US$700 million fare collection P3 in Massachusetts reaches financial close
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Cubic Corporation has announced its business division Cubic Transportation Systems (CTS) and John Laing have reached commercial and financial close with the Massachusetts Bay Transportation Authority (MBTA) regarding a public-private partnership (P3) which involves the implementation and operation of a new fare payment system.
Last November, the MTBA selected the Cubic-John Laing consortium to design, build, operate and maintain a next-generation fare payment system, including account-based ticketing using mobile and contactless bankcard options for the region's multi-modal transit system.
The financial details of the P3 include a base contract award of US$699.19 million for implementation with ten years of operations and maintenance in addition to two five-year extension options.
The new system will allow customers to create personalized transit accounts to see ride history, check balances, add value as well as report lost or stolen cards to protect their funds. Mobile phones can also be used like ticket vending machines to check account balances and recharge fare accounts anywhere. As a result, customers will experience greater convenience and shorter lines, allowing them to move faster through the transit system.
MBTA's transit system extends across the Greater Boston Area of Massachusetts. It includes the sixth largest bus system in the US by ridership, comprising over 150 routes; a subway system comprising three heavy rail rapid transit lines and two light rail lines; a commuter rail network of twelve main lines and several ferry routes. The new fare payment system will be rolled out across the entire network.
MBTA customers will begin to experience the first elements of the new system late in 2019. During a gradual transition period, the existing fare collection system (CharlieCard) will continue to be accepted alongside the new payment options to allow customers time to make the switch. Full implementation will occur by mid-2020, followed by a retirement of the existing system in 2021.
This is the first fare collection P3 project in the USA. It is also MBTA's first public-private partnership.
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