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    A Strategy for ITS Investment

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    The bang for the additional pennies invested from every gallon would not only meet the goals of safety, mobility and security, they also would provide economic stimulus to the ITS, telematics and other industries.

    - By Salvatore D’Agostino

    Now that we are moving into a second term for the administration I would like to put out what I believe are priorities for a strategic transportation investment that takes into account our needs to promote safety, mobility and security. ITS America has put forward a vision of “Zero Fatalities, Zero Delays.” These are admirable goals but nobody has put forward a strategic plan to meet these goals. Further, I would like to include a means of addressing the fact that 90% of the critical infrastructure in the U.S. rests in the hands of the private sector, that building out a mobile communications infrastructure meets many needs and that providing secure credentials for those using the transportation network addresses many goals. A strategic investment plan that drives to improvements in safety, mobility and security meets not only the desired ends but also can provide the means to meet them. ITS programs represent a unique area for investment that meets these three goals. In making a call for investment, one of the first things that need to be addressed involves the way to pay for it all. While significant funds exist in different federal budgets in the Department of Transportation, Department of Homeland Security and even in the Department of Defense that relate to ITS, none of these budgets can be tied specifically to the new strategic investments called out here.

    A gallon of gas

    The price of gasoline has gone up 50 cents in the last year due to external factors. At this point the arguments against a small (<10 cents) increase which could actually be used to advance national goals as opposed to OPEC or oil company profits would seem to be moot. Conservative economists such as Robert Samuelson have called for increases as high as a $1 to $2 a barrel. Even a modest increase could create more funding for ITS than has been invested in its history (numbers vary but each penny increase in the tax adds about $2 billion in tax revenue).

    At present the tax varies by state but tops out at about 55 cents in Hawaii, with Nevada, New York and California next on the list. The increase in gasoline prices in the last year is equivalent to all the tax revenue currently gained from this source.

    A corresponding set of tax credits could be put in place to offset the impact to freight operators and other companies that would bear the burden of this tax increase. For example, companies could receive credits for investments in critical infrastructure protection, mesh communication networks, hot spots in airports or in traffic controllers, ITS (equipping vehicles with transponders), voluntary enrollment in other fleet programs such as car pooling, subsidies for public transit, etc. More on this follows.

    Bang for the pennies

    OK, so even if you don’t believe in paying as you go, let’s lay out the rationale for strategic investment in ITS.

    The bang for the additional pennies invested from every gallon would not only meet the goals of safety, mobility and security, they also would provide economic stimulus to the ITS, telematics and other industries that provide the intelligent infrastructure and services. ITS programs by definition then become a strategic investment. The investment could take place directly via government programs, state programs and municipal programs or through the types of credits described above. There exists general agreement about economic stimulus being a good thing. OK, so where should the money go?

    Invest in the infostructure

    Information sharing, whether with first responders for emergency response, travelers in the form of automated transportation information systems, shippers and others in the logistics value chain brings benefits that meet the goals of safety, mobility and security. Knowing as early as possible about accidents, hazardous-material spills, weather information or special events directly affect safety and mobility. Being able to share information among first responders and having multiple and redundant networks provides a safeguard that data can move even when other systems go down (traffic signals and signs continued to work on 9/11 even when cell phones did not). Specific investments make sense in the area of:

    Putting wireless and other communications into every possible location in the transportation infrastructure. Options include traffic controllers that allow mesh networking to vehicles and to other qualified users in the area (not necessarily, but possibly the general public). This provides a way to do infoloading to or from vehicles (e.g., buses and automatic vehicle location) and would facilitate a way to get travel data into the transportation system. Police and other vehicles are being equipped as mesh devices, so expanding this makes sense. Enabling transit stops (e.g., bus and subway) provides a way to get information to users, enable mobile devices, provide more services for the customer and also would enable infoloading such as that described above.

    The option of user fees exists for the services. User fees are a model for wi-fi hot spots in many locations, satellite radio and some private traffic information services. In the spirit of pay-as-you-go, and the fact that some folks have a hard time saying the word “tax,” an alternative that would be a fee might help move these items forward. This creates an economic stimulus for the information technology sector, provides the means and addresses the goals to improve safety, mobility and security and can generate revenues to fund the programs as well.

    Hands-on data

    Building out the transportation infostructure will lead to the enabling of mobile devices. While initially these will be phones and personal digital assistants (PDAs), very shortly this will include the automobile as well. This will make rolling out the 5-1-1 and E9-1-1 systems easier from both a technical as well as capital expenditure (for the infostructure providers) perspective. Safety is served by E9-1-1, mobility is served by 5-1-1 and a multifunction PDA that allows telephone, radio and data communications, using secure and public networks meets security goals. Better communications for responders applies not only to national security but also to the normal response to transportation incidents.

    In the “how-do-you-pay-for-it” mode some of these programs are already funded, while others we are asking the private sector to provide. We can continue down this path, though I suggest we provide some incentives to the private sector for providing public infrastructure. There seems to be a precedent for giving away spectrum, so maybe it should be tied to building out public infrastructure.

    The combination of the infostructure and mobile-enabled devices provides a quick and cost effective increase of security for critical infrastructure no matter where it is located. It directly addresses the transportation (port, airport, rail, transit, roadway) infrastructure and makes available the building blocks for strong logical, physical and device security.

    Invest in smart credentials

    Smart card use in transportation continues to grow. Transit agencies across the country continue to roll out smart card systems. The Universal Transit Farecard Standards have a Regional Interoperability Specification that attempts to promote interoperability among transit systems in a way that was not necessarily addressed at the start of electronic tolling (transponders are smart credentials). The government will issue 40 million smart credentials; state government also has joined the federal Interagency Board—take a look at www.smart.gov—and intend to move smart credentials to their employees, contractors, vendors and even the public.

    The federal initiatives are driven by Homeland Security Presidential Directive 12 (HSPD-12) (http://csrc.nist.gov/policies/Presidential-Directive-Hspd-12.html and FIPS 201; http://csrc.nist.gov/piv-project). This means there will be standards around smart cards for physical and logical access as well.

    Besides better security (digital certificates provide the best means of fighting counterfeits, providing strong authentication and fighting identity theft and a secure means of determining who’s allowed to do what), it also sets up an ability to use a common infrastructure that can be leveraged by many people in the transportation world (you will find that an investment in an infrastructure that can be leveraged by many stakeholders is a theme here). ITS systems using these credentials will allow faster border crossing, faster airplane boarding, greater use of transit, better cargo security, better freight logistics and other things.

    Smart credentials also create revenue opportunities for the state and federal government. As it exists today states provide identity management for free. This identity verification function could be provided for a fee, if the credential could be validated quickly and accurately electronically.

    Because of the capacity of smart cards, the single credential could be used for driving privileges, transit, other government services, special driver or cargo categories (e.g., hazmat), and could also be leveraged as a first responder or other high-security credential (all on an opt-in basis and using stronger privacy than exists today with credit cards and driver licenses). Smart credentials would address safety, mobility and security while greatly increasing personal privacy.

    TME




    D’Agostino is vice president, physical security, for CoreStreet Ltd., Cambridge, Mass.

    Source: TM+E   January 2005   Volume: 10 Number: 1
    Copyright © 2009 Scranton Gillette Communications



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