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TTC RFP Responseq TORONTO TRANSIT COMMISSION BUSINESS CASE ANALYSIS for a SMARTCARD FARE COLLECTION SYSTEM FINAL REPORT May 2007 Business Case Analysis for a Smartcard Fare Collection System – May 2007 TABLE OF CONTENTS LIST OF ABBREVIATIONS AND ACRONYMS EXECUTIVE SUMMARY ................................................................................................................................ i 1.0 INTRODUCTION ..................................................................................................................................... 1 2.0 PROJECT BACKGROUND..................................................................................................................... 3 3.0 OVERVIEW OF A SMARTCARD FARE COLLECTION SYSTEM ......................................................... 6 3.1 FARE COLLECTION – EVOLUTION AND SMARTCARD REVIEW ......................................... 6 3.2 RELATED SERVICES AND CONVENIENCES ......................................................................... 10 3.3 ADVANTAGES OF SMARTCARD FARE COLLECTION .......................................................... 11 3.4 CONVENTIONAL MODEL OF SMARTCARD FARE COLLECTION ........................................ 12 4.0 EXPERIENCE OF OTHER CITIES AND TRANSIT SYSTEMS.............................................................. 14 4.1 OCTOPUS CARDS LIMITED, HONG KONG ............................................................................ 14 4.2 LONDON TRANSPORT............................................................................................................. 16 4.3 WASHINGTON AREA METROPOLITAN TRANSPORTATION AUTHORITY SMARTRIP ...... 17 4.4 THREE NORTH AMERICAN TRANSIT AUTHORITIES............................................................ 18 4.4.1 SUMMARY OF KEY STATISTICS........................................................................... 19 4.4.2 CHICAGO TRANSIT AUTHORITY.......................................................................... 20 4.4.3 METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY................................. 28 4.4.4 MASSACHUSSETTS BAY TRANSPORTATION AUTHORITY .............................. 36 4.5 SUMMARY OF DECISION DRIVERS AND GOALS ................................................................. 40 5.0 EMERGING TRENDS ............................................................................................................................. 42 6.0 OVERVIEW OF THE TTC’s CURRENT FARE COLLECTION SYSTEM............................................... 47 6.1 CUSTOMER AND EMPLOYEE EXPERIENCE ......................................................................... 47 6.2 REVENUE AND RIDERSHIP ACCOUNTABILITY .................................................................... 51 6.3 BUSINESS STRATEGY AND FISCAL IMPACTS ..................................................................... 52 6.4 REGIONAL FARE INTEGRATION............................................................................................. 55 6.5 SUMMARY OF FARE COLLECTION SYSTEM STRENGTHS AND WEAKNESSES .............. 56 7.0 GOALS AND EVALUATION CRITERIA FOR THE TTC SMARTCARD SYSTEM ................................. 58 8.0 THE TTC SMARTCARD SYSTEM OVERVIEW ..................................................................................... 60 8.1 PROCESS FOR BUILDING THE CONCEPT FOR THE TTC SMARTCARD SYSTEM ........... 60 8.2 THE TTC SMARTCARD SYSTEM............................................................................................. 61 8.3 SUMMARY OF IMPROVING THE CUSTOMER EXPERIENCE ............................................... 68 9.0 CONCEPT OF OPERATIONS ................................................................................................................ 71 9.1 SMARTCARD/LIMITED USE CARD MANAGEMENT............................................................... 73 Table of Contents Business Case Analysis for a Smartcard Fare Collection System – May 2007 9.1.1 THE LIFECYLE OF SMARTCARDS AND LIMITED USE CARDS ......................... 73 9.1.2 PROCURING SMARTCARDS AND LIMITED USE CARDS................................... 74 9.1.3 RECEIVING AND MANAGING THE INVENTORY OF SMARTCARDS ................. 75 9.1.4 INITIALIZING AND ENCODING SMARTCARDS.................................................... 76 9.1.5 PACKAGING AND DELIVERING SMARTCARDS/LIMITED USE CARDS TO SALES CHANNELS................................................................................................. 77 9.1.6 TRACKING AND MONITORING DELIVERIES ....................................................... 78 9.1.7 INITIALIZING AND ENCODING EQUIPMENT........................................................ 78 9.1.8 EQUIPMENT REQUIREMENTS.............................................................................. 