Ticketing and Concessionary Travel on Public Transport - United ...

Ticketing and Concessionary Travel on Public Transport - United ... Ticketing and Concessionary Travel on Public Transport - United ...

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Ev 68 Transport Committee: Evidence additional funds. It is therefore sensible for Network Rail to look beyond the rail network ong>andong> consider supporting all modes of surface ong>andong> sub-surface public transport. With DfT policy now being to spread ITSO technology onto heavy rail, ong>andong> the financial needs of ITSO Ltd, it makes sense to fold one Membership Company (ITSO Ltd) into the other one (Network Rail). 18. The present commercial arrangements (with the competition problem mentioned above, ong>andong> the short termism still built into rail franchising) militate against significant investment by the service providers, ong>andong> of course central government doesn’t want to fund large capital programmes. But there may be a light at the end of the tunnel as far as ticketing systems are concerned, although the tunnel appears to be currently blocked by DfT inaction—hence the statement made by PSSG this week. 19. It has recently become clear that there are two strong>andong>s being discussed ong>andong> perhaps developed within DfT: — in a similar manner to the Scottish project 6 , roll out electronic ticketing over all 50,000 service buses in the UK (the public sector to use the functionality to manage concessionary travel); ong>andong> — roll out electronic ticketing right across heavy rail (perhaps 25,000 items of ticketing equipment). 20. But there is no co-ordinated action, ong>andong>, at the March 19th Supplier Briefing session for the DfT procurement of services for ong>Concessionaryong> Bus ong>Travelong>, there was a clear statement that there is no DfT policy to roll out ITSO technology across all of surface ong>andong> sub-surface public transport in Englong>andong>. 21. The probable timescale is five years, ie roll out to be completed by 2012. If that is coupled with eVective on-line ticket purchasing across the internet 7 , it should be possible to leverage a large proportion of the capital investment out of the private sector—that is because with multi-modal deployment there will be a long term future for the methods. I believe that Eric Sampson was right when he said to me that the big service operators have to get to the stage where they all decide to move together ong>andong> authorise the investment in interoperable electronic ticketing. Currently I believe that none of the major operating groups has a positive business plan for the rollout on their own: they see costs but not enough financial benefit 8 , but they will invest if they see a national policy announced ong>andong> taken forward. DfT has to show us a coordinated five year project if integrated ticketing is to be delivered, ong>andong> DfT has to manage the programme far better than hitherto. 22. It should be noted that the ticketing environment resulting from a nationwide rollout will not just be a rollout of smart cards. Other physical formats of smart media will be used, as will (with care) print at home (using bar codes for security) ong>andong> “show ong>andong> go” ticket to mobile phone. New secure short range technology is coming along (Near Field Communication is currently the best suggestion, embedded in mobile phones), ong>andong> could fit onto the front end of ITSO style schemes. The ITSO Method is capable of adaptation to these diVerent ticketing media, although currently a very rigid DfT mong>andong>ate for “all cards to be usable everywhere” 9 is inhibiting, ong>andong> there is no credible way for extensions to be managed. The Use of Smartcard Technologies 3. Is the industry taking up modern smartcard technologies adequately ong>andong> appropriately? 23. No, but why should it? “Industry” in the shape of the set of public transport operators has an overwhelming duty to its shareholders, ong>andong> until recently there have been indications that they see introduction of the technology as having a massively negative business case for them unless about £250M is pumped in by government. Also, in the absence of measures to promote growth in public transport, the necessary parallel introduction of interoperable ticketing has a negative business case to a service operator, because it increases competition. But now I believe that they see the benefits of improved service management that the ITSO Environment delivers, plus a determination within government to improve public transport services. 24. The answer to this one is already presaged in the answer to Q2: we need: — a co-ordinated 5 year strategy ong>andong> programme from DfT, designed to leverage most of the investment out of the private sector; ong>andong> — a change in the way that the technology is managed. 6 But it must be managed much better than the Scottish project. 7 Not using the clumsy method apparently currently being put forward—see later in this submission. 8 About three years ago someone from one of the big transport service groups showed me his figures: they were looking for a grant as subsidy that, divided by the number of buses in their fleet, came out at £3,000 per bus—however, since then many of them have already invested in new ticket machines, so the per bus figure will now be lower. Get them to move together, justifying the capitalisation of the funding, ong>andong> they will do it themselves. 9 Which has already been deviated from.

