Chapter F5 Passenger transport

F5.11 Integrated ticketing

Introduction

The NZTA supports the development and implementation of a national integrated ticketing system for passenger transport.

The NZTA is working with the Auckland Regional Transport Authority (ARTA) and other approved organisations to design a national smartcard integrated ticketing system that can be ‘cloned’ by approved organisations. A national system will provide economies of scale and interoperability by allowing reuse of parts of the national integrated ticketing system design. Standard requirements for interoperability are being developed as part of the national system design. This national integrated ticketing system is expected to be operational in Auckland by 2010.

Definitions

The table below provides the definitions for integrated ticketing terms.

Term	Definition
Integrated ticketing	The purchase of a single ticket to allow travel on one or more modes of transport provided by one or more operators. It may be introduced: to complement an integrated fares policy, where all operators agree to a single fare structure in their operating area alongside existing fares or products of operators. The integrated ticket product can be delivered through paper tickets or smartcards.
Smartcards	Credit card-sized plastic cards that contain an encrypted code on a silicon chip inserted into the card during manufacture. The smartcard can be loaded with e-money or products, eg a monthly pass, to eliminate the need for cash payment on vehicles. The smartcard is placed over a smartcard reader on entering/exiting a vehicle and the correct fare for the journey is deducted from the card. The information retained by the smartcard reader about the smartcard used and the fare paid is downloaded daily to a central server.
Reconciliation	The processing in a back office system of the smartcard and fare paid information. This can be done daily, weekly or monthly or as specified during the system design. The reconciliation process requires a clearing house facility, which acts as a ‘bank’ for both financial and passenger data. The passenger trip-making information is also of considerable value for planning purposes.

Benefits of integrated ticketing

Integrated ticketing has been shown overseas to increase patronage on public transport networks that involve a number of operators and several modes by making it easier for passengers to use public transport.

Smartcard integrated ticketing reduces boarding times of passengers and provides highly accurate passenger-trip information.

The information provided with smartcard systems can be used for patronage monitoring and network planning.

Principles for smartcard ticketing systems

The NZTA has adopted the following principles for smartcard ticketing systems in New Zealand:

• Regional councils must specify smartcard requirements, including requirements for ensuring confidentiality in access to, and use of, commercial data.
• Smartcard integrated ticketing operation must be independent of public transport operators.
• Regional councils must use open procurement procedures compliant with section 25 of the Land Transport Management Act 2003 (LTMA) to select smartcard system contractors.
• Regional councils are encouraged to seek economies of scale by sharing clearing houses and other elements of smartcard integrated ticketing systems.
• Regional councils and their smartcard system contractors must work to ensure that systems are developed to achieve interoperability as opportunities arise.

Reusable system elements

The table below describes the elements that could potentially be reused by other regional smartcard systems.

Area	Reuseable system elements
Standards and specifications	Overall system specification (RFT) Equipment installation (rail, bus, ferry) Smartcard standards (eg ISO 14443, ISO 7816) Software development and user interface design standards Applicable security standards Report templates
System interface definitions	Central system interfaces specifications (financial, assets, data warehouse) Call centre interfaces specifications
Processes and procedures	Operational processes (at station, depot and wharf) Customer support processes (at call centre and agent) Card distribution (card bureau)
Interoperable smartcard application design	Configuration of smartcard fare products Smartcard application directory structure Security model and key mapping to smartcard architecture Concession data Loyalty design

Interoperable system elements

The table below describes the elements that are required to support interoperability between regional smartcard systems and/or schemes. They would generally be performed by a central authority.

Area	Interoperable system elements
System design advisory	Provide advice to regional authorities on the application of generic system design elements Provide advice on system procurement to assist with compliance on a national smartcard scheme
Participant management policy and procedures	Coordination of policy for inter-regional operation of smartcard Coordination of commercial agreements between participating operators
Device certification	Verification of equipment suppliers for conformance to national standards
Inter-regional key management	Coordination of key distribution between regional systems
Inter-regional clearing house	Financial transaction processing Revenue apportionment Settlement processing Operator claims management