81 9.1.9 FUNCTIONAL IMPACTS ......................................................................................... 81 9.2 SMARTCARD DISTRIBUTION, SALES AND RELOAD ............................................................ 83 9.2.1 SALES/RELOAD CHANNELS................................................................................. 83 9.2.2 EQUIPMENT REQUIREMENTS.............................................................................. 86 9.2.3 FUNCTIONAL IMPACTS ......................................................................................... 87 9.3 FARE PAYMENT AND ENFORCEMENT.................................................................................. 88 9.3.1 GENERAL OVERVIEW OF FARE PAYMENT ........................................................ 88 9.3.2 FARE MEDIA ........................................................................................................... 89 9.3.3 FARE MEDIA OPTIONS FOR FARE TYPES OF TODAY ...................................... 89 9.3.4 FARE PAYMENT METHODS .................................................................................. 91 9.3.5 FARE ENFORCEMENT........................................................................................... 96 9.3.6 EQUIPMENT REQUIREMENTS.............................................................................. 97 9.3.7 FUNCTIONAL IMPACTS ......................................................................................... 98 9.4 CUSTOMER SERVICES, SMARTCARD ACCOUNT MANAGEMENT..................................... 99 9.4.1 SMARTCARD SERVICES ....................................................................................... 99 9.4.2 CHANNELS FOR SMARTCARD CUSTOMER SUPPORT AND ACCOUNT MANAGEMENT ....................................................................................................... 100 9.4.3 SMARTCARD CUSTOMER SUPPORT AND ACCOUNT MANAGEMENT ACTIVITIES.............................................................................................................. 100 9.4.4 CUSTOMER SERVICE EQUIPMENT – FOR CUSTOMER SERVICE CHANNELS.............................................................................................................. 103 9.4.5 CUSTOMER SERVICE EQUIPMENT – IN-THE-FIELD.......................................... 107 9.4.6 EQUIPMENT REQUIREMENTS.............................................................................. 107 9.4.7 FUNCTIONAL IMPACTS ......................................................................................... 108 9.5 REVENUE COLLECTION AND RECONCILIATION.................................................................. 110 9.5.1 REVENUE COLLECTION........................................................................................ 110 9.5.2 REVENUE RECONCILIATION ................................................................................ 111 9.5.3 EQUIPMENT REQUIREMENTS.............................................................................. 115 9.5.4 FUNCTIONAL IMPACTS ......................................................................................... 115 Table of Contents Business Case Analysis for a Smartcard Fare Collection System – May 2007 9.6 OPERATIONS AND MAINTENANCE OF FIELD DEVICES...................................................... 116 9.6.1 OPERATIONS – VENDING MACHINES................................................................. 116 9.6.2 OPERATIONS – SURFACE SMARTCARD READERS/DRIVER CONTROL UNITS ...................................................................................................................... 117 9.6.3 MAINTENANCE PROGAMS ................................................................................... 119 9.6.4 REMOTE MONITORING ......................................................................................... 120 9.6.5 MAINTENANCE SUPPORT BY MODE/FUNCTION............................................... 120 9.6.6 WARRANTEES........................................................................................................ 121 9.6.7 SPARES’ ALLOWANCE .......................................................................................... 122 9.6.8 EQUIPMENT REQUIREMENTS.............................................................................. 122 9.6.9 FUNCTIONAL IMPACTS ......................................................................................... 122 9.7 DATA SYSTEMS AND REPORTING......................................................................................... 123 9.7.1 DATA COLLECTED AND REPORTED ................................................................... 123 9.7.2 FINANCIAL REPORTS............................................................................................ 126 9.7.3 FINANCIAL TRANSACTIONS COLLECTED BY DEVICE.....................................
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