solutions for public transport - itssa.org filesolutions for public transport presented to...
TRANSCRIPT
Electronic Fare Collection Solutions for Public Transport
presented to
eTransport Conference ITSSA
by Dr. Roland Magiera on March 25th, 2009
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
Our vision
Giesecke & Devrient is the one partner around the globe people trust to safeguard the value of their assets.
Cards for payment and telecommunications
Government solutions
Security solutions
Banknote and security paper
Banknote processing
1964 1852 1977 2007
Banknote and security printing
Giesecke & Devrient ― From printing paper securities to providing hightech solutions
2007
14
86
41 59
Revenue split in % of total revenue
Sales Revenue Employees
EMEA 62% 61%
Asia Pacific 20% 20%
1996
Rest of world
Germany
Americas 18% 19%
Belgium • Germany • Finland • France • Greece • Italy • Russia • Slovak Republic • Spain • Czech Republic • Turkey United Kingdom and Ireland
USA • Canada • Mexico
Argentina • Brazil
Egypt • Bahrain United Arab Emirates
Nigeria • South Africa
Australia
China • India • Japan • Korea Malaysia • Singapore • Thailand
Group presence around the world – G&D is a global player
Mill. € Rest of world Germany
274
402
321
403
225
461
287
579
267
753
335
794
224
868
141
906
170
987
226
1,009
225
1,072
224
1,327
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
676 724 686
1,020 866
1,129 1,092 1,047
1,157 1,235
1,297
1,551
Group Revenue – approx. 90 % of the group revenue was generated outside of Germany
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
Growing need for health services
Future global trends
Increased demand for financial services
Increasing consumption of agricultural products
Necessity of using renewable sources of energy
Increasing investments in infrastructure
Source: World Bank, OECD
Global trends determine the economic future
Growing need for health services
Future global trends
Increased demand for financial services
Increasing consumption of agricultural products
Necessity of using renewable sources of energy
Increasing investments in infrastructure
Energy, water supply, road construction, freight shipping, efficient transport supply
Source: World Bank, OECD
The expansion and improvement of the transportation supplies is a component of infrastructure projects
High Oil/Energy costs
Environmental aspect
Rising of importance of the emerging countries
Public mass transit generates the lowest carbon footprint compared to other means of travel
High oil price detracts from individual travel by car and encourages people to use public mass transit
Huge investments in the infrastructure reinforce the growth of emerging countries
Increasing population + urbanization Especially, but not only, in emerging countries there is a trend towards migration into cities*
Source: World Bank, United Nations
* Urban population in emerging countries will increase by about 1million people per week in the next 25 years
Additional influencing factors in the increase in demand for public mass transit
0 20 40 60 80 100
Japan
Germany
USA
China
Russia
Index
Energy consumption per capita in comparison (index)
Reasons: A lack of domestic energy resources have forced Japan to develop energy saving technologies for decades. Especially remarkable here is the development of an energyefficient infrastructure – as in the public mass transit.
Source: World Bank, Asian Development Bank (ADB), Nomura Group Japan, Demand for Energy decreased in Q1 2009 for 16%
Japan is one of the most energy efficient economies in the world. An efficient infrastructure is a key to success
Europe
increase average personal mobility from 17km/day (1970) to 35 km/day (1998) to 49 (2005)*
chronic congestion for transEuropean transport because 7500 km – 10% of the road network is affected daily by traffic jam*
Situation today in Europe
Source: European Commission (2007), white paper – European transport policy for 2010
“Insufficient access to public transport is a cause of poverty. Inadequate transport provision restricts access to social, political and cultural activities for people with disabilities, the elderly and many other groups, therefore reinforcing marginalization.”
Transport is a key factor in modern economies and society
Source: Worldbank, EU Commission UITP,
Mission
“Provision of a highquality, accessible and affordable public transport system with the aims of:
a) Reducing poverty b) Increasing living standards c) Optimizing journey times d) Improving reliability, convenience and service for end customers”
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
Reasons for the successful transit stories in the world
Communication
Secure
Convenient
Fast
Chip
Plastic card
Contactless
System
Customer
Requirements
Internal (costbased) External (turnover/imagebased)
The introduction of contactless technology and switching over the system increased the competitiveness of public mass transit.
This concerns improving efficiency and costs, and not capital expenditures
ü Avoid cash handling ü Efficient trip and route planning ü Avoid investments in machines and the maintenance costs
ü Lower the rate of fraud
ü Higher customer volume/ Development of new customer groups (higher turnover)
ü Enable additional applications ü Ensure mobility in large cities ü Emphasize environmental issues
Efficient transport systems requires the usage of eticketing. The advantages are obvious
The operating company has an increased number of passengers after implementation of the eticket in 2006
Reasons: a) reduced fraud
b) attractive and customeroriented price structure
Moscow
Source: Smart Technologies Group Moscow
Benefits for the operator using eticketing – Moscow example
London Ø passenger turnover during “rush hour”
Persons/minute
ü Within 3 years, the market penetration of the Oyster Card increased from 10% to 80%
ü The operating company TfL (Transport for London) was able to successively adapt its existing infrastructure to the behavior of the passengers
ü Quote: “Public Transport agencies should focus on moving people rather than moving money”
Source: Transport for London (TfL)
Benefits for the operator using eticketing London example
Investments in infrastructure will increase in the next
years globally
The EFC Systems* will benefit from this
development
Consequenc e
The transport agencies and authorities should improve
services and convenience for the customers
But…
“Perpetual machine” More service –
more customers – more revenue – more profit –
less subsidies from the government
Summary Part I
*Electronic Fare Collection
Result
Summary Part I Examples
Melbourne Melbourne has increased the customer base of 25% through offerings of additional services
Moscow The turnover increased in one year up to 100% after launching the EFC system in 2006
London The Oyster Card system resulted in approx. >100 mio. €.
reduction of costs (annual operating costs for the operator plus through interest) p.a.
