Barcelona case study. Successfully managing the transition from one ticketing system to another. Albert Tortajada, FGC Infrastructure Director

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1 Barcelona case study Successfully managing the transition from one ticketing system to another Albert Tortajada, FGC Infrastructure Director

2 2 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

3 3 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

4 4 Barcelona Metropolitan area 253 municipalities, 6 with more than inhabitants and 12 with more than inhabitants Population Extension Barcelona Zone Zone > > > > Zone Total

5 5 Operating Companies 4 Rail Operators: TMB, RENFE, FGC, Tram 70 Bus Operators

6 6 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

7 7 Administrative organization Competence in planning and provision of public transport was shared between three different levels of administration: -AGE (Spanish government) -Generalitat de Catalunya (regional government) -EMT (Barcelona municipality + other municipalities) -Other municipalities ( > inhabitants) Railway operators funding was granted through agreements operator AGE (the so-called Program Contracts) based on passenger-km transported. Additional needs were supported in each case by the administration responsible (e.g. Generalitat de Catalunya for FGC, EMT for TMB)

8 8 Fare system Each operator was responsible for its own ticketing system, with different criteria (TMB flat fares; FGC kilometric fares; RENFE zone fares) Railway operators introduced magnetic stripe tickets. But we started to make small steps: - Acceptance of tickets in central zone (bilateral agreements between OC) - Identification of services - Information in case of malfunction

9 9 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

10 10 The Metropolitan Transport Authority (ATM) ATM was created on march 1997 as a consortium of administrations (regional government and municipalities, with the support of Spanish government). All the associates accept to transfer their competences in public transport matters (planning, fare regulation, communication, ) to the authority and to discuss and eventually take all the decisions through agreements within the consortium. The main objective in first years is to achieve the Fare Integration, which started in The technology that supports the process is the magnetic stripe

11 11 Fare integration - Objectives The objective of fare integration is to make public transport system more attractive and to set easy - to - understand rates based on principles accepted by users. A system of radial " Crowns", where the rate depends on the distance to the center and the number of zones crossed, applies.

12 12 Fare integration: Characteristics All titles are part of the transport system, both those which owner is ATM and those which owners are the OC (basically single trip tickets) The titles are valid for all modes and all operators within their geographic area of validation. Seamless mobility: Within a time period modal change is free of cost for users (1h 15 'for 1 zone, and increased 15' for each additional zone). Reduction in price depending on the level of use. Fixing the price depending on the distance (crowns system). You need to check the zoning map of the town of origin and destination and count the number of zones that are used to make the displacement. Appropriate level of financial coverage of the system.

13 13 Integrated tickets Text

14 14 Fare integration: Management To manage it all, a Fare Integration Management System has been introduced, with three objectives : -Distribution of income of sales of integrated tickets between different transport operators -Request for statistics consultations -Definition of new integrated tickets and fares. Implementation required certain actions : Negotiation and signing of agreements for integration with various transport operators involved. Monitoring and supervision of the activities of the companies awarded the distribution services of ATM titles Installing validation and sale systems. Implementation of the Income Distribution Chamber, to carry out the monthly statements to different integrated operators. Communication campaign to inform citizens about the use of the new tariff system and the implementation of customer attention services.

15 15 Fare integration: Management Income distribution is made according to a sharing rule that takes into account the net fee collected and modal chains, obtained through the index of intermodality. To obtain information about this index of intermodality, which measures the transfers between different modes within a displacement, a tracking bit has been implemented in different titles. The distribution of income also includes income compensation, and it is done monthly and as set out in the Conventions of the integration of different companies. There is a compensation for decrease in the average rate as a result of Fare Integration and also for low occupancy (less than 12 passenger expedition), for the companies operating risky bus services.

