Regional, national managed enforcement for developing nations

Robot is offering nationwide enforcement services to both developed and developing countries. The company's Börries Lorenz-Meyer talks to ITS International about the thinking behind the move

Based on a decade of experience of providing something similar at a more local level in the US, Robot is now looking to offer managed enforcement services at the regional and national level to developing nations which would not otherwise have the necessary skill sets or monetary resources with which to go it alone. The company has set up a dedicated Traffic Service Providing Business Unit and is already in negotiation with potential customers at the national and international levels, says Börries Lorenz-Meyer, Director Traffic Service Providing.

"Our key strength is our ability to offer a one-stop shop," he explains. "That includes hardware, software and the service from end to end. It allows us to have a greater impact on technological development and to accommodate users' specific needs and functions. It also allows us to come up with something which is greater than the sum of the individual parts." The company's acquisition back in 1999 by the Jenoptik Group, an organisation with an annual turnover of €0.5bn is the other part of the equation, says Lorenz-Meyer: "It means that we also have the financial clout to be able to take on projects up to the national scale - essentially, there are two types of market: those in 'Old' Europe and the US where the customers are municipalities and the national 'Big Bang' projects in 'New' Europe and developing countries elsewhere. It's the latter that we're shooting for primarily with the new venture."

Common issues

The geographic focus of the new business unit is on the emerging economies in Eastern Europe, North Africa, Asia and South America, besides its existing business in Germany and the United States.

"These countries tend to have fast-growing traffic problems and high mortality rates. Particularly in the case of the first two areas mentioned, where countries are looking to align themselves with the 1816 European Union's Road Safety Charter, there is a motivation to address the issue.

"They also like the idea of self-financing solutions and what we're offering, effectively, is a Public-Private Partnership [PPP] arrangement. We bring cameras, processes and know-how, and the host countries benefit from lower road casualties and increased revenues." The mention of revenues and worries over accusations of excessive profiteering leads Robot to recommend a very strong audit trail so that overall transparency is achieved.

"Being homologated worldwide means that we are highly aware of the appropriate processes," says Lorenz-Meyer. "We've a strong business base in 60 countries and there are certainly places, based on our experience, where we'd hesitate about going down the PPP route. Our guiding criteria are countries where there is rapid industrial/traffic growth, a low existing level of technology and a stable political situation." He adds that there is no especial reason to pursue a specific operating regime: "An area of caution for us is in having our own employees taking direct payments at the roadside. We can undertake mobile enforcement but not with direct payment - again, that comes back to maintaining transparency of the paper and money trail."

Launch considerations

The timing of the new venture coincides with the maturation of the enforcement market in developed countries. There is also the move from sole operation by the police or government authorities to a more ready acceptance of the concession model.

"Here again there are two motivations. The first is that 'Big Bang' model where a country lacks the necessary funding but needs a fast start-up. The second is in countries where there is already a long history of traffic enforcement. Private companies can provide gain by offering infill within the current operations.

"An important point to note in the latter case is that there is no conflict in involving the private sector. Operation is demised, not the strategy. That means that camera locations, for example, will continue to be selected according to the road safety strategies of the relevant official institutions and not by a commercial concern. There is also a need to counter fears of protectionism, where public sector operatives fear losing their jobs to private-sector employees. The key is that the private sector is providing an extension of services, not a substitution.

"In Germany, for example, we already do work on behalf of several municipalities. We provide them flexibility and an additional efficiency. Take a look at the process chain at its most basic; start with the camera. A camera with a dirty lens will give a lower prosecution rate. Online connectivity to our data centre means that we can make sure that all images are being processed - at each process step you find room for improvement. The bottom line is that we provide more money for the client than is needed for the engagement of a specialised service provider such as 2185 Robot.

Technology considerations

 "In terms of the technology involved, it's no use looking to offer managed services with anything other than digital. We definitely look for a best-in-class offer, so that extends to wireless connectivity and an overall flexibility in the product range.

"The requirement to be able to address individual customers' needs means that there isn't a standardised offering as such. The local requirement might be front images, rear images - or both; it might be for piezo or some other detection technique. Most countries will have specific requirements. In places where there is no homologation process it is possible to look at solutions which are more cost-effective but in truth we'd probably look to steer things in that direction in order to preserve the integrity of the evidence value chain. One lost court case because of a loss of quality is fatal in the marketplace; it's best to do it right first time.

"It's also important to have a strong back office solution. That means an efficient structure with lean processes. Ideally, we'd look to run the back office on any project."

Current status Lorenz-Meyer isn't keen to disclose just who the launch customer for a national enforcement service might be. But given the current state of negotiation, he says, we can expect to see a big project announced within the course of this year.

"There's a strong need for this sort of thing," he continues. "The 1819 World Health Organisation puts the number of fatalities on our roads at 1.3 million annually. By 2030, that's expected to be up at around 2.4 million. It's a problem that's growing, not shrinking, in line with mobility needs. That provides the new business unit with a perfect base for growth and we're currently in close talks with somewhere between 15-20 countries over solutions which either cover a whole country or a significant part of it."