Digitalization of Transportation and Logistics Regional Revitalization and Sustainability by Improving Access

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Social Value Creation Report "Lifeline

Infrastructure"
Digitalization of
transportation and logistics
Regional revitalization and

sustainability by improving
access to transportation for all
people in Japan.
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transportation necessary in their daily lives. In addition, a decline in demand, shortages of successors of small businesses,
shortages of manpower for land transportation companies, and various other factors leading to weakened logistics
functionality have led to the decline of local economies, including the withdrawal of retail stores. In order to address these
A World-First: Undersea Deployment of issues, the government, industrial organizations, and companies are working together to make proactive efforts toward
Muography Visualization Technology Is revitalizing the transportation and logistics infrastructure by making use of AI (artificial intelligence), IoT (Internet of Things),
Changing the Face of Disaster Prevention and other cutting-edge technology.
and Natural Resource Development
This report introduces issues and changes in social trends surrounding public transportation and logistics, and provides
NEC & Partners Strive to “Seize the
examples of government and corporate initiatives for handling these issues. In addition, we also introduce NEC's thoughts,
Future Together” at NEC Visionary Week
initiatives, solutions, and services for supporting the lives of people and economic growth by improving the quality and
2021
efficiency of the transportation and logistics infrastructure, a lifeline for society.
Safe cities: Future-proofing for tomorrow
and beyond
Aiming to Create a New, Safe and

Delightful Customer Experience Through
Increasing difficulties in maintaining transportation and
Face Express, Which Uses Face logistics infrastructure for our lives and industries
Recognition
Join us at the NEC Visionary Week 2021

The transportation limitation issue grows more serious day by day
Since the aging population in Japan began increasing significantly, the number of people who cannot secure means of
transportation necessary in their daily lives has also been on the rise. This issue is called transportation limitation. Increasing
numbers of people lack easy access to the public transportation network and experience difficulties in their daily lives when
they go shopping or visit the hospital. There are also many elderly people who refuse to give up driving as a means of
1. Even without spectators, the
transportation, leading to an increase in traffic accidents. This is also becoming a social issue.
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These issues are particularly serious in provincial areas. The declining population has made it difficult to maintain the
2. The Growing Case for Private 5G
transportation infrastructure, and transit deserts are expanding. The reduction in revenue from passenger fares and the
Networks decrease in drivers have caused declining public transportation networks of buses and trains. In the Tokyo, Nagoya, and
3. The Future of Digital Twins Kyoto-Osaka areas, the reduction in the numbers of bus drivers between the years 2000 and OK2016 was only 2%. Compared to
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4. 5G and the Smart City - Early use these three major metropolitan areas, however, the numbers in other regions of Japan were reduced by as much as 24%.*1
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*1 "Results of survey based on interim report" by the Study Group on New Mobility Services Brought About by IoT and AI; Ministry of
Economy, Trade and Industry
About NEC Insights Population outflow and economic
Contact Us reduction in provincial
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decline of the transportation and logistics infrastructure

In regions with declining populations, decline in demand, shortages of successors of small businesses, shortages of
manpower in land transportation companies, and various other factors leading to weakened logistics functionality have led
to the decline of local economies, including the withdrawal of retail stores. In some cases, the situation has progressed to the
point that people cannot easily go shopping for things they need in their daily lives.
The declining birthrate and aging population of Japan are behind these problems. Declining populations lead to declining
transportation and logistics infrastructures, which in turn leads to declining regional economies, which then causes further
population decline.
To solve this negative spiral, it is necessary to develop solutions based on two perspectives: support for transporting people,
and improvement of access to goods. However, it is difficult to guarantee profitability by just implementing different
measures for each industry. This approach will not help realize sustainable transportation and logistics infrastructure in the
aging society. Therefore, in addition to improving efficiency of the entire transportation infrastructure through the use of the
latest digital technologies, it is also urgent to make the overall processes of the logistics infrastructure more efficient.
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Public and private sector collaboration toward the next

generation of transportation and logistics infrastructure
Social implementation of new mobility services backed by the government

