Case Study on Pilot

Case study on pilot

Partner: Thessaloniki Public Transport Authority Title of the pilot/Case study INVESTIGATION OF INTEGRATED TICKETING AND SMART CARD FARE COLLECTION SYSTEMS, WITH A SPECIAL VIEW TO PASSENGER BEHAVIOUR AND FINANCIAL IMPLICATIONS Task Force No 2: Promoting innovative and integrated ticketing and smart card systems Verision (DRAFT/FINAL)

Case study on Pilots

Summary General information ...... 4 From the AF ...... 4 DEADLINE: ...... 4 Partners ...... 5 Executive Summary ...... 6 General Context ...... 7 Transport data for the Regional Unity of Thessaloniki ...... 7 Demographic and geographic analysis ...... 7 Mobility data ...... 9 Future modes of transport ...... 10 The Pilot ...... 12 The pilot expectations and objectives ...... 12 Pilot activities ...... 14 Pilot results & KPIs...... 20 Task Force 2 ...... 20 Financial Sustainability ...... 21 Plans for future full scale implementation and long term sustainability ...... 22 Conclusions & Recommendations ...... 23 Bibliography ...... 24 Attachments ...... 24

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Document Title: Sub Title: Work Package 4 - act 4.3 – Integration and transfer of Task Force results

Document Version Comments Date Done by History

Number of pages: Number of annexes:

Prepared by: Principal Author(s):

Contribution: Contributing Author(s):

Peer Review Partner Date

Approval for delivery ATTAC Coordinator Date

Table of contents and structure elaborated by Institute for transport and Logistics Foundation - ITL Viale A. Moro 38 40127 Bologna – Italy

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General information This document has been produced in order to facilitate the development of the ATTAC case studies, providing a structure to be followed by Project Partners responsible for the action’s case studies in order to make them comparable.

On the other hand, this document will also help the responsible partners to find structured information needful to feed the final outputs (Transnational case studies) which will be used to sum up the present situation in the pilot locations. The following chapters are to be considered as the chapters of each case study. ITL, as responsible partner for the coordination of the activities and WP4 Leader, provided for each chapter and paragraph a brief explanation of what is expected from partners. The final version of each case study should be a fluent document, so please do not answer as in a questionnaire, but produce a complete report with detailed indications on the activities carried out.

From the AF Type Output

AF Description Case studies on pilots, including sustainability/transferability plans Timeplan description 8 case studies and sustainability plans for each pilot test Responsible Partner ERDF PP1 – ITL as coordinator of the activities. ALL PARTNERS for the development of their own case study Contributing partner ALL Each partner for each pilot must prepare a case study which include results from MobiLAB 2 and with plan for future full scale implementation. After the conclusion of the pilot activities, this has to be considered the first step to the realization of the Transnational Case studies, which will bring the local ATTAC experiences to the Transnational level. Fig. 1 - Road to the Transnational Case studies

DEADLINE: draft: 30/09/2013 from each partner final 31/10/2013 from each partner

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Partners Each ATTAC partner will produce its own case study. The responsibilities are listed below: Task Force 1 Flexible transport solutions (ITL) MiskolcH: IT Solution and planning of DRT service; ITL: flexible transport service from/to industrial areas; Burgas: Observer of Miskolc pilot. Responsible for the transferability of the solution

Task Force 2 Innovative/integrated ticketing (Marche) Marche: pilot study on fare & modal integration in region; OTLRA: Testing flexible fare systems & e-ticketing; THEPTA: Integrated ticketing and smart card fare collection systems

Task Force 3 Improving passenger information (Umaribor) UMaribor: Pilot study and testing of RTI for passengers in Maribor; Kosice: Testing bus-stop RTI solutions in Kosice

The total number of Case studies to be produced is 8.

