2012 Freight Summit by Luigi Cappel


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This is a presentation I gave to the New Zealand Freight Industry in 2012

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  • This is not an advertorial, but I need to give you an idea of where our perspective comes from. Our core business is collecting the most accurate possible data and providing means for solutions and products to use it. We are a wholly owned subsidiary of the NZ Automobile Association and the principal supplier of location based / map data to a wide variety of industries. Our origin was in aerial photography and rectified LIDAR orthophotography ( jargon for turning a 3D image into an accurate 2D image) for central, regional and local government and when we saw opportunities such as car navigation and fleet management coming, we looked at how we could expand our business.We began with LINZ data for roads and UBD data for Points of Interest and started work with Navman and some car manufacturers including BMW and started trying to navigate with this data. We rapidly found that the data was highly inaccurate, for example the maps were not only spatially inaccurate but something like 20% of the roads on the data physically didn’t exist., I’m sure you’ve heard of paper roads. The shareholders sold 60% of the company to VC’s in order to gain the capital to drive every road in New Zealand. This is work we continue to do with greater and greater accuracy. Around 4 years ago we were purchased 100% by the NZAA, allowing us to do R&D and develop services that would have been very difficult for a smaller private company.
  • So fundamentally our business is that of forecasting what data our existing and future clients will need and have it ready to coincide with their product development and delivery timelines. Our clients include the leading brands of car navigation, vehicle tracking and fleet management, transport engineers, government and motorists including 1.3 million AA members. Location based products and services are designed to meet problems and there are many, hence the demand for a conference like this.In order to be in sync with future developments we need to be 2 steps ahead and often that means we need to develop technology that doesn’t readily exist to help alleviate problems that currently may not be seen have effective solutions. If you aren’t going forward you are going backwards.
  • One of the first problems we had was data quality. We initially drove NZ with differential GPS, which was the technology of the day. One of the biggest problems was how to get a highly accurate road centerline, LINZ which is the official font of road data was not designed for or suitable for our needs. We couldn’t find a solution that dealt with issues such as GPS shadow, urban canyons or anything that provided the accuracy that we needed to meet the needs of technologies being developed. We worked together with highly skilled Kiwi engineers and developed our own technologies, resulting in the RAPIDcV. Now we have been able to collect road centerline and a wealth of other data to an accuracy level we haven’t seen anywhere else in the world. At least in the civilian world. In order to provide the sorts of solutions that your enterprises will be using this year and well into the future, you have to start with a high quality baseline. Near enough is not good enough.
  • I was first introduced to the laws of traffic congestion in an issue of New Scientist on a flight home from a conference in London. Road researcher Anthony Downs, who was far from being first, reportedhis law of “peak-hour” congestion in 1962. He said “This Law states that on urban commuter expressways, peak-hour traffic congestion rises to meet maximum capacity.” Economists Gilles Duranton and Matthew Turner of the University of Toronto 2011 came up with the three-pronged “fundamental law of highway congestion” that explains why road construction can never keep pace with road congestion: 1: People drive more when the stock of roads in their city increases; 2. commercial driving and trucking increase with a city’s stock of roads; and 3. people migrate to cities which are relatively well provided with roads. So the answer isn’t necessarily build more or bigger roads. Of course the NZ population continues to grow as we live in such an attractive country and a wonderful place to raise a family.
  • That was 13 years ago. At that time the Auckland Business Forum was established out of frustration to this problem. Some of the members are probably here today. They include the Auckland Regional Chamber of Commerce, EMA Northern, Ports of Auckland, Auckland International Airport, The NZAA who own GeoSmart, who I am representing and National Road Carriers. David Aitken, Executive Director of National Road Carriers was quoted in the NZ herald on August 11 2009, 10 years later as saying that "Carriers make 500,000 trips in the Auckland region every day but this is going to double by 2025. We need a lot more infrastructure to deal with it." Again, this slide is only about Auckland.
  • The one on the right is actually on the M1 near Ipswich in Australia and was one of two majors within an hour. Accidents happen. They happen every day, believe me I know, we run the AA Traffic Service in New Zealand and also provide the data for TomTom’s HD Traffic throughout both Australia and NZ.
