Tip Sheet: Fare Project is Back in Abu Dhabi; Agency Adds Equipment to new Tender Request
Also: Swedish transport agencies disclose plans for procurements; RFP Finally Drops in Miami; three months on, Cubic still has integration work to do in Austin.
Vix Technology Agrees to Pay $2.1 Million to Settle Covid Relief Loan Fraud Case; CEO Says Penalty Won’t Affect ‘Operations or Financial Position’
Vix Technology Group recently agreed to pay $2.1 million to settle a fraud case alleging Vix made false claims on its application for a low-interest Covid relief loan. Vix CEO Aaron Ross insisted to Mobility Payments that the damages will have “no impact” on the company’s “current operations or financial position.”
The settlement stems from a lawsuit filed last June by a whistleblower, which stood to gain a share of the damages, alleging that Vix had violated the U.S. False Claims Act when it applied for its second government-backed Covid Paycheck Protection Program (PPP) loan in 2021.
Tip Sheet: Sydney’s Transport for NSW Says Procurement of Opal Next-Gen System Still on Track; Also, Why Kurt Brissett Likely Left the Agency
Also in this article: White-Label Technology Gets Slight Boost from Dutch Project; New Zealand Rollout Delayed Again; Agency Said to be Unhappy with Cubic’s Progress. Please write to contact@mobility-payments.com with tips.
Despite Nationwide Open-Loop Rollout, Netherlands Predicts Closed-Loop Card will Remain Most-Used Payments Method
Dutch transport operators and their national ticketing agency have disclosed updated details for rolling out a new white-label closed-loop card, while adding two months to the date when they plan to finally retire the country’s 20-year-old, Mifare-based closed-loop card, Mobility Payments has learned.
The group of nine transport operators and ticketing agency Translink Systems, which is overseeing the world’s first truly nationwide rollout of open-loop payments, is also projecting that closed-loop will remain the dominant fare payments method in the country.
Ridango Gets New Owner, New HQ and Says It’s Looking for New Acquisitions; Can It Shed Its Status as a Regional Player?
The chief of fare-system supplier Ridango says the vendor doesn’t plan “any shift in the company’s strategic direction” now that it has a new majority owner. But he added that the company will be “more active in mergers and acquisitions.”
Ridango founder and CEO Erki Lipre was responding to questions from Mobility Payments about UK-based private equity investor Bregal Milestone becoming the majority shareholder of Ridango, buying out
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.
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
In-Depth: Cubic Gets Must-Win Contract in Philadelphia, Beating Accenture on Price; Incumbent Conduent Sent Packing
Cubic Transportation Systems, as expected, won a major fare-system contract from the Southeastern Pennsylvania Transportation Authority in Philadelphia, with the SEPTA board approving a $211 million deal Thursday.
It was considered a must-win contract for Cubic, which has been seeking to turn around its fortunes after failing to win a major competitive contract for more than 18 months.