2016/17 AfDB Joint Consulting Project : 2016/17 AfDB Joint Consulting Project : Support for Development of Metro's TVM System and Financial Procurement

Support for Development of Egypt 's System TVM and Financial Procurement

Ministry of Strategy and Finance, Republic of KoreaⅠGovernment Complex, Sejong, 30109, Republic of Korea www.mosf.go.kr The Export-Import Bank of KoreaⅠ38 Eunhaeng-ro, Yeongdeungpo-gu, Seoul, 07242, Republic of Korea www.koreaexim.go.kr

2016/17 KSP-AfDB Joint Consulting Project

Project Title Support for Development of Egypt Cairo Metro's TVM System and Financial Procurement

Prepared by SMDev, Korea Smart Card Corporation, Seoul Metro

Financed by Ministry of Strategy and Finance, Republic of Korea

Supported by The Export-Import Bank of Korea (Korea Eximbank) - Seung Ho Sohn, Director General - Jae Jeong Moon, Director of KSP Team - Su Min Han, KSP Specialist of KSP Team - Kun Young Lee, Researcher of KSP Team - Hee Kyung Ryoo, Researcher of KSP Team

African Development Bank (AfDB)

Prepared for Ministry of Transportation, Egypt

Project Manager Young Wook Park, SMDev

Researchers Sung Hoon Cho, SMDev Gil Woung Park, Korea Smart Card Corporation Ju Gil Yoon, Seoul Metro Eun Sook Hong, Seoul Metro

i Contents 2016/17 KSP-AfDB Joint Consulting Project

Summary

Ⅰ. Project Outline ·············································································································· 1 1 . B a c k g r o u n d & P u r p o s e ··················································································································· 1 2 . D e t a i l s a n d S c o p e ····························································································································· 2

Ⅱ. Status Survey & Diagnostic Evaluation ································································· 5 1 . S t a t u s o f C a i r o ··································································································································· 5 2. Status Survey and Diagnostic Evaluation of Public Transit Fare Collection S y s t e m i n C a i r o ······························································································································· 2 4 3 . A C a s e S t u d y o f K o r e a ················································································································· 5 2

III. Recommendations ··································································································· 122 1 . L e g a l E s t a b l i s h m e n t a n d P r o m o t i o n a l A c t i o n ······································································ 1 2 2 2. Improvements in Operation & Management of a Fare Collection S y s t e m ··············· 1 2 3

References ························································································································ 126

