Broadleaf Co., Ltd. (Head Office: Shinagawa City, Tokyo; Representative Director and President: Kenji Oyama; hereinafter “Broadleaf”), a developer and provider of IT services focused on the automotive aftermarket industry*1, announced that their proposal called, “Pilot Project for Smart Mobility Platform in the Philippines,” has been selected by the Japan External Trade Organization (hereinafter “JETRO”) for the Asia Digital Transformation (ADX) Projects (administered by JETRO) and will be implemented by the AEM-METI Economic and Industrial Cooperation Committee (hereinafter “AMEICC”) under the FY2020 Ministry of Economy, Trade and Industry (hereinafter “METI”) supplementary budget.
Reference: “Selected companies for the Asia Digital Transformation (ADX) Projects”
Background of the Application for the Asia Digital Transformation (ADX) Projects
Broadleaf has made Digital Transformation (DX) the main theme of its medium-term management plans from 2021 to 2023. It has also positioned the development of a MaaS (Mobility as a Service) platform as one of their strategic priorities※2 for this period. Broadleaf believes that a MaaS platform has the potential to increase the convenience of everyday life, mitigate the mobility gap, and reduce the environmental impact of transportation for people in the Philippines and other ASEAN countries.
In addition, Broadleaf participated in a new public transportation model project*3 in the City of Pasay, in the National Capital Region of the Philippines, which was launched in December 2020. As Broadleaf has already developed the basic system functions and established a framework for implementing the project, while also having experience in collaborating with local companies in the Philippines, it felt that the model project met the objectives of the Asia Digital Transformation (ADX) Projects, which led to the decision to submit a proposal for the program.
The Philippines is facing major challenges such as chronic traffic congestion and environmental pollution due to its rapid urbanization and increasing population density. While the government is promoting the electrification of public transportation services as part of its environmental measures, there is an urgent need to improve the profitability of the services in order to accelerate the introduction of expensive electric vehicles. With the adoption of its pilot project for the Asia Digital Transformation (ADX) Projects, Broadleaf aims to utilize the knowledge it has gained so far to establish a new regional model for transportation in the Philippines through a public-private partnership with METI, AMEICC, and JETRO.
Details of the Pilot Project
1) Provision of an electronic payment system for cashless transportation fare payments and boarding reservations.
2) Provision of an operational management system for visualizing vehicle locations, managing vehicle dispatch schedules, etc.
3) Introduction of a MaaS platform that integrates the Big Data analysis infrastructure collected from these systems.
The local partner company, APTC, is a transportation business cooperative operated by the National Council for Solo Parents (hereinafter “NCSP”), a large NPO that supports single-parent households throughout the Philippines, has the following three objectives for the project:
1) To use the profits from its transportation business to fund activities aimed at supporting single-parent households.
2) To create work opportunities for single-parent households.
3) To achieve decarbonization by adopting environmentally-friendly electric vehicles.
Through this pilot project, Broadleaf aims to reduce greenhouse gas emissions and traffic congestion by increasing the implementation of electric tricycles. The high versatility of the cloud-based MaaS platform developed and provided by Broadleaf allows the platform to be applied not only to electric tricycles, but to all mobility services, including those using four-wheeled and two-wheeled vehicles. Broadleaf believes that the platform will help to establish a new regional model for transportation. Furthermore, through its collaboration with APTC, Broadleaf will contribute to solving various social issues that the Philippines is facing, such as creating employment for single-parent households, while also contributing to the achievement of SDGs.
About the Asia Digital Transformation (ADX) Projects
The objective of this initiative is to solve economic and social issues in the ASEAN region and to promote the social implementation of digital innovation as a joint ASEAN-Japan effort through the support of pilot projects utilizing digital technology conducted as collaborations between Japanese and local companies.
About the Angat Pilipinas Transport Cooperative (APTC)
APTC is a transportation business cooperative operated by NCSP, a large NPO that supports single-parent households throughout the Philippines. It offers an exclusive premium service for single-parent households and also provides discounted services to NCSP members.
Additionally, by adopting electric vehicles eligible for the Public Utility Vehicle Modernization (PUVM) Program, a program being promoted by the Department of Transportation of the Philippines, and using a platform that integrates tricycle operation modes, secondary transportation modes and jeepneys, all of which are used to provide last-mile service, which are routes from major stations to shopping districts and other destinations, this platform enables vehicle dispatch, payment, and operation management. Both modes use environmentally friendly electric vehicles. Finally, the drivers will be provided with generous employment benefits in addition to their regular compensation as a social program.
*1: Aftermarket refers to the market for all goods and services consumed after the purchase of a vehicle, primarily refueling, accessories, inspections, maintenance, part replacement, resale, disposal, etc.
*2: Broadleaf Corporate Site – Management Plan: https://www.broadleaf.co.jp/english/ir/business/strategy/
*3: Broadleaf Press Release: “Broadleaf participates in new public transportation model project launched in Pasay City” https://www.broadleaf.co.jp/english/company/news/?itemid=207&dispmid=1734