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Case Study

Executive Summary In Thessaloniki the Public Transport (PT) offer is currently by conventional bus lines on a flat fare and pre- purchase paper tickets with some discount. The city is expected to have additional mass rapid transit modes in the next 5 years namely a light Metro line currently under construction, as well as further improvements of the bus services such as express lines, Bus Rapid Transit (BRT) features, new Tramway/Light Rail Transit (LRT), possibly Flexible Transport Services (FTS) Demand Responsive Transit (DRT) in semi-rural areas and Sea-borne passenger ferry services within Thermaikos Gulf with bus and Park & Ride (P+R) intermodality. The current basic fare structure needs to undergo major enhancements and upgrading to offer intermodality between all future PT modes as well as P+R, towards ‘seamless’ travel. This will include concessionary fares, incentives, peak spreading measures, based on Electronic Fare Collection (EFC) systems such as smartcards.

The pilot study that THEPTA has undertaken, concerns the “Investigation of Integrated ticketing and smart card fare collection system, with a special view to passenger behavior and financial implications” in the region unity of Thessaloniki. The pilot is incorporated in Task Force 2: “Promoting innovative and integrated ticketing and smart card systems”. In this frame, THEPTA launched a call for expression of interest for the future system of Thessaloniki and five interested parties submitted their dossiers with proposals. Two of the interested parties visited ThePTA and presented their systems, expressing their willing to investigate in Thessaloniki.

The pilot began officially in November 2011 by presenting in the 1st first Mobility forum of Thessaloniki the next steps to follow. The Mobility Forum was attended by many representatives of institutional public and private bodies that are influenced by such an introduction in the public transport system of the area.

The procedure that is decided to be followed for the pilot in Thessaloniki includes: . Consultation on principles and options with involved bodies on several issues such as technology, operation and funding (the evaluation of the received dossiers will be included) . Strategy Formulation based on the best scenario that will be chosen for the system of Thessaloniki . Travel Behavior survey on potential users for improved public transport ticketing services . Analysis of the system Costs and Benefits

The deliverables will include two consultation papers as well as the strategy formulation report, the travel behaviour survey of stated attributes and preferences and the analysis of costs and benefits of the system. The process mentioned aims to the increase of travel by public transport and introduces the framework for seamless travel for all. The future introduction of the smart card - based and fare collection system will make the transactions simpler and cheaper. Moreover, the reduction of congestion and pollution will improve the urban environment and the quality of life of the citizens.

During the 2nd and the 4th Mobility Forums the Consultation Document and the Consultation Results, as well as the initial Strategy Formulation Framework was presented to the local stakeholders. The Pilot will officially end at the 20th of November 2013, where the Transnational Workshop will be organized involving external experts (as well as the transnational partners Marche and OLTRA) to evaluate, integrate, transfer and capitalize the results of all 3 pilots in TF2, including the transfer of the Small Scale Investments outcomes. In parallel, the 6th Mobility Forum will take place, where the strategy including the analysis of the Travel Behavior Survey will be presented to the relevant stakeholders.

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General Context

Thessaloniki is the second largest urban conurbation in Greece with a population of almost one million inhabitants (official 2011 census data). There are 2.2 million passengers’ daily trips taking place by all travel modes and PT share is approximated to 27% (OMPEP, 2000). Thessaloniki’s PT system is expected to be enhanced with an underground metro line as early as mid-2017. The Urban Transport Organization of Thessaloniki (UTOT (OASTH)) is until today the sole PT operator in the area. The company holds a concession contract with the Greek Government allowing for exclusive right of operations. The PT system is composed by a total of 78 urban and suburban bus routes operated by a fleet of 621 various size vehicles. In 2011, 43 million vehicle-kms were executed and almost 180 million boardings were counted. The system is characterized by a low fare box recovery ratio and the state subsidy covered 68% of total 2011 expenses (OASTH, 2012). Improvement of delivered quality and rationalization of resources’ allocation are regarded as necessary and effective actions for both attracting more users and reducing costs.

The introduction of Automatic Vehicle Location (AVL) equipment for the bus fleet taken place in 2005 and subsequent launch of real time passenger information system in 2007 can be regarded as investments aiming to improve performance and also to attract more users (Politis et al., 2010). Competitiveness of public transport will further grow after completion of the underground metro line which is currently under construction and will be ready in 2015.

