Global Mass Transit Research organised a virtual edition of its fifth annual conference on “Transit Ticketing & Fare Collection in APAC 2020” on October 28-29, 2020. Transit authority representatives, operators, technology providers, ticketing association personnel, and consultants attended the conference. The conference was supported by eight sponsors – Cubic, FIME, FIEG, Linxens, O-City, Siemens, Thales, and UL. FAIRTIQ participated in the conference as part of the start-up showcase segment. The conference had a diverse group of speakers representing transit agencies, operators, service providers, technology providers and vendors.
The key region-specific takeaways from the conference are discussed below.
Keynote session by Singapore LTA
Silvester Prakasam, Senior Advisor, Fare System Division, Land Transport Authority (LTA), Singapore, spoke about the recent impact of the Covid-19 pandemic on ridership and urban transport projects. Covid-19 has drastically reduced public transport ridership globally. Contactless payment has undoubtedly contributed to the reduction in the spread of Covid-19 through public transport, although this impact has not been quantified.
Public transport projects are still progressing in several cities. Singapore-based MSI and LTA have delivered projects to Qatar, Bangkok and Bengaluru, stressing the criticality of public transport.
Currently, Singapore is in the process of developing a tokenised solution for stored-value cards (SVCs) for conversion to a naccount-based ticketing (ABT) system.
Next-gen ticketing: Emerging trends and outlook
Gopi Rengasamy, Director, Global Strategy Group, KPMG, Singapore discussed the key emerging trends and the outlook across Asia Pacific. He spoke about:
Rise of mobile ticketing and bank cards: Asia is the second biggest market for automatic fare collection (AFC) and will account for around 33 per cent of the global planned investment by 2025. The deployment of mobile ticketing and bank cards is picking up in the region. Around 25 cities have unveiled plans to deploy bank cards on their transit networks for the first time and nearly 20 cities are looking to deploy mobile ticketing for the first time.
Transport integration to allow safer travel: In the post-Covid-19 period, the need for mobility integration has become more important than ever. Public-private coalitions are expected to accelerate the development of safer and more efficient multimodal solutions and innovations. Further, the collected data can be used to design better routes, to manage traffic congestion more efficiently, and to facilitate more dynamic and targeted policymaking.
Provision of customer-centric solutions: It is suggested that transit authorities should adopt a customer-centric approach rather than just adopting trending ticketing solutions to attract more commuters.
Backbone of AFC solutions: The jurisdiction of the city/state/country in providing AFC plays an important role in deciding the dominant player in the AFC segment. For example, in the case of Singapore, the LTA has built the AFC system and the related network, but the fare system is open to both private and public players.
New transit ticketing technologies
Julian Rossy, Asia Representative, Business Development, FAIRTIQ, Singapore, spoke about the deployment of smart mobile ticketing by FAIRTIQ. Rossy addressed the issue of heavy expenditure on ticketing by operators and on the implementation of complicated apps for consumers, and highlighted the requirement of an ideal system to simplify interaction.
In the post-Covid-19 period, FAIRTIQ was able to reduce ticketing costs through its software solutions as well as reduce incomplete journeys from 8 per cent to 0.6 per cent through artificial intelligence (AI) for its existing clients. Rossy concluded his presentation by sharing FAIRTIQ’s experience in the optimisation of operations through utilising consumer data and by highlighting how public transport operators have gained benefits from this.
Pierre-Alois Welsch, Product Marketing Director, Linxens, Thailand, discussed the importance of using substitutes for PVC material to reduce the carbon footprint of smart card deployment and how transport smart cards can be used by public transport operators (PTOs) and public transport authorities (PTAs) for promoting sustainable actions aimed at end users. He concluded his presentation by sharing some of the key initiatives taken to drive innovation and differentiation in smart card manufacturing.
