SAN DIEGO, Nov. 21, 2017 /PRNewswire/ -- Cubic
Corporation (NYSE: CUB) today announced that its Cubic
Transportation Systems (CTS) business division was selected by the
Massachusetts Bay Transportation Authority (MBTA) 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
base contract award for Cubic includes an approximate $575 million for implementation with ten years of
operations and maintenance in addition to two five-year extension
options.
An important aspect of the agreement is a public-private
partnership (P3), in which Cubic and its partner John Laing arrange
the funding for the implementation and operation of the new fare
payment system. This P3 has the dual advantages of helping the MBTA
finance this major capital updating program while transferring key
risks to the Cubic | John Laing Consortium. The award has been
approved by the MBTA's board and is subject to contract
finalization.
Cubic partnered with John Laing, a recognized leader in the
delivery of complex P3 projects including numerous public transit
projects on the new system to replace the CharlieCard. The Cubic |
John Laing Consortium, which was selected as the preferred bidder
for the new system, will be the first P3 fare collection project in
the U.S. Cubic, the system integrator for many well-known systems
including those in London,
Chicago, Vancouver and Sydney, will lead the implementation and
design as well as operate and maintain the system upon
completion.
"This isn't just the next generation of fare collection, but an
entirely new way that our customers will interact with the MBTA,"
said Luis Manuel Ramirez, general
manager of the MBTA. "The new system will be compatible with all
modes and will provide more options for paying fares, and will have
more fare media available for use. While we still have much work
ahead of us in educating our customers in how the system will work,
today is a major step forward in our partnership with the Cubic |
John Laing team to completely
transform and modernize our system of fare collection."
"The vote of confidence from the MBTA leadership is a tremendous
honor for us and further demonstrates our market leadership," said
Brad Feldmann, president and chief
executive officer of Cubic Corporation. "Cubic | John Laing brings together the best-in-class
expertise, technology, services and financial resources to ensure
customer success."
"We have listened to and heard what Bostonians have to say about
their aspirations for a new payment system, and we understand the
challenges to transition from CharlieCard to the next generation
system," said Matt Cole, president
of Cubic Transportation Systems. "From the many focus groups we
conducted; community groups we spoke with; conversations with city
leaders; and, other important voices of Boston's culturally-rich neighborhoods, we are
confident our system design addresses the accessibility and equity
concerns of all the communities served by the MBTA, many of whom
said they want simplified and seamless options for travel."
"We are absolutely delighted to have been chosen alongside our
partners Cubic by the MBTA to make this significant investment in
the Boston transit system," said
Anthony Phillips, managing director,
primary investment North America
for John Laing. "This is an
important milestone for the MBTA and for the transit industry,
which recognizes the advantages of P3 procurement in delivering
cost and schedule certainty."
The new system allows payment flexibility for customers
including mobile payment, contactless debit or credit cards and
agency-issued fare media for those without a bank card or who
prefer not to use one. Additional access will be created through an
extensive retail merchant network; optimum placement and types of
ticket vending machines, kiosks and wide-aisle gates; an
easy-to-use website for customers to review transactions, set up
payment methods, enable autoloads and load value and products; and
a mobile app that offers the same functionality as the website.
The new system allows 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.
Cubic will be responsible for the design, integration, supply
and implementation of the new fare payment system as well as
operational and maintenance services including platform and back
office hosting; card fulfillment; financial services including
clearing and settlement; and the retail merchant network. Equipment
will include fare validators, fare gates and vending machines for
all MBTA subway and rail stations, in addition to more than 1,000
buses.
"This is a significant win for Cubic, because the MBTA – until
now the largest U.S. transit agency that was not a Cubic customer –
has selected us for its next- generation fare payment system," said
Cole. "We are proud and honored that the MBTA has chosen to partner
with us on this critical project."
MBTA customers will be able to use CharlieCards during the
transition.
Resources:
https://cubic.app.box.com/s/us4wjuuwxhd2qq47xhv8wwm26gmb20o8
About Cubic Corporation
Cubic Corporation designs, integrates and operates systems,
products and services focused in the transportation, defense
training and secure communications markets. Cubic Transportation
Systems is a leading integrator of payment and information
technology and services to create intelligent travel solutions for
transportation authorities and operators. Cubic Global Defense is a
leading provider of live, virtual, constructive and game-based
training solutions, special operations and intelligence for the
U.S. and allied forces. Cubic Mission Solutions provides networked
Command, Control, Communications, Computers, Intelligence,
Surveillance and Reconnaissance (C4ISR) capabilities for defense,
intelligence, security and commercial missions. For more
information about Cubic, please visit the company's website
at www.cubic.com or on
Twitter @CubicCorp.
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SOURCE Cubic Corporation