ThePTA was established in 2001 and is responsible for the planning, coordination and supervision of PT in the metropolitan area of Thessaloniki. Until today, ThePTA’s monitoring mechanism is relied upon a set of key indicators referring only to economic performance and PT availability. However, these indicators do not appear to have a clear connection between them or with a set of regularly updated strategic goals. Furthermore, passenger satisfaction indicators are not available. The latter is the reason for missing information on the PT aspects that cause serious user discomfort. As a result, public opinion feedback is only expressed by citizens who submit requests and /or complaints to the local PT agencies. Therefore, ThePTA cannot fully support and advise OASTH on any improvement actions. A standardized and clear process for exchanging data between the two agencies on all necessary performance topics has not yet been established. These issues along with the upcoming introduction of competitive tendering procedures (where ThePTA will play the role of the competent authority) create an urgent need for a comprehensive and continuous monitoring and assessment of PT services through an appropriately designed PMS. The establishment of such a system will also enable ThePTA to communicate both its activities and progress. By this means, pressure will be applied for necessary investments in the PT system as well as attaining strategic partnerships with other PT organizations in Greece and abroad. Below, more detailed information are provided about demographic and transport data.

Transport data for the Regional Unity of Thessaloniki

Demographic and geographic analysis

Thessaloniki is the second largest city of Greece and the administrative, financial and cultural center of Northern Greece. The city is the capital of Thessaloniki Regional Unity and of the region of Central Macedonia and spreads over an area of 3.683km² with a population of 1,104,460 inhabitants. It consists of the municipalities of Thessaloniki, Kalamaria, Kordelio-Evosmos, Neapolis-Sykies, Pavlos Melas, Ampelokipi-Menemeni, Pilea-Hortiatis, Thermi, Thermaikos, Halkidona, Delta, Oreokastro, Langada and Volvi. The agglomeration of Thessaloniki, consisting of the first seven aforementioned municipalities, has the greatest urban density and is populated by approximately 820,000 inhabitants (2011 census).

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Picture 1: Regional Unity of Thessaloniki The population and the densities of the municipalities of the Regional Unity Thessaloniki are presented in Table 1.

Table 1: Population and densities of the municipalities of the Regional Unity Thessaloniki Percentage of the Density Total Area total population of (inhabitants per population the Regional Unity sq. km) Municipality of Thessaloniki 322,240 29% 16,703.30 Municipality of Ampelokipi- Menemeni 51,670 5% 5,276.76 Municipality of Volvi 23,370 2% 29.85 Municipality of Delta 45,460 4% 146.13 Municipality of Thermaikos 50,100 5% 375.53 Municipality of Thermi 53,070 5% 138.89 Municipality of Kalamaria 91,270 8% 14,258.71 Municipality of Kordelio-Evosmos 101,010 9% 7,561.76 Municipality of Langada 40,800 4% 33.37 Municipality of Neapolis-Sykies 84,500 8% 6,548.86 Municipality of PavlosMelas 98,870 9% 4,160.67 Municipality of Pilea-Hortiatis 70,210 6% 451.12 Municipality of Halkidona 33,560 3% 85.73 Municipality of Oreokastro 38,330 3% 175.94 Thessaloniki Regional Unity 1,104,460 100 299.90

The city is located in the western side of the Regional Unity of Thessaloniki, at the head of Thermaikos Gulf. It is built on the slopes of Kedrinos Hill surrounded to the north by the forest of Sheikh Sou. The coastline at the south as well as the existence of a mountainous bulk at the north, led to the inordinate growth of the urban sprawl (butterfly shape) at the eastern and western areas of the city (see Picture 5). Despite the fact that the population of the city is close to 1 million inhabitants, the width of the city centre is only 1.7 Km.

