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sustainable mobility

E-commerce is booming. What’s in it for urban transport?

Bianca Bianchi Alves's picture

Worldwide, e-commerce has experienced explosive growth over the past decade, including in developing countries. The 2015 Global Retail E-Commerce Index ranks several of the World Bank’s client countries among the 30 most important markets for e-commerce (China ranks 2nd, Mexico 17th, Chile 19th, Brazil 21st, and Argentina 29th). As shown in a 2017 report from Ipsos, China, India, and Indonesia are among the 10 countries with the highest frequency of online shopping in the world, among online shoppers. Although growth in e-commerce in these countries is sometimes hindered by structural deficiencies, such as limitations of banking systems, digital payment systems, secure IT networks, or transport infrastructure, the upcoming technological advances in mobile phones and payment and location systems will trigger another wave of growth. This growth will likely lead to more deliveries and an increase in freight volume in urban areas.

In this context, the Bank has been working with the cities of Sao Paulo and Bangalore to develop a new tool that helps evaluate how different transport policies and interventions can impact e-commerce logistics in urban areas (GiULia). Financed by the Multidonor Sustainable Logistics Trust Fund, the tool serves as a platform to promote discussion with our counterparts on a subject that is often neglected by city planners: urban logistics. Decision-making on policies and regulations for urban logistics has traditionally been undertaken without sufficient consideration for economic and environmental impacts. For instance, restrictions on the size and use of trucks in cities can cause a number of side effects, including the suburbanization of cargo, with warehouses and trucks located on the periphery of cities, far from consumers, or the fragmentation of services between multiple carriers, which may lead to more miles traveled, idle truck loads, and inefficiencies.

In the Pacific, climate change means trying to expect the unexpected

Chris Bennett's picture

I was reflecting on the saying that “ignorance is bliss” as our plane was landing in Tuvalu, a small island nation in the South Pacific. We had been advised that portions of the recent runway resealing was failing in a number of locations, but it was the video below—showing the runway ‘floating’ under the weight of someone walking on it—that was particularly disconcerting.  Runways are supposed to be solid!

Tuvalu has regularly been called the ‘canary in the coal mine’ when it comes to climate change. The country is comprised of three reef islands and six coral atolls.  With the maximum elevation of 3-4 m, and sea level rise of some 5 mm/year, it is already at a risk of a range of climate change challenges. Now we have a new one: runway failure from beneath caused by what appears to be a combination of very high (‘king’) tides and increased rainfall.

Urban transport: Lagos shows Africa the way forward (again)

Roger Gorham's picture
Photo: Ben Eijbergen
With a metropolitan population approaching 23 million, Lagos is the economic engine of Nigeria and one of the largest cities on the African continent. Rapid growth, unfortunately, has come with a myriad of urban transport challenges. To get around, most residents rely on the thousands of yellow mini-buses that ply the streets—the infamous "Danfos"—and on a growing supply of three-wheelers. These limited options, combined with endemic congestion, make commuting in Lagos a slow, unreliable, and expensive endeavor.
 
But this entrepreneurial city cannot afford to be stuck in traffic. Things started moving in 2008, when Lagos introduced Africa's first Bus Rapid Transit (BRT) corridor with technical support from the World Bank under the Lagos Urban Transport Project. The corridor was referred to as BRT-lite, a local adaptation that did not apply all the "classical" features of a BRT (level loading, fancy stations) but was well integrated with the local environment and became immediately successful. In fact, the operator was able to recoup its capital investment in the bus fleet in 18 months even without banning competitor services. The BRT services demonstrated that improving the erstwhile chaotic system was indeed possible.
 
Building on this success, Lagos has taken steps to improve and expand the reach of the BRT. The Second Lagos Urban Transport Project (LUTP2), supported jointly by the World Bank and the French Development Agency, provided about $325 million in 2009 toward building a 13-km extension of the BRT corridor between Mile 12 and the satellite town of Ikorodu. In addition to the BRT infrastructure, the project financed the rehabilitation and widening of the road from four to six lanes, the construction of pedestrian overpasses, a bus depot, terminals, a road bridge, measures to enhance flood resilience, as well as improved interchange and transfer facilities.