ii List of Tables

Table 1. Ranking of Large Cities in in Terms of Population & S i z e o f E c o n o m y ( 2 0 1 2 ) ································································································ 6 T a b l e 2 . A d m i n i s t r a t i v e D i v i s i o n s i n C a i r o ················································································· 7 Table 3. Ranking of Cities with Potential for an Active Middle Class Consumer M a r k e t b y 2 0 3 0 ················································································································ 8 T a b l e 4 . V i s i o n & D i r e c t i o n o f t h e C a i r o 2 0 5 0 P l a n ··························································· 1 0 Table 5. Traffic Volume & Modal Share in Cairo ································································18 T a b l e 6 . S t a t u s o f C a i r o M e t r o ··································································································· 1 9 T a b l e 7 . M e t r o - r e l a t e d C o n s t r u c t i o n P l a n s ( C a i r o ) ······························································ 2 3 T a b l e 8 . M e t r o C o n s t r u c t i o n P l a n s ( C a i r o ) ············································································· 3 2 T a b l e 9 . M e t r o T i c k e t P r i c e s ­ S o u t h b o u n d ············································································ 3 3 Table 10. Operations of Mini-buses/Taxis/Three-wheelers ················································ 3 7 T a b l e 1 1 . L i n e O p e r a t o r s ················································································································ 4 8 T a b l e 1 2 . S c o p e o f R F S y s t e m M a i n t e n a n c e b y l i n e ···························································· 4 9 T a b l e 1 3 . S t a t u s o f R o a d s i n S e o u l ···························································································· 53 Table 14. Methods for Assigning Route Number in Line with SMG R o u t e S y s t e m R e f o r m s ································································································· 7 0 Table 15. Player of Issuing and Opreating Transit Card before Implementing N e w T r a n s i t C a r d P o l i c y ( 1 9 9 0 - 2 0 0 3 ) ···································································· 7 6 T a b l e 1 6 . C o m p a r i s o n o f E x i t i n g & N e w T r a n s i t C a r d s ······················································· 8 0 T a b l e 1 7 . P r e v e n t i n g I l l e g a l U s e o f T r a n s i t C a r d s ·································································· 8 4 T a b l e 1 8 . P / L C o m p o s i t i o n ············································································································· 8 5 T a b l e 1 9 . B e n e f i t s o f U s i n g S e o u l ’ s T r a n s i t C a r d ·································································· 9 3 Table 20. Automatic Vending Machines (Comparing First & Second U n i t ) ·················· 9 6 Table 21. Status of Automatic Fare Collection System (As of Feb. 1 , 2 0 0 1 ) ·············· 9 7 T a b l e 2 2 . T y p e s o f M e t r o C a r d s / T i c k e t s i n S e o u l ·································································· 9 9 T a b l e 2 3 . M e t r o S t a t i o n M a n a g e m e t n F o r m s ········································································ 1 0 3 Table 24. Formula of Confirming Revenue Collected by a Machine ······························ 1 0 4 T a b l e 2 5 . M a i n F u n c t i o n s o f T i c k e t i n g M a c h i n e s ································································· 1 1 0 T a b l e 2 6 . M a i n F u n c t i o n s o f T i c k e t i n g M a c h i n e s ······························································· 1 1 1 T a b l e 2 7 . M a i n F u n c t i o n s o f R e f u n d M a c h i n e s ····································································· 1 1 2 T a b l e 2 8 . M a i n F u n c t i o n s o f T i c k e t O f f i c e M a c h i n e s ·························································· 1 1 3