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Picture 2: The butterfly shape of the urban sprawl of Thessaloniki

Thessaloniki wider area is articulated in three big sub areas: Thessaloniki metropolis: a cohesive department of the greater area that constitutes the backbone of the residential region The suburban area: an area that surrounds the cohesive department where various suburban settlements are established which are extensive except drawing residence, as well The remaining wider Thessaloniki area where, beside settlements and extended suburban residence, large cultivated agricultural territories are developed. Considering the Metropolitan area one of the main characteristics of its spatial structure is the monocentric character, resulting from a big concentration and clustering of mainly commercial enterprises in the city centre. However, during the last years a growth of central operations is observed also outside the Metropolitan area and the city of centre.

Mobility data

According to, the latest "General Study of Transport and Traffic for the Urban Area and the surroundings of Thessaloniki" (Ministry of Competitiveness, Infrastructure, Transport and Networks/ Organisation of Planning and Environmental Protection of Thessaloniki, Thessaloniki, 1999), nearly 25% out of 2.4 million motorized and non-motorized daily passenger travel have one or both ends of the journey to the city center. THEPTA conducted a Socio-Economic Study of the expansion of the Thessaloniki Metro to Kalamaria and the development of a Traffic Model (December 2011) where it was estimated that the car share reaches 55% in 2010 compared to 44% in 1999 (see Table 2 ).

Table 2: Distribution of personal trips by transport mode (1999 and the estimation of 2010) Distribution of person Transport Mode Estimation 2010 trips (1999) Car 44% 52-58% Public Transport 27% 18-21% Coach 3% 2-4% Taxi 7% 3-6% Motorcycle 6% 6-10% Pedestrian 12% 9-10%

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Source: Socio-Economic Study of the expansion of the Thessaloniki Metro to Kalamaria and the development of a Traffic Model (December 2011)

Distribution of personal trips by transport mode 60% 50% 40% Distribution of 30% person trips (1999) 20% Estimation 2010 10%

Car

Taxi

Coach

Public

Transport Pedestrian Motorcycle

Picture 3: Distribution of personal trips by transport mode (1999 and the estimation of 2010) Source: Socio-Economic Study of the expansion of the Thessaloniki Metro to Kalamaria and the development of a Traffic Model (December 2011)

According to the Socio-Economic Study of the expansion of the Thessaloniki Metro to Kalamaria and the development of a Traffic Model (December 2011) new updated transport data for the city of Thessaloniki were estimated based on the General Study of Transport and Traffic for the Urban Area and the surroundings of Thessaloniki.1999.

The car ownership in the area of Thessaloniki is approximately 450 vehicles per 1.000 residents; approximately 400.000 private cars use the city network every day and 140.000 vehicles during peak hour. The above mobility figures have been reduced by at least 20% during the last 3 years of economic recession.

The mean speed per vehicle is 14 km/hour in the city center. The bus lanes are restricted in the Municipalities of Thessaloniki and Kalamaria. The average travel time for the journey of 8 to 4 km is about 30-45 minutes. During peak hours, the demand for public transport is very high while the capacity offered insufficient. The road network in the city centre is normally congested during morning and afternoon peak periods and as a result, delays are a common phenomenon for all vehicles directed to this specific area. Moreover, congestion creates all usual impacts such as environmental pollution, energy consumption and loss of quality of life. However, congestion phenomena are being reduced as a result of the economic crisis. Roughly out of the total 2.4 million personal trips in Thessaloniki during a typical working day, approximately 450,000 boardings are made by public transport (18.8%). However, the actual number of users of public transport is estimated to be significantly higher due to the high ticket fraud.

Future modes of transport

The Public Transport system will be enhanced by an underground Metro system that has been under construction since 2006. The metro system will cost approximately 1 billion Euros and will be ready by 2017. The long construction period is mainly because of the many antiquities which are being discovered during excavations. The first (main) Metro line - Phase 1 - is set to extend over 9.6 kilometers, includes 13

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stations and it is expected to serve eventually 250.000 passengers per day. Kalamaria metro extension – Phase 2 - will operate almost simultaneously, having already secured funds and an estimated daily patronage of 60.000 passengers per day in 2016. Discussions are already underway for future extensions, in order for the metro network to also serve major transport generators and hubs of the city, notably the Macedonia Central Bus Station (intercity bus terminal) the Macedonia International Airport, major state hospitals etc.

