On 17 October 2017, top policy-makers and stakeholders came

together at the European Transport Forum (ETF) in Brussels for a

high-level debate how can the data economy unlock the fullpotential of European transport?

This year’s edition of the ETF brought together several high-level

speakers explaining their ideas on what are the most importantchallenges and opportunities to address the potential of the data

economy for transport in Europe.

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According to Ms Ujupan, the European

data economy is growing at a fast pace:

in 2016 it represented 2% of the

European GDP and employed around 6

million professionals. With the right

legislation environment and investment

she expects its size to double by 2020

and employ around 10.5 million people.

She said that the advanced use of data

has a positive impact on health and well-

being, societal challenges, emissions,

resource management and driving. In

particular…

However, challenges have to be faced in

areas such as liability, cybersecurity, and

data use, access and ownership.

Ms Ujupan highlighted several ongoing

processes: many Member States have

agreed to develop cross-border testing

corridors; a recent high-level ministerial

KEYNOTE SPEECH

ALINA UJUPANMember of Cabinet, Mariya Gabriel, Commissioner for Digital Economy and Society

…the digitisation of transport and especially connected and

automated driving is one of the most important trends that will

transform industry in Europe.

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dialogue adopted an Action Plan; an industry roundtable has been set-up; and both the

European Automotive and Telecom Alliance and the 5G Automotive Alliance are making

headway.

She stated that automated mobility features prominently on the agenda of the European

Commission as it is keen to support European industry and make sure it keeps its edge

by putting Europe in the frontline of deployment of smart mobility and connected and

automated mobility technologies. Interlinked initiatives such as GEAR 2030 and the CITS

platform will bring together different elements. Ms Ujupan said that the Commission’s

role is to provide an enabling framework, not to make technology choices.

Turning her attention to cybersecurity, she said that cyberattacks can have potentially

huge consequences on road traffic and human lives, and that vehicle manufacturers

need to take a proactive role in detecting and responding to cyberattacks. She believes

that the Commission’s recent proposal on voluntary certification schemes will help in

this respect. Other key aspects include the management, storage and communication of

data, which is essential to build the trust of the consumers who will ultimately buy these

vehicles.

In the area of testing cross-border cooperation, a task force is to be established,

including the Commission as well as Member States and stakeholders from different

environments. Several Member States have agreed to collaborate to launch four cross-

border test beds or corridors: Norway, Finland and Sweden; France, Germany and

Luxemburg; the Netherlands and Belgium; and Spain and Portugal.

Ms Ujupan said that 50 million euros for 5G testing will be made available this year from

the Horizon 2020 ICT program, with more funding available via the Horizon 2020

Transport program. Moreover, with the 5G Action Plan the Commission is committed to

promoting the deployment of cellular technology along many transport paths by 2025.

Her final point was that access to end user data is essential for the development of

services for the end user, while economic and business models are essential to build the

technology infrastructure to support these services: “We therefore need to take the

necessary measures to make the European environment attractive for investment and

growth in this sector.”

A key priority for the European Commission is interoperability and continuity of service

across borders.

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Ms Espinel conducted a poll to see how the audience reached today’s location –

whether by train, car, taxi, plane, boat, bike or on foot – and then said that all these

forms of transport are going to be radically transformed over the next 30 years thanks to

data and software.

She explained how IoT and data analytics are already having a major impact by

providing live data and feedback that reduces emissions, cuts costs and improves

customer service. She gave examples of how artificial intelligence and machine learning

are impacting transport and providing benefits to companies and consumers, and said

that Blockchain has significant potential in the shipping industry to improve efficiencies

and eliminate fraud.

Ms Espinel said that all these new technologies have data in common, and a regulatory

framework is necessary that is as international as possible. She focused on three aspects

of this.

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CONTEXT SET-UP

VICTORIA A. ESPINELPresident and CEO, BSA

First, data needs to be made available

and be able to move around the world

with as little friction as possible.

“Transport is probably the most global

sector, so it’s vital that data can be

sourced from around the world as

efficiently and as real-time as possible,”

she stated.

A regulatory framework must allow data

to be used in a way that is flexible,

including the ability to repurpose data as

necessary. This means finding a

compromise between society’s need to

digitise and society’s need to protect

personal data.

Second, an IoT regulatory framework is

needed that is fit for purpose. Here Ms

Espinel said that “to accelerate the

deployment of IoT, the European

Commission needs to recognise that this

is a global technology, and work with

Member States and other countries to

push for international standards.”

Third, the data needs to be as secure as

possible. Ms Espinel pointed out that the

future of transport relies heavily on the

If governments move forward with policies that localise data or

restrict data, this will negatively impact the ability to innovate.

