The Danish Travel Card program

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The Danish Travel Card program

• Hans Holmgren
• Project Director

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1. The PTAs and the Operators need a new system

• The existing ticketing systems are outdated -
  renewal is needed
• The existing systems do not collect relevant
  information about customers and traffic
• Harmonisation of ticket systems, travel
  regulations and fare systems wanted.
• The Travel card Program was initiated in 1996
• Expanded from a Greater Copenhagen program to a
  nation-wide program in 1999
• Increased focus on new business opportunities
• Greater Copenhagen Authority
• DSB, State rail
• Copenhagen Metro
• North Jutland
• Other regional PTAs

Background
Scope
Supporting organisations
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• Greater Copenhagen
• Bus
• Local train
• DSB train
• Metro
• 11 regional PTAs
• 10 city PTAs
• Rail
• State rail, DSB
• Arriva
• Ferries

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Øresundsregion
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Existing systems

• Systems of today in operation more than 20 years
• Based on paper multi-journey cards - and periode
  passes - for each PTA.
• Renewal needed!

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(No Transcript)
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Overall Target

• More passengers - through easier travel
• One card - for all PTAs, usable for all journeys
  - always
• No passenger knowledge of fare systems or PTA
  boundaries needed

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From paper to plastic, for all riders, except
single journey cash ticket users

• Technology
• Contactless
• Standard ISO 14443 required

Stored value
Travelcard
300 kr.
Contactless smartcard
Anonymous Personalized Strictly personal
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New Concept

• Check in / check out on all transport modes
• Open system for rail - No gates
• Stored value cards only
• Fare calculated according to bee-line principle
• Discount and bonus system

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Payment principel

• Pre-paid or Post-paid
• Maximum fares is drawn from card when starting
  the journey - check-in
• Exact fare is calculated on the spot, when
  terminating journey, and the surplus is put back
  on the card - check out
• Best price - based on no. of journeys/ amount

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Bee-line
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Distribution

• Auto-load - with automatic debit
• Staffed sale
• Ticket vending Machines
• Internet
• Mobilphones

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The travel card is a visionary ticketing concept,
which supports the strategy of the PTAs and the
Operators
The vision are ambitious and market oriented
The Travel card strengthens the PTAs and
Operators market position
The Travel Card is valid for all travels on
train, bus, Metro and other Public Transport
modes always and everywhere in Denmark. The
Travel Card is easy to use, easy to obtain and
will be the most widely spread card in Denmark.

• More satisfied customers
• Increased ridership
• Increased revenue
• Reduced costs
• Reduced fraud
• Improved knowledge of customers and travels

But different for each operator
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Cost/benefit analysis

• Even most pessimistic views show a positive
  business case with payback time of 7-8 years.
• Zero-alternative is difficult to estimate -
  equipment is no longer in normal production
• 15 years system life, incl. reinvestments to keep
  the system up to date
• Al estimates are carefully considered using best,
  worst and most likely estimations.

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New central company is established

• 100 owned by the PTAs
• Manages the project
• Operates central system for all participating
  companies
• Issues the cards
• Collects and manages all data
• Distributes revenue

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Organisation Rejsekort A/S

• Contract holder
• Contract administration
• Manage the complete program
• Travelcard issuer, but all customer relations and
  sale are done by the Public Transport companies
• New user Transport companies
• Co-ordinates further developments
• Receives PTAs payments for their use of the
  system
• Pays the system provider for system and operation
• Receives royalty from system provider for
  additional bussinesareas

Share holders
Danish State Rail DSB
North Jutland
Copenhagen Autority HUR
Metro and others
Rejsekort A/S
State authorities Bus/Train cooperation
System provider
DSB
Regional/Local PTAs
HUR
Metro
Other
North Jutland
Users
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System Provider - tasks
Share holders
Danish State Rail DSB
North Jutland

• Design and build
• Operation and maintenance
• Develop new business
• Evt. provide the financing
• Contract duration Buildfase 5 years operation.
  
• Develops new businessareas without compromising
  the Public Transport usage.
• Receives payments for system and operation
• Pays royalty for new business

Copenhagen Autority HUR
Metro and others
Rejsekort A/S
System provider
State authorities Bus/Train cooperation
DSB
Regional/Local PTAs
HUR
Metro
North Jutland
Other
Users
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Time schedule

2003
2004
2006
2007-2008
2005
Timeline
Definition and decision
Tender
Approval
Development
Sequential rollout
Phases

• Tender Documents
• Decision process
• Establish the organisational setup

• Pre-qualification
• Tender
• Negotiation

• Contract signoff

• Systemdesign
• Procesdesign
• Organisation
• Tests
• Phase 0 Pilot

• Phase 1 Implementation in Greater Copenhagen
• Phase 2 After 10 months rollout on Sealand (DSB
  and Counties)
• Phase 3 rollout to all remaining DSB mainlines
  plus Counties.

Activity
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1
2
3
4
5
Greater Copenhagen region
Geographical rollout
DSB - from east to west
Pilotproject
Counties
Year
2005-2008
2008 - ?
2005 8 mths
1
2a
2
N
Functional rollout
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Rollout Low risc approach

• Low risc - introduktion phase
• Reduction of the technical risc. State of art and
  well proven technology.
• Reduction of risc for changes in revenue.
  Controlled incremental rollout. New fare
  structure introduced later.

• 1.st year
• Introduce new technology, stored value concept
  and checkin/out
• Only minor changes in Fare structure.
• The target group is the multijourney card users
• Data is collected and analysed

• 2.nd year
• Multijourney card is phased out
• New fare structure is introduced
• New discount and bonussystems are introduced to
  attract periode pass users
• The periode pass is phased out.

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Travel Card rollout
Multi journey
Travel card 35
Travel card 90
Periode passes
Periode passes
Single journey
Single journey
Single journey
Before Travel card after 1 year
after 2 years
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Payments - investments
PTAs Operators
Rejsekort A/S
Serviceprovider
Equipment and installation
Own costs - Education - Other systems
Central system, development costs and other
joint costs
Capital provided form
Shareholders
or
Other sources
Central HW
or
Supplier
Each company finances their own decentral
systems Rejsekort A/S finances central system,
all development and all other joint costs,
by capital provided by shareholders, other
sources or the supplier
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Rejsekort A/S is paid by the fare authorities
for operational and capital costs
PTAs Operators
Rejsekort A/S
Serviceprovider
Capital costs 0,11 kr pr journey
Operation/Maintenance of centralsystem
Operational costs 0,5 of revenue
Operation and Maintenance of own equipment
Payback of loans
Royalties
Objective to distribute the capital and
operational costs
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Payment model for Distribution
PTAs
Rejsekort A/S
DISTRIBUTION fee 2,8 of revenue
Operators
175 mio/år
Pays their share of the distribution fee
DISTRIBUTION-payment - 1, 5 Subscriptions/WEB -
2 staffed sale, no service - 5 staffed sale,
full service - Cardisssue 5-60 kr/card
Distributors
175 mio/år
Objective To distribute the distribution costs
amoung the PTAs