For many years is under consultation the design of marine urban transport. According to the latest actions a competition was held in February 2013 which concluded with the agreement between the Region of Central Macedonia, Municipalities of Thessaloniki, Thermaikos, Kalamaria and Egnatia Odos SA the latter to undertake the project: “Maritime urban transport of Thessaloniki- Studies Development - Issue Authorisation & Construction of Technical Infrastructure of Quay 5 - Stations”.

Finally, THEPTA investigates alternative scenarios constructing a tram system and the possible funding resources. The tram system is a mesure proposed to be implemented by the Sustainable Urban Mobility Plan for Thessaloniki metropolitan area which has already been developed by the THEPTA within the project ATTAC.

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The Pilot

The pilot expectations and objectives

Before starting analyzing the pilot, the meaning of some terms will be provided. An integrated ticket is any kind of ticket that can be used to more than one Public Transport (PT) operators (multi-operator) or more than one transport modes (multi-modal), while a smart ticket is a ticket electronically stored in a microchip. This microchip is embedded into a card - the smart card. A smart card reader “reads” the information stored into the ticket electronically and the device records the transaction and the associated information and sends this information to a Back office system. Thessaloniki, wishes to develop and introduce a Smart Integrated Ticketing System (SITS) in the public transport of the city, combined with some other municipal uses.

Thessaloniki is expected to have mass rapid transit modes in the next 5 years namely a light Metro line currently under construction, as well as further improvements of the bus services such as express lines, Bus Rapid Transit (BRT) features, new Tramway/Light Rail Transit (LRT), possibly Flexible Transport Services (FTS) Demand Responsive Transit (DRT) in semi-rural areas and Sea-borne passenger ferry services within

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Thermaikos Gulf with bus and Park & Ride (P+R) intermodality. The current basic fare structure needs to undergo major enhancements and upgrading to offer intermodality between all future PT modes as well as P+R, towards ‘seamless’ travel. This will include concessionary fares, incentives, and peak spreading measures, based on Electronic Fare Collection (EFC) systems such as smartcards. So, the main objectives of the Thessaloniki’s pilot are:

. Investigation of the potential introduction and utility of a Smartcard / e-ticketing fare collection system in the metropolitan area of Thessaloniki, in order to: o Increase of travel by public transport o Improve Intermodality o Introduce a framework for seamless travel o Facilitate incentives and concessionary fares o Potentially integrate with other forms of payments (such as Parking, Park & Ride, Bike Sharing, Inter-urban Travel, Small transactions, Tolls) o Identify the relevant Costs and Benefits and Policy Implications.

There is a strong belief that the opening of the new metro system in Thessaloniki in 2017 – 2018 fulfils the condition of a multimodal PT system with high intermodality. Additionally, the fact that the smart card ticketing system for the metro system has been already included in the investment cost and is considered as sunk costs by 2017, greatly enhances the business case of the overall SITS. Furthermore, it is assumed throughout the analysis that within a short period (depending on incentives and an initial discount scheme), the penetration of the SC will reach a 85% of the PT users (= upper threshold). All these factors result to a success drivers of an effective SITS in Thessaloniki.

The Sustainability of the pilot action implementation is ensured through the following issues:

. Operators’ view: increased ridership less distribution & transaction costs, higher efficiency, less fraud, increased revenues, easier revenue apportionment . Users’ view : easier transactions, seamless travel experience, lower transfer pricing, simpler tariff structure . Community’s view: improved modal split, less car use and carbon footprint, mass data mining re. to PT trip patterns, sustainable mobility and urban quality of life

Finally, the stakeholders that involved in the whole process of the consultation are:

