NEXCO CENTRAL (Central Nippon Expressway Company Limited)




06 May 20, 2019 Miyaike President briefing

Conference Summary

[Moderator]

We have been waiting for you.
Today, in addition to documents 1 to 4, which will be explained by the president, document 5-1, `` We will implement a full-fledged drive plan with a quick trip (Hayatabi / Kyukamura accommodation gift certificate) from July '', Document 5-2 "Quick Journey" Gift Discount! Gifu Pref. Tour Plan "will be implemented from June 27! ”, Document 5-3“ Quick Journey “Hida / Toyama Drive Plan” will be implemented from June 27! And "Drive to Aichi" flyers. Please check your handout for details.
Now, I am just starting the 149th regular conference.

[President]

[Introduction]
Before introducing the topics, I would like to thank and thank you.
The Meishin intensive construction, which began on June 3 (Mon), has been completed successfully on June 15 (Sat). We apologize for the traffic congestion that occurred during the construction period and caused a great deal of trouble to our customers.
Next, please see the leaflet of "Isewangan Expressway Day and Night Consecutive Lane Control" distributed at hand. As I explained last month, I will talk again.
From June 16 (Sunday), the replacement of the bridge seam has been carried out on the Out-bound line of the Isewan Isewangan Expressway. Since the lane is regulated continuously day and night, traffic congestion is expected especially during the evening and nighttime on weekdays.
The customers, in your time zone changes and Mei-Nikan Expressway ask a detour to or the general road. If you use ETC, even if you make a detour, the fee will be the same as if you used the Isewangan Expressway, so please cooperate with active detour.
We also thank the press for reporting on the detour call and price adjustment in this regard.
We will continue to implement various measures besides price adjustments to minimize the impact on customers, so please continue to cooperate with the press to disseminate the information .

[Business status (May 2019)]
Please see document 1-1.
First of all, regarding the business situation, toll revenue in May was 59,675 million yen, an increase of 2.5% compared to the same month last year. In addition, the average number of traffic per day was 2 million units, an increase of 3.1% compared to the same month last year. Was.
In May, both toll revenue and traffic increased due to the beginning of the month during the second half of the Golden Week holidays and the continued use of large vehicles.
Compared to the same month last year, small cars increased by 3.3% and large cars increased by 2.4%.

Next is the construction situation.
Attachment 1 shows the section scheduled to be newly opened in 2019.
In each section, road construction works such as earthworks and bridge superstructures are currently being rolled out, and construction work is being started on paving work, signage work, information boards, etc., starting from the completion of the body work. .

Next is the status of the service area (SA) and parking area (PA).
See the back of Document 1-1.
SA / PA sales in May were ¥ 19,267 million, an increase of 7.4% from the same month last year. Sales in the food and beverage business increased 8.3% from the same month last year.
In May, sales were higher than in the previous year, with the beginning of the month being the second half of the Golden Week holidays, similar to the business situation.
Gasoline sales increased 5.7% year-on-year due to higher sales volumes of regular gasoline and diesel fuel compared to last year.

Next, look at Document 1-2.
We have already announced on June 11 the traffic situation and maintenance effects for one month after the opening of the Shin-Meishin Expressway Shin-Yokkaichi Junction (JCT) Kameyamanishi JCT, which was opened on March 17th. I will explain.
Please look at page 2.
Click here as described in, Shin-Meishin Expressway daily average traffic volume of one month after the opening of 44,100 units, traffic of Tokyo, Nagoya and Osaka to concurrently serve as 67,600th units decreased by 31,400 units, from Tokyo, Nagoya and Osaka Shin-Meishin Expressway traffic to The situation is progressing.
In the same period of last year, but had use our 99,000 vehicles per day in Tokyo, Nagoya and Osaka, Shin-Meishin Expressway After opening, Osaka and Tokyo, Nagoya and Shin-Meishin Expressway become the 111,700 units together, it has increased 12,700 units.
Regarding the traffic congestion in Higashi-Meihan, traffic congestion occurred regularly, such as 95 traffic congestions in one month before the opening of Shin-Meishin Expressway, but after the opening of Shin-Meishin Expressway it was 21 times and about 80% The effect has been reduced, as expected.
Next, please turn to page 4.
As a result of the sharp reduction in traffic congestion in Higashi-Meihan, holiday delays were normal before the opening of Shin-Meishin Expressway the express bus route, about 90% became on-time operation after the opening of Shin-Meishin Expressway, and the efficiency of vehicles and drivers was improved. It also contributes to “work style reform” for drivers.
Please continue to page 6.
In terms of sightseeing, as described here, the number of tourists in the Ise-Shima area during Golden Week has increased 1.9 times compared to the previous year, greatly contributing to the promotion of tourism in Mie Prefecture.
We will continue to verify the effects of maintenance, and will report accordingly.

