Cubic Selected for Chicago Open Standards Fare System Contract
November 17 2011 - 12:45PM
Marketwired
Cubic Transportation Systems, a business unit of San Diego-based
Cubic Corporation (NYSE: CUB), has been selected for contract award
by the Chicago Transit Authority (CTA) to integrate, deliver,
operate and maintain the agency's next-generation open payments
system that will accept bank cards and, ultimately, mobile phone
payments. The contract has an estimated value of $454 million,
making it the largest automated fare collection contract ever
placed in North America. Cubic will operate and maintain the entire
system, resulting in an overall 12-year partnership between Cubic
and the CTA.
To create the CTA Open Standards Fare System (OSFS), Cubic will
transition the agency from its current agency-issued fare media to
an open payment system where customers can use their existing
credit or debit cards as a ticket, bringing the retail experience
to transit ticketing. Like most transit agencies today, the CTA
operates a "closed loop" fare collection system, selling its own
magnetic tickets and smart cards that can be used only on CTA and
Pace.
Riders without credit or debit cards will be issued reloadable
prepaid debit cards that can be used for everyday purchases and CTA
rides.
"The CTA is taking a revolutionary approach that will transform
travel for the more than 1.6 million rides citizens take each day
on the CTA to get to their jobs, schools and other destinations,"
said Richard Wunderle, senior vice president and general manager of
Cubic Transportation Systems North America.
Cubic will be the systems integrator and services provider,
leading a team that will also include First Data Corporation,
Carolyn Grisko & Associates, Americaneagle.com, Bank of America
and Bank of America Merchant Services.
"In taking this action, the Chicago Transit Authority will
upgrade its fare equipment, save additional money over time,
improve the customer experience, grow ridership and keep abreast of
rapidly-changing technology. It's a major step forward, and we and
our partners are eager to begin," said Cubic Transportation Systems
vice president John Satterfield.
Cubic is the transit industry's leading provider of revenue
management and business information systems and services. The CTA
-- which has been a Cubic customer since 1993 when Cubic was
awarded the contract to deliver Chicago's current system -- is
among major customers that include London, Washington, D.C., San
Francisco Bay Area, Atlanta, Miami/South Florida, Los Angeles, New
York/New Jersey, Brisbane, Sydney, and Vancouver.
The contract award culminates the CTA's competitive procurement
that included several major competitors in the transit industry.
Cubic expects to execute the contract in the near future.
The estimated contract value of $454 million is made up of both
fixed and variable revenue components. The payments under the
contract will begin when the commercial service status of the
system is achieved, which is expected to be within the first two
years of the contract. The company will not likely recognize
revenues from the contract until that milestone is reached.
Cubic Corporation (NYSE: CUB) is the
parent company of three major business segments: Defense Systems, Mission Support Services and
Transportation Systems.
Cubic® Transportation Systems, Inc., is the world's leading
turnkey solution provider of automated fare collection systems for
public transport including bus, bus rapid transit, light rail,
commuter rail, heavy rail, ferry and parking. Cubic's solutions and
services include system design, central computer systems, equipment
design and manufacturing, device-level software, integration, test,
installation, warranty, maintenance, computer hosting services,
call centre services, card management and distribution services,
financial clearing and settlement, multi-application support and
outsourcing services.
Every year, nearly 10 billion rides are taken worldwide using
Cubic fare collection systems. Cubic has delivered over 400
projects in 40 major markets on five continents. Active projects
include London; Brisbane (Southeast Queensland) region, Australia;
New York/New Jersey region; Washington, D.C /Baltimore/Virginia
region; Los Angeles region; San Diego region; San Francisco region;
Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South
Florida) region; Vancouver and Edmonton, Canada; Sydney (New South
Wales), Australia; and Scandinavia.
Cubic Defense Systems is a leading provider of realistic combat
training systems, cyber technologies, asset tracking solutions, and
defense electronics. Mission Support Services is a leading provider
of training, operations, maintenance, technical and other support
services. For more information about Cubic, see the company's Web
site at www.cubic.com.
Chicago media contact: Carolyn Grisko Grisko &
Associates Office 312.335.0100 Mobile 312.968.3606 Other
media: Debra Montner Montner & Associates Office
203-226-9290 ext. 12 Mobile 203-984-7861
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