. Ministry of Infrastructure, Transport and Networks . Thessaloniki Public Transport Authority (THEPTA) . Organization of Urban Transportation of Thessaloniki (OASTH) . Region of Kentriki Makedonia . Regional Entity of Thessaloniki . Decentralized administration of Macedonia and Thrace . Municipality of Thessaloniki . Municipality of Kalamaria . Municipality of Thermaikos . Municipality of Pilea – Xortiati . Municipality of Delta . Regional Union of Municipalities of Kentriki Makedonia . Aristotle University of Thessaloniki . Organization of Planning and Environmental Protection of Thessaloniki (ORTHE) . Hellenic Traffic Police

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. National Bank of Greece . Emporiki Bank . Eurobank . Hellenic Post Bank . Piraeus Bank . Alpha Bank . VISA HELLAS . COSMOTE, WIND, VODAFONE . Sony Ericsson, NOKIA, Samsung, HTC . Hellenic Institute of Transport Engineers . Technical Chamber of Greece (Branch of Central Macedonia) . Labor Union of Thessaloniki . NGO EPIVATIS (Greek Public Transport Users Association) . Union of Bicyclists . Thessaloniki Hotels Association . NGO aiming at the protection of pedestrian rights . Museum of Byzantine Culture . Museum of White Tower in Thessaloniki . Macedonian Museum of Contemporary Art . Teloglion Foundation of Art . Archeological Museum of Thessaloniki.

Pilot activities

The typology of the pilot project in Thessaloniki is as follows: . Potential user response - behavioral research by Stated Preference (SP) survey of existing and future PT users, in order to gauge the willingness to pay for improved PT services, new transit modes (Metro, Tram, FTS/DRT, Sea-borne links, and Intermodality), including potential switch from private car to PT and P+R. . Pre-feasibility analyses of cost and benefits for introducing new or improved ticketing systems, based on the results of the SP research . Investigation of impact of EFC and Smartcard systems on fare revenues, potential integrated pricing strategies, public and political acceptability.

In order the above mentioned issues to be implemented the ThePTA’s ATTAC team organized the following work plan: . Call for Expressions of Interest for Integrated Smartcard / e-Ticketing (in UITP “Public Transport International” Magazine, 10/2011) . Consultation on principles and options with involved bodies on several issues such as technology, operation and funding . Strategy Formulation based on the preferred scenario for the system . Travel Behaviour survey of potential users for improved public transport ticketing and fare collection services . Analysis of the system Costs and Benefits.

In November 2011 a Call for for Expressions of Interest for Integrated Smartcard / e-Ticketing announced. Five Companies (ACS – France, LG – Korea/NL, Kentkart EGE – Turkey, Ericsson – Greece, PRODATA – Belgium), expressed their interest, while the first 3 companies had Technical Visits in Thessaloniki. The

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team of experts evaluated the Folders and the material used in the Consultation Document and in the Strategy Formulation of the system Document.

The Consultation Document on the principles and options of the proposed system for the city of Thessaloniki, presented to the local stakeholders and to the members of the Mobility Forum, during the 2nd Mobility Forum of the ATTAC project, which took place on Wednesday, 18 September 2012 at Thessaloniki’s City Council. During this forum the progress in the investigation towards Integrated and Smart Electronic Fare Ticket Systems in Public Transport, in Thessaloniki, was presented. The team of experts presented the consultation paper which has been sent to the stakeholders involving them in to the study. The introduction of such a system will encourage the use of public transport, making travel more flexible and ticket purchase simpler and cheaper. Finally, the methodological approach and the financial issues that will most likely emerge were presented. The Consultation Process lasted from 31 December 2012 till 15 February 2013, with a small time extension. The Consultation Document sent to 53 relevant stakeholders (local authorities, ministries, public transport operator, citizens’ associations, telecommunication companies, banks, chambers, etc.). Twenty seven stakeholders sent their opinion to the specific questionnaire that followed the consultation paper. The results of this consultation used, in order the strategy formulation document to be prepared. The results of the consultation presented in the 4th Mobility Forum, which took place in Thermi Thessalonikis, on the 15th of May 2013.

The team of experts, taking into consideration the results of the consultation formulated the Strategy of the introduction of the Integrated Ticketing and Smart Card Fare Collection Systems in Thessaloniki. The Strategy Document presented to the RITSNET workshop (INTERREG IVC) that took place on the 18th and 19th of September 2013.