iii Contents 2016/17 KSP-AfDB Joint Consulting Project

List of Figures

F i g u r e 1 . P r o j e c t B a c k g r o u n d ········································································································· 1 F i g u r e 2 . P r o j e c t P u r p o s e ················································································································ 2 F i g u r e 3 . S p a t i a l S c o p e ···················································································································· 3 F i g u r e 4 . A c t i v i t i e s o f t h e P r o j e c t ································································································· 3 F i g u r e 5 . P r o j e c t C o n t e n t s ·············································································································· 4 F i g u r e 6 . L o c a t i o n o f E g y p t & C o m p l e t e M a p o f C a i r o ······················································· 6 F i g u r e 7 . P o p u l a t i o n & R a t e o f G r o w t h : E g y p t ······································································· 9 Figure 8. Primary Demands as Identified in a Survey of R e g i o n R e s i d e n t s ··········································································································· 1 1 F i g u r e 9 . P o p u l a t i o n o f C a i r o & O t h e r C i t i e s ········································································ 1 1 Figure 10. Direction of Urban Development in the Cairo 2050 Plan ······························· 1 1 Figure 11. Urban Development Strategies under the Cairo 2050 Plan (by Region)··12 Figure 12. Plans for a Tourist Center in the South-east Region of 6th of O c t o b e r C i t y ···················································································································13 F i g u r e 1 3 . P l a n f o r R e d e v e l o p m e n t o f t h e N i l e R e g i o n ························································ 1 5 F i g u r e 1 4 . P l a n f o r R e d e v e l o p m e n t o f C a i r o C e n t r a l P a r k ·················································· 1 5 F i g u r e 1 5 . 2 0 5 0 M e t r o C o n s t r u c t i o n P l a n ················································································· 1 6 F i g u r e 1 6 . 2 0 5 0 B R T B u s R o u t e P l a n ························································································· 1 6 F i g u r e 1 7 . R i n g R o a d P l a n ·············································································································· 1 7 F i g u r e 1 8 . T r a n s f e r C e n t e r P l a n ··································································································· 1 7 F i g u r e 1 9 . T r a f f i c C o n g e s t i o n i n C a i r o ······················································································· 1 8 F i g u r e 2 0 . D e v i c e s a n d F a c i l i t i e s o f C a i r o M e t r o ···································································· 2 0 F i g u r e 2 1 . M o t o r i z e d V e h i c l e S e r v i c e s . ······················································································· 2 1 F i g u r e 2 2 . T r a m F a c i l i t y & t h e B R T P l a n ················································································· 2 2 F i g u r e 2 3 . M e t r o C o n s t r u c t i o n P l a n s f o r E g y p t ······································································· 2 3 Figure 24. Organization of Public Transportation in Cairo ·················································· 2 4 F i g u r e 2 5 . C a i r o S t a t i o n ·················································································································· 2 5 F i g u r e 2 6 . N A T O r g a n i z a t i o n a l ······································································································ 2 5 F i g u r e 2 7 . L i n e 1 & 2 R o u t e M a p ······························································································ 2 6 F i g u r e 2 8 . L i n e 3 R o u t e M a p ········································································································ 2 7 F i g u r e 2 9 . L i n e 4 R o u t e M a p ········································································································ 2 7 F i g u r e 3 0 . L i n e 5 R o u t e M a p ········································································································ 2 8 F i g u r e 3 1 . L i n e 6 R o u t e M a p ········································································································ 2 8 F i g u r e 3 2 . Q a l y u b i a P r o j e c t ············································································································ 2 9 F i g u r e 3 3 . P o r t S a i d P r o j e c t ··········································································································· 2 9 iv F i g u r e 3 4 . C a i r o M e t r o O r g a n i z a t i o n C h a r t ··············································································· 3 0 F i g u r e 3 5 . C a i r o M e t r o O r g a n i z a t i o n C h a r t ··············································································· 3 4 F i g u r e 3 6 . B u s T y p e s ······················································································································· 3 5 F i g u r e 3 7 . U s e o f C T A T r a n s p o r t a t i o n ······················································································· 3 5 Figure 38. Route Map for Common Buses and Mini-buses ················································ 3 6 F i g u r e 3 9 . T y p e s o f M e t r o T i c k e t s ······························································································38 Figure 40. Transit Card Promotion & Reloading Information ············································· 4 0 F i g u r e 4 1 . C a r d I s s u i n g P r o c e s s ··································································································· 4 2 F i g u r e 4 2 . C a r d R e f u n d P r o c e s s ··································································································· 4 2 F i g u r e 4 3 . R F D e v i c e T y p e s ··········································································································· 4 2 F i g u r e 4 4 . G a t e T y p e s ····················································································································· 4 3 F i g u r e 4 5 . P o r t a b l e R F r e a d e r ······································································································· 4 4 Figure 46. Network Configuration of Station Management System································· 4 5 F i g u r e 4 7 . N e t w o r k C o n f i g u r a t i o n o f L i n e C o n t r o l S y s t e m ·················································· 4 5 F i g u r e 4 8 . A F C S y s t e m D i a g r a m a f t e r I m p r o v e m e n t s ··························································· 4 6 F i g u r e 4 9 . M e t r o L i n e 2 M S L C U S y s t e m ················································································· 4 6 F i g u r e 5 0 . R F C e n t r a l S y s t e m ········································································································ 4 7 F i g u r e 5 1 . C a i r o M e t r o O r g a n i z a t i o n C h a r t ··············································································· 4 8 F i g u r e 5 2 . G e n e r a l D i a g n o s i s o f S t a t u s ····················································································· 5 0 F i g u r e 5 3 . A r e a o f S e o u l ················································································································· 5 2 F i g u r e 5 4 . T o t a l P o p u l a t i o n o f S e o u l ·························································································· 52 Figure 55. No. of Vehicles Registered with Seoul Metropolitan Go v e r n m e n t ··············· 5 3 F i g u r e 5 6 . S e o u l I n t e l l i g e n t T r a n s p o r t S y s t e m ········································································· 5 4 F i g u r e 5 7 . S e o u l T r a n s f e r C e n t e r ································································································· 5 5 F i g u r e 5 8 . B u s I n f r a s t r u c t u r e i n S e o u l ························································································ 56 F i g u r e 5 9 . S e o u l M e t r o p o l i t a n M e t r o L i n e M a p ······································································ 5 7 F i g u r e 6 0 . T r e n d s i n M e t r o O p e r a t i o n s ······················································································ 5 8 F i g u r e 6 1 . S t a t u s o f T r a i n O p e r a t i o n s ························································································ 5 8 F i g u r e 6 2 . P a s s e n g e r T r e n d s ( b y M e t r o L i n e ) ········································································ 5 9 F i g u r e 6 3 . M e t r o C o n g e s t i o n T r e n d s ·························································································· 5 9 F i g u r e 6 4 . M e t r o F a r e T r e n d s ······································································································· 6 0 F i g u r e 6 5 . N u m b e r & T r e n d o f F r e e M e t r o R i d e s ································································· 6 1 F i g u r e 6 6 . G r o u n d f o r & T h o s e E l i g i b l e f o r F r e e R i d e s ······················································· 6 1 Figure 67. Screen Doors & Provision of Information on Metro Trai n A r r i v a l s ············· 6 2 F i g u r e 6 8 . G a t e s & T i c k e t V e n d i n g M a c h i n e s ········································································· 6 2

