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Integrated Roadways, LLC - Proprietary and Confidential
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Integrated Roadways, LLC - Proprietary and Confidential
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SMART HIGHWAY MARKET
“What is it and why should I care?” –2014
“This is inevitable, but I’m not ready yet…” – 2016
“Tech of the Year 2017” by Construction Dive
“I need this badly, how can I get it?” – 2018
Projected 94% cumulative-annual-
growth-rate (CAGR) for 5 years
Projected market cap of $33b by
2020, 10% of annual market
Google, Verizon, and other tech
giants getting involved
Integrated Roadways, LLC - Proprietary and Confidential
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TRUMP INFRASTRUCTURE BILL
Strong endorsement of:
• Tech
• Innovation
• Streamlined contracting & delivery
• Private financing
• Empowering local authorities
Encourages precast
Encourages fiber sensing
Open questions:
• How will local authorities deal w/ shift from 80/20 to 20/80?
• How will local authorities pay 80% of project w/o tolls or tax increases?
Integrated Roadways, LLC - Proprietary and Confidential
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NEW DEMANDS FROM ROADS & ROW
Smart Cities / Highways
Outdoor Internet of Things
Municipal Fiber / Wi-Fi
Connected Signals
Connected Lights
5G Cellular
Connected Vehicles
Electric Vehicles
Autonomous Vehicles
Edge Hosting
Integrated Roadways, LLC - Proprietary and Confidential
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NEW OPPORTUNITIES
10% of projects will be “smart”
• Will keep growing to dominate
Alternative revenues for P3s
• Enabled by new smart tech
Tight coupling of telecom & tech
into road projects
Building-Information-Management
systems for outdoors
Digital as-builts embedded in the
asset
Tech => strong competitive
advantage for your firm, more
work, larger billings & margins
Integrated Roadways, LLC - Proprietary and Confidential
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PAYING FOR ROADS IS AN INTRACTABLE PROBLEM
8m lane-miles of roads
40% need major service
At least 3,000,000 miles
Up to $2m per lane-mile
Up to $6 trillion dollars
Trump plan is for $1.7t
Only 20% of it for roads
$340b = 170,000 ln-mi
6% of existing backlog
So who’s payin for the tech, then?
Integrated Roadways, LLC - Proprietary and Confidential
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SMART PAVEMENT MAKES ROADS PAY FOR THEMSELVES
Better, faster, cheaper construction
Built in “touch sensitivity” &
pavement condition sensing
High speed neutral host network
Free to drive, pay to connect
Integrated Roadways, LLC - Proprietary and Confidential
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SMART PAVEMENT IS THE NEXT BIG EVOLUTION
Built-in data collection
Wireless services
EV charging
Automatic condition indexing
Modular interchangeable design
Utility accessible
Self-aware of geometry
Self-aware of design details
Integrated Roadways, LLC - Proprietary and Confidential
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PRECAST PAVEMENT IS READY TO STANDARDIZE
Used worldwide for 80 years
20 years of funding from USDOT
Better QC/QA
Longer service life
Lower total cost of ownership
Most DOTs have tried it
Many DOTs have spec’d it
Recommended by TRB SHRP2
CalTrans has made it routine
FHWA considering doing the same
Integrated Roadways, LLC - Proprietary and Confidential
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SMART PAVEMENT SYSTEM DIGITAL FEATURES
4x Combined Access Ports (CAP)
• Internal connector for modules
4x Routers
• Connects to slab neighbors
• Connects to Micro Data Center
Fiber Optic Sensing system
• Makes road “touch sensitive”
CAPRouter
FOSS
Power
& Data
Integrated Roadways, LLC - Proprietary and Confidential
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EDGE DENSE DIGITAL PHYSICAL HYBRID NETWORKSmart Pavement Slabs
Switches
every 200’
Control Center
every half-mile
Fiber interconnects at each MDC
Plan View (Top Down)
Integrated Roadways, LLC - Proprietary and Confidential
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NEUTRAL HOST WIRELESS NETWORK
LTE, 5G, DSRC, Wi-Fi
antennas in-road
Modular
Data
Center
Front Haul Network, see Wired network Architecture slide
Internet,
Carrier Network
Optical Backhaul/Transport
NOC / TMC
Integrated Roadways, LLC - Proprietary and Confidential
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HOW TO IMPLEMENT
Intermittent
• Joint repairs
• Intersections
• Weigh-in-Motion
• Data collection stations
Continuous
• Lane Addition
• Lane Replacements
• Reconstruction
• New Construction
Integrated Roadways, LLC - Proprietary and Confidential
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MAKE YOUR ROAD SMARTER WITH JOINT REPAIRS
Improve existing roads through
standard maintenance processes
As many or as few as you need
Done in as little as 90 minutes
Counts
Speeds
Weights
Patterns
Categories
Demographics
Collision & Slowdown Reporting
Automated Condition Reporting
Integrated Roadways, LLC - Proprietary and Confidential
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LANE ADDITIONS
If you’re adding a new lane,
shouldn’t it be programmable?