In parallel, during the period of 1st July till 15th September 2013, a travel behavior research of potential users for improved public transport ticketing and fare collection services took place in the area of Thessaloniki. Totally, 1000 questionnaires were completed by citizens of Thessaloniki. The team of experts analyzed the research and the results of this survey will be presented in the ICTR Conference in Thessaloniki on the 18th of October 2013.

Additionally, a Cost Benefit estimation analysis was implemented by the team of experts. Below is a small summary of this estimation:

USER BENEFITS

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OPERATORS’ BENEFITS

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COMMUNITY BENEFITS

COSTS OF SITS

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INVESTMENT COSTS

OPERATIONS AND MAINTENANCE COSTS

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CLEARING HOUSE COSTS

All the above results will be gathered into a single document, which will be the Final output of the pilot. This document will be available at the end of October. The document will be sent to the Ministry of Transport and to the Operator of Thessaloniki’s Public Transport for their remarks. At the end of December the final version will be available.

Pilot results & KPIs

Task Force 2 Types of tickets: o Single Ticket without transfer o One Transfer Ticket

Number of different transport companies o OASTH, Bus Operator

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Financial Sustainability

Below, it is summarized the Benefits and the costs of the system

BENEFITS

Low Scenario Α Base Scenario Β High Scenario C

User Benefits Convenience Benefits 6.700 6.700 6.700 Bus 440 440 440 Time Savings Metro 80 80 80 Sum User Benefits 7.220 7.220 7.220 OPERATORS’ BENEFITS Bus 1.420 1.420 1.420 Cash fare collection cost savings Metro 900 900 900 Bus 180 180 180 Validators’ maintenance cost Metro 60 60 60 Bus 3.400 8.800 14.200 Ticket Fraud Reduction Metro 770 2.300 3.800 New Net Revenues 3.120 3.120 3.120

Sum Operators’ Benefits 9.850 16.780 23.680 Community Benefits accidents 1.790 1.790 1.790 Car Traffic reduction pollution 240 240 240 CO2 30 30 30 Sum Community Benefits 2.060 2.060 2.060 SUM TOTAL BENEFITS 19.130 26.060 32.960 Annualized benefits (000) - 2012 prices

COSTS OPERATORS’S COSTS Capital Costs (6%, 10 years) 2.900 Operating Costs 5.400 Sum Operator’s Costs 8.300 SUM TOTAL COSTS 8.300 Annualized Costs (000) - 2012 prices

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Findings

A. Business case Operators’ financial benefits exceed operators’ total costs. In the Base scenario B, SITS is comfortably profitable, in the Low scenario C is marginally viable. In the counterfactual case that SITS capital costs for metro were not sunk costs, a government contribution would be unavoidable to ensure financial viability. Key viability driver is the fraud rate

B. Benefits over costs ratio (B/C) In all “fraud rate“ benefit scenarios, SITS turns out to be socio-economically feasible. The Base scenario shows a B/C= 2,3, the Low scenario B/C=3,1 and the High scenario B/C=3,9 Note: i. Manifold potential benefits – increasing the B/C ratio - have not been monetized (e.g. survey cost savings, flexible tariff facilitation, planning benefits, multi-application benefits, know-how diffusion, de-congestion) ii. potential capital costs (optimism bias, contingencies) have been on the other side considered iii. Due to i) and ii), the results are safe downwards

C. Main beneficiaries Main beneficiaries of SITS are the operators, seconded by the users. Community represents also a winning stakeholder

D. Sensitivity analysis . A prolongation of the SITS useful life from 10 to 15 years improves the B/C ratio from 2,5 (Low scenario) to 4,1 (High scenario) . An increase of the real loan interest rate from 6% (=3% risk free + 3% risk component) to 8% (=3% risk free + 5% risk component), reduces marginally the B/C ratio from 2,2 (Low scenario) to 3,8 (High scenario)