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for potential measures to solve the transportation limitation issue. However, the introduction of these services is also
disrupting previously existing industries. Provoked by overseas efforts, implementation of "new mobility services *2" using
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cutting-edge AI and IoT technologies has begun in Japan through collaboration of public and private sectors.
One such initiative is the "Project for Promotion of New Mobility Services" run by the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT). This initiative promotes development of business models for solving regional transportation
issues by conducting demonstration experiments of MaaS*3 and other new mobility services. They are planning to select 19
remarkable Pioneering Model Projects which lead trends in Japan, and will provide support for demonstration experiments in
the future.
In addition, the Ministry of Economy, Trade and Industry (METI) is sponsoring the Study Group on New Mobility Services
Brought About by IoT and AI, at which experts and companies discuss current conditions and future initiatives. In April 2019,
they collaborated with MLIT to launch the Smart Mobility Challenge project, an effort meant to support regions working on
social implementation of new mobility services.
Movement of economic organizations for the realization of the next

generation of logistics
Economic organizations from the private sector are proposing policies concerning the next generation of logistics and
mobility. In October 2018, Japan Business Federation announced "Logistics in the Age of Society 5.0." This policy proposes
real-time logistics tracking and management by constructing a supply chain integration platform using RFID*4, as well as
joint transportation beyond industry boundaries, self-driving/convoy-based truck transport on major roads, and small cargo
delivery using self-driving vehicles and drones to reduce man-power needs. In February 2019, the Japan Association of
Corporate Executives proposed "Logistics Reform for Promoting Economic Growth and Strengthening Competitiveness,"
which advocates for the construction of a logistics platform and the unification of standards with the goal of improving
efficiency and standardization of logistics by using cutting-edge technology.
In this way, we can see that the public and private sectors are collaborating on initiatives for new mobility services and
logistics reform. However, the realization of these initiatives will require even further cooperation and collaboration from
government offices, municipalities, companies, and research institutions.
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*2 Mobility services: services which provide functionality of automobiles as a means of transportation of people or things.
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transportation, it covers a wider range than mobility services.
*4 RFID: Radio Frequency Identification
Digital transformation is the key to the future of

transportation and logistics
Accelerating co-creation of new mobility services
Private corporations are also showing interest in MaaS and next-generation logistics, with a variety of efforts underway.
According to the "Results of Survey Based on Interim Report" published by the Study Group on New Mobility Services
Brought
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Mobility Innovation
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surrounding public transportation through open innovation made possible by collaboration between transportation
companies, manufacturers both inside and outside Japan, universities, and research institutions. At the consortium, the
working groups are organized by task to perform demonstrations.

