ERG Selected for Stockholm Transit Fare Collection Project
01 April, 2003
category: Contactless, Transit
ERG Group today signed a contract with Stockholm’s public transport authority, AB Storstockholms Lokaltrafik (SL), to implement a smart card based automated transit fare collection system throughout the city and county of Stockholm. The project, known as Resekortet (the Travel Card Project), will generate revenues in excess of A$49 million (SEK 250 million) plus maintenance to ERG over the term of the system implementation.
The contract involves the upgrade of the current magnetic ticketing system to ERG’s faster, more efficient smart card platform. The contract provides for the integration using smart cards across SL’s entire public transport network, comprising 150 rail and metro stations and more than 1,800 buses. ERG will install its central computer processing system to manage the smart card database, financial reconciliation and management reporting. The network currently handles over 2.4 million passenger trips a normal weekday and generates approximately A$690 million (SEK 3.5 billion) in ticketing revenue annually.
The project calls for the issue of 1 million smart cards within the next 2½ years. Work is expected to commence on the project by early April 2003, with revenues flowing from 1 April 2003. The new system is expected to be fully operational by the fourth quarter of 2005.
ERG’s Executive Chairman of European Operations, Mr Franky Carbonez, said: “Our systems are already delivering efficiencies to the transport operators and easier journeys for commuters in Sweden’s second largest city, Gothenburg, which ERG is currently upgrading to smart card. We now look forward to supplying the citizens of Sweden’s capital city with our state-of-the-art technology.
“Stockholm joins a growing list of cities around the world that have selected ERG smart card technology and it further strengthens ERG’s presence in Sweden and the rest of Scandinavia.”
Implementing ERG’s new system is a major step in SL’s endeavours to give customers a higher quality of travel by providing them with a system that is quick, convenient and easily accessible, especially important in the heavily utilised Underground system. The ERG system will also be able to offer customers more purchasing opportunities with respect to both the place of purchase and, in the future, the type of tickets. The ERG system will also make it possible to introduce tickets and prices that can encourage new customers to travel by SL.
It is also envisaged that ERG’s system will give SL greater insight into customer travel patterns and provide greater flexibility in the introduction of new fares and ticket types. SL placed a priority on a system that minimises the risks of ticket forgery.
“I am delighted that this project is now under way and that the citizens of Stockholm city and county will be provided with a state-of-the-art ticket system throughout all our various modes of transport,” said Mr Gunnar Schön, Managing Director of SL. “Furthermore, the new system will also be an important cornerstone in establishing the Swedish transport smart card specification (the RKF specification) throughout all of Sweden’s Public Transport Authorities. An equally important cornerstone will be the possibility to establish a seamless travel card system in the Mälardalen Region, the single biggest public transport network in Sweden covering 75% of all public transport in our country.”