  • One of the first things we did when AA purchased us was rebuild the AA Roadwatch service, used by most commercial road users and AA members. We then got together with a number of Fleet Management partners and arranged to collect anonymous data from certain types of commercial road users with location, bearing and speed across all State Highways and arterial roads throughout New Zealand. We have been collecting, processing and storing that data now for almost 2 years. That means that in addition to real time data, we have historical raw data and aggregated data in 15 minute segments throughout New Zealand for the whole country outside of residential streets and minor roads.
  • This data allows us to provide a variety of alert services including on web sites, to car navigation, mobile SMS and email alerts, and applications. Often we know about accidents or incidents before they have even been reported to us because we have access to the congestion flow information. The best known web sites are AA Roadwatch and AA Maps.
  • Another web page is AA Journeytimes which can help people make decisions before they head out on the road and for dispatchers and fleet controllers to keep an eye on in real time. These sites are used by a variety of services from couriers through to the Corrections Department.
  • We can generate reports for any predefined routes by time of day, day of the week and so on. A similar report to this one across SH2 over the Rimutakas showed us slow traffic northbound at around 1AM on certain weekday mornings, suggesting freight trucks trying to avoid the busier traffic during the day. This sort of information could be a valuable resource for freight management planning new routes and for authorities wanting to understand usage without investing in expensive technology or people with clipboards on specific road segments.
  • The most in demand feature in car navigation around the world today is real time traffic. You may know where you are going, but you don’t necessarily know what is happening on the road ahead. We constantly see images on TV news of lines of stationery vehicles on the road due to accidents, slips, flooding, snow and other obstacles. We are also advised in advance of planned road closures for maintenance, sporting events or other reasons. Now that car navigation has become a connected service, it is possible to send information direct to the vehicle within minutes of notification being received in our call centers. Because of the quality of the AA Traffic service in New Zealand, our country was the first country outside of Western Europe to adopt TomTom’s HD Traffic service. They were so pleased with that, that in spite of there already being a service in Australia from another supplier, they felt ours was better and asked us to consider developing a similar service there. We did that and late last year HD Traffic was launched in Australia, managed by our call centers and technology in New Zealand. Of course that means that we are also collecting and collating historic data throughout Australia.
  • There are many consequences to not being able to complete a trip on schedule. Deliveries and service levels are not met, this causes a concertina effect on subsequent work. Drivers can’t continue because they run over their hours. Perishable goods may be compromised. Penalties for late delivery. Connections such as shipping or just in time stocking of retailers fail. Additional vehicles and relief drivers may be required. These are just a few. Everybody hurts.Real Time Traffic technology doesn’t solve the problems any more than building extra roads does. It does allow decision makers to be informed so that they can minimize the consequences.
  • How many of you have KPI’s or commitments to Sustainability? It is no longer just a buzzword. Governments and companies now have a focus on reducing carbon emissions and there is now significant evidence that it is more profitable to have a green policy, whether that be because it actually saves money, whether carbon emissions are taxed, or businesses and government departments either prefer to, or become required to do business with eco friendly transport companies. Earlier I mentioned our RAPIDcV mapping car technology. As well as mapping the roads to sub 1 meter accuracy we are also measuring inclinometer, that is the gradient of hills. By computing vehicle characteristics in conjunction with road conditions it may be found that going the long way around hills instead of over them is actually cheaper in terms of carbon footprint, maintenance and running costs as well as winning support of customers. Road geometry in terms of angles of corners is also important. Tight corners mean more gear changes (even if the vehicle is an automatic) and this increases wear and tare on the vehicle, fuel consumption and is harder work for the driver, increasing risk of accidents.Our data for navigation includes implicit turn restrictions which are turns which may be legal but may be difficult or impossible for large vehicles to maneuver. This data is used in our routing tables to ensure vehicles don’t end up stuck, unable to go forward or backwards without assistance. We have 3 times as many implicit turn restrictions in our data than we have legal turn restrictions such as one-way streets, no right turns etc.
