Sustainability trends in the bus sector in Latin America

by Marisol Morelos | Nov 26, 2024 | Bus evolution, Newsroom

Discover how bus companies in Mexico, Brazil, and Colombia are leading the shift towards lower-carbon and more sustainable operations.

The passenger transport sector in Latin America has shifted toward sustainability in recent years, driven by the urgent need to reduce carbon emissions and improve air quality in major cities across the region.

Incorporating a more sustainable vision within ground mobility has enabled significant steps towards transforming this industry in Latin America. This shift is propelled by technological advancements and a paradigm shift towards environmentally responsible operations. Some companies have adopted a comprehensive approach beyond fleet electrification in the passenger bus sector.

Passenger transport companies in Mexico, Brazil, and Colombia are leading this transformation, adopting technologies and practices that are more environmentally friendly.

Below, we explore the sustainability trends in these three nations, highlighting specific cases and relevant data.

Mexico: Carbon Offsetting and Operational Efficiency

The Mexican company Grupo Flecha Amarilla has set out to lead change in the mobility industry, with a clear vision of sustainability, innovation, and a focus on comprehensive experiences and services.

Sustainability, one of its strategic pillars, is not just an isolated strategy but a fundamental part of its mission to transform the transport sector toward a model that conserves resources for future generations.

For Flecha Amarilla, sustainability goes beyond an appealing business practice; it is a responsibility to which they are genuinely committed. They focus on meaningful actions that impact both the environment and society.

In Mexico, Grupo Flecha Amarilla is a pioneer in this area, implementing a carbon offsetting program in collaboration with Reservamos SaaS.

The Reservamos SaaS development team integrated this initiative into Primera Plus’ eCommerce, Flecha Amarilla’s bus line. This offers travelers an option to mitigate the impact of each journey and contribute to planet-friendly efforts. Carbon offsets are available on both the bus line’s eCommerce and mobile app.

This project allows the carbon emissions generated by their operations to be offset through environmental initiatives, such as reforestation and ecosystem conservation.

The first effort we made, thanks to our relationship with Reservamos SaaS, was to quickly deploy a button in the eCommerce so that travelers could offset their trip by purchasing a bond. At the end of their purchase, they have the option to offset their journey based on the kilometers they will travel. It’s a very small amount, ranging from one to seven pesos, which goes directly to buy bonds on the market and offset the trip. We don’t keep a single peso.– Juan Pablo Martín, Innovation Director at Grupo Flecha Amarilla.

According to Juan Pablo, Reservamos SaaS tools help them make agile decisions regarding operational efficiency. He believes Reservamos SaaS has the market knowledge to guide their development.

Flecha Amarilla has also implemented operational efficiency strategies through advanced telemetry and predictive maintenance technologies, reducing fuel consumption and extending the lifespan of their vehicles.

They operate under Euro 5 and Euro 6 European standards, requiring buses to use ultra-low-sulfur diesel. They aim for all products throughout their supply chain to have a low environmental impact.

For instance, the products used in their restrooms contain biodegradable enzymes that help treat organic matter, and the antifreeze they use has the lowest carbon footprint.

Carbon offsetting is just one part of Flecha Amarilla’s comprehensive sustainability approach. In 2023, the company reported a 15% reduction in its carbon footprint, thanks to a rigorous preventive maintenance program that prevents unit inefficiencies and ensures optimal fuel performance. This not only reduces environmental impact but also improves passenger experience and strengthens brand trust.

Brazil: electrification and renewable energy in bus fleets

Brazil is one of the region’s most advanced countries in adopting electric bus fleets, led by cities like São Paulo and Rio de Janeiro. However, companies are going beyond electrification by incorporating renewable energy solutions into their operations.

Companies such as Grupo Comporte, one of Brazil’s leading passenger transport companies, have adopted advanced technologies to reduce fuel consumption and optimize route efficiency.

They have also integrated fleet management systems with artificial intelligence and big data to enhance operational sustainability, as showcased at the Lat.Bus 2024 event, where electrification and energy management practices from Comporte and other Brazilian companies were highlighted.

Grupo JCA, with a fleet including over 250 electric buses, has promoted sustainability by implementing a comprehensive fleet renewal program and training for efficient driving. Their electric vehicles, largely powered by renewable energy, help reduce carbon emissions and improve air quality in key cities like São Paulo and Rio de Janeiro.

Chile: zero-emission buses and efficient waste management

Chile was one of the first Latin American countries to adopt zero-emission buses on a large scale in its public transport system, particularly in Santiago, where hundreds of electric buses have been integrated in collaboration with private operators and the government.

However, sustainability in Chile is not limited to electric buses. Companies like Turbus have adopted sustainability practices on multiple fronts, including efficient waste management and the reduction of indirect emissions.

Additionally, Turbus has implemented a collection and recycling system at its main stations and has started educating passengers about recycling practices, promoting environmental awareness across its user network.

Colombia: digitalization to reduce environmental Impact

In Colombia, bus companies have begun implementing digitalization as a key strategy to reduce their environmental impact.

Companies such as Expreso Brasilia have stood out for their commitment to sustainability, presenting their seventh sustainability report in 2021, which outlines their efforts to meet the UN’s Sustainable Development Goals.

Their sustainability model includes initiatives ranging from operational efficiency to carbon offsetting, aligned with the principles of the Global Compact.

Expreso Bolivariano has also adopted digital solutions to optimize routes and reduce fuel consumption. By analyzing demand patterns using advanced algorithms and data intelligence tools, Expreso Bolivariano has not only reduced costs but also minimized the kilometers traveled and, consequently, carbon emissions.

