With the changing scenario of mobility, information, new technologies in human life and faster living style to suit the 21^st century’s official and personal needs, the demand for a well-managed and advanced transportation system is required for any economy to grow. The population dynamics, security issues, availability of transports and modality of arranging transportation thus greatly affects the daily life and convenience of a passenger. Unsuitable, risky or uncertain transport can easily effect people’s productivity, time scheduling and interestingly, stress levels. Thus, a sound transportation policy coupled with the possibility of applying modern technology to ensure faster, secure system is very important. Especially for a least developed country like Bangladesh with pressure of excess population hurting the conventional transportation module to a near breakage, adapting to a more streamlined method of transportation booking and payment is a burning issue. In neighboring countries bearing similar population pattern, several attempts and action plan has been administered which has met with success. For example, Seoul Metropolitan Government has restructures their public transport modes, installed rapid transit corridors and integrated the ticketing and payment structure (Puchar et al, 2005)¹.

In Bangladesh the sufferings of the travelers and passengers keeps growing by leaps and bounds through the presence of the hassle of buying tickets for every travel, searching for ticket counters, waiting at queue at ticket counters, resorting to the inconsistent fare demanded by every transport mode, time wasted at ticket purchasing, black ticketing etc. To solve these issues, the research paper wishes to draw light into the probable means and suggests a digitalized technical model which can be applied to streamline the issue and bring greater convenience and faster service.

2. LITERATURE REVIEW:

Adequate and up-to-date transport and communication system is imperative to understand a country’s growth potential. According to the Ministry of Finance of the government of Bangladesh, transport sector contributes to 6.58% of total GDP of Bangladesh (MOF annual report, 2013-2014)². The transport system can be broken down into – Road Transport, Railway, Water Transport and Air transport where 80% of the national traffic comes from road transport which runs by different transport modality (World Bank, 2014)³. Of the available transport modes in roads and highways, 20% is private cars and 13% is motorcycles while the rest depends on either public or private bus service and other modes like CNG-driven 3-wheelers and Rickshaws (World Bank, 2014)³.

Only very few number of transportation facilities like proper infrastructure and vehicles can be found in the country. Increasing demand, too many non-motorized vehicles and lack of proper traffic management schemes are creating severe transport problem in urban Bangladesh(Mahmood et al, 2009)⁴. If the existing public transport system is lined with the Information Technology enabled services, a further smart infrastructure for public transport could be obtained (Chatterjee and Nath, 2014)⁵.

To develop the transport sector and align it with the Digital Bangladesh perspective, the government of Bangladesh has taken several steps. According to the 2014 Annual report of Bangladesh Road Transport and Highways Department, the most noticeable changes in digitalizing passenger transport are inclusion of E-ticketing system, SMART-PASS or S-PASS card in BRTC Bus and establishment of Digital Toll Plaza. Such processes intend to free the passengers from the risk of carrying paper money and saves time. According to Simmel, the importance of substance as just a technical issue, and predicted that physical form of money can be avoided that limits the quantity of money where credit cards, EPS, and the Octopus are some exemplars (Simmel, 1978)⁶. Inclusion of online ticketing is surely the first step ahead for digitalized transport. Apart from ensuring comfort to the passengers, the use of mobile ticketing technologies also leads to profits from revenue management perspective (Eisenhardt, 1989)⁷.

Under the ‘Development of Multimodal Transport Web Portal with Mobile Interactivity’ project initiated by the Service Innovation fund of Access to Information Program, the ministry of roads and Highways has started e-ticketing service for the public transport modes like Bangladesh Railway, BRTC bus etc. from 2006. Of the different bus routes, 3 routes have such online ticket booking and ticket purchasing facility applicable to 98 buses. This service can be availed from the 58 different e-ticket counters set on the three routes. Having such specialized distribution channel can bring efficiency in the transport payment process. According to studies done in China, such distribution channel inspires customers to purchase e-ticket. This ensures cost savings for all parties (Chen and Kang, 2007)⁸. Moreover, if service providers adopt modern IT to manage revenues, they will undoubtedly gain higher efficiency in transaction (Li et al., 2009)⁹.