v Contents 2016/17 KSP-AfDB Joint Consulting Project

F i g u r e 6 9 . S e o u l B u s T y p e s ··········································································································· 6 3 Figure 70. Number of Bus Lines (by Bus Type) & Vehicles ············································· 6 3 F i g u r e 7 1 . B u s P a s s e n g e r N u m b e r s ···························································································· 6 4 F i g u r e 7 2 . E x c l u s i v e B u s L a n e E x t e n s i o n s ················································································ 6 4 F i g u r e 7 3 . I n t r a - c i t y B u s S t a t i o n s ································································································ 6 5 F i g u r e 7 4 . P u b l i c G a r a g e s f o r B u s e s & P a r k i n g S l o t s ·························································· 6 5 F i g u r e 7 5 . A d o p t i o n o f L o w - f l o o r B u s e s & N u m b e r s ··························································· 6 6 F i g u r e 7 6 . A d o p t i o n o f C N G B u s e s & N u m b e r s ····································································· 6 6 F i g u r e 7 7 . F i n a n c i a l S u p p o r t f o r I n t r a - c i t y B u s e s ··································································· 6 7 Figure 78. Concept Map to Establish Hierarchy by Bus Functions ··································· 6 8 Figure 79. Bus Operation Zones & Zone Classification Map in Seou l ···························· 6 9 Figure 80. Medium Exclusive Bus Lanes in Seoul (2004~2015) ······································· 7 0 F i g u r e 8 1 . T h e B u s I n f o r m a t i o n S y s t e m i n S e o u l ··································································· 7 2 F i g u r e 8 2 . B a c k g r o u n d o f t h e R e f o r m ························································································ 7 3 F i g u r e 8 3 . F a r e S y s t e m ··················································································································· 7 5 Figure 84. Status of Seoul Transit Card Operation in the Mid-199 0 s ···························· 7 7 Figure 85. Status of Seoul Transit Card Operation in the late 19 9 0 s ···························· 7 7 F i g u r e 8 6 . N e w T r a n s i t C a r d S y s t e m ( 2 0 0 4 ) ··········································································· 7 9 F i g u r e 8 7 . S m a r t C a r d S t r u c t u r e ·································································································· 8 0 F i g u r e 8 8 . W h o l e B l o c k D i a g r a m o f t h e S y s t e m ···································································· 8 1 F i g u r e 8 9 . N e w T r a n s i t C a r d S y s t e m ( 2 0 1 6 ) ··········································································· 8 2 F i g u r e 9 0 . B l o c k D i a g r a m o f t h e I n f r a s t u r c t u r e ······································································· 8 2 F i g u r e 9 1 . C h a r a c t e r i s t i c s o f S e o u l S m a r t T - M o n e y ····························································· 8 3 F i g u r e 9 2 . U s i n g S m a r t T - M o n e y ································································································ 83 F i g u r e 9 3 . S h i f t t o F a u l t y C a r d W h e n L o s i n g t h e C a r d ······················································· 8 4 F i g u r e 9 4 . B / L C o m p o s i t i o n ············································································································ 8 5 F i g u r e 9 5 . R a i l S y s t e m B L / P L O p e r a t i o n ···················································································· 8 6 F i g u r e 9 6 . B u s S y s t e m B L / P L O p e r a t i o n ··················································································· 8 6 F i g u r e 9 7 . B u s D e v i c e O p e r a t i o n ·································································································· 8 7 Figure 98. Bus Get on/Alight Device & Driver’s Manipulator ············································ 8 7 F i g u r e 9 9 . O p e r a t i o n o f U r b a n M e t r o D e v i c e ·········································································· 8 8 Figure 100. Composition of Urban Metro Device (Validator) ············································· 8 8 Figure 101. Operation of Urban Metro Collection System ··················································· 8 9 F i g u r e 1 0 2 . O p e r a