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Ticketing update

Posted: 17 February 2007 | ET | No comments yet

There have been a number of exciting developments in the European public transport sector recently, with new contracts being awarded, new equipment launched and planned company acquisitions. Intelligent Transport looks at some of the key stories that have been making news.

Telematics and electronic fare collection systems specialist INIT has developed what it describes as a ‘revolutionary’ new e-ticketing system which it has sold to ‘trent barton’ – a leading independent bus operator in the UK. This is a landmark for INIT as it is the first time the company has sold an e-ticketing solution outside of Germany. According to Dr. Gottfried Greschner, Chairman of the Managing Board of INIT: “This first e-ticketing technology transfer of INIT outside Germany has great strategic significance for us. Other transportation companies have also already showed their interest in this solution.”

There have been a number of exciting developments in the European public transport sector recently, with new contracts being awarded, new equipment launched and planned company acquisitions. Intelligent Transport looks at some of the key stories that have been making news. Telematics and electronic fare collection systems specialist INIT has developed what it describes as a ‘revolutionary’ new e-ticketing system which it has sold to ‘trent barton’ – a leading independent bus operator in the UK. This is a landmark for INIT as it is the first time the company has sold an e-ticketing solution outside of Germany. According to Dr. Gottfried Greschner, Chairman of the Managing Board of INIT: “This first e-ticketing technology transfer of INIT outside Germany has great strategic significance for us. Other transportation companies have also already showed their interest in this solution.”

There have been a number of exciting developments in the European public transport sector recently, with new contracts being awarded, new equipment launched and planned company acquisitions. Intelligent Transport looks at some of the key stories that have been making news.

Telematics and electronic fare collection systems specialist INIT has developed what it describes as a ‘revolutionary’ new e-ticketing system which it has sold to ‘trent barton’ – a leading independent bus operator in the UK. This is a landmark for INIT as it is the first time the company has sold an e-ticketing solution outside of Germany. According to Dr. Gottfried Greschner, Chairman of the Managing Board of INIT: “This first e-ticketing technology transfer of INIT outside Germany has great strategic significance for us. Other transportation companies have also already showed their interest in this solution.”

INIT is supplying trent barton with its PROXmobil ticket validator, which will allow passengers to Check-in/Check-out using a contactless smartcard. In addition, drivers will receive assistance from EVENDsmart, the compact electronic ticketing machine with integrated on-board computer. EVENDsmart features a high-speed thermo printer for issuing paper tickets, as well as a proximity reader for scanning contactless smartcards. EVEND-smart will also process the data exchange for the Real-Time Passenger Information System ‚star trak’ via mobile radio.

To use the new E-Ticketing system, called ‘TOTO’ (Touch-on/Touch-off), the passenger needs a smartcard, which they will receive after initial registration. They can pre-load this card via trent barton’s Internet portal or at a customer service centre.

According to INIT the new system makes ticketing simple: when boarding the bus the passenger just needs to pass his smartcard by the check-in terminal PROXmobil or the ticket printer EVENDsmart. The devices’ reader units will register the customer’s card and charge the maximum fare rate. On leaving the bus the passenger checks out in the same manner by passing the card reader.

The smartcard will be automatically credited with the difference between the maximum fare and the fare for the actual journey taken. In addition, should the passenger take further trips on the same day, they will not be charged more than the fare for a ‘day pass’ in total. Once the equivalent amount has been reached, the passenger travels free of charge, although journeys are still registered.

INIT believes that the introduction of the new ticketing system will increase trent barton’s productivity along with the quality of service. It will lead to reduced costs for the handling of paper and cash, and to more flexibility in setting the fares. Furthermore, trent barton will be able to offer a much better service to its passengers; because they no longer have to have the small change ready, they can just board the bus. This will increase customer satisfaction remarkably. In addition, it will reduce vehicles’ waiting times at the stops, which will not only improve their punctuality and frequency, but also save fuel.

INIT has also been awarded a contract worth millions by Kinkisharyo International. The Japanese group intends to equip 115 light rail vehicles with hardware and software from INIT. The vehicles will subsequently be deployed by the Dallas Area Rapid Transport (DART) located in the state of Texas, US. INIT will supply on-board computers based on PC-technology, including WLAN functionality, as well as hardware for locating the vehicles and processing GPRS communications.

Furthermore, DART’s dispatching centre will be equipped with an Intermodal Transport Control System (MOBILE-ITCS) to manage operations control and real-time passenger information. A statistical tool will complete the scope of delivery.

This is the first project on which INIT will cooperate with the Japanese vehicle manufacturer and the first INIT contract received from Japan.