Next, please see document 1-3.
On Tuesday, June 11, the NPO “Regional Revitalization Support Center” sponsored by the Cabinet Office and the Tourism Agency announced the “Lover's Holy Land Regional Revitalization Award”.
Among them, Sugitsu PA (Out-bound) of Hokuriku Expressway, which has been certified as a "lover's sacred place", and two other "lover's sacred places" in Fukui Prefecture We will inform you that the joint revitalization efforts have won the Jury Prize.
In addition, the lover's sanctuary is a facility that has been recognized as a romantic spot suitable for proposal among tourist facilities across the country.
In our jurisdiction, in addition to Suizu PA (Out-bound), Tomei Hamanako SA (aggregate), Chuo Expressway Suwako SA (up and down), Hokuriku Expressway Arisoumi SA (Out-bound) has been certified in four places.
When you are near, be sure to stop by the lover's sanctuary.

[We carry out summer road safety campaign]
See Appendix 2-1.
This year, we will implement a summer traffic safety campaign from Thursday, July 11 to Wednesday, July 31, to strengthen our call for traffic safety.
During the period, traffic safety events in cooperation with police and local governments will be held at SAs in the jurisdiction.
The details such as the date and time and place of the event are summarized in Document 2-2, so please come and visit us. In this connection, I will explain the situation of fatal traffic accidents in our jurisdiction.
See page 2 of the document.
According to our research, 13 traffic fatalities occurred in the five months from May this year to May 31, and 13 people died.
This is a decrease of 4 cases and 4 people compared to the same period last year, but the features of the fatal accidents that occurred this year are motorcycle-related fatalities and fatal accidents due to external discharge. 4 cases, many occurrences.
In particular, motorcycle-related fatal accidents that occurred this year are characterized by many accidents involving motorcycles and automobiles.
In addition, motorcycle accidents have occurred frequently from July to August in the past five years.
Based on these trends, here are two points that you should be aware of when using Expressway for the coming season and summer vacation.
See document 2-3.
First, to prevent motorcycle accidents, not only motorcycle riders but also drivers of motorcycles should ensure sufficient distance between vehicles and safety when changing lanes. We want you to pay close attention to traffic conditions.
The second point is for car drivers. According to data at Expressway, the fatality rate of those who do not wear a seat belt is about 14 times that of those who do. Please be sure to wear all seat belts including the rear seats.
In addition, Document 2-3 contains the points for safe use of Expressway, including what we just talked about. I am happy if you can.

[Started developing traffic congestion prediction technology using AI]
Next, I will explain the development of traffic congestion prediction technology using AI.
Please see document 3.
We have decided to advance the development of technology that uses AI to predict traffic congestion several months ahead during Golden Week, Bon Festival, and traffic congestion periods such as the year-end and New Year holidays.
Until now, traffic congestion forecasts have been made by our “Expressway Drive Advisor”, taking into account past traffic congestion results, the arrangement of days of the week, changes in road conditions, and the effects of surrounding events.
By utilizing AI for these series of tasks and automatically acquiring traffic congestion data, we believe that the work time required to date can be greatly reduced and work can be made more sophisticated and efficient.
Please look at page 2.
The congestion prediction model by AI uses machine learning of past congestion results data, and predicts the occurrence of congestion and the length of congestion due to traffic concentration at a certain date and time in the future.
We will verify the results of traffic congestion prediction using AI during the traffic congestion period of the Bon Festival this year, and aim to utilize it for future traffic congestion prediction work.
In the future, we will consider Large the scope of traffic congestion prediction using AI to sudden events such as accidents and abnormal weather and traffic congestion due to construction regulations, and enhance the detour route information utilizing the Expressway network. We aim to minimize customer inconvenience.
In our maintenance and service business, we are promoting new initiatives using the latest ICT technology as an i-MOVEMENT project, and one of the initiatives is the development of traffic congestion prediction technology using AI.
To realize a project looking 10 years ahead, we will quickly introduce already established products and services, and introduce a system that incorporates external cutting-edge technologies and knowledge to promote further open innovation. You.
Details will be announced again.