t i o n o f a R e l o a d e r S y s t e m ··········································································· 9 0 F i g u r e 1 0 3 . R e l o a d i n g P r o c e s s ······································································································ 9 0 vi F i g u r e 1 0 4 . T h e A d j u s t m e n t S y s t e m ··························································································· 9 1 Figure 105. Comprehensive Adjustment System in the Metropolitan A r e a ··················· 9 1 F i g u r e 1 0 6 . S e o u l T - m o n e y C a r d s ······························································································· 92 F i g u r e 1 0 7 . C a s e s o f E l e c t r o n i c C a s h F u n c t i o n s ····································································· 9 2 F i g u r e 1 0 8 . S e o u l T - m o n e y C a r d O p e r a t i o n s ·········································································· 9 3 F i g u r e 1 0 9 . E f f e c t s o f A d o p t i n g N e w T r a n s i t 4 C a r d ······························································ 9 4 F i g u r e 1 1 0 . D e v e l o p m e n t s o f A F C S y s t e m f o r S e o u l M e t r o ··············································· 9 4 F i g u r e 1 1 1 . B e f o r e A d o p t i n g A F C ································································································· 9 5 F i g u r e 1 1 2 . M S B o a r d i n g T i c k e t ··································································································· 9 7 F i g u r e 1 1 3 . I n t r o d u c t i o n o f R F C a r d s ·························································································· 98 Figure 114. Changes after Introducing the RF Transit Card ··············································· 9 9 Figure 115. SMRT’s Fare Collection System Operation & Organization Chart f o r M a i n t e n a n c e ······································································································· 1 0 0 Figure 116. Status of AFC Operation and Maintenance for Seoul Me t r o ···················· 1 0 1 F i g u r e 1 1 7 . T r a n s p o r t R e v e n u e H a n d l i n g F l o w c h a r t ·························································· 1 0 5 F i g u r e 1 1 8 . N e t w o r k B l o c k D i a g r a m ························································································· 1 0 6 Figure 119. Background of and Purpose for the RF Single Journey Card Project ···107 F i g u r e 1 2 0 . R F I D B o a r d i n g T i c k e t ······························································································ 107 F i g u r e 1 2 1 . S i n g l e J o u r n e y C a r d S y s t e m A r c h i t e c t u r e ························································ 1 0 8 F i g u r e 1 2 2 . U s e o f a n R F S i n g l e J o u r n e y C a r d ···································································· 1 0 9 Figure 123. Exterior and Block Diagram of a Vending Machine for Single J o u r n e y T i c k e t ··········································································································· 1 1 0 Figure 124. Exterior and Block Diagram of Adjustment Device······································ 1 1 1 Figure 125. Exterior and Block Diagram of Refund Machine ··········································· 1 1 2 Figure 126. Exterior and Block Diagram of Ticket Office Machine································ 1 1 3 F i g u r e 1 2 7 . R F S i n g l e J o u r n e y C a r d M a p ··············································································· 1 1 4 Figure 128. Locations for RF Single Journey Card Machines (Examp l e ) ······················ 1 1 4 Figure 129. Plan Implementation & Monitoring Process ···················································· 1 1 5 Figure 130. Equipment Standards for the Use of Pre-/Post-paid Ca r d s ····················· 1 1 8 Figure 131. Technology Standards for Nationwide-compatible Transit Cards under the Ministry of Land, Infra s t r u c t u r e a n d T r a n s p o r t ························· 1 1 8 F i g u r e 1 3 2 . A u t h e n t i c a t i o n W o r k S y s t e m C h a r t ···································································· 1 1 9 F i g u r e 1 3 3 . N a t i o n w i d e C o m p a t i b l e T r a n s i t C a r d ································································· 1 2 1 Figure 134. Methods to Improve Operation & Management of the Fare C o l l e c t i o n S y s t e m ····································································································· 1 2 3