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integrity of data. If the system is

susceptible to hacking, it has serious

implications for businesses and

consumers. She remarked that

“governments need to acknowledge that

this is a global system and we

collectively will only be as strong as the

weakest link in the cybersecurity chain.”

Consequently, governments around the

world need to work together to come up

with a framework for cybersecurity that

is global and as interoperable as

possible.

Ms Espinel said she has been very

pleased to see the initiatives coming out

of the office of Mariya Gabriel,

Commissioner for Digital Economy and

Society, and commented positively on

her enthusiasm and energy that she

displays in her role overseeing this

complicated portfolio.

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AUDIENCE POLL RESULTS

DO YOU THINK THE EUROPEAN COMMISSION’S APPROACH TO “BUILDING A EUROPEAN

DATA ECONOMY” ADEQUATELY ADDRESSES THE ISSUES FACING THE TRANSPORT SECTOR IN

THIS AREA?

o 14%: Yes, it is on the right track to enable the transport sector to take full advantage of the

data economy

o 69%: Partly, but it should take more account of the specificities of the transport sector

o 17%: No, the EU is not doing enough to maximise the data economy’s contribution to

unlocking the full potential of European transport

WHAT, FOR YOU, IS THE MOST IMPORTANT ISSUE THAT NEED TO BE ADDRESSED TO ENSURE

DATA FROM TRANSPORT IS SHARED AND USED INA RESPONSIBLE WAY? (PLEASE PICK ONE)

o 27.7%: Getting the legal framework that will underpin such data sharing right

o 26.5%: Striking the right balance between realising the potential benefits of sharing data

while protecting the interests of market players who invest in generating data?

o 45.8%: Ensuring that whatever data is shared, this is done in a way that does not

compromise the safety and integrity of the vehicle

WHO NEEDS TO DO WHAT TO MAXIMISE THE DATA ECONOMY’S CONTRIBUTION TO

UNLOCKING THE FULL POTENTIAL OF EUROPEAN TRANSPORT?

o 11.6%: Policy-makers at all levels have the most important role to play in driving progress

o 19.8%: The private sector has the most important role to play in delivering the

technologies needed to drive progress

o 68.6%: Both: policy-makers and the private sector must work together if we are to

accelerate progress

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PANEL DISCUSSION LED BY MODERATOR JACKI DAVIS

o DITA CHARANZOVÁ

Vice Chair of IMCO Committee, The European Parliament

o JOHN FRANK

Vice-President EU Government Affairs, Microsoft

o NIKLAS GUSTAFSSON

Chief Sustainability Officer, Volvo Group

o VICTORIA A. ESPINEL

President and CEO, BSA

o VINCENT KOBESEN

CEO and Member of the Executive Board, PTV AG

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The Moderator asked about the size of

the revolution affecting the sector and

the key challenges.

Mr Frank said that every company is

becoming a technology company, and

the opportunities through data,

computing and communications are

providing an excellent platform for

innovation. Another aspect is that it is

democratised; a large organisation is not

needed to get very high computing

capacity or access AI algorithms. He

considers that “what is going to hold us

back is human talent; there are not

enough people learning the quantitative

skills to think about how to apply these

technologies.”

Mr Gustafsson said that with

connectivity, self-driving vehicles and

electromobility, a paradigm shift is

happening, but the change still needs to

happen in automotive companies like

Volvo which are still running over 90% of

their fleet on diesel. He thinks that the

next five to ten years will see a huge

change in the transport sector, with data

availability increasing uptime of trucks

etc. “Connectivity will combine the three

areas in a sweet spot that helps address

societal issues like sustainability.”

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He believes the transport sector will

meet the targets set on emissions, safety

and climate change.

According to Mr Kobesen, real-time data

and predictive traffic systems are

revolutionising logistics, enabling trips to

be optimised in real-time. He says that

politicians are needed in cooperation

with industry, to set regulation regarding

data collection and even force

cooperation between companies and

industry sectors.

“Data is the key for the future of the

transport sector,” said Ms Charanzová.

“We need to get it right and avoid

different sets of standards and rules in

different Member States.” She said that

Europe is on the right track in this

respect, although she is aware that some

Member States are adopting different

legislation on self-driving cars, which she

considers dangerous for the future of

the EU framework. She believes that

infrastructure is key, and made a plea for

a seamless and cross-border 5G

network. She is wary of extra legislation

for digital issues as it can take so long to

implement.

“We need a significant shift in mindset,

both corporately and governmentally,”

remarked Ms Espinel. The biggest

challenge, she stated, is fear;

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rapid change can cause concern. This

could lead to stagnation in policy

development or an impulse to pause

regulation or slow it down, which could

significantly dampen down innovation.