The Door to Door Promotion Working Group aims to strengthen the connection between railways and taxis/buses to realize
seamless transportation. The Smart City Working Group aims toward new community development that centers on train
stations and is based on the community's characteristics. The Robot Application Working Group improves quality of services,
makes operations safe and efficient, and uses robots for reforming maintenance operations. Lastly, the Congestion
Reduction Working Group aims to transport people safely and comfortably by making congestions at and around stations
visible.*5
As for initiatives by automobile companies in Japan, SoftBank and Toyota are working together through their joint venture
MONET Technologies Inc. to provide new mobility services. One of their specific initiatives involves the collaboration of 17
municipalities across Japan*6 (as of July 2019) on demonstrations for providing next-generation on-demand mobility services
in which people can simply set a location and a date/time to reserve a bus to pick them up.
In March 2019, they established the MONET Consortium*7 as a way of promoting next-generation mobility services to solve
social mobility issues and create new value, calling for participation from a wide range of industries and businesses.
NEC is also participating in these consortiums and working toward transformation through digital technology.
In this way, mobility services utilizing technologies such as MaaS, AI, and IoT are progressing from the demonstration phase
to the implementation phase in Japan as well. The further promotion of these initiatives will make it possible to solve social
issues like transportation limitation and regional economic decline, as well as improve our competitiveness as a company.
*5 Source: East Japan Railway Company press release "Starting demonstrations at the Mobility Innovation Consortium"
*6 Source: MONET Technologies Inc. news release "MONET works with 17 municipalities to provide next-generation on-demand mobility
services"
*7 Source: MONET Technologies Inc. news release "MONET Consortium Established"
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NEC's initiatives for mobility innovation
Realization of self-driving buses by co-creation
NEC is collaborating with a variety of other companies to solve the issues of the transportation infrastructure through the
use of NEC's ICT solutions and cutting-edge AI technologies "NEC the WISE"*8. One part of our initiatives includes
participating in the self-driving bus demonstration experiments implemented by the Mobility Innovation Consortium
established by the East Japan Railway Company.
In a joint press release on December 7, 2018, the East Japan Railway Company (JR East), Advanced Smart Mobility Co., Aichi
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a self-driving bus test project on JR East BRT*9 lines. On a BRT
dedicated road of the Ofunato Line BRT operated by JR East, self-driving bus technology demonstrations, including
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automated lane-keeping control, speed control, parking assist, and alternating passage tests will be conducted. *10
In these demonstrations, NEC has contributed to the provision of technologies that enable position identification of
automobiles that use magnetic markers. Straight lines, curves, slopes, and other road information on design drawings are
digitized and formatted as a road map (linear information data)*10-2, and then changed into electronic data for autonomous
driving and sent to the bus to support smooth operation. Furthermore, magnetic markers and RFID tags are scanned by the
vehicle's reader to determine the vehicle's position and enable operation on an accurate path.
NEC solutions for Connected Cars
In regions with insufficient public transportation, efficiency is an urgent issue. In response to these issues, NEC is
collaborating with automobile manufacturers to provide Connected Car Solutions that support efficient operation of public
transportation.
For example, we are supporting secure and safe autonomous driving through the use of Surround Sensing for detecting
pedestrians and the vehicle's surroundings, and Danger Prediction ECU that avoids dangerous situations ahead of time.
Additionally, a communications platform for automobiles, Connected Gateway, connects to the IoT infrastructure to provide
mobility services, uses AI to detect known and unknown cyber-attacks and irregularities in the car, and securely and safely
performs efficient information transmissions for connected cars.
In addition to providing cutting-edge technologies for the operations of these automobiles, NEC collaborates and co-creates
with public transportation companies and automobile manufacturers to improve the convenience and efficiency of public
transportation to support the revitalization of regional economies.
*8 NEC the WISE is NEC's cutting-edge AI technologies, which maximizes human intellectual creativity activities. http://jpn.nec.com/ai/
*9 BRT: Bus Rapid Transit
*10 Source: NEC press release "Self-Driving Bus Test Project on JR East BRT Lines"
*10-2 Source: Kameoka, Amemiya et. al. (2019), Utilization of linear information data to support autonomous driving, Traffic Engineering Vol.
54 No. 1, pp 39-42
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Transformation of logistics for sustainable economic growth
Visualization of overall logistics for higher efficiency
In the field of logistics, NEC is working with a variety of companies toward solving issues with ICT solutions that utilize such
AI and IoT technologies as NEC the WISE. The word "logistics" encompasses transport, storage, loading, packaging, retail
processing, and other functions. In a way, it can be considered the lifeblood which supports economic activities. It is an
important social infrastructure that supports people's lives and business activities. In order to promote economic growth,
making improvements to logistics functions becomes an urgent issue.
One of the solutions to this issue is advanced utilization of "data." As the flow of logistics data grows faster, it grows more
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In addition, in order to enrich the lives of people and revitalize industry, it is essential to improve efficiency and quality of the
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overall logistics process beyond distribution functions, such as planning, implementation and management of the flow of
things from production to consumption, and of the storage, services, and related information.
NEC offers a Logistics Platform that enables seamless collaboration between the real world logistics network and the virtual
logistics network.
Logistics Platform based on all of NEC's knowledge
The function required for logistics is the combination of production, sales and logistics. It detects changes in the demand
and the market, and applies them to production and sales responsively. At the same time, an accurate logistics system is also
necessary to deliver the right amount of products at the right time to the right location. To achieve this, it is essential to
optimize overall logistics to promote supply chain transformation through labor-saving, efficiency improvement, and
automation.
NEC's Logistics Platform includes cutting-edge technologies such as AI, IoT, and image recognition, as well as NEC's supply
chain related innovation know-how, which has been cultivated over many years. With our abundance of implementation
experience as a base, we realize safe, secure, and labor-friendly operation environments, while also creating a logistics
network that connects the departments of production, sales, and logistics through innovation of the logistics workplace.
NEC improves logistics operation efficiency, protects people's lives, and supports the revitalization of regional economies
through the Logistics Platform.
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Aiming to support people's lives through transportation and

