Perspectives

Understanding COVID-19’s impact on the transportation sector

Managing the crisis: Guidelines for transportation leaders  

The effects of COVID-19 are being felt across the transportation sector. Explore steps transportation leaders can take to respond, recover, and thrive.

COVID-19’s growing impact on the transportation sector

The pressure on organizations during this coronavirus pandemic has shifted from moving citizens to keeping a core transportation system operational with a skeleton workforce to ensure freight and key essential workers can continue to move. A secondary effect of this shift is the sudden change in sources of revenue for transportation operators, with many experiencing an unexpected shortfall in their finances. Organizations will need to plan ahead to ensure that the transportation network will be ready for a return to normal operations when the coronavirus pandemic lockdown measures are lifted.

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COVID-19’s growing impact on the transportation sector

Potential long-term COVID-19 impact on the transportation industry

  • Transportation organizations will need to ensure that transportation networks can continue to operate throughout the lockdown measures, striking a balance between reduced operations and providing enough capacity for key workers to be able to practice social distancing.
  • Longer-term investment programs may need to be replanned and reprioritized in light of decreased revenue.
  • Organizations will need to plan for the availability of key personnel to ensure that staff with critical skills and training are available throughout the coronavirus pandemic to keep networks operational.
  • Commuting and traveling patterns may not recover to their pre–COVID-19 state once lockdowns are lifted.

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Key questions executives and boards should be asking during the coronavirus pandemic

  • How do we work with government and other stakeholders to ensure the long-term financial viability of the network?
  • How do we ensure that key personnel are protected and available and that the network can continue to run during extended periods of lockdown during the coronavirus pandemic?
  • How is our supply chain exposed to COVID-19 risk, and what impact might this have on operations?
  • How should we reorganize capital investment plans in light of unexpected shocks to revenue and potential permanent changes to the usage of transportation networks? Are there opportunities for cost-efficient maintenance and renewals during this period?

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Practical next steps to address the COVID-19 impact on the transportation industry

Transportation leaders will be defined by what they do along the three dimensions to managing a crisis: respond, recover, and thrive. Some key next steps include:

  • Determine the cost and revenue implications of low ridership and protect core assets
  • Protect the availability of key personnel and use training to build up a larger pool of available workers for key roles
  • Engage with government and other stakeholders to determine the key requirements of the transportation network
  • Create a number of contingency plans for the resumption of service, taking into account a rapid surge in demand

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