Op-Ed: Fragmented investments undermine transportation innovation

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In this Op-Ed, Gabriel J. Lopez-Bernal, the president of passenger transport connectivity solutions provider Icomera North America makes the case for why isolated infrastructure investments are stifling public transit innovation, creating fragmented systems that diminish both the passenger experience and operational performance.

Fragmented infrastructure investments are undermining the potential for innovation in public transit, leading to disjointed systems that ultimately compromise both passenger experiences and operational efficiency. Today’s transit agencies often adopt a piecemeal approach to technology upgrades — each investment is treated as an isolated project, driven by separate procurement processes. This siloed strategy is not only inefficient but also squanders resources and results in subpar service.

To foster true innovation, agencies must embrace a holistic approach to technology investments. By aligning internal departments around shared goals and pooling resources, they can eliminate redundancies, streamline operations, and deliver a more cohesive and impactful transit experience.

What happens when transit agencies make isolated investments?

When transit operators separate their investments, they often end up with a patchwork of technologies that are outdated, incompatible, or inefficient. This issue stems from the way transit agencies secure funding for technology upgrades.

Often, funding is tied to specific government programs or legislation, which are narrowly defined, forcing agencies to apply funds to particular solutions or use cases. Once funding is secured, agencies face a “use it or lose it” dilemma — they must conduct a procurement process and purchase the new technology, regardless of how well it fits into their broader technology roadmap.

In the best-case scenario, the new technology arrives on time and slots cleanly into the operator’s existing infrastructure. However, this ideal is rarely realized. More often than not, operators face significant delays between investment and implementation.

For example, when the Chicago Transit Authority unveiled its 7000-series rolling stock in 2021, it came a full eight years after first issuing a request for proposals. Over such extended timelines, features that were once cutting-edge may become standard or even outdated by the time they are delivered. If the agency then seeks to upgrade specific onboard features — such as AI-driven passenger counting or payment validators — they must find solutions compatible with their rapidly aging infrastructure.

Similar challenges arise when agencies issue separate RFPs for their connectivity solutions. For example, an operator might segregate passenger Wi-Fi from the networks supporting onboard functions like security cameras, passenger counting, and fare collection. This decision is often driven by the misconception that running passenger and operational Wi-Fi on the same network poses a security risk. However, this fragmented approach can negatively impact both passenger experience and system performance.

Rigid roadmaps and stifled innovation

The segmented approach to transit technology investments doesn’t just lead to redundant efforts — it actively stifles innovation, leads to outdated systems, and hampers the ability of agencies to adapt to evolving needs.

Narrowly defined RFPs force agencies to focus on immediate, isolated objectives while losing sight of the bigger picture. As technology advances at an accelerating pace, these fragmented procurement processes struggle to keep up. The result? So-called technology “upgrades” that are outdated by the time they reach passengers.

Rigid investment structures also create long-term challenges. When agencies can consolidate the equipment on their trains, they benefit from simplified maintenance, reduced upkeep costs, and a clear path forward when technology needs upgrading. Conversely, when investments are siloed, agencies must purchase products separately, missing the opportunity for integration and long-term efficiency.

By adopting a holistic approach to connectivity, agencies can explore innovative possibilities, such as utilizing AI-based video for security monitoring, leveraging passenger Wi-Fi data to optimize routes, or using security camera feeds for real-time crowd management.

Adopting a holistic investment approach

A holistic investment approach only takes shape with understanding and consensus from all involved: government funding entities, operators, manufacturers, integrators, and the agencies themselves.

Here are steps an agency can take to transform a siloed investment strategy into a holistic one:

  • Develop a Unified Strategic Plan: While nearly every transit agency creates strategic, long-term, or statewide rail plans, these are often developed by different departments or consultants at varying times, leading to inconsistent recommendations. To ensure alignment, all departments should collaborate on a single strategic plan that outlines long-term investment priorities.
  • Conduct a Thorough Investment Audit: A comprehensive audit of investments over the last 10–15 years can reveal areas where consolidated or joint procurements could have saved money. By analyzing these past investments and recognizing missed opportunities, agencies can develop a more cohesive strategy for future investments.
  • Prioritize Interoperability: Innovation in transit is only effective when new technologies are interoperable with existing systems. Each upgrade should seamlessly integrate with multiple systems, ensuring that every investment contributes to a larger, interconnected ecosystem.
  • Think Bigger: Narrow grant requirements often force agencies into narrowly focused procurements. For example, a grant specifically for “passenger Wi-Fi” might prevent an agency from investing in a more comprehensive technology solution that could meet multiple needs, such as passenger counting, video surveillance, feedback collection, and POS integrations (e.g., fare collection, at-seat ordering). By advocating for broader grant scopes, agencies can pursue more holistic investments, leading to more efficient operations and maximum value for passengers.
  • Pool Resources for Multi-Goal Investments: By creating an internal investment pool, agencies can allocate a portion of their budget to integrated technology solutions rather than piecemeal upgrades. This approach allows an agency to invest in comprehensive solutions, such as a “connected vehicle” system combining Wi-Fi, real-time tracking, and predictive maintenance, rather than purchasing these systems separately.
  • Embrace Change: Meaningful transformation requires a willingness to change. Bringing in a change agent — whether internal or external — can help navigate uncertainties, answer critical questions, and keep the transformation process on track. Change agents act as catalysts, ensuring that all stakeholders are aligned and moving in the same direction.

Mindset for the future

The current trend toward siloing infrastructure investments is hindering the advancement of innovation, efficiency, and rider retention in public transit. Achieving a more holistic approach to technology investments requires collaboration, education, a common vision, a modern mindset, and a willingness to embrace change.

To truly innovate and modernize our transportation networks, manufacturers, tech experts, government funding entities, and transit agencies must shift towards integrated funding and development efforts that prioritize cohesion, efficiency, and interoperability.

About the Author

Gabriel J. Lopez-Bernal is President of Icomera North America, a global provider of wireless connectivity for transportation. Gabriel is responsible for the operational management of the North American business, serving national, regional, and intercity rail, transit, and road markets.

He previously collectively spent a decade as a consultant with TranSystems, the US Department of Transportation’s John A. Volpe National Transportation Systems Center, and the Corradino Group. He holds degrees in civil engineering and urban and environmental policy and planning. Gabriel is an active member of the Commuter Rail Coalition. In 2021, Gabriel was selected as a Mass Transit Magazine 40 Under 40 honoree.

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All images credited to Icomera North America