Our industry is engaged in an important dialogue to improve sustainability through ESG transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
The rail industry in Asia, despite receiving substantial investments aimed at expanding and modernizing infrastructure, faces significant challenges in aligning these developments with dynamic demand. This misalignment often results in underutilized assets and financial inefficiencies (Railway-News, 2024). Factors contributing to this issue include high operating costs, significant capital expenditures, changing user behaviors, and a lack of complementing business services.
Simply improving rail infrastructure alone is not sufficient. The surrounding infrastructure, such as roads, bus services, and other transportation modes, must also be seamlessly integrated both physically and digitally. To address these challenges and ensure the success and viability of large-scale rail projects, there is a critical need for comprehensive planning and the integration of digital solutions from the outset.
Integrated Design and Engineering Group (ID&E), to which Nippon Koei belongs, is a leading design and engineering conglomerate headquartered in Tokyo, listed on the Tokyo Stock Exchange. With over 78 years of experience, ID&E has implemented multi-disciplinary projects worldwide, supporting the social infrastructure of vibrant living areas such as railways, roads, dams, and ports. Our commitment to driving demand for public transit leverages our extensive experience in infrastructure and construction engineering while embracing digital transformation.
To tackle imbalances in the demand and supply landscape, we employ a three-pronged approach utilizing digital infrastructure:
1. Data-driven urban and transportation planning: Our data-driven approach ensures that urban and transportation systems are well-connected and efficient. By leveraging advanced analytics and simulation models, we can accurately predict the impact of various design choices on traffic flow, public transit usage, and pedestrian movement. Scenario planning allows us to evaluate potential outcomes and make informed decisions, ensuring that infrastructure developments are integrated, effective, and aligned with the needs of the community.
At ID&E, we have developed GauDT, a web-based analytical and insight platform. GauDT enables precise location intelligence, efficient resource management, real time congestion analytics, multimodal access scoring, and comprehensive TOD scenario planning to provide actionable insights and design/planning recommendations. This dynamic platform can also collaborate with GRESB to ensure sustainability validation to infrastructure and real estate projects. GauDT is used extensively to enhance our consultancy offerings, helping clients optimize their urban planning and development projects through data-backed design.
2. Adaptive infrastructure optimization: Our adaptive infrastructure optimization approach allows us to continuously improve our projects to meet changing urban needs, employing the latest technology and innovative methods. This proactive approach ensures that our projects remain relevant and efficient as urban dynamics evolve, reducing the risk of underutilized assets and financial inefficiencies by keeping infrastructure aligned with current and future demand.
Instead of extensive overhauls, small, continuous upgrades provide immediate benefits. For instance, Demand Responsive Transportation (DRT) adapts routes based on passenger demand, enhancing service efficiency. Key components include Multi-Modal Route Search, which integrates DRT with other transportation modes for comprehensive journey planning.
This approach is benefitted the project collaboration with Singapore’s Land Transportation Authority (LTA), where advanced road and traffic management using big data from car-sharing fleet cameras detects and locates potholes, enabling timely repairs and reducing maintenance costs. Such regular assessments and incremental upgrades ensure rail infrastructure meets passengers’ evolving needs, enhancing reliability and attracting real estate developers and investors to TOD projects.
3. Mobility as a service (MaaS) model: Our MaaS model integrates various transport services into a single, cohesive platform, creating new revenue streams and enhancing the user experience. By offering seamless ticketing, real-time information and multimodal transport options, MaaS increases the convenience and attractiveness of public transit supporting higher ridership levels and reduces the reliance on private vehicles, thus lower emissions and the carbon footprint.
For instance, Nippon Koei’s MaaS projects with Prasarana in Kuala Lumpur, PT JakLingko in Jakarta, and LTA in Singapore have demonstrated the benefits of integrated fare business models. The Account-Based Ticketing (ABT) system boosts revenue through efficient fare payments and dynamic pricing strategies, managing peak time congestion, and optimizing fare revenue. Additionally, non-fare business models into a single platform enhances user experience through gamification and convenient payment systems, encouraging more frequent use of public transit. Overall, MaaS platforms support local businesses and drive economic growth by stimulating local economies around well connected transit hubs, increasing ridership, reducing reliance on private vehicles, lowering emissions, and boosting real estate values.