16 16 Increase in demand Fare integration has been a real success, leading to a huge increase in public transport mobility , ,7 914,3 899, , ,

17 Fare integration. Problems found (I) 17 Theory vs. Reality

18 Fare integration. Problems found (II) 18 Lack of intermodal stations (except zone 1) : Paying for nothing

19 Fare integration. Problems found (III) 19 Other problems: Increase of zone fraud Single trip ticket remains mono-modal Fare structure has inherited too many pre-existences Ticket Num. of trips Price Price/trip Price Price/trip Increase Zone 1 Zone 1 Zone 2 Zone 2 Z 2 / Z 1 BS 1 2,15 2,15 3 3,00 39,53% T ,3 1,03 20,3 2,03 97,09% T-50/ ,5 0, ,42 67,06% T-70/ ,5 0,85 86,05 1,23 44,62% T-Mes 88 52,75 0,60 77,45 0,88 46,82%

20 20 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

21 21 The T Mobilitat project ATM wills to establish a new electronic ticketing system, which commercial denomination will be T Mobilitat. The key issues are: A new technology model based on the incorporation of contactless chip in sales and validation, ensuring security and interoperability. A new fare system with discounts based on usage, adjusting the price of public transport to the real mobility of each citizen A new payment system where citizens can choose to pre-pay (rechargeable cards) or to post pay (billing) A new management system in implementation, maintenance and operation. Implementation of machinery and systems, as well as corrective maintenance in all companies providing public transport services in the area of Barcelona, as well as the ATM core systems. Centralized information management with real time data of sales and validations. New management of marketing channels. A new Customer Service Center to report and solve all incidents with the cards, register, With this project public transport users become customers. A new integrated Transport Information Center, taking for Management advantage of the synergy with T Mobilitat Project, which will be informed in real time of the offer and demand and will improve the overall incident management system and information to citizens.

22 22 T Mobilitat. Objectives The basic objective of the new system, additionally to the need of modernization, is to make it more attractive, leading again to an increase in the utilization of public transport system, gaining market share in the daily mobility. The proposed new tariff system is based on the introduction of a single transport card, T - Mobilitat, which will allow to use all modes of transport. To achieve these issues innovative solutions will be applied from both points of view of technology and process management/provision of services, incorporating best practices.

23 23 T Mobilitat. Financing The cost of the project is intended to be absorbed by the whole public transport system, thanks to: (i) Cost reduction through the decrease in maintenance costs of sales and validation systems, currently in charge of transport companies, as well as through the reduction of investments in replacement of obsolete magnetic hardware (ii) Increased revenue through: (i) Increase of usage due to the attractiveness of the system (ii) Increase of fraud control (iii) Increase in ticket security (reduction of fakes) (iv) Revenues from the insertion of advertising on the new card (v) System export (Barcelona brand).

24 24 T Mobilitat. Management According to the technical, legal and financial complexity of this project, the ATM has decided the best solution is to establish a PPP through a competitive dialog. This PPP will be responsible for initial investments (hardware and software), management, maintenance (partly) and both Customer Attention Centre and Transport Information Management Center. The consociated administrations will participate in the PPP through public companies (TMB, FGC and Sermetra), which will own a part of the shares.

25 25 T Mobilitat. Figures Type of equipment Total number Ticket machines Validating equipment Fixed Autonomous 349 On board Bus drivers Ticket offices 148 Depots 57 Customer Attention Centres 76 On-board consultation equipment Inspection 540

26 26 T Mobilitat. Fare structure Price/trip P1 N Number of trips Where: P1 is the cost of a single trip depending on number of zones N is the number of monthly trips to get a free marginal cost for user

27 27 T Mobilitat. Calendar Phase 1 : Zone 1 OC + FGC + RENFE, coexistence of magnetic strip tickets Phase 2: Rest of OC in zones 2 6, coexistence of magnetic strip tickets Phase 3: Elimination of magnetic strip tickets Phase 1 should be completed in 24 months, and the full system should be in operation in 36 months

28 28 Contents 1 ) Introduction to Barcelona Metropolitan area transport system 2 ) Situation before fare integration 3 ) The magnetic ticketing system: goals achieved and limitations 4 ) T Mobilitat project (contactless card) 5 ) Conclusion

29 29 The new fare system. Strengths and weaknesses Strengths -Reliable and experienced technological basis -Price based on real usage of PT -Price based on origin destination, not depending on network structure -Zone fraud prevention -Possibility of post-payment -Private financing Weaknesses -Cost of private participation -Management of centralized service information

30 30 Conclusion However The implantation of fare integration in Barcelona area, in 2001, has been a huge success. So we strongly believe we can do at least as well as we did 15 years ago!!! Thanks for your attention.

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