station. It is one of the oldest forms of IT. Early examples include walkie-talkies, CB radios etc.

The technology enables real time transmission of voice or data via radio, cellular and satellite devices. Data can include electronic mail, EDI, vehicle or cargo monitoring information etc. For example, a vehicle's location, operating performance, fuelefficiency, weight and container number could be sent back to the fleet headquarters to analyze driver performance or the efficiency of routing decisions.

MC offers the greatest scope of all information technologies, as it is the main conduit for voice/data transmission. Intense competition in the field, combined with sophisticated technology is increasing the potential for the quantity and speed of data transmission at lower per unit costs. As MC is so flexible and available, it is employed in all modes and incorporated in most IT applications.

F. Electronic Funds Transfer—EFT
Electronic Funds Transfer (EFT) allows for the payment for goods or services electronically. With EFT, funds moves between banks and countries safely and securely. Time consuming and wasteful paper documentation is eliminated and the whole transfer process is speeded up.

The SWIFT system (Society of Worldwide Interbank Financial Telecommunication) is employed by most banks in international trade. It is a tested system and provides a secure electronic conduit for payments. This North American system in place with most major banks and financial institutions. e.g., Interac, Cirrus etc.

EFT promotes increased speed of payment and documentation. This reduces administrative costs for all parties. Starting with the paperless invoice, or electronic request for transport services, the EFT process complements and closes the loop for commercial transactions in transportation.

EFT is currently being incorporated into communication via the Internet. While there are current concerns regarding the safety and confidentiality of the transfer process, new security procedures and encryption processes are being developed to fully utilize this communications corridor.

III. INFORMATION TECHNOLOGY APPLICATIONS

The six types of technology reviewed in the previous chapter are currently being utilized in an enorrnous array of applications in the transportation industry. The most prominent IT applications for the transportation sector include the following:

• Intelligent Vehicle Systems—IVS
• Traffic Management Systems—TMS
• Fleet Management Systems—FMS
• Just-In-Time delivery
• Positioning Systems
• Tracking Systems
• Bar Coding Systems
• Internet
• Electronic Commerce

These applications require various types and combinations of information technology, discussed earlier.

A. Intelligent Vehicle Systems—IVS
The concept of Intelligent Vehicle Systems (IVS) is based on technology enabling vehicles to act "intelligently". IVS incorporate advanced computer, coramunications, and sensor technologies in vehicles an along routes.

"Intelligent" vehicles improve the perforrnance of transport systems by operating in the most technologically proficient hence overall efficient manner. Human error is reduced as vehicles are able to respond more quickly to situations or provide instantaneous data feedback for operators. IVS is making the most inroads in trucking, freight and commuter rail systems.

The following are the major types of IVS available today.

• Advanced Trip Planning (ATP)—Provides in formation on preferred routing, and optimum travel times.
• Advanced Travel Conditions System (ATCS)—Provides information on road, traffic, and weather conditions
• Advanced Travel Orientation System (ATOS)—Identifies current user location, and provides navigation information.
• Advanced Business Information System (ABI)—Provides information on local facilities, products.
• Advanced Mobile Communication System (AMCS)—Provides direct voice and data communication between vehicles and stationary terminals.
• Automatic Vehicle Identification (AVI)—Identifies passing vehicles based on some form of electronic license plate.
• Weigh-in-Motion (WIM)—Measures axle and gross vehicle weights for commercial trucks.
• Advanced Corridor Control System (ACCS)—May include traffic incident detection and management, control of access and traffic flow, and demand management features for a specific corridor.
• Advanced Area-Wide System (AAWS) — Includes traffic flow optimization, and control of street parking.
• Advanced Assist/Control System (AACS)—May include monitoring of driver behavior, driver assist (gap control), vehicle control (governed speed, automatic braking), and automatic chauffeuring.

B. Traffic Management Systems—TMS
Traffic Management Systems (TMS) incorporate IT technology to promote more efficient use of existing transport systems.

TMS can increase the safety, mobility and efficiency of vehicles operating within the transportation system by:

• Decreasing the environmental impact; through improved fuel efficiency, lower emissions, reduced noise and congestion.
• Reducing fuel consumption by maximizing the overall operating efficiency of the system.
• Efficient operation, reducing down time and improving vehicle and system capacity utilization.
• Reducing the risk of accident, and consequential damage. TMS allows operators to maximize the use of vehicle technology, reducing the chance of human error.