Meanwhile, having only e-ticketing facility is not adequate for today’s changing customer demand in the transportation scenario. Customer’s opinions, needs and urgency are changing hence, the service providers need to look at factors which matches the customer’s taste. Of the many factors influencing the purchasing and payment process in today’s era, the crucial factor explaining whether consumers are likely to switch to a mobile payment service is ease of use (Arvidsson and Peitersen, 2013)¹⁰.

To remove the hassle of buying tickets in queue or having to browse web-portals to confirm e-tickets, the concept of SMARTCARD with NFC technology or other microchip features came into view. Purchasing of such Smartcard removes the need to buy tickets for every individual transportation activity and offers easy recharging of amounts and is not dependent on internet connectivity for every user. For the government-owned bus service like BRTC such services has been enabled where SMARTCARD has been termed as SMART-PASS or S-PASS. S-PASS service is available for 2 routes namely Mirpur-Motijheel route and Abdullahpur-Motijheel route. Introduced in April 2012, S-PASS has been activated in 116 City buses and 17 S-PASS ticket counters have been set up in the mentioned routes to facilitate recharging amount in the card. As of 30 June 2014, around 30303 passengers have purchased S-PASS and are actively using this service.

However, such mechanism can be applied on other private-owned bus services and can be extended to other transport modes like taxicab, railway, and domestic flight. In addition, to implement nation-wide digitalized transport management, several factors also need to be considered. Those are - safety and security, schedule coordination, operating costs and many more. Adequate space in station, co-ordination among agencies, passenger in and out flow management, coordination of vehicular movement, cozy environment and reliable equipment are also included in this list (Taylor et al, 2009)¹¹.

In case of toll fee and parking fee too, the application of S-PASS can reduce the hassle of carrying money or to receive payment slips. Transport systems are linked greatly with various taxes and tolls. If these could be collected using a simple portal, that too available online, the existing facility would simplify to a great extent, facilitate cashless transaction, multi-purpose prepaid cards which can nationwide be used for transport and toll can also save passenger’s time (Chatterjee and Nath, 2014)¹².

Meanwhile, transport sector typically includes many stops and stations thus coordination about fare management, schedules can not only save time but also ensure proper diffusion of information (Smart et al, 2009)¹³.

Such ubiquitous approach is required as while merchants are not willing to invest in the development of infrastructure without critical mass of consumers but consumers may not adopt to digital payment services if they cannot be used everywhere (Mallat, 2007)¹⁴. Also, such system greatly depends on how the technology can be blended into profitable business strategy as diffusion of a technology greatly depends on the dynamism in the technology and business environments (Lau et al, 2008)¹⁵.

In light of the existing system and available literature, this research paper proposes a central, nation-wide digitalized transport and fare management procedure taking passenger’s comfort level in consideration.

3. METHODOLOGY:

The research attempted two paths to create link between customer’s statuses with proposed system. To gain insight into the customers’ habits, quantitative data was gathered by surveying the sample from the population to find the generic travel pattern, modality of payment, transport modes used, digital connectivity, Smartphone penetration, average payment made and preference of fare management options. A pilot study was held for this quantifiable data and was administered through online medium by a structured questionnaire having 14 close ended questions with a snowball sampling method through which respondents brought further set of respondents. A total of 118 responses were registered in two-week survey duration. The respondents were primarily from the urban Dhaka metropolitan city.

Another path which led to the development of the suggested automated model was conceptualized through researching secondary documents, articles and interpreting information provided in the annual report of Bangladesh Roads and Highways Department.

4. FINDINGS:

Based on the replies of the respondents, it can be inferred that majority of the passengers travel at least twice a day on average.

Figure 1: Number of times people travel everyday

Moreover, they have also mentioned how much they spend each day for transportation. Most of them have mentioned that they spend around 51-100 Taka per day for transportation and the next largest group have mentioned that they spend 101-300 Taka per day for traveling. Based on these data, it can be easily decided what can be the minimum amount to be recharged for the smart card.