Fare collection and parking solutions specialist ACS has been awarded a contract to extend contactless ticketing across the entire network of the Mexico City metro operator Sistema de Transporte Colectivo (STC).

Between now and November 2007, ACS will equip 2,000 platform access gates with contactless card readers and deploy manual and automatic ticket sales points. ACS will also equip each metro station with a supervision system and data concentrator, as well as install an optical fibre intelligent communication network linking all the equipment.

This follows on from a pilot experiment conducted from late 2005 to early 2006. During these tests, ACS proved that it was capable of deploying contactless e-ticketing within a short time on disparate magnetic equipment, some of which was more than 30 years old.

This pilot scheme was thus able to validate the relevance of the selected technologies and their seamless co-existence with magnetic stripe ticketing.

From the start, the ACS system enabled STC to use cards based on either ‘A or B’ technologies, whereby the operator was able to offer different types of cards for different categories of user: free cards for entitled passengers and prepaid cards, by a simple parameter definition. ACS claims that it is the first and only operator to use this dual technology on a single system.

In order to upgrade five generations of equipment, some of which commissioned as far back as 1968, ACS needed all its archived technical literature and relied on its long-service employees, some of whom were involved in deploying the very earliest equipment.

The operator was reassured by ACS’s ability to integrate new technologies with old equipment and obtain a reliable result. “Right from the word go there was no room for mistakes. If we were to persuade our four million daily users to adopt a modernised system, we first had to prove that it would be efficient,” commented Florencia Serrania, former manager of STC who instigated the Mexico City metro contactless ticketing project before handing it over to Fransisco Bojorquez, the current General Manager.

ACS has also recently developed a new range of touch screen contactless ticketing terminals. The new Proxibus PCE/MDS 415 terminals offer a range of functions including validation and recharge of contactless tickets, rapid ticket issue and data storage up to 2Gb internally. The terminals’ design is user-friendly, with easy access to tickets, a locatable contactless target, linked to a text display, lights for users and audio messages. They are available in two versions: fixed – the Proxibus MDS 415 for retail sales outlets – and on-board version – the Proxibus PCE 415 for driver consoles on buses. The terminals have been developed using Windows CE to allow systems upgrading and continuity.

The Proxibus 415 terminals offer users an 8.4 inch colour touch screen angled at 40° for optimum readability. The terminals’ ultra-fast printer, up to 200 mm/s, issues paper tickets or receipts, with integrated pre-cutting to make them easily accessible to either the vendor or the passenger. The contactless target makes contactless ticket processing possible for recharge or validation. It has a text display and coloured lights for passenger information. The terminal can transmit MP3 audio messages.

The ACS Proxibus PCE/MDS 415 terminals can also store information (black lists, daily operations logs, fare data) and transfer data to central systems (Wifi, Ethernet, USB). For onboard version, the Proxibus PCE 415, also monitors all the equipment on board buses, such as validators, and interfaces with GPS vehicle localisation, radio data transmission or any other means.

“Our R&D investments ensure that these terminals meet the same high standards as our central systems for contactless ticketing, and the two will be interfacing,” explained Robert Coste, Commercial Manager, ACS Fare Collection. ACS pilots every stage of the terminals’ design and development and guarantees them to last over ten years.

Wayfarer Transit Systems’ is another company currently enjoying international success. In Australia, Wayfarer is a key delivery partner in the ground-breaking Perth SmartRider project which features the company’s full portfolio of on-vehicle equipment and back-office systems – all fully integrated to support a multi-modal public transport network and capable of handling an anticipated 500,000 transactions every day.

In the UK, Wayfarer is leading the way in delivering technology that is enabling ITSO-compliant smart cards schemes to become reality through programmes such as NoWcard in the North West and Travelcard in Cheshire.

At the heart of all these programmes is the Wayfarer TGX150 electronic ticket machine, which Wayfarer claims was the first ETM to receive ITSO conditional certification.

NoWcard is the world’s biggest on-bus ITSO scheme and recently reached a major milestone when Wayfarer technology helped Blackpool Transport complete its 1,000,000th back-office transaction from the 35,000 concessionary NoWcards in circulation.

“Blackpool is writing a new chapter in the ITSO story,” said Wayfarer Chief Executive Tony McNamara. “This scheme proves the technology on a grand scale – and both the operator and the thousands of travelling passengers are enjoying the benefits.”