TMS are used extensively in trucking, marine and railway modes.. Two examples are considered in more detail:

• IVHS – Intelligent Vehicle Highway Systems
• VTS – Vessel Traffic Systems

  1. Intelligent Vehicle Highway Systems
  Intelligent Vehicle Highway Systems (IVHS) incorporate most IVS technologies. TMS improves traffic flow, especially around urban areas. For highways, congestion is reduced, allowing trucks and traffic to make better time. This improves overall capacity utilization and efficiency.

  Traffic control devices adjust to real time traffic for improved performance. The flexibility to adjust to real time situations as opposed to responding to a preset program makes IVHS a powerful planning tool for the future.

  Current examples of IVHS technology includes:

  • overhead or roadside changeable message signs;
  • synchronized traffic lights;
  • congestion analysis systems allowing police or ambulances to get to a specific location via the quickest route;
  • toll booth systems, including electronic tolling, optimizing traffic throughput.

  2. Vessel Traffic Systems—VTS
  Vessel Traffic Systems (VTS) increase safety and efficiency of marine vessel traffic (e.g., in congested ports or high traffic density restricted waterways like the St. Lawrence Seaway). They have the capability to interact with traffic and respond to traffic situations. Via two way communication and real-time vessel location systems, they allow for unsafe or inefficient traffic situations to be avoided.

  VTS also reduces traffic levels and lessens the complexity of traffic flows. This improves safety and lowers the risk of collision. VTS also reduces the potential for ships exceeding their technical limitations, due to adverse weather conditions, ice or fog. For example, small vessels would stay at shore with advanced weather conditions made available to them. Large vessels would be aware of the potential for moving icebergs in the region.

  Overall, Vessel Traffic Systems will minimize:

  • the cost of resources used, through overall operations efficiency. Fuel consumption is optimized with main engine use being reduced. Efficient routings also improve overall fuel efficiency;
  • the number and effects of accidents through collision avoidance procedures,
  • the subsequent human and vessel injury;
  • potential for further accidents resulting from the initial incident. Chain reactions are thus avoided;
  • environmental damage associated with vessel leaking-cargo or fuel.

C. Fleet Management Systems—FMS
Fleet Management Systems (FMS) are management tools which enable a truck fleet's operations to be managed effectively, thereby increasing efficiency and lowering costs. FMS can significantly reduce fuel consumption and emissions. Aside from the environmental benefits of lower emissions, fleet managers have a strong financial: incentive to implement fleet management programs to reduce fuel costs.

The following major FMS types are available in the market today:

• 1. Integrated systems
  Integrated systems are designed to help control a fleet's transportation costs and increase its productivity.

  Typically they perform following functions:

  • cash management (e.g. track overdue reccivables, payables, interline reconciliations),
  • operations (matching loads to available drivers, tracking fuel taxes, keeping a record of backhauls available),
  • management reporting (financial and business trends, sales and profitability analysis), and
  • billing.
• 2. Routing systems
  Vehicle routing systems have two main uses:
  • They can be used to create optimal pickup and delivery (P&D) in urban areas, where the number of stops is very high (e.g. school bus routes, beer delivery etc.).
  • They can determine the best long distance routes to utilize, and provide supporting graphics and trip details.
• 3. Dispatch systems
  These systems organize a fleet's daily dispatch. They can communicate immediate shipment or work order information to drivers. They also offer immediate identification of special handling requirements, and immediate tracing of customer shipment.

  Benefits include the following:

  • reduced fuel usage,
  • allow for long term planning,
  • elimination of breakbulk cargoes,
  • reduction of overall cycle time.
• 4. Maintenance systems
  These systems are computerized databases of maintenance records for each vehicle in a fleet.

  Information stored includes:

  • identifying records (e.g. unit description, serial number, plate number, year, company, terminal, etc.),
  • ongoing information recording (e.g., odometer reading, current hour reading, etc.)
  • on-going maintenance information (e.g., repairs carried out, parts ordered, etc.).

  This results in:

  • improved fuel efficiency,
  • reduced overall maintenance costs and down time.
• 5. Onhoard monitoring systems
  These systems monitor vehicle performance.

  The following equipment is used:

  • computer and sensors installed in the vehicle,
  • means of data transfer e.g. memory cartridge or direct connection,
  • computer software.

  Basic services include frequency measurements (e.g. engine speed, vehicle speed, idling time and fuel consumption). Add-ons could include reports on P&D, state or provincial boundary crossings and trip expenses.

  These systems provide the following benefits:

  • monitor driving habits,
  • track fuel economy by vehicle,
  • schedule and monitor preventative maintenance,
  • provide a detailed event history for accident analysis.
• 6. Miscellaneous
  There are numerous specialized programs designed for:
  • keeping track of driver records,
  • maintaining fuel tax reporting requirements, and
  • general administrative duties.