  • Prize for first person to tell me where the road on the right is. New Zealand is a country of diverse conditions. We take pride in building quality roads with well engineered corners designed to meet the demands of all road users. Mother nature has a different perspective. She provides earthquakes, geothermal activity, floods, slips and other entertaining distractions. The fact that a corner is designed to enable a truck to maneuver through it at 70km per hour and was built to that specification, doesn’t mean it will stay that way. Earth moves, corners move and trucks roll over.The problem is that unless it is discovered subsequent to an accident or by inspection, the condition may be unknown. We are collaborating with Fleet Management companies and transport consultants to explore ways of dealing with this. The RAPIDcV has collected camber data throughout most of the country for this purpose. By combining rollover characteristics of specific trucks, with known chassis details and rollover specifications, it will soon be possible to alert a driver that he is going to fast for the corner he is approaching, even if he has a legal load and is obeying the road warning signage. Load cells on trucks make it possible to identify the weight of the vehicle including the freight it is carrying at that point in time. This has dramatic implications on reduction of heavy vehicle accidents and all the consequences. I don’t know what the annual cost is of roll over incidents on corners, but it is way too high and hurts everyone. Many of these incidents can be avoided with technology currently being developed in New Zealand.
  • Telematics have been around in Fleet Management for a long time. Systems vary in complexity but even at basic level they record where a vehicle is, where it has been and when. It records things like engine conditions, air bag deployments, driver behavior such as speeding, harsh braking, starting in second gear, idling time, temperature of refrigerated units and much more. It won’t be long before this technology becomes mainstream. Car manufacturers are chasing developers to create in car apps as quickly as they can for everything from in car entertainment through to tourism event and accommodation reservations, car park availability and more. Companies like eRoad and International Telematics have services such as eRUC, allowing the purchase of road user charges from a digital hubometer without having to leave the cab. We are now able to communicate a wealth of information to and from the vehicles, providing alerts and instructions to the drivers, service information to partners such as tyre and service companies, all of which produce business efficiencies and safety improvements.
  • Route optimisation has traditionally been very expensive and has required equally expensive people to run it. Companies with large vehicle fleets, can easily amortize the cost of dispatch systems, route optimisation and end to end ERP solutions and really can’t do without it. Smaller companies, typically family businesses tend to be good drivers, good at developing personal relationships with their clients, have good skills when it comes to load management, driving and being flexible when their customers needs change. However they run on tight budgets where the slightest change can impact on their profitability. They don’t have spare trucks, spare drivers and until now haven’t had access to smart business decision making technology. This has no changed.
  • Once we had developed a full turn restriction dataset, we began looking at how we could user our data to solve business problems. A large field service company came to us in 2005, you may recall 91 unleaded petrol prices went from around $1.12 a liter, peaking at $1.50 a liter. Their fuel bill for the last 2 calendar months of the year was going to be close to $100,000 more than they had budgeted for. That’s not their fuel bill, that’s just the differential between the price changes. Now of course its over $2 a liter, double what it was back then. I don’t have time to tell you the full story, but their field staff were not highly remunerated and they were expected to manage and juggle a variety of client visits and ensure that all of them were met each month. They very rarely achieved that. Vehicles zigzagged all over the country to whatever logic the drivers did or didn’t apply. In short, we jointly came up with a solution that combined route optimisation with their Job Management systems, then sent the jobs in optimized order to mobile data terminals in the vehicles, which were connected to in-car navigation. We took away all the guess work, used our data to identify the best sequence of work based on factors such as turn restrictions, road hierarchy, speed zones and more. This was a very expensive solution but payback only took around 18 months for the entire fleet.
  • We brought in specialist engineers to help develop a web application, effectively a Software as a Service application that could be used by anyone who has a web browser, to bring the same power down to a business as small as a single furniture store with one truck or van. This allows people to geocode or generate the coordinates for each stop, which may include private or public roads. Optimisation often doesn’t end at the roadside. As per the Starship example here, Auckland Hospital has a number of roads within it. Once we have the coordinates including the start and finish location, we can use the Traveling Salesman problem to generate the fastest route, including things like avoiding zigzag, an important feature for rubbish trucks that can only do one side of the road and are too big to do a u-turn.
  • One size doesn’t fit all. What we know is that a human can’t deal with every combination of every address they have to visit in a run. Even with local knowledge we have found that in almost every case, we are able to reduce travel time and distance for anything more than 5 or 6 stops in a trip. With many resource management applications we find that 75% of the ROI comes from getting the basics right. Then we start fine tuning. New Zealand isn’t unique and we are now offering these services in Australia and looking farther afield. Probably the biggest differences for us is the size and geography of the country vs the size of the population and the fact that most businesses in NZ are small businesses. This means that the pain and consequences are greater when obstacles are placed in the way of road using businesses.