By integrating our three-pronged strategy, we revolutionize urban mobility, making TOD projects irresistibly attractive to investors. This smart, transformative approach not only skyrockets real estate values and drives economic growth, but also improves public health and travel behavior by promoting sustainable, efficient, and user-friendly transit systems.
Benefits of the three-pronged approach on TOD
We are proud to highlight the transformative benefits of our three-pronged strategy which seamlessly integrates digital infrastructure. This approach has positively impacted real estate values, influenced travel behavior and significantly improved overall health within the urban population, all backed with data. Let’s dive deep into these significant influences observed.
1. Impact on real estate value
Studies have found that the Transit-Oriented Development (TOD) has a profound impact on real estate values. In Singapore, the opening of the Circle Line announcement increased the housing value in the neighborhoods located within the 600-meter network distance from the new Circle line (CCL) stations by approximately 8.6 percent (Mi Diao, 2017). Buyers and investors are willing to pay a premium for properties located near transit hubs due to the convenience and accessibility they offer. In fact, Commercial properties within 1/4 mile (400 m) range are 12.2 percent more expensive than residential properties (Rietveld, 2007). Compact urban development and public transit support each other: transit handles high-density flows, while jobs and housing around stations make it viable. (World Bank, 2017)
The Kota Tua TOD project by ID&E in Jakarta is set in a congested heritage area with a predominantly low-income population, next to one of the city’s largest railway stations. The design recommendations for the project include a high variety of land uses placed conveniently and strategically, a diversity of housing for various user groups, and people-centric design to attract additional tourists. This involves providing both low-income and high-income residential housing instead of allowing gentrification. The project plans to create interconnections between transit nodes and commercial areas for seamless intermodal connectivity, transforming a congested heritage area into a prime real estate location through data-driven urban design.
A data-driven approach underpins these recommendations, utilizing deep analytics of people movement, demographic, and real estate data. Ultimately, this approach aims to strategically improve the area’s value and demand.
2. Influence on travel behavior
According to Urban experts, TOD encourages the use of public transportation by making it more accessible to destinations, and efficient walkable street design reduces reliance on personal vehicles (Reid Ewing & Robert Cervero, 2010). This shift over time can lead to significant decrease in traffic congestion and great reduction of greenhouse gas emissions (Shashank Bharadwaj, 2017).
The improved accessibility to transit services and seamless integration of digital solutions (like real-time tracking and mobile ticketing) further encourages the residents to use public transit (Marlon Boarnet, 2001). Physical infrastructure improvements, such as pedestrian-friendly pathways and bike lanes, also enhance walkability and cycling. These shifts in local infrastructure design contribute to sustainable urban living while promoting healthier lifestyle choices (Reid Ewing & Robert Cervero, 2010).
Another positive validation of this influence on travel behavior is the Nudge software tool developed by Nippon Koei that will be integrated by LTA (Land Transport Authority of Singapore) for the newly developed Jurong Lake District Project in Singapore. This digital solution nudges people to use more public transportation, enhancing the effectiveness of the TOD. The insights from the Nudge tool help optimize transit routes and improve user experience, encouraging a shift from car dependence to public transit. The Jurong Lake District Project showcases how a good combination of digital and physical infrastructure can significantly alter travel behavior while promoting healthy and sustainable urban living.
3. Improvement in overall health
Evidence suggests that increased walkability and cycling options promote higher physical activities among residents, which contributes to reducing the risk of obesity and related health issues (Lawrence D Frank, 2004).
Additionally, reduced traffic congestion and noise pollution, coupled with more green spaces, contribute to lower stress levels and improved mental health (Sugiyama T, 2008). Lower emissions from reduced car use improve air quality, which in turn reduces respiratory and cardiovascular diseases (Giles-Corti, 2012).