The Moderator asked how panellists

voted on the first question (“Do you

think the European Commission’s

approach to “building a European data

economy” adequately addresses the

issues facing the transport sector in this

area?)

Ms Espinel voted 3 (No), because she

thinks this is a very new area and

legislation is a slow process, so is not

surprised that governments are

struggling with legal systems that were

created years ago. She believes that

“future-proof legislation” is the right

approach, and sees many governments

working hard in this area.

Mr Kobesen voted 2 (Partly) but is

concerned that momentum is being lost,

with some regulations or cross-border

issues preventing access to valuable data

and the creation of a uniform data set.

He also said that many companies busy

with data are not cooperating with each

other.

Mr Gustafsson voted 2 (Partly) as he is

aware that both the private sector and

policymakers have plenty of things on

their To Do lists. He is concerned that

the right policies are created that do not

disturb what is already in progress. An

example is the free flow of data which is

happening in industry through

contractual agreements which he

believes are working fine. He is

concerned that Member State legislation

is coming up that is going to limit this

free flow of data. Also interesting is to

see how cities are becoming more

important in this area.

Mr Frank voted 3 (No). He remarked that

the General Data Protection Regulation

(GDPR) comes into effect in 219 days,

and enterprises around the world are

committing resources to work out how

to comply with this. At the same a new

proposal, the ePrivacy Regulation, which

was essentially designed for telecoms,

has been added on top of the GDPR. He

believes “the ePrivacy Regulation starts

off from a fundamentally flawed

position,” and is concerned it will be

rushed through and get in the way of the

digitisation of European industry.

Ms Charanzová would have voted 2

(Partly). She believes the EU is on the

right track, but more needs to be done in

areas where the EU can add value. “If

Europe wants to lead in this sector, we

have to set up a European integrated

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approach to transportation and ensure

the free flow of data.”

The Moderator referred to question two

of the poll (What, for you, is the most

important issue that need to be

addressed to ensure data from transport

is shared and used in a responsible

way?). She asked what legal framework

is needed and what are the most

important issues?

Mr Gustafsson said the correct legal

framework is key, especially in regard to

the safety and integrity of vehicles. “A

truck, bus or car is not a smartphone on

wheels,” he said, and he does not want

them to be seen as part of the IoT, at

least at the start, because he feels it is

risking the safety of drivers and people

on streets. The data needs to be stored

and processed in the vehicle, and shared

offline with third parties to avoid being

hacked and its safety compromised. He

said that Volvo already takes

responsibility for communicating all data

to offline servers, while keeping the

firewalls to its own data. For Mr Kobesen,

the anonymization of data is a big issue,

particularly in some European Member

States. Ms Espinel remarked that there is

no international consensus for the

baseline rules for the free flow of data,

which she considers to be “a big and

significant gap in our legal framework”.

She said that “we need a ruling that the

default rule is that data should be able to

move across borders; currently such an

understanding, treaty or agreement is

not present.”

The Moderator asked how this

framework could be created? In Ms

Espinel’s view, one strategy is to have

different bilateral discussions happening

and then knit their agreements together.

The disadvantage of this approach is that

if significant differences exist, “then the

knitting process will never happen.” Such

bilateral discussions are taking place

between the US, Europe, Japan, Canada

and Mexico. Another direction is via

discussions at G7 and G20 level; should

real momentum occur here, these could

be promising.

The Moderator asked what should be

regulated, and what should not. Ms

Charanzová agrees with Mr Gustafsson

that regulation on safety and integrity is

needed. She foresees new regulation

coming soon on liability, and believes

that two networks are likely: for essential

data and non-essential data where

different regulatory approaches are

necessary; the former where regulation

is needed at European level and the

latter where it is not. She is rather

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pessimistic about whether international

regulation can be achieved in a short

timeframe, because every continent has

a different approach and mindset on

data privacy.

Mr Kobesen gave two examples. The

International Transport Forum modelled

the city of Lisbon in the future, when

autonomous vehicles would enter it on a

massive scale, and the outcome was that

40% more vehicles were needed, adding

to congestion. He said that this shows

that new kinds of models are needed.

Second, the increase in online

purchasing means that more white

delivery vans are driving into cities, half-

full, stopping to make deliveries and

adding to congestion of cities. He

concluded that regulation here is

needed, and logistics companies need to

work together.

The Moderator asked if the market is

working well, or is something needed to

accelerate the shift of mindset?

Ms Charanzová sees the need to act on

essential data; Ms Espinel prefers

incentives to share data rather than

compulsory methods. These could be

removing barriers, such as not penalising

companies under liability rules if they

were to share data. Forcing companies

by government regulation is not the way

to go, she thinks, and pointed out that

governments are long-term collectors of

data, which companies have been asking

for them to share for a long time, e.g.

weather data. In the transportation

sector this is starting to flip;

governments are now going to

companies to ask for their data, to share

with citizens.