  • Business Intelligence is high up on the Gartner Hype Cycle right now and Location is on the radar. Just as with the route optimisation tools, we now have tools which allow us to view and interrogate our business information without having to buy GIS software. You can upload information from spreadsheets, your ERP or accounting software. You can view your customers on a map and then run queries displaying the results on a map. This can be used to fine tune territories or runs visualizing anything you have information about. It could be cleaning orphan clients that are in the wrong territory, deliveries that need large vehicles or specialist equipment, runs by day of week, runs by profitability. The great thing with these tools is that all you need is a web browser and the results of the queries are available almost on demand. The nimble small operation can now have access to the same types of tools that large corporates have. Enhancements for these tools currently being developed also include being able to view real time traffic. Of course these applications are also available for large corporates and versions of this are already being used by large multinationals on both sides of the Tasman.
  • In China, colours are really important. Yellow or Gold is a good luck colour, so no problem selling baby bottles with yellow tops in these areas. However Blue or dark blue is used for sadder occasions such as death and mourning. Now you know why there was a stock problem in these areas where the population is made up of equal to or more than 40% of the population. This sort of technology used to cost tens of thousands of dollars and the GIS specialists to run it are expensive too. OK if you’re a bank, a telco, an insurance company or a large corporate. But imagine if this information was available to decision maker in the company who has a browser. That will be a reality in a matter of weeks. All they need is to be able to access a CSV file which contains coordinates and of course there is a geocode tool available for that too. Now they can look at any of their corporate data and mine it. Sales, financial, assets, prospects, competitor information. If you can provide the user with a CSV file, it will automatically take the headers and allow boolean searching with the results viewable on a table, on the map and output. There is a lot more of course but I’m almost out of time. I’d just like to have you consider, if you had a loyalty program you could know where your customers live, work, shop and play. Information is power.
  • As a member of the World Future Society I went into our organization web site and had a look at predictions that some of our members made for 2030. I found that GM said they would have commercially available driverless cars well before then, so I thought I’d check on driverless trucks. They are operating already in Australia right now as we speak and as the clip says, they are managed from an operations centre 1500km away. Obviously these are not on public roads, but in some ways that makes the risk greater, even if not to the public because they don’t navigate to the confines of a specified road. It all comes down to communications and quality data. It is the work we are doing today that will allow automated technologies such as freight train networks, super heavy trucks and smart decision making dispatch and fleet management operations possible for operators of all sizes. New Zealand has the ability to be a world leader in industries supporting freight and distribution and Kiwi companies are already having success on the world stage, because proportionally the pain and costs of being a country with a difficult geography and a small population makes it essential. Productivity and sustainability aren’t things we can take in our stride if we want to maintain the lifestyle that keeps us in New Zealand.
  • If oil availability to the West dropped 30% and the price of what was available doubled next year, what would that mean to your business? What would it mean to New Zealand. Shall we wait and see?
  • 2012 Freight Summit by Luigi Cappel

    1. 1. Improving Productivity, Sustainability and Safety with Telematics and Real Time Traffic By Luigi Cappel
    2. 2. Agenda • GeoSmart • Preparing for The Future • Next Generation Road Data Capture • The Cost of Traffic Congestion • Real Time Traffic Services • Ecorouting and Sustainability • Camber and Rollover • Telematics • Route Optimisation • Location Based Business Intelligence without GIS • The Future is Here
    3. 3. GeoSmart - What we do CORE SERVICES • CARTOGRAPHY • CAR NAVIGATION • FLEET MANAGEMENT SOLUTIONS • WEB MAPPING SOLUTIONS • ROUTE2GO • AA TRAFFIC • BIonaMap FIELD CAPTURE Field Capture GPS Driving Business POI Amenity POI Imagery Aerial Satellite Terrestrial Cadastral Property data Address NZ Post LINZ Councils Live content Real Time Traffic Parking Flight data Ferry Bus Events Data Processing & Aggregation
    4. 4. Preparing For the Future •Change happens •NZ is a small market with a small population •NZ’ers are innovative •NZ has a difficult geography •Innovation is expensive, so is lack of innovation
    5. 5. Next Gen Collaboration: GeoSmart Data Capture Vehicle - RAPIDcV The Objectives • To speed up the data capture process • To improve accuracy • To improve currency of data • To capture more POI data Some Features of the Car Road Attribute and Points of Interest Data Collection Vehicle • Maps in real time to an absolute accuracy of +0.15m • Incorporates 3 gyros so that it can continue mapping in real time if in the event of loosing the differential GPS signal • Uses 5 cameras to record • Turn Restrictions • Road furniture (Signs, barriers, bridges, bus stops etc) • Lane counts and position of vehicle within the lane • Points of Interest • Captures Streetscape 360 degree photos every 50m along the road
    6. 6. The Cost of Traffic Congestion Roads never keep up with demand
    7. 7. Auckland Traffic Congestion In 1999 Michael Barnett estimated the time-cost to businesses of Auckland’s traffic congestion at NZ1 billion annually. Has it improved? What about the rest of the country?