Figure 2: Amount of money people spend for commuting daily

Respondents were also asked how they recharge their mobile phones. Majority of them have replied that they use services like Flexiload (Grameenphone) or i-top up (Banglalink) to recharge their mobile phones. They next largest group have mentioned that they use Bkash or similar online banking services provided by different banks to recharge their phones. Based on these findings, we can suggest that the smart card can be reloaded using similar services to recharge with convenience.

Figure 3: How people recharge their mobile phones

The respondents were asked whether they prefer to buy tickets online and 67 percent of them have said that they do not prefer to buy tickets online where as 95 percent of the respondents are smartphone users and among them, 87 percent have full-time internet connection. Despite that, people do not yet feel that comfortable or secure enough to buy tickets for buses and trains online.

Figure 4: Different modes of transportation used

The respondents were asked what mode of transportation they use. Majority of them have replied private cars and following closely behind is the group who use public buses. Since the Government has decided to limit the number of private cars per family, if given a choice to use prepaid rechargeable smart cards to buy tickets, a large number of private car users will prefer to travel by public buses. Moreover, the survey shows that majority of the respondents are students. If they students are motivated to travel by public transport rather than private cars, this could also solve the traffic congestion problem to some extent.

Moreover, the respondents were asked to rank three options – buying tickets physically, buying tickets online and using a prepaid rechargeable card according to their preferences. Highest number of respondents ranked prepaid rechargeable card first and the largest group of respondents ranked buying tickets physically third. This indicates that the prepaid rechargeable card is going to meet the demand of the dwellers of Bangladesh and thus make their day to day life a lot easier.

Figure 5: Ranking of different options to buy tickets

5. SYSTEM DESCRIPTION:

Figure 6: Flowchart of NFC Ticket Management System

Since transportation sector in Bangladesh is a huge area to be considered, the most frequently used modes of transportation have been pinpointed to bring under one ubiquitous ticketing and payment system.

The smart card will contain a microchip that will keep track of payment information and monetary value stored in the card. The card is swiped ensuring it is within the proximity of a smartcard processor and the appropriate transaction cost is deducted from the stored-value of the card. Whether taking public transportation or paying toll, the interaction mode is consistent in all transactions. The core component of the system is the Fare Management System which takes care of all the transaction related tasks and transaction validation. The front-end smartcard processors which are setup at different points and they act as the reader machines with which the users interact. Local Data Processors can communicate with the Service Provider Central Computer or database in real-time, the transaction data may be stored offline and sent later on through the network.

This paper proposes a Near Field Communication (NFC) Integrated Circuit (IC) chip smart-card system for this purpose. It is based on the ISO 18092 standard. The NFC devices must be placed in very close proximity of each other for peer-to-peer communication. That is why it is considered as a popular choice for secure communication between devices. Moreover, NFC devices can act both as a tag and a reader. This unique feature has made NFC a popular choice for contactless payment. The NFC standard has three modes of operation:

I. Peer-to-peer mode: It swaps data between two devices

II. Read/write mode: One active device reads information from a tag or passive device

III. Card emulation mode: An NFC device can act like a contactless smart-card

In addition to that we have to keep the security issues in mind as well. How the NFC technology can be implemented by ensuring security is given below:

I. NFC enabled chips in card or phone can be only skimmed if spoofing device is within few centimeters of distance from the chip. This makes NFC technology more secure than the other contemporary methods.

II. The recent commerce apps store payment information solely on the device. The card information is encrypted and exclusively used by the intended parties after verification.

III. In addition to that, they use SSL (Secure Socket Layer) technology to protect financial information. Furthermore, NFC Antenna in Android phones are only activated only when the phone is both on and unlocked.

IV. For the smartcard with NFC capabilities, sleeves can be used to deflect radio frequencies from snooping into the card’s NFC chip.

We have selected Near Field Communication as our basis of the system because all the above mentioned advantages.

