Zachary Department of Civil Engineering

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Regional Workshop on Public-Private Partnership
in Highways
ITS as PPP Projects Regional Perspective
Ivan Damnjanovic, Ph.D. Assistant Professor

• Zachary Department of Civil Engineering
• Texas AM University

Belgrade, June 7, 2006
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Application of ITS

• ITS to support PPP projects
• Toll Road Projects
• ITS as PPP projects
• North American Free Trade Agreement (NAFTA)
  Superhighway project
• PrePass

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Bratstvo-Jedinstvo Turnpike
MOTIVATION To increase the competitiveness of
local industries To support trans-continental
supply chains
PROBLEMS Political instability Other?
TRANSIT FREIGHT TRAFFIC?
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Restructuring of Supply Chains

• Companies are changing the way they design and
  manage their business operations
• Cheap labor force in distant locations
• Focus on the core operations by outsourcing some
  of the nonessential ones
• Much more than twenty years ago, companies need
  to operate in a predictable environment

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Predictable Environment?

• Operating conditions can hardly be described as
  predictable environment
• Catch-22 loop
• Future demand does not justify the investments,
  which in turn depend on the investments

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ITS Solutions

• ITS can be used to increase the competitiveness
  of the network
• Increase the reliability of operations
• Keep the operating costs low
• ITS Technologies
• Electronic seals for containers
• GPS tracking systems
• Radio Frequency Identification (RFID) tags
• Weight-in-Motion stations
• Electronic driver and truck records
• Time windows for specified length of the trips

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3P Logistics and ITS Integration

• Assure uninterrupted flow of freight in the
  region
• PPP Entity that would charge for a reliable and
  cost-effective transport of freight
• Focus on transit TL and regional LTL cargo
• Allow for just-in-time, vendor-managed inventory

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Key Benefits

• Local companies would be able to develop more
  complex supply chain structures, distributed in
  different former Yugoslav republics, and
  therefore increase the efficiency and profit
• Multinational companies would have much greater
  opportunity and flexibility to explore local
  labor/resources by setting up plants or providing
  services
• Due to newly acquired transit traffic, new
  construction and rehabilitation projects would
  become financially more attractive, eventually
  leading to many successful highway concessions
  and ultimately development of a competitive and
  sustainable regional transportation network

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Thank you for your attention.
CONTACT INFOIvan Damnjanovic, Ph.D.Assistant
ProfessorZachary Department of Civil
EngineeringTexas AM UniversityPhone (512)
497-0709Email ddivan_at_gmail.com
ivand_at_mail.utexas.edu