  Benefits include:

  • better fuel efficiency, and
  • lower maintenance costs.

D. Just In Time
Just In Time (JIT) is an inventory replenishment method whereby:

• a company keeps minimal stocks on hand,
• suppliers deliver only quantities immediately required,
• inventories are carried by suppliers as opposed to the purchasers.

This results in a streamlined accelerated transportation and distribution process. It requires accurate communications between shippers and carriers, utilizing the latest information technology. EDI and mobile communications (MC) figure prominently here.

Information technology for the integration of inventory control and transport is critical. Carriers, especially truckers, have to meet exacting schedules. EDI and scheduling software are used extensively for scheduling and documentation control. Direct electronic links between the supplier and purchaser enable inventory to be minimized, and transport capacity utilization maximized.

JIT is used by most

• large manufacturing industries,
• automobile manufacturers and parts suppliers,
• major retail suppliers and outlets,
• food distributors.

E. Tracking systems
Satellite tracking systems are an application that permit carriers, intermediaries and shippers to know precisely where their goods are physically located, often in real-time. These systems are used extensively in trucking industry (e.g. tracking allows operators to pre-arrange agricultural inspections, customs documentation, etc.).

The systems consist of onboard terminals and PC-based communications software. They allow users to access data through their commercial service provider.

While single mode tracking is not new, the future challenge lies in multi-modal tracking. Some container companies, e.g. Maersk, Sea-Land have systems in place. However, outside of the container shipping and courier industries, they are generally not widespread.

The following tracking systems are available:

• Basic systems (e.g. single mode),
• Trailer tracking systems (e.g., tracking the location of trailers for scheduling, inspections etc.),
• Driver performance reporting systems (e.g. driving hours, average speed and idle time),
• Vehicle diagnostic reporting systems (determines how the vehicle is operating, e.g. odometer, engine rpms' etc.),
• Decision support systems (optimal route allocation).

F. Positioning systems
These are similar to tracking systems, however they focus on determining the precise location of objects. These systems are used extensively in the courier and LTL business.

The benefits include the following.

• Improved operations management, via
  • optional asset allocation and routing, and
  • tracking assets and dynamic response.
• Improved customer service through
  • rapid and flexible response, and
  • enhanced EDI integration.
• Enhanced administrative compliance (e.g. customs, fuel tax, inspections, licensing)
• More effective positioning systems, enabling operators to:
  • streamline paper work,
  • provide compliance evidence,
  • reduce inspection downtime, and
  • accumulate historical data.
• Improved safety and security.

G. Bar coding
Bar coding is used by most courier companies and LTL carriers. When combined with tracking and positioning systems, it enables containers, packages and shipments to be tracked through the distribution systems.

Shipments are scanned when received, delivered, and at key handling points. Standard technology includes hand-held reading devices with communications links. to central computing systems.

Data is uploaded onto PC, minicomputer or mainframe based systems. The information can be accessed by shippers and/or received via their communication systems.

H. Internet
The Internet is a world-wide communications highway linking companies and individuals 2 via computer. This system has become increasingly popular due to cheaper, more sophisticated softwere and hardware becoming available.

The Intemet can be used for the following:

• E1ectronic communication between suppliers, carrier and receivers.
• Advertising, promotion and scheduling via web sites
• Direct interface with customers, e.g. providing schedules, order processing directly to customer sites
• Potential for electronic funds transfer once problems of transmission security have been solved.

The benefits include:

• Low cost to users. The only costs are subscription fees and cost of creating a home page.
• Accessibility, via current telephone systems.
• Information for customers, suppliers, etc. is made easily available. Convenient access to information is critical for transportation companies to be competitive.

I. Electronic commerce
The purpose of employing electronic commerce is to create paperless document flow. Electronic commerce employs EDI and EFT technology to create order/payment systems.

Electronic commerce is currently used for:

• Invoicing,
• manifests,
• customs,
• payments.

The primary benefits are as follows,

• Re-keying of input data is avoided,
• Rapid transmission of orders and payment, reduces payment period and improves operating margins,
• Large number of participants receive more accurate information. This benefits large companies spread over a large territory or operating in different countries,
• Potential for invoiceless payments, significantly reducing the time an expense associated with the distribution process.

J. Future technology

1. Voice recognition
Voice recognition technology has evolved during the past decade. As the technology becomes more sophisticated, keyboard data entry will be reduced. This will increase the speed and accuracy of electronic communication.

2. Data warehousing
With the advent of bar-coding and point-of-sale information, massive quantities of data are available to customers and carriers. This data is now being warehoused and analyzed to identify product flows, trade patterns, container routings, performance analysis, etc.