Plans for future full scale implementation and long term sustainability

During the Transnational Workshop the experience from Oradea’s and Ancona’s systems will be transferred to Thessaloniki. This fact in combination with the final output can be used by any interested party that wishes to introduce such a system. The first step that should be implemented is the integration of Thessaloniki Public Transport Authority into a Metropolitan Authority. If this condition is fulfilled the indicative time framework is as follows:

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2014 2015 MONTHS 1 2 3 4 5 6 7 8 9 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 Preparation of    the Tender Announceme  nt of the tender Submission of    proposals Evaluation of    proposals Award   Contract  Operation of       the system Integration of   the system with the existing systems Full     Operational System

Conclusions & Recommendations

The pilot action of ThePTA has to do with the “INVESTIGATION OF INTEGRATED TICKETING AND SMART CARD FARE COLLECTION SYSTEMS, WITH A SPECIAL VIEW TO PASSENGER BEHAVIOUR AND FINANCIAL IMPLICATIONS”.

The final output of the pilot is a pre – feasibility study regarding the introduction of such a system in the city of Thessaloniki. This pre-feasibility study will be available to any interested body that wants to implement a common system. The problem in the case of Thessaloniki is that under the existing circumstances is very difficult for someone to implement such an action. The fact that Thessaloniki wishes to introduce and Integrated system for all the public transport modes and some functionalities of the city has as a result that the system cannot be introduced by the existing Operator of the Public Transport. Additionally, the role of ThePTA is not so effective. There is a strong belief among all the stakeholders of Thessaloniki that ThePTA should be Integrated and transformed to a Metropolitan Authority, with an integrated and clear role, recognized by all.

The Integrated Metropolitan Public Transport Authority will be responsible for setting the specifications of the system. Additionally, each Operator may have its own Back Office System, which will be connected with the Back office of the Metropolitan Authority. By this way the procedure of planning the public transport may become an easy activity. Finally, the Metropolitan Authority can ensure easier the financing of the system as well as the financial sustainability.

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Case study on Pilots

Bibliography 1. Basbas S. et al (2005), Examination of the use of roadside parking lots in urban areas: data collection considerations, World Parking Symposium, Stuttgart, Germany 2. California Path Program, Institute of Transportation Studies, University of California, Berkeley (2008), Evaluating the Costs and Benefits of Transit Smart Cards, USA 3. Calypso Network Αssociation (2010), Calypso Handbook: The contactless standard for a modern transport 4. Department for Transport (2009), Developing a strategy for smart and integrated ticketing, Consultation Paper 5. Department for Transport and Detica (2009), The benefits and costs of a national smart ticketing infrastructure 6. Department of Public Εnterprise Dublin, Proposal for integrated ticketing in the greater Dublin area, Report of Integrated Τicketing Committee 7. Department for Transport (2009), Smart and integrated ticketing Strategy 8. Fondrier C. (2007), E-Ticketing: Die praktische Umsetzung der VDV- Kernapplikation, DER NAHVERKEHR, 9/2007, p. 26-30 9. Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (2009), Smart Card Data in Public Transit Planning: A Review 10. Journal of Public Transportation, Vol. 15, No. 1, 2012, Are Smart Card Ticketing Systems Profitable? Evidence from the City of Trondheim 11. Mach S. (2011), Interoperables E-Ticketing in Deutscland vor dem Durchbruch, "stadtverkehr", 4/2011, p. 42-46 12. Mohamed Mezghani (2008), Study on electronic ticketing in public transport, Final Report, EMTA (European Metropolitan Transport Authorities) 13. Petersen P.H. (2004), Denmark Opts For Nationwide Travel Card, International Railway Journal, February 2004, p. 28-29 14. Public Transport Executive Group (2009), The Benefits of Simplified and Integrated Ticketing in Public Transport, United Kingdom, Booz&Co 15. PricewaterhouseCoopers LLP for Transport Scotland (2011), Smart and Integrated Report for Scotland 16. Urban ITS Expert Group, (2013), Guidelines for ITS Deployment in Urban Areas

Attachments Presentations Deliverables

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