“We have to recognise that data has

value,” said Mr Frank, who gave the

example that the most valuable asset of

a stock exchange is data on what trades

have been made. “We have to recognise

that data can be shared but it should not

necessarily be free because it has value.”

For Mr Kobesen the logistics sector

needs some encouragement to work

together, and here the government

needs to work to get various parties

moving together in the right direction.

Mr Gustafsson believes there is huge

potential in logistics because 50% of

transports are half empty: “maybe it will

not be the traditional logistics

companies doing this but newcomers.”

A delegate commented that much of the

discussion has centred around generic

data, and wondered if it was necessary

to talk about concrete specific

applications of data. Mr Kobesen agrees

that a generic data discussion is difficult;

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in PTV they look at very specific data

with privacy data. Similarly, a delegate

asked for panellists to define the

difference between essential data and

publicly available data. Ms Espinel made

the distinction between personal data

and commercial data. She said a lot of

the policy discussions conflate these

two, which is not helpful. In her view it’s

better to start with some high-level

principles or outcomes you are trying to

achieve, and then work those down

through various types of data and evolve

them as necessary. Mr Gustafsson gave

an example from trucks, which produce

a huge amount of data on the engine,

exhaust, fuel quality etc., which is

extremely important to Volvo to help

them develop their next models. Another

layer of data is traffic related which

should be shared with other vehicles and

traffic authorities. A third layer is private

data: where is the driver, how many

hours he is working, his phone calls etc.

He thinks that it would be good to define

these levels and come to a common

understanding.

Also asked from the floor was whether

the contractual agreements mentioned

by Mr Gustafsson are specifically for data

transactions or more traditional supplier-

customer agreements?

Mr Gustafsson said they refer to specific

contracts concerning data.

Turning to the skills missing, the

Moderator asked how can mindset be

changed? In Mr Franks’ view,

entrepreneurial skills are needed to see

the new opportunities, which in the

transportation sector are huge. He also

thinks that more IT people are needed,

and that machines can help by finding

patterns in data better than humans can.

Ms Espinel pointed out that for

companies, economic interest will drive

the change of mindset. She is also aware

that a lot of education needs to happen,

“especially around emerging

technologies and their societal impact.

With greater understanding comes a

lessening in fear and concern.”

For Mr Kobesen it is important “to

change the skillsets from offline thinking

to real-time thinking; to become aware

that it’s a 24/7 economy instead of the

traditional 8-5 economy.” He added that

it’s vital to make a company attractive so

people will want to work for it. Mr

Gustafsson agrees, and believes it is

essential for a company to give the clear

signal that they are welcoming the future

and want to be part of it, not only from a

technological point of view but also to

address societal challenges.

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“People want a job that enables them to

make a difference.”

“What we are missing is the crucial point:

It will happen!” stated Ms Charanzová. It

is therefore vital to prepare the next

generation to be ready to deal with it.

“We have to start with the educational

system,” she remarked, adding that she

would like to see more programming in

schools, not just how to use a computer.

Ms Espinel gave an impassioned plea to

encourage more women to go into

STEM and computer science education:

“We are moving backwards: there are

fewer women going into computer

science in the US and Europe than there

were 20 years ago.”

CONCLUDING REMARKSThe Moderator asked panellists what

they would do if they were a European

Commissioner for a day, to help the

transportation sector take advantage of

all the opportunities discussed?

Ms Charanzová: “I think you can do

more than one thing in one day! I would

fight to get the free flow of data

regulation adopted as soon as possible,

and would fight for a seamless 5G

network in Europe. I would see how

public and private sectors can work

more closely to develop more joint

initiatives, and would like to see more pilot projects going from testing to practice.”

Ms Espinel: “I would negotiate an international consensus on the free flow of data. I would

focus on developing greater trust between citizens and governments and governmental

institutions, who need to be more responsive to citizens. I would use technology like AI and

data analytics to get as much citizen input as possible.”

Mr Kobesen: “I would set up a European data warehouse, modelled on the national data

warehouse in the Netherlands, which collects offline data from the private sector; it’s a good

initiative as it forces the private and public sectors to work together. I would do it at a

European level, not just for offline data but also for real-time data from the public and private

sectors.”

Mr Frank: “I would put the ePrivacy Directive on hold. Then I would encourage the sector to

get excited about the possible innovations and how our lives, jobs and society can be

improved by them.”

Mr Gustafsson: “I would seek to nurture this huge potential for data not by introducing large

pieces of regulation but smaller packages that are relevant for all companies, from the

smallest to the largest. And I would make sure that European business is driving forward with

the ambition not to lose this competitive race against other parts of the world.”

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