[The Yamanashi Central Bank, Shizuoka Bank and NEXCO CENTRAL will conclude a partnership agreement aimed at revitalizing the local economy]
Finally, there is a topic on the cooperation agreement between the Company and the Yamanashi Central Bank and the Shizuoka Bank.
See Appendix 4.
Chubu Odan Expressway 's Shin-Shimizu JCT to Tomizawa Interchange (IC) opened on March 10th, and Yamanashi and Shizuoka prefectures were connected by Expressway, which led to the development of regional companies. The Bank of Yamanashi and the Shizuoka Bank have signed a cooperation agreement on July 11 (Thursday).
With the conclusion of this agreement, take advantage of the Expressway network
・ Provide business opportunities to local companies
・ Sales of local products Large
・ Domestic and international tourist attraction
・ Large of exchange population and logistics
The three companies will work together on such activities.
Through these initiatives, Yamanashi Central Bank and Shizuoka Bank provide local companies with opportunities for Large, such as business and product sales channels, and the Company promotes the use of Expressway and takes advantage of local characteristics. The three companies work together to support the growth of the local economy.
Please note that the conclusion ceremony will be held on July 11 (Thursday) by representatives of the three companies.

[Moderator]

These are the topics we have prepared today. Now, let's receive your questions.

[Reporter]

As for AI-based traffic congestion prediction, we will be examining the major bottlenecks in this year's tray, but please tell us about the number of places that will be examined and, if possible, the specific places. Also, please let us know if you want to announce the results of the verification in about one week of Obon this year or as an actual congestion forecast.

[President]

As for the current plan, we will verify this tray at the bottleneck point in this year's tray and apply it from the traffic congestion forecast around the end of the year and the beginning of the year to utilize it. In the future, it is expected that the scope will be Large to congestion caused by construction regulations and accidents. The bottleneck points are targeted at 90 points.

[Reporter]

Is this what you are doing on your own?

[President]

It seems that something similar is being carried out on NEXCO EAST 's Kan-Etsu Expressway.

[Reporter]

You also do it at NEXCO EAST 's Aqua Line. Could you tell us if this AI is a content that you are promoting on your own, or a technology that has been promoted with technical cooperation or cooperation?

[President]

It seems to be working on Aqua Line. Each system has its own environment, as there are differences in the environment depending on the region. We are developing with NEXCO Systems, a Companies in our Group.

[Reporter]

You talked about AI traffic congestion prediction, and it was said that the work time could be greatly reduced.

[President]

There are some parts that we can't really understand unless we try to do it, but as you mentioned, we think it will take about half the time.

[Reporter]

Is it OK to understand that the public will be able to see predictions using AI at the end and the beginning of the year?

[President]

As in the past, we will announce the traffic congestion forecast at the end of the year and the beginning of the new year about one month ago. I would like to introduce it in the usual form through the Internet and pamphlets.

[Reporter]

Doesn't it mean that AI-based forecasts will not be announced in Obon traffic congestion forecasts?

[President]

The traffic congestion prediction of the tray will be done by the drive advisor as before. The prediction data from AI will be used for validation.

[Reporter]

Tell us how much work your drive advisors are doing in relation to AI and how much time is spent organizing the data for final publication.

[Employees]

There is one drive advisor at each of the four Regional Head Office. The four people organize the data in their respective Regional Head Office, work for about two weeks, and publish them.

[Reporter]

It is said that this year's tray will be tested at 90 locations, but could you give some specific places?

[Employees]

If you say around Nagoya, for example, the area near the Meishin Ichinomiya JCT will be targeted. In addition to this, it is intended for places where traffic congestion often occurs, such as near the Tomei Yamato Tunnel, which is often heard on radio congestion information.