What El Niño has taught us about infrastructure resilience

Irene Portabales González's picture
Also available in: Español
Photo: Ministerio de Defensa del Perú/Flickr
The rains in northern Peru have been 10 times stronger than usual this year, leading to floods, landslides and a declaration of a state of emergency in 10 regions in the country. Together with the human and economic toll, these downpours have inflicted tremendous damage to transport infrastructure with added and serious consequences on people’s lives.

These heavy rains are blamed on El Niño, a natural phenomenon characterized by an unusual warming of the sea surface temperature in the central and eastern equatorial Pacific Ocean. This phenomenon occurs every two to seven years, and lasts about 18 months at a time. El Niño significantly disrupts precipitation and wind patterns, giving rise to extreme weather events around the planet.

In Peru, this translates into rising temperatures along the north coast and intense rainfall, typically shortly before Christmas. That’s also when “huaicos” appear. “Huaico,” a word that comes from the Quechua language (wayq’u), refers to the enormous masses of mud and rocks carried by torrential rains from the Andes into rivers, causing them to overflow. These mudslides result from a combination of several natural factors including heavy rains, steep slopes, scarce vegetation, to name a few. But human factors also come into play and exacerbate their impact. That includes, in particular, the construction of human settlements in flood-prone basins or the absence of a comprehensive approach to disaster risk management.

This year’s floods are said to be comparable to those caused by El Niño in 1997-1998, one of the largest natural disasters in recent history, which claimed the lives of 374 people and caused US$1.2 billion worth of damages (data provided by the Peruvian National Institute of Civil Defense).

In India, this transport engineer is racing toward the future… with German supercars

Shigeyuki Sakaki's picture
Harsh, a civil engineer from Surendranagar, the western State of Gujarat in India, proudly has a collection of supercars recently delivered from Germany. They are all brand new with sleek designs, glossy paint, and fully loaded with state-of-the-art features. One of them is a 600 horse-power monster, another is the first of its kind in India.
 
Without further ado, let's see what he has...

Climate and disaster risk in transport: No data? No problem!

Frederico Pedroso's picture
Development professionals often complain about the absence of good-quality data in disaster-prone areas, which limits their ability to inform projects through quantitative models and detailed analysis.
 
Technological progress, however, is quickly creating new ways for governments and development agencies to overcome data scarcity. In Belize, the World Bank has partnered with the government to develop an innovative approach and inform climate-resilient road investments through the combination of creativity, on-the-ground experience, and strategic data collection.
 
Underdeveloped infrastructure, particularly in the transport sector, is a key constraint to disaster risk mitigation and economic growth in Belize. The road network is particularly vulnerable due to the lack of redundancy and exposure to natural hazards (mostly flooding). In the absence of alternative routes, any weather-related road closure can cut access and severely disrupt economic and social movement.
 
In 2012, the government made climate resilience one of their key policy priorities, and enlisted the World Bank’s help in developing a program to reduce climate vulnerability, with a specific focus on the road network. The institution answered the call and assembled a team of experts that brought a wide range of expertise, along with experience from other climate resilience interventions throughout the Caribbean. The program was supported by Africa, Caribbean and Pacific (ACP) European Union funds, managed by the Global Facility for Disaster Reduction and Recovery (GFDRR).
 
Our strategy to address data scarcity in Belize involves three successive, closely related steps.

The road to resilience: sharing technical knowledge on transport across borders

Shanika Hettige's picture
Photo: Sinkdd/Flickr
For many countries, damages and losses related to transport are a significant proportion of the economic impacts of disasters, often more than destruction to housing and agricult+ure in value terms. For example, a fiscal disaster risk assessment in Sri Lanka highlighted that over 1/3 of all damages and losses over the past 15 years were to the transport network. In addition, climate change increases the damages and losses.
 