All these positive health impacts of TOD can be evidently seen in the Healthy City Project, a co-creation project by BDP and Nippon Koei under ID&E. This project quantitatively studies the statistical relationship between health outcomes and access to amenities with a focus on transit stations in urban areas.
The study, conducted in New York City, unequivocally demonstrated that living within 800 meters of a transit station is associated with a significant reduction in diabetes-related hospitalizations. These findings underscore the positive health impact which can be achieved by adopting TOD to enhance a healthier urban population.
The path forward
In conclusion, our three-pronged strategy—comprising data-driven urban planning, adaptive infrastructure optimization, and Mobility as a Service (MaaS)—effectively addresses the challenges of improving rail infrastructure. This approach aligns infrastructure developments with dynamic demand, signifying benefits for citizens.
Enhanced real estate values, improved public health, and better travel behavior all contribute to more efficient, sustainable, and economically vibrant urban environments. Through meticulous planning and digital integration, we are transforming urban mobility into a system that meets the evolving needs of modern cities and their residents.
ID&E’s fusion of cutting-edge technologies with traditional strengths ensures the creation of efficient, sustainable, and economically viable transit systems. Our partnership with GRESB to validate our projects adds an additional layer of credibility and guarantees sustainability. As we continue to innovate and integrate, urban development will become more connected, sustainable, and beneficial for all residents.
This article was written by Namita Dinesh, Senior Smart City Designer at Nippon Koei, an ID&E company.
References
BDP. Accessed June 13, 2024.
“Demand responsive transport: Local authority toolkit.” UK Department for Transport. Accessed June 13, 2024.
Giles-Corti, Billie, Kate Ryan, and Sarah Foster. “Increasing density in Australia: Maximising the health benefits and minimising harm”. National Heart Foundation of Australia. Accessed June 13, 2024.
“Using machine learning to improve road maintenance“. Google Cloud. Accessed June 13, 2024.
Frank, Lawrence D, Martin A. Andresen, and Thomas L. Schmid. “Obesity Relationships with Community Design, Physical Activity, …” American Journal of Preventive Medicine. Accessed June 13, 2024.
Boarnet, Marlon and Randall Crane. “The influence of land use on travel behavior: specification and estimation strategies.” Transportation Research Part A: Policy and Practice. Accessed June 13, 2024.
Chapuis, Raphaëlle, Théo Delporte, and Carsten Lotz. “Boosting passenger preference for rail.” McKinsey & Company. Accessed June 13, 2024.
Diao, Mi, Delon Leonard, and Tien Foo Sing. “Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values.” Regional Science and Urban Economics. Accessed June 13, 2024.
Hania, Shahar. “Global Rail Trends: A Look around the World of Innovations.” Railway-News. Accessed June 13, 2024.
Ewing, Reid and Robert Cervero. “Travel and the Built Environment: A Meta Analysis.” Journal of the American Planning Association. Accessed June 13, 2024.
Debrezion, Ghebreegziabiher, Eric Pels, and Piet Rietveld. “The Impact of Railway Stations on Residential.” Springer Science + Business Media. Accessed June 13, 2024.
Cervero, Robert and Kara Kockelman. “Travel demand and the 3Ds: Density, diversity, and design.” Transportation Research Part D: Transport and Environment. Accessed June 13, 2024.
Cervero, Robert and Michael Duncan. “Land Value Impacts of Rail Transit Services in San Diego County.“ National Association of Realtors Urban Land Institute. Accessed June 13, 2024.
Bharadwaj, Shashank, Sudheer Ballare, Rohit, and Munish K. Chandel. “Impact of congestion on greenhouse gas emissions for road transport in Mumbai metropolitan region.” Transportation Research Procedia. Accessed June 13, 2024.
Sugiyama, Takemi, Eva Leslie, Billie Giles-Corti, and Neville Owen. “Associations of neighbourhood greenness with physical and mental health: Do walking, social coherence and local social interaction explain the relationships?“ Journal of Epidemiology and Community Health. Accessed June 13, 2024.
“Transforming the Urban Space Through Transit-Oriented Development: The 3V Approach.” World Bank Group. Accessed June 13, 2024.