Hisense, Shandong Hi-Speed win Ethiopian intelligent transport bid

Hisense Group, a Chinese electronics giant, has announced that it has won a bid in Ethiopia, in partnership with Shandong Hi-Speed Group, to provide intelligent solutions for public bus services in its capital, Addis Ababa.

This represents a solid step forward by Chinese companies in making inroads into the overseas smart traffic segment, executives and experts said.

"Hisense and its partner will improve Addis Ababa's public bus service with hardware and software for vehicle dispatching, real-time monitoring and information release by applying artificial intelligence, big data and cloud computing," said Zhang Sihai, president of Hisense TransTech, a subsidiary of Hisense Group.

The solutions aim to improve the efficiency of public transport as well as providing a better traveling and commuting experience, he added.

Public transportation is an important means of getting around for the city's 8 million residents. Addis Ababa is also home to the headquarters of the African Union.

"The upgrading of public transport is expected to play a major role in aiding passengers and in reducing disruption during peak hours," said Zhang during an interview last month.

The bid was Hisense's first for smart traffic business in an overseas market and will "boost the company's confidence to seek a presence on the global stage in the segment", he added.

The group, based in Qingdao, has taken the lead in China's intelligent transport industry, in which it has been involved since 1998. Hisense's innovative, integrated solutions for the industry have been applied in 169 cities nationwide.

According to the company, its rapid bus transit solutions account for 70 percent of domestic market share, and its sales of traffic light controller systems rank first in the country.

China's smart traffic sector is worth some 20 billion yuan ($3.13 billion), and "tapping overseas markets is a necessary step in keeping (the company's) smart traffic business growing", Zhang said.

The winning bid followed Hisense's nearly $1 billion acquisition of Siemens' Intelligent Traffic Systems, which provides solutions for effective road traffic management. The German group's traffic division, which has existed for over 100 years, is a world leader in intelligent traffic services and solutions.

While the acquisition allowed Hisense to get a hands-on understanding of Siemens' smart traffic products, Zhang said that some Hisense products have outperformed Siemens, including its traffic light controller systems and the artificial intelligence-powered monitor of traffic flows.

Wang Fang, deputy general manager of the international department at Hisense TransTech, said that the company is mainly developing its smart traffic business in African, Middle Eastern and Southeast Asian countries involved in the Belt and Road Initiative at present, adding that the company is biding its time before entering the European and American markets.

"We will face many challenges doing business overseas. For example, we have to design tailor-made products and solutions in accordance with each country's traffic regulations and culture," she said.

All the companies that attended the bidding for Addis Ababa's bus project were Chinese, which Guan Jizhen, deputy chairman of the China Intelligent Transportation Systems Association, said means that "Chinese companies can compete with their overseas counterparts".

However, he noted that there is still a long way to go for Chinese companies wishing to enter the overseas smart traffic market.

"The number of competitive products and the brand influence of Chinese companies on the international market is still insufficient," he said.

Guan suggested that Chinese companies should make more efforts to improve their technology and services and follow international standards, or even set their own global standards that others can follow.