Meantime in Cheshire, the UK’s first ITSO ‘low-cost’ smartcard scheme has been launched by Cheshire County Council’s (CCC) Travelcard scheme on D&G Bus & Coach services in Crewe. The Crewe Flexirider, an innovative demand-responsive service provided under contract to CCC, is the first public transport service in the UK to use ITSO low-cost smartcard technology alongside conventional smartcards. Wayfarer’s ticketing technology is being used to read the smartcards and to transmit secure transaction data to Cheshire’s back-office systems. Wayfarer says that low- cost smartcard technology opens opportunities for distribution and marketing not available with conventional personalised cards and that the disposable cards have a considerably lower unit cost.

Norwegian automatic fare collection specialist FARA ASA looks set for expansion with a planned acquisitions in Finland and Denmark.

The Board of Directors at FARA ASA have signed a ‘Letter of Intent’ covering a possible acquisition of the Finnish electronic ticketing company Buscom OY. Buscom is a market leader in Finland, and if combined would provide FARA with a leading market position in the Nordic market, according to FARA CEO, Lars Lillegraven.

FARA’s ambition is to be the leading player in the Nordic market and a leading player internationally in electronic ticketing systems and related intelligent solutions for the public transport sector. A stronger position in the Nordic home-markets will further strengthen the basis for expansion in Europe.

Buscom OY has existed for more than 20 years, and its electronic ticketing systems have been in operation for years in Helsinki and other Finnish cities. Buscom has installations in Finland, Denmark, Sweden, Norway, Russia, Germany, Hungary and Switzerland, and is active in Greece and France.

The company has a record of strong innovation, and is currently testing the use of mobile phones as a means of payment in buses. In 2006, the company had revenues in excess of NOK 32 million, and have about 20 employees. The company is located in the hi-tech city of Oulu, the home of Nokia’s R&D.

The Letter of Intent covers the purchase of assets in Buscom OY. The price is a combination of cash and shares in FARA. The price may be adjusted subject to Buscom’s net profit in 2007. Buscom is owned by Polar Elektro OY.

FARA will not require additional financing to conclude this transaction. The execution of a final agreement is subject to Due Diligence and final approval of the BoD in FARA ASA.

The Board of Directors at FARA have also signed a ‘Term Sheet’ covering the acquisition of the Danish company called TNC Connect AS. TNC Connect is a provider of solutions for real time passenger information and fleet management to the public transport sector. Integrated with FARA’s own system for electronic ticketing, FARA will supply a complete solution for ticketing, information, and fleet management to customers in the Nordic market and Europe, claimed Lillegraven. FARA has said that it is interested in TNC Connect for two main reasons: First, the company has technology which complements FARA and which will put FARA in a unique position as a supplier to the public transport industry. Second, through TNC Connects established business in the UK, FARA will take a step further into the European market.

An acquisition of TNC Connect will strengthen FARA’s position in the Nordic market and provide a solid basis for expansion in Europe. TNC Connect had revenues of about NOK 20 million in 2006, and has about 20 employees. The company is located in Sønderborg, Denmark. The main markets are the Nordic countries and the UK, where the company has an office. TNC Connect main products are real time passenger information and fleet management for the public transport sector TNC Connect AS is owned by TeleVenture Private Equity V AS, managed by Mr. Rune Rinnan. Mr Rinnan will be available as a Board member in FARA ASA, should the EGM approve and the transaction be executed. Rinnan has first hand knowledge of the markets FARA is targeting from his experience as owner of TNC Connect and as Board member for several years in Q-Free.

The aquisition is subject to approval by the shareholders to issue new shares at the Extraordinary General Meeting, due diligence, and final Board approval in FARA. FARA will not require additional financing to conclude this transaction.

The transaction price is NOK 17.3 million plus a possible earn-out of up to NOK 3.4 million subject to TNC Connect’s revenues in 2007.

Finally, MEI – one of the world’s largest manufacturers of electronic coin changers, bill acceptors, cashless payment systems and other unattended transaction systems – is also experiencing international success thanks to the popularity of it its MEI SODECO banknote validators. According to the company over 50,000 MEI SODECO banknote validators have been installed in metros, light rail systems and railways all over the world.

The company’s BNA500 series offers exceptionally high first-time acceptance of bills (over 98%). This is constant over time due to the dynamic self-adaptation recognition system which works with all the world’s major banknote sets. MEI states that the BNA500 series also brings a high level of performance with a MCBF (Mean Cycle Between Failure) figure of 30,000 cycles. This means that there is only one incident for every 30,000 banknotes processed, including hard failures and soft failures (jams). This is particularly important for busy metros and railways.

Due to the ‘Spectral Colour Analysis’ function and a new powerful algorithm, the SODEC BNA500 series brings a high proven security of operation which is able to cope with multi-series banknote printing. MEI has a research centre in Geneva and is constantly working on new banknote introduction and banknote recognition security improvements to provide continuous updates and support to operators.

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