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Integrated Transport Services - Cashless Transactions / Smart Card


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Cashless travel on public transport is popular in developed countries and gaining some momentum in developing countries. India is still lagging in this area of area of Integrated Electronic Ticketing. Find out more about E-ticketing in India.

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Integrated Transport Services - Cashless Transactions / Smart Card

  1. 1. Integrated Transport Services - Cashless Transactions / Smart Card “Session II – Taking Transit - Integrated Public Transport Services” November 10, 2014 Bhopal, Madhya Pradesh
  2. 2. Multimodal Transport – Moves Towards a network © 2014 Valoriser Consultants 2 .. To an integrated network: • Changing socio-economic context => Optimising the use and capacity of the system • Improving the accessibility of the system and creating a comprehensive network => Cross subsidies • Efficiency of hub and spoke network From a fragmented network.. (Several operators, different fares and ticketing systems, competition between companies )
  3. 3. …. To Smart and Connected Transport The world is changing and old terms are also changing… Integrated Multi-Modal Transport © 2014 Valoriser Consultants 3 ‘Smart’ and ‘Connected’ Transport Integrated Multi-Modal Transport System
  4. 4. ‘Smart’ and ‘Connected’ Transport Integrated or Connected Transport Infrastructure requires: Institutional © 2014 Valoriser Consultants 4 Physical Transaction Information
  5. 5. Smart and Connected Cities - IBM Smart Transportation: Integrating Systems for More Efficient Transportation (IBM Smart Cities) © 2014 Valoriser Consultants 5
  6. 6. What is Smart Transportation System Parking Information System © 2014 Valoriser Consultants 6 6 Automated Vehicle Location System Automated Fare Collection System Intelligent Signaling System Real-Time Traffic Information System Real-time Monitoring System Interactive journey planner for all modes Car Sharing Cycle Sharing Systems
  7. 7. Cashless Travel on Public Transport Cashless travel in India is still limited to Metro System and Organized Taxi Service • Cashless travel on public transport is popular in developed countries and gaining some momentum in developing countries • Cashless transaction not only provides easy method to collect revenue but also produces large quantities of data for better planning and monitoring • In India, Metro Systems and Taxi Companies are using these options more for better accountability and smoother transaction • Sadly, the bus-based public transport system still lags behind in this area, which is available in more cities and carries more passengers • Most of STUs are still using paper tickets for fare collection and following conventional system. There is a need to modernize fare collection mechanism to accommodate cashless travel. © 2014 Valoriser Consultants 7
  8. 8. Modes of Cashless Transaction Mainly use for Smart Card NFC Mobile Wallet Application Smart Tags © 2014 Valoriser Consultants 8 Mainly use for Mainly use for Mainly use for
  9. 9. Smart Card for Transport E-Ticketing Magnetic Stripe Card – Mainly use for banking transaction and Information are stored by modifying the magnetism of tiny iron-based magnetic particles • Transport e-ticketing is expanded after the use of smart cards technology – Smart cards are able to store enough information to process monetary transactions and card holder’s details for security purposes • There are two categories of smart cards that can be used for public transport e-ticketing: – A single purpose transit pass – An electronic purse (e‐purse) card © 2014 Valoriser Consultants 9 Smart Card – Mainly use for public transport system and information are stored in a microchip and transmits data using radio frequency identification (RFID)
  10. 10. Smart Card for Integrated Transport E-Ticketing Smart Cards are still the most common form of Transport e-ticketing, which is being used around the world • Public transport operators around the world has adopted new electronic media (Smart Cards / NFC) to replace paper-based tickets to introduce electronic ticketing systems • The cities are implementing multimodal transportation ticketing system or Integrated Transport e-ticketing, combining all modes on a single ticket using smart card and/or other technologies • e-ticketing can be used as a tool to facilitate the combination of modes and the transfer between them. Further, the system can be extended to other areas like retail stores, library or tourist sites • Interoperability, common specifications and identical commercial structures are important to introduce for integrated fare collection system © 2014 Valoriser Consultants 10