[Reporter]

Is the image of the work of the four drive advisers basically basically shifting to AI from the traffic congestion forecast at the end of the year and the beginning of the year?

[Employees]

In addition to forecasting traffic congestion, live advisors also consider countermeasures and conduct public relations outside the company, so we will continue to carry out such work. I hope that you can understand that the prediction work that the drive advisor performs is replaced by AI.

[Reporter]

I would like to ask the president. Do you have any plans to extend cutting-edge technologies such as AI, IT, and IOT to fields other than traffic congestion prediction in the future?

[President]

Technology is evolving steadily, and we hope to incorporate the latest technologies such as AI, IT, and IoT into Expressway operations and management in the future. This time we announced the forecast of traffic congestion, but we are also in the age of declining birthrate and aging population, so we need to promote labor-saving, so we would like to expand it widely to the fields of inspection, maintenance, and provision of services. I am.

[Reporter]

In the case of AI, data provision may be advanced in the future, but will it be more detailed, unlike the information that is currently being announced?

[President]

Currently, information is distributed on Expressway signboards, highway radios, the Internet, etc., but such information is provided efficiently, and in the future, when traffic congestion occurs while customers are traveling on the Expressway I also need to provide information such as which route to use to get the most efficient use.

[Reporter]

Another point about prediction accuracy, please tell us the image of whether it will be more accurate or equivalent than the prediction of Drive Advisor.

[President]

We will verify during the Bon Festival while comparing what the drive advisor predicted and the actual traffic congestion situation, and we would like to improve the accuracy by repeated learning that AI is good at.

[Reporter]

Please tell us what you are using as a basic package for AI and your development costs.

[Employees]

We are just going to verify this, so we can't answer this at this time. The same is true for costs.

[Reporter]

There is the sophistication of AI-based data provision, but please tell us specifically what can be provided.

[President]

Providing data to customers, as mentioned earlier, effectively bypasses Expressway based on traffic congestion predictions when requesting detours due to traffic concentration, construction regulations, accidents, or abnormal weather. I think it is necessary to provide such information in the future.

[Reporter]

You are verifying AI, but is there any accuracy such as whether or not the traffic congestion forecast of the drive advisor hits or hits?

[Employees]

Regarding the accuracy of the drive advisor's prediction, it is our aim that we want customers to avoid traffic jams by looking at the prediction, so it is not such a thing that the drive advisor's prediction will hit 100% I think. We do not have any data at the moment, but we believe that the prediction accuracy is high.

[Reporter]

I think that the partnership agreement between the Yamanashi Central Bank and the Shizuoka Bank was triggered by the connection of Yamanashi Prefecture and Shizuoka Prefecture by an Expressway. Is there an example of a similar partnership agreement? Also, please tell us about your future plans.

[President]

This is a partnership agreement with banks aimed at revitalizing the region by providing business opportunities and Large product sales channels, but business collaboration is very wide, for example, in the event of a disaster with a national or local government or a local construction company. There are also cooperation agreements such as cooperation. In addition, we have concluded cooperation agreements with universities and other organizations regarding technology development. It is not the case that such an agreement is concluded with all banks, but there are also cases in which regional banks have been cooperating in product development, etc. without concluding an agreement.

[Reporter]

The consumption tax hike is scheduled for October, but what will happen to the increase in Expressway tolls accordingly?

[President]

The tax increase is scheduled to be transferred in 10-yen units.

[Reporter]

Returning to the AI story, one of the questions I mentioned earlier said that it was better for the driver to shift the date of use after seeing the prediction accuracy, and as a result it was better not to hit the prediction. Then how do you verify the accuracy of the forecast? Even if you make predictions with high accuracy, if the driver changes their behavior after seeing it, the predictions will eventually be incorrect, and as a result will the judgment that the accuracy is low in the verification? What kind of verification will this verification be?

[President]

The question you are now talking about is what your customers will do when you look at the predictions, so I think that will be the next step. First, we will examine how it compares to the conventional methods.

[Moderator]

It seems that your question has been interrupted, so this is the end of your regular meeting.