On-the-fly dynamic tolling
• Pricing
• Length
• Speeds
• Classifiers
• Traffic Levels
Value-Add Revenue Sources:
• Data collection & sales
• Wireless EV charging
• 4G Offload
• 5G DAS
• DSRC
• Wi-Fi
Integrated Roadways, LLC - Proprietary and Confidential
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NEW CONSTRUCTION AND RECONSTRUCTION
Why build a new road w/ old tech?
Look to the future, not the past
Use Smart Pavement to build your
entire project
• Better
• Faster
• Cheaper over the life
Smart Highway:
• Driving surface
• Digital platform
• Data collection
• Communications
• Applications & services
• Wireless EV charging
Make EVs, CVs, and AVs a source of revenue for your asset
Integrated Roadways, LLC - Proprietary and Confidential
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TECH IS AN OPPORTUNITY, NOT A THREAT
Integrated Roadways & tech
companies are your PARTNERS
You are key to project delivery!
Tech expands your market
Makes your services more
valuable
Increases your revenue
Increases your margins
Lets you tackle more work
Reduces your overhead
Don’t fear tech, embrace it!
Integrated Roadways, LLC - Proprietary and Confidential
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TECH WILL EXPAND YOUR BUSINESS
25% of work that needs done annually can’t be funded
40% of total asset volume is backlog
>$1t in projects not being let
Tech builds with less time, labor & equipment, but higher initial costs
Smart highway tech:
• Double your revenue per unit
• 10% of market by 2020
• By 2030: 25%? 50%? 80%?
Precast:
• 5% of labor requirement
• Totally different equipment set
Integrated Roadways, LLC - Proprietary and Confidential
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INNOVATION IS A PROCESS
Dieting vs. diet
Incremental vs exponential
Lottery tickets & moonshots
1 in 10 is good odds
Stability is stagnation
“The way we’ve always done it” is
always more expensive over time
“The first time we’ve tried” is only
more expensive the first time
You get better with practice
Integrated Roadways, LLC - Proprietary and Confidential
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INCREMENTAL VS EXPONENTIAL IMPROVEMENT
Technology firms focus on exponential improvement
• TVs
• Phones
• Computers
• Cars
Regulated industries focus on incremental improvement
Capability gap grows over time
{What is possible
vs
What we are doing
Integrated Roadways, LLC - Proprietary and Confidential
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RELIEVE DEPENDENCE ON PUBLIC BUDGETS
Can’t raise taxes, can’t use tolls?
Innovate!
Alternative revenue P3s are the
next big thing
Smart highway tech is a core
enabler of AR-P3s
Imagine:
• Guaranteed work for years
• De-emphasize low bid
• Emphasis on lifetime value
• Maintenance contracts
• Innovative materials
• Innovative means & methods
• Set next generation standards
Integrated Roadways, LLC - Proprietary and Confidential
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LONG-TERM INCOME VIA DBFOM
Design – Build – Finance –
Operate – Maintain
Build phase may take >10 years
Operate / Maintain for 50 years
Lower operations & overhead
Reliable, predictable revenue
Not subject to annual budgets
Participate in savings & income
Integrated Roadways, LLC - Proprietary and Confidential
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SIMPLER BUT MORE COMPLICATED
Simpler:
• Standardized design
• Modular construction units
• Less equipment & labor
• Simplified assembly & install
• No site-finishing
• No saw-cutting
Other people take care of stuff
More complicated:
• More upfront design work
• Pre-fabrication of units
• Wiring & electrical for telecom
• New technologies
• Road needs to be “operated”
• Electronics need service
You have to work with other people
Integrated Roadways, LLC - Proprietary and Confidential
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TECHNOLOGY INVESTORS ARE COMING
$375m Construction Tech
investment projected 2018
• Wired, Dec 2017
Smart Cities / Highways
Outdoor IoT
Gov Tech
Civic Tech
Urban Tech
Auto / Autonomy Tech
Labor & Process Automation
Adapt and thrive…
Integrated Roadways, LLC - Proprietary and Confidential
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EARLY PROJECTS WILL SET THE PACE FOR DECADES
Next-generation cities are
magnets for innovators
Infrastructure is generational
Delays cost economic growth
Your city needs better roads
One step at a time:
• Set an overall scope
1. Improve a portion
2. Get it approved
3. Select next, larger portion
4. Repeat 1-3 until scope complete
If something goes wrong, stop
If nothing goes wrong, continue
Integrated Roadways, LLC - Proprietary and Confidential
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ARE YOU READY TO INNOVATE?
Project:
10 to 50 lane-miles
High traffic, limited access
Minimum 6” service depth
Start within 18 months
Owner:
Growing unfunded backlog
Falling PCI scores systemwide
Large overall road network
Innovator or early adopter mindset