    8. 8. Traffic Congestion is not Confined to Auckland “A 9km trail of traffic is building on State Highway 1 after a truck crashed near Warkworth.”
    9. 9. Real Time Traffic Services • Map display of the actual location of each road event • Includes accidents, incidents, weather related events and road works. • Shows both Current and Forecasted events. • Forecasted events can be events coming up for each night only or can be for events well into the future • Map display of Traffic flow information across NZ • Can filter information based on areas Available at www.AAMaps.co.nz and www.AARoadwatch.co.nz
    10. 10. Detailed Urban and Rural Traffic information Example of AA Traffic working A car accident on Monday 20th Dec in the Karangahake Gorge – this was immediately visible in AA Traffic by LIVE Traffic flow data Example of the level of granularity in urban areas
    11. 11. Journey Times - AARoadwatch • We can select a specific route(s) and report live travel times for every minute showing: – Live travel time – Normal travel time (historical average) – Ideal Travel time (no congestion) • Routes can be on any main roads across NZ • Roads are highlighted based on trip time performance: – Black <25% ideal speed – Red is 25-50% of ideal speed – Yellow is 50-75% of ideal speed – Green is >75% of ideal speed
    12. 12. Trip Times - Forecast Four months of averaged traffic speed data for the route from the Railway Station in Central Wellington to the Airport for each hour of the day 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Monday 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Tuesday 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Wednesday 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Thursday 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 1011121314151617181920212223 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Friday 5.0 15.0 25.0 0 1 2 3 4 5 6 7 8 9 1011121314151617181920212223 Minutes WELLINGTON - RAILWAY STATION TO AIRPORT - Saturday
    13. 13. TomTom funded independent research in 2011 has shown that if you are informed, you can reduce your journey times by 15% and In the future, if 10% of drivers were all informed, the collective effect would be an additional 5% reduction in journey times for all motorists
    14. 14. Australasian Real Time Traffic TomTom HD Traffic Connected GPS Nav devices with SIM Cards can access real time traffic information anywhere there is coverage in NZ and Australia
    15. 15. Real Time Traffic and Fleet Visibility • Real Time Traffic on GPS Navigation can alert the driver, hopefully before it is too late. • Fleet systems can overlay your vehicles and the real time traffic congestion on the same map, operators can see the full picture. • Trips can be rerouted or rescheduled • Customers or connecting services may be alerted
    16. 16. Ecorouting and Sustainability •Carbon Emissions •Inclinometer •Road Geometry •Implicit Turn Restrictions
    17. 17. Camber and Rollover
    18. 18. Telematics
    19. 19. Route Optimisation • The domain of large operators • Road Transport Forum of NZ says: – 5,095 individual road transport firms – 4,276 have 0-5 trucks – Many have mortgaged their homes and are totally reliant on getting as much work as possible • Many don’t have technology solutions beyond Fleet Management for RUC, their mobile phone or 2-way radio, and PC at the home office.
    20. 20. Route Optimisation
    21. 21. Route2GO Lite
    22. 22. Then What? • Just the beginning. – Time constraints – Real Time optimisation based on current traffic conditions – Next best job based on current traffic conditions – Routes based on historic conditions for time of day or day of week
    23. 23. Location Based Business Intelligence Without GIS
    24. 24. Information is Power
    25. 25. The Future is Here
    26. 26. Thankyou Luigi Cappel GeoSmart luigi.cappel@geosmart.co.nz