Source: UITP Brussels, Smart Technologies Group Moscow, Transport for London (TfL),
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
The Development of payment methods in public mass transit
Past Present
Cont.less Cards
Mag. stripe Cards
Coins Paper tickets
EPaper tickets
Information management
Customer convenience
Cost reduction
Additional services
The fastest penetration of innovations in comparison*
1910
~ 50 years
1950 1930 1991 2003
Source: G&D, * 50% penetration globally
~ 60 years
~ 40 years
~ 12 years
The Development of payment methods in public mass transit
Past Present Future
Cont.less Cards
Mag. stripe Cards
Coins Paper tickets
EPaper tickets
Information management
Customer convenience
Cost reduction
Additional services
NFC Multiapp. C´less card
Future
NFC
Multi Application
Card
Near Field Communication
Combination of Transit and Payment Applications on one
card
Two main trends are obvious today and will be important for the industry
Use to collect fare and permit access in one financial transaction
Status Public Transport
More than 200 EFC* Systems installed
Contactless cards
Extremly fast
More than 1 bn. cards in circulation
Reloading necessary (e.g. POS, Terminal…)
Advantages C´less Payment Card
Offer consumers another choice to traditional fare collection schemes
… but
Source: G&D, NXP, MasterCard * EFC = Electronic Fare Collection
A MultiApplication card permits the transit agency to act as a merchant with acceptance terminals at entrances to transportation
Convenience for their customers – one card for transit and payment
The mobile handset has currently additional advantages for the customers – a higher service is therefore obvious
Where is my train?
Select station: Go v
… road map information for the Public Transport
„The mobile will be in the future the eticket plus … „The mobile will be in the future the eticket plus …
… time table plus … … time table plus …
Overview G&D
Global Trends and Transit Area
Status Efficient Transit Systems
Summary
Trends and Vision
Summary
The infrastructure investments will increase in the future. The Transit industry will benefit from this development
Transport is a key factor in modern economies and society. Implementation of efficient systems is a step towards the future
The key for an efficient transport system is a secure smartcard. The introduction of the smartcard ensure higher revenue and profit and helps to decline the costs
New form factors for the transit cards are possible. The mobile handset could be very interesting for the future
In addition, new business models will be introduced and can increase additional revenue for the operator and services for the endcustomer
Electronic Fare Collection Solutions for Public Transport
presented to
eTransport Conference ITSSA
by Dr. Roland Magiera on March 25th, 2009
Today, G&D can already offer all the required products and services for multiapplication cards and NFC
Request Solution
Product
Applications
Personalization support
Project management
Partners
Availability
√
√
√
√
√
Embedded SE*, SIMbased SE and removable SE
G&D developed applets or licensed applets
OTA with Venyon
Experience in several NFC projects, e.g. Turkey, UK, USA, Germany, Korea
Visa, MasterCard, banks, mobile network operators, semiconductor vendors, …
* SE = Secure Element
tickets
Cash transactions
Public transport
bank or store payment cards
loyalty cards
Today, several cads, plastic card or paper, are
in the wallet
Today, several cads, plastic card or paper, are
in the wallet
NFC builds the perfect bridge between contactless transactions and contactless mobile transactions Uses wellestablished contactless infrastructure in public transport and payment applications Supports flexible and enhanced service offerings, e.g. realtime info for passengers
Tomorrow, Near Field Communication (NFC) could revolutionize the mobile
consumer experience
Tomorrow, Near Field Communication (NFC) could revolutionize the mobile
consumer experience
Dematerialization of all this in the phone is foreseeable
Source: G&D, NXP
A further development in the transit field can already be seen today. In the future, the mobile phone will play a large role
NFC Some of G&D’s Success Stories
Global NFC trial status NFC Payment NFC Transportation
O 2 wallet
Touch&Travel
Ulisse
RMV
Payez Mobile
Mobile Cüzdan
Japan
Norway
Greater Toronto Area (Brampton, Vaughan, Mississauga, Burlington, Oshawa,…)
Atlanta, Boston, Chicago, Houston, LA, Minneapolis, New York, Washington
Guangxi, Guilin, Nanjing, Peking, Tianjin,
State of Sonora (population of 2,8 mio)
Córdoba, Mendoza, Rosario, Salta,
Albacete, Gijon, Granada, Malaga, Sevilla,
Melbourne (Victoria)
London
Santiago de Chile
Caracas
Global references for transit projects
Leipzig, Verkehrsverbund Rhein Ruhr/Rhein Sieg