In the Kyrgyz Republic, where 96% of all cargo travels by road, any disaster-related disruptions to the road network would have severe repercussions on the economy. The Minister of Transport and Roads, Mr. Zhamshitbek Kalilov, is charged with protecting these systems from all kinds of natural hazards, from avalanches to floods.
 
Working to support country officials, like Mr. Kalilov, is why the World Bank Resilient Transport Community of Practice (CoP) and the Disaster Risk Management Hub of the Global Facility for Disaster Reduction and Recovery (GFDRR) organized the Technical Knowledge Exchange on Resilient Transport on May 8-12.

Held in Tokyo, the week-long exchange brought together World Bank clients and teams from 16 countries across all regions to share concepts and practices on resilient transport, including systems planning, engineering and design, asset management, and contingency programming. The exchange drew upon the experience of several countries and international experts who showcased innovative approaches and practical advice on how to address risk at every phase of the infrastructure life-cycle.

Preparing for the future of logistics - the Singapore way

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

Women on the march! Two decades of gender inclusion in rural roads in Peru

Ramon Munoz-Raskin's picture
Also available in: Español
 
 
Women maintaining roads? As their job? Until recently, the idea was pretty much unfathomable in many countries. But in Peru, it isn’t. Since 2001, the Peruvian government and the World Bank have been working hand in hand to ensure female workers can play an active role in the routine maintenance of rural roads. This is part of a broader effort to reduce the gender gap in rural areas, and to improve women’s access to social and economic opportunities.

Over the last two decades, a series of ambitious projects have allowed the rehabilitation 30,000 km of rural roads, and supported maintenance activities along 50,000 km. This type of large-scale road projects has created significant economic and employment opportunities for local communities, and this is why we wanted to make sure women could get their share. To make this happen, we organized trainings, developed specific programs that would improve women’s access to resources, and worked to eliminate the barriers that disadvantaged women (e.g. requirements related to literacy or previous construction experience). The result? In 2013, female participation in rural road maintenance microenterprises reached 27% during the Peru Decentralized Rural Transport Project.

Motorization and its discontents

Roger Gorham's picture
Photo: Sarah Farat/World Bank
They say a picture is worth a thousand words.  While visiting the World Bank library the other day, I was struck by how many development publications featured pictures of motor vehicles on their covers, even though most of them covered topics that had little to do with transport.  The setting and tone of the pictures varied – sometimes they showed a lone car on a rural highway, sometimes congested vehicles in urban traffic, and sometimes a car displayed proudly as a status symbol – but the prevalence of motorized vehicles as a visual metaphor for development was unmistakable to me: in the public imagination, consciously or otherwise, many people associate development with more use of motorized vehicles.

Indeed, motorization – the process of adopting and using motor vehicles as a core part of economic and daily life – is closely linked with other dimensions of development such as urbanization and industrialization.

Motorization, however, is a double-edged sword.

For many households, being able to afford their own vehicle is often perceived as the key to accessing more jobs, more services, more opportunities—not to mention a status symbol. Likewise, vehicles can unlock possibilities for firms and individual entrepreneurs such as the young man from Uganda pictured on the right, proudly showing off his brand new boda boda (motorcycle taxi). 

But motorization also comes with a serious downside, in terms of challenges that many governments have difficulty managing.  Motor vehicles can undermine the livability of cities by cluttering up roads and open spaces—the scene of chaos and gridlock in the picture below, from Accra, is a telling example. In addition, vehicles create significant safety hazards for occupants and bystanders alike… in many developing countries, road deaths have effectively reached epidemic proportions. From an environmental standpoint, motorized transport is, of course, a major contributor to urban air pollution and greenhouse gas emissions. Lastly, motorization contributes to countries' hard currency challenges by exacerbating their long-term demand for petroleum products.

Given these challenges, how are developing countries going to align their motorization trajectories with their development goals?  What should the World Bank advise our clients about how to manage this process?

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