In recent years, the Danish transport sector has faced growing challenges with the administration and compliance of van permits under the Goods Transport Act. These regulations, though crucial for ensuring proper working conditions, curbing black market labor, and enhancing traffic safety, come with significant administrative burdens for both businesses and authorities.
Small and medium-sized businesses are particularly impacted by the time-consuming and costly processes required to comply with the law.
As the industry looks to the future, digital solutions offer a path toward streamlining these processes and creating a more efficient, compliant transport sector. By leveraging existing public systems and technology, digitalization of these processes can transform how van permits are managed, significantly reducing the administrative burden on all stakeholders.
The administrative burden: A roadblock for the transport sector
The current system for managing van permits and complying with transport regulations is largely manual. Businesses are required to navigate a complex web of paperwork, applications, and approvals—often resulting in delays, errors, and increased operational costs, all of which hinder the efficacy of the services they provide.
Key challenges facing the industry
- Manual processes: From applying for permits to verifying compliance, the reliance on manual systems means businesses spend unnecessary time and resources navigating bureaucratic hurdles.
- Lack of data integration: Authorities and companies operate in silos, with limited communication between the systems handling permits, driver verification, and financial assessments—ultimately leading to inefficiencies and missed opportunities for streamlining processes.
- Cost of non-compliance: Businesses that fail to comply with the regulations face stiff penalties, and in 2023 alone, 29% of applications were rejected and 57% of inspections led to permit revocations. This has a direct impact on a company’s ability to operate efficiently.
These issues disproportionately affect small and medium-sized businesses, as they often lack the resources to manage complex compliance requirements effectively. The burden falls heavily on their operations, diverting attention from their core business activities.
A glimpse into the future: Digitalization as the solution
Across Europe, many countries are beginning to embrace digitalization as a means to improve compliance and reduce administrative burdens in their transport sectors.
The Electronic Freight Transport Information (eFTI) regulation, for example, aims to standardize the exchange of digital freight information across the EU, simplifying processes for both businesses and authorities. This digital shift will apply across transport modes and replace paper-based documentation with electronic data.
By introducing a digital solution that simplifies the van permit process and automates compliance checks, Denmark can align with the broader EU push for digital transformation in logistics while reducing inefficiencies and administrative burdens across the board. A centralized digital platform offers a comprehensive solution to these challenges by consolidating data from all relevant parties into one integrated system, ensuring compliance at every level—from driver and vehicle verification to business requirement validation.
Digital tools at the forefront
- Automated permit processing: A digital platform can automate the application and verification process for van permits, ensuring that businesses receive immediate feedback and approvals when they meet the necessary criteria. This approach would significantly reduce waiting times and the risk of human error.
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- Driver validation: Integrating required photo verification during jobs to ensure that the correct, authorized drivers are carrying out the deliveries. This ongoing validation adds an extra layer of security and accountability throughout the delivery process.
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- Code of conduct compliance: A built-in code of conduct ensures that drivers adhere to agreed-upon standards throughout their operations. This feature provides an additional layer of accountability, helping businesses maintain both safety and ethical standards in compliance with regulations.
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- Real-time data integration: With a centralized platform, authorities can access real-time data on drivers, vehicles, and permits. This would enhance collaboration between the Danish Road Traffic Authority, tax authorities, and law enforcement, ensuring consistent and efficient oversight.
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- Lower costs, greater efficiency: Automating these compliance processes would reduce administrative costs for businesses and government agencies alike. By minimizing manual intervention, resources can be reallocated to higher-priority tasks.
Future development opportunities
While current digital platforms already provide many benefits, future development in systems like Mover’s Transport Management System (TMS) could include:
- Digital application process: Businesses should be able to submit digital applications for van permits with real-time validation of financial requirements and compliance checks, eliminating paperwork and reducing wait times to maintain operational efficiency.
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- Automated compliance management: With data integration from multiple authorities, a digital platform could automatically manage compliance checks, reducing the risk of non-compliance and minimizing the likelihood of fines, penalties, or permit revocations.
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- By using existing public systems like MitID, e-Boks, and online government portals, these platforms offer efficient, cost-effective solutions that benefit businesses and reduce the strain on public authorities. Integrating with these existing systems also ensures accessibility and adaptability to the transport sector’s needs, without requiring significant additional investment from the government or businesses.
Why digitalization matters for the future of transport
Digitalization is more than a technological upgrade; it’s a key strategy for driving the future of the Danish transport sector. By simplifying compliance with van permit regulations, a digital platform can reduce operational costs, increase flexibility, and enhance competitiveness for Danish businesses. For the broader economy, it means fewer accidents, better working conditions, and a stronger ability to combat black market labor and social fraud.
A streamlined compliance process would also free up resources for public authorities, allowing them to focus on more critical areas of oversight and enforcement. The result would be a more efficient, transparent, and sustainable transport sector, benefitting businesses and society at large.
On a larger scale, Denmark can set a new standard for efficiency and compliance in the transport sector—one that other countries will look to for inspiration as eFTI is implemented across the EU.
Final thoughts
As the Danish transport sector continues to evolve, digitalization offers a clear path forward.
For businesses navigating the complexities of these regulations, a digitalized future that reduces costs, improves efficiency, and ensures compliance has never been more accessible.
By adopting a national digital platform for van permits, Denmark can reduce administrative burdens on businesses and improve compliance and oversight—creating a resilient sector that is equipped to meet the challenges of today and tomorrow.