AFC requirements in new and upcoming projects
Moustapha Weirah, Automatic Fare Collection for Metro Manila Subway Project and North South Philippine National Railway (Nstrend), Metro Manila Subway Project, Philippines spoke about the key initiatives, the main issues and challenges, and the future plans for the Metro Manila Subway Project (MMSP). The MMSP spans 36 km and covers 15 stations. It has a capacity of 1.5 million passengers per day. It is the first mass underground transport system in the Philippines. The estimated cost of the MMSP is PhP 350 million. It will open in two phases: first, three stations will commence operation in 2022 and then the entire line will be operational in 2025. Further, the T3 station layout was discussed; it is planned to have bigger gates that will be opened for a longer time.
Weirah also discussed the AFC requirements for the MMSP. The AFC system required must be interoperable with the existing and planned future lines of Metro Manila and with other modes of transportation. The agency plans to charge passengers per station and not from the initial contact station. AFC must support fare integration and CCHS.
Transit operator’s viewpoint
John Philip Delos Santos, Financial Controller and AFCS Head, Light Rail Manila Corporation (LRMC), Philippines, spoke about the use of the AFC system by the LRMC, the private operator of light rail transit (LRT)-1 in Manila, as well as the key challenges and major opportunities faced by the LRMC. The AFC system project, which commenced in 2015, aims to replace the magnetic-based ticketing system with a contactless-based smart card technology on LRT-1, LRT-2, and mass rapid transit (MRT)-3. The estimated project cost is $38.22 million. The projecthas been undertaken on the basis of the build-transfer-operate (BTO) and the build-own-operate (BOO) models, with a concession period of 10 years.
Santos also discussed the Beep card, a stored-value contactless card that is used for payments in light rail systems, buses, toll roads and retail stores. As per the LRMC, the AFC system has various benefits like seamless interconnection for travellers, widespread ticket distribution channels, reduction in revenue leakage, and allowing operating authorities to develop new service offerings. The challenges of implementing the AFC system in the Philippines are overcrowding and confusion resulting from far too many operators, inadequate digitalisation, a culture of technology aversion, and a sachet mentality. The major opportunities are in QR-code ticketing and transit pass (the pilot implementation is scheduled to begin in January 2021), bike parking, LRT-1 merchant acceptance, ikotMNL application integration, and business intelligence.
The rise of platforms: Will they transform fare collection procurement?
Mick Spiers, Vice President and General Manager, Cubic Transportation Systems, Singapore, spoke about the changing face of mobility, the traditional approach of procuring AFC systems, the advantages and disadvantages of the platform approach, and emerging opportunities. Spiers discussed the mobility revolution that has resulted in an explosion of mobility modes in cities, and that can create a problem if left unregulated. Aggressive competition among mobility service providers, including public transit operators, has resulted in a fragmented user experience, non-optimised journeys and stiff competition. Cubic Transportation Systems aims to power future mobility with platform technology built to reduce congestion and shorten travel time.
Spiers talked about the shortcomings of the traditional approach to AFC procurement. Under this approach, the transport agency comes up with the requirements that the industry then tries to match. However, there is always a gap between the product and the expectation, which makes AFC expensive and limits collaboration and hampers innovation. There is a need to reinvent mobility technology by using a multi-agency fair collection system, and to pivot away from the traditional approach. The challenges of the new approach are less control since the product is not unique, a cultural shift in the way of doing business, changes in the engineering process, and changes in the procurement system. The advantages are a shared risk model, with reduced capital cost, shorter deployment time, and lower risk.
Further, Spiers described the UMo pass, which was launched in October 2020. UMo’s motto is putting “you” back in mobility. The UMo pass is senior citizen friendly. It is an account-based ticketing system. It is a tap-pass that can activate school ID cards and smart cards as tokens.
Conclusion
The conference offered a platform for discussing the current trends in transit ticketing, assessing the impact of the Covid-19 pandemic on the ticketing industry, and forecasting trends in deployment in the Asia-Pacific region. Transport integration has emerged as one of the key focus areas of transit agencies in the region. Further, the adoption of open loop, ABT, and MaaS is expected to offer numerous opportunities for technology developers, providers and vendors, while making public transport more accessible to, and more user-friendly for, commuters.