  11. 11. Advantages of Integrated Transport E-ticketing • Enables commuters to carry one card for use on all transit modes • Facilitates the multi-modal travel behaviour • Allows faster boarding and help to reduce trip times • Just takes 150 milliseconds to complete the transaction • Collects authentic data about travel pattern and behaviour • Data can be used to inform transport policy and the planning of service • Allows the operator to offer discounts to commuters for specific trips • Can balance demand and increase patronage in off peak periods • Allows faster revenue reconciliation with recorded data on travel patterns • Equips authorities to detect and deter fare evasion • Integrates with other transport service like parking, tolls and taxis • Promotes cashless economy by integrating with convenience stores Easy to Use Improve Boarding Travel Data Collection Demand Management Reduce Revenue Pilferage Multiple Use of Smart Cards © 2014 Valoriser Consultants 11
  12. 12. Global Examples of Integrated Transport E-ticketing • Established in 2005 and owned by all five key transport operators • Used by 99% of people in Hong Kong aged 15 to 64 • Can be used for fare payments for bus, taxi, subway, train, tram, and ferry services • Can be used for small‐value payments in the retail sector, access control for residential and commercial buildings • Established in 2003 and owned by Transport for London (TFL) • Over 43 million Oyster cards had been issued and more than 80% of all journeys on public transport in London were made using the card by June 2012 • Can be used for fare payments for bus, Tube, tram, DLR, London Overground and most National Rail services in London © 2014 Valoriser Consultants 12 Ez-link Card of Singapore • Establish in 2002 and owned by Land Transport Authority (LTA) • More than 10 million cards in circulation and around 8 million transactions everyday are made on the system, primarily for public transport fares • Can be used for fare payments for public transport travel, as well as other commercial purposes and non-transit applications
  13. 13. Key Factors for Integrated Transport E-ticketing To implement successful Integrated E-ticketing, there is a need to setup common goal and policies for all operators • There should be a government authority with statutory control over all modes of transport and mandates to setup Common Clearing House • There should be a high-level of coordination and co-operation between all public transport providers and the suppliers • There is need to identify and establish common technology platform for all key stakeholders, instead of compulsion to use old technology • It is important to ensure that the cost of technology should be economical for all modes of transports and shared by all stakeholders • There should be integrated tariff for seamless transport for the passengers and gives discount to consumers for use of multiple modes © 2014 Valoriser Consultants 13
  14. 14. Opportunities to implement Integrated E-ticketing About City Public Transport New Delhi Mumbai Bangalore Area: 1,484 Sq. Km Population: 22 million No. of Vehicles: 7.22 million Area: 603 Sq. Km Population: 21 million No. of Vehicles: 2.02 million © 2014 Valoriser Consultants 14 Area: 741 Sq. km Population: 9.6 million No. of Vehicles: 3.79 million Metro: 190 kms Buses (Public): 4,938 Buses (Cluster): 1,217 Suburban: 427.5 kms Metro: 11.40 kms Mono Rail: 8.9 kms Buses (Best): 4,700 Metro: 19.5 kms Buses (BMTC): 6,745 Taxi: 52,884 Auto: 100,000 Taxi: 55,000 Auto: 246,000 Taxi: 40,185 Auto: 150,000 • Smart Cards and Tokens system is implemented by Delhi Metro • Handheld Fare Collection machines in all Cluster buses • Smart Cards system is implemented by Suburban Railways and Reliance Metro • Handheld Fare Collection machines in some buses • Smart Cards and Tokens system is implemented by Namma Metro • Handheld Fare Collection machines in some buses Para Transit Automated Fare Collection
  15. 15. Indian Examples of Smart Card Fare Collection Delhi Metro Smart Travel Card • Delhi Metro has implemented Automatic Fare Collection system using Contactless Smart Card as multi-ride ticket in 2005. The contactless smart card compliant to Type A Mifare Desfire (4Kbytes) • Currently, DMRC is selling more than 20,000 cards per day and currently has around 6.1 million cards in circulation • Delhi Metro has introduced the smart card system in the city. However, DMRC is not ready to make any change in technical specification and allows other modes to integrate with its system − Delhi Metro has integrated its system with Gurgaon Metro as they are using Thales Automatic Fare Collection, which is very costly for bus operators 70% of Delhi Metro travelers are smart card users Other Smart Cards in India Namma Metro Travel Card Reliance Metro Travel Card Indian Railway Smart Card © 2014 Valoriser Consultants 15
  16. 16. Challenges to Implement Integrated E-ticketing • Responsibility to plan, construct, operate and manage different modes of transports are with different agencies. There is no single agency • The government plays very critical role to facilitate standardization and coordination among players, which is missing in India • Metro System has access to fund and can procure technology from outside, whereas bus operators can not adopt the same technologies • Bus Transport is still controlled by STUs and Individual Operators. Further, most of the cities are largely dependent on informal transport • Transport networks are complex and unorganized in India. It is difficult to encompass every fare rate possible for every service provider across an entire network. © 2014 Valoriser Consultants 16
  17. 17. Thank You Valoriser Consultants Tel: +91-11-25546049 | Mobile: +91-9958835533 Email: / Website: