Three Years on, Results are Mixed for California’s Bold Move into Modularity for Open-Loop Procurements
After three years of operations, the California Integrated Travel Project, or Cal-ITP, the state’s program that in part seeks to help mostly small transit agencies in California and elsewhere in the U.S. to purchase open-loop technology–has shown mixed results.
The “Mobility Marketplace,” perhaps Cal-ITP’s flagship offering, was considered California’s bold move into modularity when it opened for business in early 2022.
Scheidt & Bachmann Believed to have Lost U.S. Contract, though Few Details Leak about Likely Termination of Deal
Vendor Scheidt & Bachmann is believed to have lost a major contract it was awarded in 2021 to overhaul the fare system of Baltimore and the surrounding metropolitan area by the U.S. state of Maryland, Mobility Payments has learned.
Multiple sources told Mobility Payments the state terminated the contract, which was expected to be worth $63.6 million over 14 years. Neither the Baltimore-based Maryland Transit Administration, which is part of the state Department of Transportation, nor Germany-based Scheidt & Bachmann’s U.S. subsidiary, confirmed the cancellation of the contract. They also did not respond to multiple requests for comment.
Victoria Transport Minister Announces Plans for Launch of Open-Loop Payments Next Year, but Government is Light on Specifics
he Victoria state government in Australia has announced plans to launch open-loop payments by early next year, though has released few specifics, which has raised some skepticism among observers.
Gabrielle Williams, Victoria state minister for public and active transport, reportedly said Friday that thousands of new card readers (and validators) will be installed on train networks in “coming months” that would enable riders to accept credit and debit cards and open-loop credentials in digital wallets.
In-Depth: Cubic Lays Out Arguments for Suing LA Metro in Case of ‘Secret’ Pricing Data
Cubic Transportation Systems contends in recent court filings that it would “surely lose future contracts” to competitors if Los Angeles Metro follows through with its purported plans to release what Cubic argues is a trove of confidential cost and pricing information.
Cubic made the arguments in a lawsuit filed Jan. 28 in California Superior Court against LA Metro, seeking to block the agency from disclosing certain information related to its $66.4 million sole-source contract approved last year by the agency.
Ratings Agency Warns of ‘Onerous Debt Burden’ for Cubic, but Says Vendor’s Transit Clients Shouldn’t Worry
S&P Global, a major ratings agency, has downgraded Cubic Corp.’s credit rating to CCC+ from an already low B-, warning of an "onerous debt burden" for the company that includes Cubic Transportation Systems.
The primary analyst for the ratings change told Mobility Payments, however, that the increased risk that the downgrade signifies is longer-term in nature and concerns the company’s debt holders, not transit agency clients.
Conduent Says Its Melbourne Fare Project is ‘Progressing Well’; That’s Not Exactly the Consensus Opinion in Victoria
The planned fare system in Melbourne and Victoria state in Australia is believed to be at least two years behind schedule, a key subcontractor has left the job and Victoria state politicians are sweating their chances in the next election if the project becomes a campaign issue, according to sources.
But you wouldn’t know there were any current problems with the project after listening yesterday to top executives with Conduent, the prime contractor on the 15-year, AU$1.7 billion (US$1.1 billion) deal. The executives spoke during a conference call with analysts after release of the company’s fourth quarter and year-end results.
Abu Dhabi Procuring Account-Based Ticketing System; Process May Have Reached New Stage
One or more short-listed vendors for Abu Dhabi’s planned fare system are believed to have made their pitches to the Integrated Transport Centre in recent days and weeks, Mobility Payments has learned. The transport agency, which is releasing few details about the procurement, is not expected to award a contract for four or five months.
Abu Dhabi, the capital of the United Arab Emirates, is following the larger Dubai with a new fare system
Ridango Wins Fare Contract in Sweden’s No. 2 City after Appeals Exhausted by Mikroelektronika
Swedish transport authority Västtrafik, which serves the country’s second-largest city, Gothenburg and the surrounding region, has selected a new vendor, Ridango, to roll out its planned fare system, Mobility Payments has learned.
The choice of the Estonia-based vendor follows a year-long delay in the procurement while appeals worked their way through the administrative courts in Sweden.
Cubic Sues to Block Release of Records by LA Metro Related to Sole-Source Contract
Cubic Transportation Systems has gone to court to block Los Angeles Metro from releasing documents that are part of a $66.4 million no-bid contract upgrade Cubic won last year. The pending release stemmed mainly from a California Public Records Act request submitted by Mobility Payments.
In its lawsuit, which Cubic filed in California Superior Court Tuesday, the vendor argues that its pricing and other information it considers confidential and proprietary should be exempt from disclosure under the public-records law, largely because they are trade secrets. (Download the lawsuit petition below.)
Boston Transit Agency MBTA Sees Fast Start to Open-Loop Payments Service
The Massachusetts Bay Transportation Authority in Boston has seen quick adoption so far of open-loop payments, with the service accounting for nearly 20% of all trips or “taps,” not counting cash, after only five months. (See table below.)
Figures provided by MBTA show riders tapped nearly 2 million times with credit and debit cards or open-loop credentials in digital wallets last month on subway gates, on board buses and on two trolley lines.