6.1 Registration

Since registration of this card will include entering the details of the customers into the system, it involves a lot of data entry work. To expedite such time consuming work, National ID, Driving license or passport can be used to create account quickly. The users will be given a Unique ID number and password. So when the user wants to use the existing online system to purchase ticket in advance for Domestic flights, Trains, Intercity Buses, they can just login using their ID and password and purchase tickets with their smart-card without filling up lengthy forms. Moreover, it will ensure data integrity across different systems. Recently Government of Bangladesh has started the process of SIM reregistration. Once complete, one's SIM details can also be used during registration process as well.

6.2 Recharge and Balance enquiry

Initially the smart-card will be topped up with certain amount. This paper proposes installation of Automated Ticket Vending Machines (ATVMs) at prominent locations near stations where customers can check their cards usage details. This paper also proposes linking various Bank Accounts or Bkash Account of the customers to smart-card so that the customers will be able to recharge their smart-cards using the ATVMs. Since most of the customers carry NFC enabled smartphone now-a-days, this paper proposes to add an Android application which can be easily downloaded by the customers. After installing the App, if customers bring the smart-card near the smartphone, using NFC they can easily check their card balance and transaction details whenever they want.

6.3.1 Road Transports

6.3.1.1 Bus

6.3.1.2 Taxi Cab / Auto Rickshaw

Buses, Taxi Cabs or Auto Rickshaws will have NFC devices installed which uses wireless network. Once the passenger gets in and holds his or her smart-card near NFC reader, his/her location and time details are captured. After they reach the destination, they hold their cards again near the NFC reader and this time based on the previous data, fare is calculated and passenger’s account balance is checked and finally, due amount is deducted from their smart-cards. Upon both successful check-in and check-out, the NFC reader will display green light. In case the passenger does not have enough balance in account, at check-out, a red light signal will be displayed with a beep. In case of intercity buses, if anyone wants to buy the ticket earlier, he/she can do so in advance either online or from ticket counters. In such cases, traditional mode of payment can be used since we cannot completely get rid of it due to cases like insufficient fund. That data will be stored in the smart-card as an e-ticket. On the day of travel, they can just use the smart-card at the device installed inside the bus. In case of minibus, Taxi cab or Auto Rickshaw, if the installation process or costing of NFC reader device does not seem to be feasible, the latest smartphones can be easily used to read the smartcards.

6.3.2 Rail Transports

In case of railways, ticket management system will work just like intercity bus tickets. There will be gates right before getting into the train and if someone has already reserved the ticket, the amount it paid in advance but if they just come to the station on the day of travel, their ticket fare will be deducted on that day itself.

6.3.3 Air Transports

Domestic air tickets will be handled just like the intercity but tickets or rail tickets but in addition to that air tickets might require verification that a different person is not traveling under the reserved ticket. It can be easily checked by the officials since during registration, client’s photo is also saved.

6.3.4 Water Transports

Launches can use the same mechanism for ticket management that is mentioned above.

6.3.5 Transport related services

6.3.5.1 Toll

6.3.5.2 Parking

This paper proposes to install NFC reader devices at all the toll points and parking lots. The customers can pay for the services just by using their smart-card rather than carrying cash.

6.3.6 Further scope for expansion

6.3.6.1 Fuel Station

6.3.6.2 Fitness

6.3.6.3 Maintenance and repair

6.3.6.4 License Application and Renewal

People can also use the smart-card to pay the dues at the fuel stations. Transport owners have to pay fees for various purposes like annual fitness, maintenance and repair, License application and registration. The user can pay these fees easily using the smart-card. That will save a lot of time and trouble. These facilities will be provided in future.

6.4 Reporting Lost Card

This paper proposes setting up a hotline number for customer care. In case any customer loses the smart-card he/she can call the hotline and report it. The card will be blocked immediately and amount left in the card will be transferred to the customer's bank account.

6.5 Cancellation of Tickets

In case the reservation is cancelled by the authority, the amount will be refunded by them to the smart-card of the customer and a notification SMS will be sent to the customer's Mobile phone. If the customer himself or herself cancels the reservation, notification will be send to their Mobile phone and the authority will deduct any fee applicable following their policy and refund the remaining amount to the customer's mart card.

