CSCMP's Supply Chain Quarterly
February 23, 2018

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Forward Thinking

Report: Hot growth in emerging markets could stall with traffic jams

Developing countries are slow to develop road networks capable of meeting rising demand for freight movement, says research firm.

Emerging markets are broadly forecast to drive demand for retail services in coming decades, but a recent report says poorly planned road networks could throw a wrench into efforts by developing regions to keep up with rising demands for freight movement.

Despite rising consumer demand, many developing countries are saddled with poor infrastructure that triggers road traffic jams, increased fuel waste, and monetary losses, according to the the report "Global Intelligent Transport Systems Market (2016-2022)" from KBV Research, a subsidiary of Marqual IT Solutions Pvt. Ltd., an Indian company..

The problem is caused by planners' inability to keep up with a fast-changing regional landscape, leading to traffic congestion hot spots, poor traffic management, and extended traffic jams, the report says.

Possible solutions include privatized highways, new fees for road pricing, and the development of railway intelligent transportation systems (ITS). Regions that adopt intelligent rail networks can build a transportation-system backbone that provides a competitive edge over other freight modes while preserving consumer safety, the report concludes.

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