Digital technologies are embedded in the fabric of our transport systems, from the humble automation that enables traffic lights, to the evermore present platforms that enable the movement of passengers and cargo. What previously were complex booking processes are now simple click and agile flows of information. This digital transformation of transport can simultaneously feel futuristic and natural, or even mundane. Emerging technologies like automated vehicles or drones seem remarkable, yet they represent only the most visible aspects of a process that goes substantially beyond the adoption of technologies.
The digital transformation of transport signifies a fundamental shift in the sector’s organization and business models. This shift can disrupt existing roles, create new service models, and requires not just technological changes, but operational, organizational, and cultural changes as well. These changes are enabled by unseen digital infrastructures and networks, which allow for information to flow and payments to be processed, and they rely on both visible and invisible communication technologies. These digital infrastructures overlay traditional transport infrastructures and together build the changing landscape of the digital transformation of transport.
An example of these building blocks is mobile communications. In Latin America and the Caribbean (LAC), more than 84% of the population owns a smartphone. In the Caribbean region alone, the past 10 years have seen 3G and 4G coverage nearing universal range in several countries, and most countries of the subregion have a higher number of internet users than the global average. From digital payments in mobility, like Barbados’ Transport Board newly-implemented cashless system, to whole Port Community Systems being progressively deployed across the Caribbean, digitalization in transport appears to be an irreversible trend. These changes can have undeniable benefits with unprecedented efficiency gains, as a result of increased visibility and the coordination or integration of processes between actors, improved service quality, improved transparency and visibility for accountability, and reduced emissions from operational and energy efficiency.
The digital transformation of transport has not only changed transport systems but the government’s role within them. Digitalization brings changes to the public sector’s functions, value proposition, citizen expectations and responsibilities in the transport sector. Regulation, a traditionally slow process in government, now has to keep up with the rapid evolution of technologies like connected infrastructure, and mobility-as-a-service (MaaS), allowing for benefits and new industries to grow while preserving safety and security. Governments can also benefit from increasing amounts of data to better allocate resources and plan transportation policies, for example using sensors and historical data for real time traffic management.
In a 2022 study by the IDB a survey found that 69% of representatives from the public transportation sector cited a lack of digital culture as a barrier to advancing the digital transformation of their organizations. A short supply of specialized talent was also identified by 35% of respondents. This sectoral finding confirms trends across the public sector in LAC, where many efforts have been implemented yet digital culture and skills are still insufficient. The IDB then aims to accompany the region’s transportation public sector in building a digital culture, with free and available learning materials. That is why the course “Public Policy for the Digital Transformation of Transport” was created.
Public sector professionals who complete this course will not only gain a deeper understanding of digital transformation trends in transportation but also enhance their ability to contribute to policy development, strategic planning, and decision-making. With these new skills, they will be better equipped to foster innovation, increase transparency, and ensure more sustainable, efficient transport systems for the citizens they serve.
This short course will allow participants to understand the challenges of digital transformation and learn about technological trends that are shaping transportation, reviewing success stories, international case studies, and examples for the different sub-sectors: air transport, maritime transport, road transport and urban mobility. Additionally, based on the best practices of countries leading in digital transformation and lessons learned, it presents a set of public policy recommendations to accelerate the digital transformation of transport in the region.
This edition will include an optional experience for students that wish to expand their learning experience after the course, with additional impact evaluation and recognition of learning badges. Students will receive guidance to apply their online learning in real-world activities in their current institutions or environments. This novel method was designed by the IDB’s Knowledge and Learning Division and offers students the chance to receive certified digital credentials.
This course, Public Policy for the Digital Transformation of Transportation, is part of a broader regional effort to equip public sector employees in Latin America and the Caribbean with the skills and knowledge needed to navigate and lead the digital transformation of key industries. As governments across the region embrace innovation, participants in this course will be positioned to lead the charge in transforming the transport sector.
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