Transforming Global Transport

Cities are growing at an ever-increasing rate: as things stand, more than half of humanity is already living in cities. This figure is set to rise as high as two thirds by the middle of the century. And as populations start to rise, so does the volume of traffic. However, too many cities have relied too much on private means of transport and are now at risk of choking on their own traffic. To make sure they remain or become livable, the time has now come to set the course for a global transport transformation that is based more heavily on public transport.

Even now, many urban centres are suffering from traffic chaos, hampering development. In Cairo, for instance, traffic jams generate annual costs equivalent to around four percent of Egypt's economic output. Transport also swallows up a large percentage of people's incomes, particularly among poorer members of the population; according to estimates, this can sometimes reach up to 70 %.

Traffic jams reduce the average speed. Needing several hours to travel to and from work is not unusual in many cities. In Brazil´s São Paolo, for example, researchers have calculated that traffic jams add up to over 300 kilometres in length on peak days – that's longer than the distance from Hamburg to Berlin.

Many cities are already talking of total gridlock, bringing them to almost a complete standstill. This is not what most people would call quality of life, which is why we need a global transport transformation and a switch to sustainable traffic systems.

The German Federal Government has launched an initiative for sustainable transport, known as the Transformative Urban Mobility Initiative, TUMI. It is a broad initiative, helping cities to build new transport systems or modernise existing ones, and thus making them more efficient and sustainable. 

KfW is implementing TUMI with annual investments of EUR 1 billion. The promoted programmes range from bicycle paths to a modern underground railway network. In principle, anything is possible that contributes to making urban transport more sustainable, including new improved transport control systems.

In a bid to tackle increasing mobility, cities need sustainable and integrated traffic concepts. KfW is working in consultation with partner countries around the world in pursuit of this goal. This process also involves: bringing various forms of transport in line with one another and establishing transport networks. An issue that is particularly important task for the public sector and therefore also requires development cooperation. Individual lines can then well be operated by private investors.

Local public transport also has a social function because it is a quick way of transporting people who cannot afford their own vehicle from A to B. In addition it helps protecting the climate. Already today, motorised road vehicles produce close to a third of all energy-based CO2 emissions.

Sometimes cities need unconventional solutions, like here in Medellín where residents travel by cable car, a system particularly well suited to heavily built-up districts.

With five billion dollars in promotional loans and grants KfW intends to help cities avoiding traffic collapses. It also wants to contribute to fostering the economy. TUMI allows investments in every world regions in all possible ways - as long as they make cities more ecological and more livable.