logistics infrastructure transformation
Co-creation converging mobility and logistics
The environment surrounding transportation OKTechnologies such as

When you visit any website, it may store or retrieve information on your browser, mostly inand
the logistics businesses
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will end up left behind by the new era of innovation. We must have a deeper understanding of challenges
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faced by people in their everyday lives and companies, and seek new solutions.
In order to solve the increasing issues of mobility limitation and the decline of regional economies, co-creation between
numerous businesses and users in both the public and private sectors is essential. To this end, NEC is evolving the Logistics
Platform to incorporate mobility services and working on convergence of mobility and logistics. In the real world, the flow of
things and people is collected as data via IoT and sensing, that data is visualized and analyzed in a virtual space, and the
results are then fed back to the real world. Utilizing this feedback enables optimal resource configuration, and the
construction of optimal routes and supply chains. In addition, the entire supply chain can be visualized and optimized so that
data from each organization and company in a partnership can be integrated and utilized.
In order to improve transportation and logistics and to realize a sustainable society, NEC collaborates with numerous
businesses and users in both the public and private sectors, and to promote discussion for new value creation.
Creating future industry by the power of digital technologies
The strengths of NEC lie in our experience supporting various companies, government offices, municipalities, and others, as
well as technologies such as NEC the WISE for analysis, IoT for visualization, and network technologies essential for
autonomous driving and car sharing.
We will create future industries through collaboration with various businesses and users, and through combination of
cutting-edge technologies. We also contribute to social prosperity by transforming and optimizing the transportation
infrastructure, allowing all people to move about freely, and the logistics infrastructure that supports regional economy.
NEC hopes to design new social value that leverages ICT together with customers and to work toward the realization of a
"Brighter World," while placing importance on the pursuit of intrinsic value for society and for customers. We welcome your
comments and questions concerning the content of this report and initiatives by NEC.
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(February 28, 2020)
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Contact Us Support & Downloads Country & Region Global Site

Social Value Creation Report "Lifeline

Regional revitalization and

Tweet Share Share 0

Aiming to Create a New, Safe and

Join us at the NEC Visionary Week 2021

international mega sports event in

decline of the transportation and logistics infrastructure

Public and private sector collaboration toward the next

Social implementation of new mobility services backed by the government

Movement of economic organizations for the realization of the next

Digital transformation is the key to the future of

Accelerating co-creation of new mobility services

Contact Us Support & Downloads Country & Region Global Site

NEC's initiatives for mobility innovation

Realization of self-driving buses by co-creation

NEC solutions for Connected Cars

Transformation of logistics for sustainable economic growth

Visualization of overall logistics for higher efficiency

Logistics Platform based on all of NEC's knowledge

Aiming to support people's lives through transportation and

Co-creation converging mobility and logistics

The environment surrounding transportation OKTechnologies such as

Creating future industry by the power of digital technologies

Tweet Share Share 0

(February 28, 2020)

Contact Us Support & Downloads Country & Region Global Site

Enter Search Term

Products & Solutions News Support & Downloads About NEC

Industries Press Releases Support & Downloads Corporate Profile

Solutions & Services Event Calendar Investor Relations

Products NEC Worldwide

Our Social Value Creation

Top of this page

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