7. FUTURE EXPANSION:

It is predicted that by next few years, most of the smartphones will be NFC enabled. Moreover, from the survey we have found out that almost everyone is using smartphones in their day-today lives. Based on all these information, the smartcard based system can be replaces by the e-wallet based system by collaborating with the Telecommunication and Financial Partners. Data migration or system restructure will not be that costly or time consuming since the e-wallet will use NFC technology as well. If required, both the smartcard and the e-wallet can be used simultaneously during this migration period.

8. CONCLUSION:

As Bangladesh is getting digitalized in most of the systems offering technology-based service platforms to make life easier for the huge population, such proposed system in the transportation sector can deeply affect the convenience level of numerous commuters. The broad the scope of the system that can be materialized, the more streamline the system would be facilitating the monitoring issues too. Also, such system can also result in large number of employment generation in IT sector. The system also reduces the ability of the transport companies especially the private transportation to change per unit fare as the price vs. distance would be locked centrally to enable the system to perform smoothly. Hence, it can also reduce customer’s losing extra money on each travel and eliminated haggling with fare along with black ticketing. However, the research was conducted on a very limited scale and was only confined into urban Dhaka as sample hence a bigger level of survey mechanism can be administered into future publication. Also, the viewpoints of the authority especially of the concerned ministry as well as impact study of such services are also interesting avenues to research further in this area.

9. REFERENCE:

1. Pucher, J., Park, H., Kim, M. H., and Song, J. (2005). Public transport reforms in Seoul: innovations motivated by funding crisis. Journal of Public Transportation, 8(5), 3.

2. Annual report (2013-2014), Bangladesh Roads and Highways Division, Government of the people’s republic of Bangladesh, available at: http://www.rthd.gov.bd/assets/docs/annual_report_2013-2014.pdf

3. Bangladesh Country Report (2014),World Bank, available at: http://data.worldbank.org/country/bangladesh

4. Mahmood, M. O. N. O. W. A. R., Bashar, M. A., and Akhter, S. (2009). Traffic Management System and Travel Demand Management (TDM) Strategies: Suggestions for Urban Cities in Bangladesh. Asian Journal of Management and Humanity Sciences, 4(2-3), 161-178.

5. Chatterjee, P., and Nath, A. (2014). Information Technology in public transports of India–A ubiquitous approach. International Journal, 2(10).

6. Simmel, G. (1978). The philosophy of money, trans. T. Bottomore and D. Frisby. Abington, England: Routledge.

7. Eisenhardt, K. M. (1989). Building theories from case study research. Academy of management review, 14(4), 532-550.

8. Chen, L. H., and Kang, F. S. (2007). Integrated vendor–buyer cooperative inventory models with variant permissible delay in payments. European Journal of Operational Research, 183(2), 658-673.

9. Li, G., Yang, H., Sun, L., and Sohal, A. S. (2009). The impact of IT implementation on supply chain integration and performance. International Journal of Production Economics, 120(1), 125-138.

10. Arvidsson, A., and Peitersen, N. (2013). The ethical economy: Rebuilding value after the crisis. Columbia University Press.

11. Taylor, B., Iseki, H., Miller, M. A., and Smart, M. (2009). Thinking outside the bus: Understanding user perceptions of waiting and transferring in order to increase transit use. University of California, Berkeley, Partners for Advanced Transit and Highways (PATH).

12. Chatterjee, P., and Nath, A. (2014). Information Technology in public transports of India–A ubiquitous approach. International Journal, 2(10).

13. Smart, M., Miller, M. A., and Taylor, B. D. (2009). Transit stops and stations: transit managers’ perspectives on evaluating performance. Journal of public transportation, 12(1), 4.

14. Mallat, N. (2007). Exploring consumer adoption of mobile payments–A qualitative study. The Journal of Strategic Information Systems, 16(4), 413-432.

15. Lau, R. Y., Wong, O., Li, Y., and Ma, L. C. (2008). Mining trading partners' preferences for efficient multi-issue bargaining in e-business. Journal of Management Information Systems, 25(1), 79-104.

Received on 31.12.2015 Modified on 23.01.2016

Asian J. Management. 2016; 7(2): 80-86.

DOI: 10.5958/2321-5763.2016.00012.3