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January 2011

“They are sitting on a gold mine and don’t even know it….”

Holly Krambeck's picture

The other day, my colleague Roger Gorham, a transport economist working in Africa, shared with me an interesting story. He was in Lagos, meeting with stakeholders about setting up public-private partnerships for transport initiatives. One meeting revealed that, in an effort to improve service, a private entity had invested in new taxis for Lagos and in each had installed a GPS unit. This little revelation may not seem interesting, but it was very exciting to Roger, who also learned that the company has amassed more than 3 years of GPS tracking data for these taxis (which, incidentally, troll the city like perfect probes, nearly 24 hours a day, 7 days a week) and that this data could be made available to him, if he thought he might make some use of it.

Now, if you are reading this blog, chances are that you realize that with this kind of data and a little analysis, we can quickly and easily reveal powerful insights about a city’s transport network – when and where congestion occurs, average traffic volumes, key traffic generators (from taxi pick-up point data), occurrence of accidents and traffic blockages in real time, and even the estimated effects of congestion and drive cycle on fuel efficiency.

As Roger said, “They are sitting on a gold mine and don’t even know it….”

Now that you’ve built it, why won’t they come?

Holly Krambeck's picture

If the proven, certified technology is cheap, makes companies more profitable, and at the same time, more green, then why doesn’t every company use it?

 

This is the mystery that our team now faces in Guangdong Province, China, where we are leveraging a multi-million dollar grant from the Global Environment Facility to support the retrofitting of freight trucks with Smartway (and similarly) verified Green Freight technologies*. These technologies improve the fuel efficiency of trucks, and their costs are recovered through fuel savings – in some cases, in as little as six months.   So, the pervasive question – if they are so cost-effective and improve the competitiveness of businesses, why aren’t these technologies used…everywhere?

 

It is an interesting question, because its answer points us to the broader issue of  market barriers in developing countries. How do we identify these barriers, and what is that "spark" that sets market forces in motion?