Transport Committee: Evidence Ev 69 25. But, even if the technology stays as it is now, it will still need over £100 million of investment from the public sector 10 , plus on top of that will be perhaps £50 million to re-issue all 10 million concession passes, although some of that pass issuing funding will already be budgeted for over the five year period as part of the normal cycles of replacement ong>andong> accretion of new entrants. 26. Scotlong>andong> may soon get its second wind, after a stuttering start to its ITSO-compliant smart media bus-based ticketing scheme. Wales has issued ITTs for an all-Wales scheme similar to that in Scotlong>andong>. 4. Does the ITSO system cater for the needs of all passengers ong>andong> travel providers? 27. No, but it is capable of extension (needs capital investment for development, ong>andong> a security management organisation that also needs public funding). 28. Some extensions (to diVerent media) have already been mentioned above, but the particular missing link is that there is no provision in the ITSO Method for on-line purchase of tickets for direct download into the ticket media. This extension is particularly important for heavy rail. It requires a significant re-think of security methods, ong>andong>, if a competitive market in systems ong>andong> equipment is to be maintained, a rigorous application of the international systems level stong>andong>ard ISO EN 24014-1 11 , which the UK has been very active in developing out of the basic principles of the ITSO Method. Currently ATOC/RSP, after a request from DfT Rail, has proposed a centralised architecture rather than the distributed one described in the stong>andong>ard ong>andong> implemented in the ITSO Method—that proposal must be rejected. 29. There is also the problem that reading the ticket or tickets in the smart media cannot at present be carried out with a low cost reader, thus requiring tickets for a complex multi-leg multi-modal journey to be sold with a printed itinerary. 30. At the management level, the ITSO Licensees (scheme owners/operators) have recently agreed to form a co-operative of the schemes. 12 However, there is no provision for overall security management across the network of schemes 13 , ong>andong> some key supporting ITSO specification material has not been delivered. 31. DfT is currently looking at BIBO technology (Be-In Be-Out), ie automatic detection of the passenger’s token as the passenger enters a vehicle, automatic charging, ong>andong> automatic detection of exit. Revenue protection is exceedingly diYcult with this method. 5. What can be learned from the experiences of areas such as London ong>andong> Scotlong>andong> where smartcard technology is already in place? 32. London’s scheme is not scalable (or interoperable with other schemes using the same Oyster technology) unless it is updated by adding ITSO technology. Considerable funding has already been provided for this upgrade, but may not be enough. London’s scheme is expensive to run ong>andong> more expensive to change; it does not translate well to more rococo areas (eg rural areas). 33. Scotlong>andong> got the contractual organisation massively wrong, ong>andong> their attempt to marry up transport ticketing with use of smart cards for citizen services was bungled. A recent presentation to the DfTsupported Transport Card Forum, by Anne Gibson of Transport Scotlong>andong>, illustrates the diYculties that they have been ong>andong> are having. An oYcer from the NoWcard scheme (Cumbria, Lancashire, Blackpool ong>andong> Blackburn) indicated at the time that they have made the same mistakes. 34. Planning for system integration in Scotlong>andong> was neglected, with delays to rollout of the acceptance network now apparent ong>andong> serious concerns by the commercial software contractor. The same delays can be seen in the NoWcard project (Lancs ong>andong> Cumbria—the same consultants as were used in Scotlong>andong> were used for NoWcard). DfT has recently published a report on the early stages of ITSO ong>andong> Oyster integration 14 , again showing project planning failures, causing significant delays—the same consultants were involved (ong>andong> many of us knew about the contractual diYculties that would be encountered). By contrast, Merseytravel’s Stage 1, to issue ITSO-compliant concession passes ong>andong> outsource much of the operation of the scheme, had project planning ong>andong> system integration managed in-house by an expert Information Systems team, ong>andong> has quietly ong>andong> successfully started issuing smart media passes. 15 35. Revenue protection is often very diYcult in an electronic ticketing system, but most publicly owned public transport schemes in dense urban areas (ie in other countries, ong>andong> perhaps also TfL) don’t concern themselves too much about people who travel without paying: public transport is a public service. 10 A lower cost transitional method where only passes have to be accepted has been partly developed by the author of this submission in work done for Merseytravel, but it has yet to be deployed; DfT have been made aware of this method but have not responded. 11 Integrated Fare Management Architecture, currently awaiting publication after a successful final ballot. 12 That follows a proposal made over three years ago by Dr David Everett ong>andong> the author of this submission, as part of a joint piece of work for DfT ong>andong> an agency acting for ODPM; that proposal was signed oV by DfT “for discussionong>andong> sent to the embryo Association of ITSO Licensed (ong>andong> would-be licensed) Operators. 13 Here the new (draft) Information Assurance framework from Cabinet OYce CSIA applies. 14 http://www.dft.gov.uk/pgr/scienceresearch/otherresearch/itsooysterinteroperability 15 The author of this submission was technical adviser on the ITSO level aspects of this project; Paul Oakley, Information Systems Manager at Merseytravel, should be able to provide information about the management methods used.

<strong>Transport</strong> Committee: Evidence Ev 69<br />

25. But, even if the technology stays as it is now, it will still need over £100 milli<strong>on</strong> of investment from<br />

the public sector 10 , plus <strong>on</strong> top of that will be perhaps £50 milli<strong>on</strong> to re-issue all 10 milli<strong>on</strong> c<strong>on</strong>cessi<strong>on</strong> passes,<br />

although some of that pass issuing funding will already be budgeted for over the five year period as part of<br />

the normal cycles of replacement <str<strong>on</strong>g>and</str<strong>on</strong>g> accreti<strong>on</strong> of new entrants.<br />

26. Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> may so<strong>on</strong> get its sec<strong>on</strong>d wind, after a stuttering start to its ITSO-compliant smart media<br />

bus-based ticketing scheme. Wales has issued ITTs for an all-Wales scheme similar to that in Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g>.<br />

4. Does the ITSO system cater for the needs of all passengers <str<strong>on</strong>g>and</str<strong>on</strong>g> travel providers?<br />

27. No, but it is capable of extensi<strong>on</strong> (needs capital investment for development, <str<strong>on</strong>g>and</str<strong>on</strong>g> a security<br />

management organisati<strong>on</strong> that also needs public funding).<br />

28. Some extensi<strong>on</strong>s (to diVerent media) have already been menti<strong>on</strong>ed above, but the particular missing<br />

link is that there is no provisi<strong>on</strong> in the ITSO Method for <strong>on</strong>-line purchase of tickets for direct download into<br />

the ticket media. This extensi<strong>on</strong> is particularly important for heavy rail. It requires a significant re-think of<br />

security methods, <str<strong>on</strong>g>and</str<strong>on</strong>g>, if a competitive market in systems <str<strong>on</strong>g>and</str<strong>on</strong>g> equipment is to be maintained, a rigorous<br />

applicati<strong>on</strong> of the internati<strong>on</strong>al systems level st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard ISO EN 24014-1 11 , which the UK has been very active<br />

in developing out of the basic principles of the ITSO Method. Currently ATOC/RSP, after a request from<br />

DfT Rail, has proposed a centralised architecture rather than the distributed <strong>on</strong>e described in the st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> implemented in the ITSO Method—that proposal must be rejected.<br />

29. There is also the problem that reading the ticket or tickets in the smart media cannot at present be<br />

carried out with a low cost reader, thus requiring tickets for a complex multi-leg multi-modal journey to be<br />

sold with a printed itinerary.<br />

30. At the management level, the ITSO Licensees (scheme owners/operators) have recently agreed to<br />

form a co-operative of the schemes. 12 However, there is no provisi<strong>on</strong> for overall security management across<br />

the network of schemes 13 , <str<strong>on</strong>g>and</str<strong>on</strong>g> some key supporting ITSO specificati<strong>on</strong> material has not been delivered.<br />

31. DfT is currently looking at BIBO technology (Be-In Be-Out), ie automatic detecti<strong>on</strong> of the<br />

passenger’s token as the passenger enters a vehicle, automatic charging, <str<strong>on</strong>g>and</str<strong>on</strong>g> automatic detecti<strong>on</strong> of exit.<br />

Revenue protecti<strong>on</strong> is exceedingly diYcult with this method.<br />

5. What can be learned from the experiences of areas such as L<strong>on</strong>d<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> where smartcard technology<br />

is already in place?<br />

32. L<strong>on</strong>d<strong>on</strong>’s scheme is not scalable (or interoperable with other schemes using the same Oyster<br />

technology) unless it is updated by adding ITSO technology. C<strong>on</strong>siderable funding has already been<br />

provided for this upgrade, but may not be enough. L<strong>on</strong>d<strong>on</strong>’s scheme is expensive to run <str<strong>on</strong>g>and</str<strong>on</strong>g> more expensive<br />

to change; it does not translate well to more rococo areas (eg rural areas).<br />

33. Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> got the c<strong>on</strong>tractual organisati<strong>on</strong> massively wr<strong>on</strong>g, <str<strong>on</strong>g>and</str<strong>on</strong>g> their attempt to marry up transport<br />

ticketing with use of smart cards for citizen services was bungled. A recent presentati<strong>on</strong> to the DfTsupported<br />

<strong>Transport</strong> Card Forum, by Anne Gibs<strong>on</strong> of <strong>Transport</strong> Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g>, illustrates the diYculties that<br />

they have been <str<strong>on</strong>g>and</str<strong>on</strong>g> are having. An oYcer from the NoWcard scheme (Cumbria, Lancashire, Blackpool <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

Blackburn) indicated at the time that they have made the same mistakes.<br />

34. Planning for system integrati<strong>on</strong> in Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> was neglected, with delays to rollout of the acceptance<br />

network now apparent <str<strong>on</strong>g>and</str<strong>on</strong>g> serious c<strong>on</strong>cerns by the commercial software c<strong>on</strong>tractor. The same delays can<br />

be seen in the NoWcard project (Lancs <str<strong>on</strong>g>and</str<strong>on</strong>g> Cumbria—the same c<strong>on</strong>sultants as were used in Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> were<br />

used for NoWcard). DfT has recently published a report <strong>on</strong> the early stages of ITSO <str<strong>on</strong>g>and</str<strong>on</strong>g> Oyster<br />

integrati<strong>on</strong> 14 , again showing project planning failures, causing significant delays—the same c<strong>on</strong>sultants<br />

were involved (<str<strong>on</strong>g>and</str<strong>on</strong>g> many of us knew about the c<strong>on</strong>tractual diYculties that would be encountered). By<br />

c<strong>on</strong>trast, Merseytravel’s Stage 1, to issue ITSO-compliant c<strong>on</strong>cessi<strong>on</strong> passes <str<strong>on</strong>g>and</str<strong>on</strong>g> outsource much of the<br />

operati<strong>on</strong> of the scheme, had project planning <str<strong>on</strong>g>and</str<strong>on</strong>g> system integrati<strong>on</strong> managed in-house by an expert<br />

Informati<strong>on</strong> Systems team, <str<strong>on</strong>g>and</str<strong>on</strong>g> has quietly <str<strong>on</strong>g>and</str<strong>on</strong>g> successfully started issuing smart media passes. 15<br />

35. Revenue protecti<strong>on</strong> is often very diYcult in an electr<strong>on</strong>ic ticketing system, but most publicly owned<br />

public transport schemes in dense urban areas (ie in other countries, <str<strong>on</strong>g>and</str<strong>on</strong>g> perhaps also TfL) d<strong>on</strong>’t c<strong>on</strong>cern<br />

themselves too much about people who travel without paying: public transport is a public service.<br />

10 A lower cost transiti<strong>on</strong>al method where <strong>on</strong>ly passes have to be accepted has been partly developed by the author of this<br />

submissi<strong>on</strong> in work d<strong>on</strong>e for Merseytravel, but it has yet to be deployed; DfT have been made aware of this method but have<br />

not resp<strong>on</strong>ded.<br />

11 Integrated Fare Management Architecture, currently awaiting publicati<strong>on</strong> after a successful final ballot.<br />

12 That follows a proposal made over three years ago by Dr David Everett <str<strong>on</strong>g>and</str<strong>on</strong>g> the author of this submissi<strong>on</strong>, as part of a joint<br />

piece of work for DfT <str<strong>on</strong>g>and</str<strong>on</strong>g> an agency acting for ODPM; that proposal was signed oV by DfT “for discussi<strong>on</strong>” <str<strong>on</strong>g>and</str<strong>on</strong>g> sent to the<br />

embryo Associati<strong>on</strong> of ITSO Licensed (<str<strong>on</strong>g>and</str<strong>on</strong>g> would-be licensed) Operators.<br />

13 Here the new (draft) Informati<strong>on</strong> Assurance framework from Cabinet OYce CSIA applies.<br />

14 http://www.dft.gov.uk/pgr/scienceresearch/otherresearch/itsooysterinteroperability<br />

15 The author of this submissi<strong>on</strong> was technical adviser <strong>on</strong> the ITSO level aspects of this project; Paul Oakley, Informati<strong>on</strong><br />

Systems Manager at Merseytravel, should be able to provide informati<strong>on</strong> about the management methods used.

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