In keeping with the country’s high standards of living, commuters on Singapore’s public transport system expect a high level of service, and a convenient and seamless travel experience. Providers have risen to meet the challenge but are met with increasing fuel costs, growing demand and the need to operate in a green and sustainable manner.
Going beyond the basics
Accenture’s research covering some of the busiest metropolis such as London, Sao Paulo, Shanghai, Tokyo and Singapore found that getting the basics right remains high on the agenda.
Initiatives relating to safety, distance to public transport, price, punctuality and decreased travel time are crucial in achieving strong utilization, to deliver a good quality of service and provide accessibility for all.
High performing authorities and operators are pushing the boundaries in looking beyond these traditional outcomes to offer more value for money, be more customer-centric and fulfill its role in ensuring a sustainable city development.
Singapore stands out globally as a high performer, with its continued investments in technology and mobility solutions propelling innovation.
To maximize demand, real-time mobile communication delivers advanced functionality to commuters through maps with geo-positioning, real-time traffic information and journey planners incorporating transfers between the various modes of public transport, all readily available through smartphone applications.
Tapping on social networks presents the next level of interaction. Early adopter Transport for London has established Twitter handles for its tube lines, allowing commuters to receive up-to-date service information.
Accenture’s research indicates use of social media by public transport authorities worldwide is still in the early stages. Now mostly used to listen, further interactivity lies ahead, presenting opportunities for increased engagement.
Leveraging data
Electronic payment through Singapore’s contactless EZ-link card is now used to pay for buses, trains, taxies, electronic road pricing, parking systems and even lifestyle payments. By analyzing the data from such e-purses to understand demand patterns and passenger movements, insights can be gleaned to optimize capacity.
More advanced operators adjust routes and bus capacity to adapt to real-time demand. Such rationalization of routes can reduce costs.
Cloud computing can accelerate change to ticketing solutions, offering substantial advantages of capital efficiency to its users, with its pay-as-you-use model, its scalability and its speed of implementation. Changes that use to take years now only require months to launch. While Accenture notes it is early days for cloud usage in public transport globally, cloud solutions can enable stakeholders to implement the latest technologies at a reduced cost.
Diversifying revenue streams
Singapore public transport operator SMRT has done well to diversify its business model, including selling its expertise to foreign operators keen to learn from its success.
Its non-fare business comprising taxis, rental, advertising, engineering and other services contributed 24.3 per cent of its revenues and 61.4 per cent of earnings before interest and tax (EBIT) in 2012 . Diversifying revenue sources can help limit fare increases while keeping up with system improvements.
Enabling city development
A holistic view of transportation, beyond just providing infrastructure and operating public transport, shapes city planning. Singapore’s transportation authority oversees all forms of mobility, from buses to private cars, and has a say in city development, weighing in on zoning for commercial and residential areas. Sustainability in growth and economic development is more readily achieved when transportation is considered early on.
Rising fuel costs, increased passenger demands, changing urban trends and technology advancement are reshaping the landscape for public transportation providers. In order to keep up, winning organizations will be those that go beyond the basics, creating new business models, taking advantage of open systems to provide better service, and diversification to create more routes to success.
i SMRT Corporation Summary Report 2012
By Won-Joon Lee
Managing Director-Automotive, Industrial Equipment, Infrastructure and Transportation (AIIT), Asia-Pacific
Business Process Outsourcing Lead-Products, Asia-Pacific