Towards a Sustainable Mobility Future in Latin America

Sustainability initiatives in the passenger bus sector in Latin America are rapidly evolving and encompass a wide range of strategies that go beyond fleet electrification. The cases of Mexico, Brazil, Chile, and Colombia demonstrate that companies can be both profitable and sustainable through advanced technologies, process digitalization, and a comprehensive vision of their environmental responsibility.

Reservamos SaaS has positioned itself as a facilitator of these solutions, offering tools that allow transportation companies such as Grupo Flecha Amarilla to implement sustainability strategies in an agile and effective manner. These actions, backed by technology and commitment, not only help to meet the market’s environmental expectations, but also boost operational efficiency and improve the customer experience.

IT teams in bus companies in Latin America: challenges and collaboration with technology partners

by Marisol Morelos | Nov 20, 2024 | Bus evolution, Newsroom

IT teams at bus companies in Latin America optimize operations and improve the customer experience through in-house solutions and technology partners.

IT teams in bus companies in Latin America play an essential role in optimizing operations and improving the passenger experience. Their structure and focus vary according to the size and goals of the company, but in general, these teams focus on key aspects such as data management, maintenance of online ticketing systems, and implementation of route analysis and operational efficiency tools.

They tend to be compact and multifunctional, although they face limitations due to budget constraints and the need for highly specialized personnel. This has driven the search for specialized technology partners. 

By outsourcing IT tasks, these companies can quickly access specialists in cybersecurity, software development, and advanced analytics without incurring the high costs of hiring in-house, a process that can take several months. Third-party providers allow for greater scalability, reduce operational risks, and offer cost flexibility, which is beneficial in a constantly evolving market.

Some companies don’t have such a big technology area and what they do is outsource a lot of these services. There are others that are in the process of improvement and are trying to develop their internal team and build some things. We are a mix because we consider that there are some value solutions that we deliver internally, and there are others where we prefer to look for an experienced partner to do it for us. -Armando Rodríguez Trespalacios, Technology and Organizational Management Manager at Expreso Brasilia.

Armando shares that he has seen in the bus sector that companies are working to improve by developing and adopting new technologies. He considers that the transportation sector is a sector that has understood the need to enhance the services it offers, through a digital evolution, and by means of very strong technology areas, with its own people or with the help of outsourcing services.

How are the IT teams of bus companies in the region made up?

To understand the make-up of an IT team, we will take as a reference Expreso Brasilia, a bus company based in Colombia. 

According to Armando Rodríguez, technology leader, most of the profiles in Expreso Brasilia’s IT team are systems engineers, some specialized in software development, others in requirements gathering, and several certified in Scrum or agile methodologies. They also have professionals certified in information security, such as CCNA, and some are obtaining the CISSP certification, specifically focused on cybersecurity issues.

In addition, there are industrial engineers responsible for gathering requirements and building user stories, which allows the team to evaluate and design appropriate solutions. Within the innovation area, there are specialists in business intelligence and data analysis, as well as management profiles, who collaborate in the analysis and development of valuable solutions for different areas of the organization.

The IT team of this company, according to Armando, is very robust and has very well-defined responsibilities, that is, the scope of each of the team members is very clearly delimited. The team is made up of three areas with specific tasks, which we will explain in more detail below.

The first area is responsible for information security and telecommunications infrastructure. Armando specifies that for Expreso Brasilia is very important for information security because they offer online services and make some kind of transactions through digital channels. That is why they work to ensure information security throughout each online transaction.

The second area is dedicated to developments and associated projects, where engineers and business analysts work, who are responsible for raising the requirement and delivering it so that the team works on the development. 

In some cases, we manage internally, while in others we use third parties to increase speed and take advantage of their expertise. When we do not have the specialized knowledge, we prefer to collaborate with a technology partner who has expertise in the area. In this way, we gain speed and manage to develop a mature and secure product in less time. -Armando Rodríguez Trespalacios, Technology and Organizational Management Manager at Expreso Brasilia.

The third area is focused on innovation, where there is a team in charge of reviewing everything that is happening in the world and how to adapt and adopt it at Expreso Brasilia. All of them work under a Scrum methodology, based on the concepts of agility.

Choosing a specialized technology partner

Today, there are many technology providers, and there is often a “boom” in which they all seem to offer the same solutions. A few years ago, the big data boom flooded the market, and now the same is happening with artificial intelligence (AI). 

However, Armando shares that finding a technology partner that truly integrates these trends with consistency and evolution is a challenge. Technology and services must not only be aligned with the latest fad but adapt and grow consistently to be useful in the long term.

That is precisely what Reservamos SaaS manages to convey to us. Unlike other providers, its approach to AI is not limited to exaggerated promises, but to practical and realistic solutions that deliver tangible value. Generative artificial intelligence, in this context, works as a support and not as an absolute substitute; Reservamos SaaS understands this and applies it so that we can use the technology to enhance the customer experience without compromising quality. -Armando Rodríguez Trespalacios, Technology and Organizational Management Manager at Expreso Brasilia.

Reservamos SaaS has developed machine learning-based tools that learn from user interactions. From last searches to tickets purchased, these tools personalize and enrich every shopping experience, helping our customers find what they want efficiently.

Technology plays a key role in the modernization of bus companies in Latin America, enabling them to adapt to user expectations and improve their internal operations. IT teams in this industry are often cross-functional and face challenges due to both budgetary constraints and the need for specialization, especially in cybersecurity, software development, and data analytics.

Collaborating with specialized technology partners offers a strategic solution to cover these critical areas, allowing companies to access advanced skills without incurring the high costs of hiring and training. 

This combination of an in-house IT team and third-party support allows not only greater operational flexibility but also the development of innovative solutions that enhance the customer experience and optimize operational management in a market that demands constant innovation.