3. Integrated enterprise systems
This is the integration of software and other types of IT. Current off the shelf IT is bundled and reprocessed by outside vendors to create new technology.

4 Sophisticated bar-coding
Bar-coding is currently popular in the retail sector. Sophisticated bar-coding will enable containers and vehicles to be tracked, not just packages. The key is to develop internationally recognizable bar code standards to facilitate world-wide tracking and tracing.

5. Internal package tracking
The initial package tracking systems initially consisted of a simple barcode containing a waybill number. Recent barcode systems are significantly more sophisticated, able to convey the weight, number of parcels in the shipment, and other elements of the waybill. However, the next step in package tracking systems is here with the "smart stamp” that packs some 256 bytes of data, a battery and an antenna into an casing the size of a large postage stamp. Information on each shipment is loaded onto a reusable, affordable stamp, which is attached to the package. The stamp transmits the information, which can be picked by a scanner up to a few meters away. The results are impressive as the high labour cost of package scanning is eliminated and package tracking can truly be considered real-time. The next wave of stamps will likely include a transponder onboard, enabling real-time exact position tracking.

6. Customs clearance systems
The recent roll-out of ACROSS by Canada Customs and the greater use of EDI have proved to be a major step forward in getting the package cleared and to the customer faster, at a lower price. Eventually, the internet is expected to become the backbone of the Customs system for more widespread application.

7. Dispatch systems
Many dispatch communication systems exist today ranging from private radio wave systems to cellular to PCS. The digital PCS system represents the most promising system at this time, but ultimately the provider of the lowest cost, reliable system will prevail in the long term. The dispatch systems are also beginning to integrate sophisticated GIS into their systems, but the major breakthroughs are expected as private dispatch systems work securely on the net.

IV. ISSUES IN INFORMATION TECHNOLOGY AND TRANSPORTATION

The following major issues in information technology and trends in the transportation industry will impact on IT development applications in the future.

A. Information technology issues

• EDI standards—There are two standards employed today – X12 and EDIFACT. Users of IT must conform to these standards in order for integrated transportation systems to be effective. In the future, a common standard will have to be developed and recognized by all users in order to maximize the effectiveness of EDI.
• Systems compatibility—Hardware and software systems must be compatible in order for electronic commerce and integrated IT to be effective. There are numerous IT systems in the market place and compatibility is a major barrier to the effective use of IT. As with standards, when systems become more compatible in the future, the use of IT will dramatically lower operating costs.
• New computer technology—New and faster hardware combined withincreasing sophisticated software has greatly enhanced the use of IT in transportation. Overall costs are decreasing as new systems become more powerful and adaptable.
• Data and transmission security—Transmission security is of paramount importance for electronic commerce. Payments, especially international, cannot be made unless customers and financial institutions are comfortable with the security of the electronic chain. Increased investment in security procedures will be necessary in the future, especially with the growing use of credit card payments via internet.
• Partnerships—Partnerships between shipper, receivers and transportation companies will enable effective communications systems to be established. Partnerships between government and industry for research and development of new technology will be required.

B. Trends in transportation
The following major changes are underway in the transportation industry.

• Restructuring—Many carriers, logistics providers and government transport departments have recently restructured or are in the process of downsizing, focusing on core competencies and reducing costs.
• Globalization—All modes of transport are now realizing that they are in a global marketplace. Air and marine carriers are under more global competition. Truck and rail carriers now must reach across national boundaries to successfully serve their customers.
• Network consolidation—Many carriers have set up hub and spoke operations and are in the process eliminating some regional facilities.
• Direct delivery—Shippers want carriers to provide door-to-door service thus carriers must offer intermodal service through strategic partnerships or integrated operations.
• Shrinking lead times—Shippers want to reduce "time" in the system thus carriers must be more time conscious and able to trace and track product.
• Focused production—Some industries have gone to focused factories concepts (one factory producing one product and supplying all others). The transportation industry must respond to the time and service demands of such concepts.
• Integrated logistics—Some shippers want carriers to offer full service logistics services.
• Quality management—Concepts like ISO 9000 are now common in the manufacturing industry. As suppliers to this industry, carriers must be quality certified as well.
• User pay—Many governments now want to tax the users of the transportation system instead of taxing the general public. User pay could be in the form of highway tolls, airport tax, air ticket tax, and port user taxes.
• Change in ownership and operation of transportation infrastructure— Traditionally, governments have been the owners and operators of much of the transportation infrastructure. This is changing in many countries as airports, highways, air navigation systems, railways, etc. are privatized.