vii Contents 2016/17 KSP-AfDB Joint Consulting Project

List of Abbreviations

AFC Automatic Fare Collection AfDB African Development Bank BIS Bus Information System BL Black List BMS Bus Management System BRT Bus CBO Center Back Office CPU Central Process Unit CTA Cairo Transport Authority EDCF Economic Development Cooperation Fund EEPROM Electrically Erasable Programmable Read Only Memory EGP Egypt pound ENR Egyptian National Railways EMV Europay, MasterCard, Visa GCBC Greater Cairo Bus Company GOPP General Organization for Physical Planning ISO International Organization for Standardization I/O Input/ Output ITS Intelligent Transportation Systems JICA Japan International Cooperation Agency KEXIM Export Import Bank of Korea KSCC Korea Smart Card Company KSP Knowledge Sharing Program LPR License Plate Recognition LCU Line Control Unit MS Magnetic Stripe MOIC Ministry of Investment and International Cooperation MOT Ministry of Transport NAT National Authority of Tunnels O&M Operation and Management PCB Printed Circuit Board PL Positive List RF Radio Frequency RAM Random Access Memory ROM Read Only Memory viii

SAM Security Authentication Module SCU Station Control Unit SMRT Seoul Metro Rapid Transit SMG Seoul Metropolitan Government TOPIS Transport Operation and Information Service TOM Ticket Office Machine TVM Ticket Vending Machine

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Summary

The City of Cairo, Egypt, has built and operated an efficient public transportation system to address traffic problems and also plans to expand it. However, the City has been faced with interoperability and compatibility issues among the independently-being-operated fare collection systems of the existing public systems, more specifically of metro systems. They consist of all different types of fare media such as magnetic stripe (MS) tickets and contactless transportation cards of all different vendors. Meanwhile a new Automatic Fare Collection(AFC) System is to be introduced to the metro lines under construction. The Egyptian government asked for Korea's cooperation, along with the AfDB, in resolving these issues. Accordingly, the Korean Government decided to apply the Knowledge Sharing Program for the establishment of a basic plan for the enhancement of AFC systems of Cairo Metro through a joint KSP-AfDB consultation project.

Cairo Metro consists of 3 metro lines and represents the first metro in Africa and . The current fare for each metro line is 2EGP () for a single journey, irrespective of travel distance. Cairo Metro adopted a flat fare system, charging one fare (EGP 2) regardless of distance, time or service category, and regardless of boarding and alighting stations. It is possible to transfer between metro lines with the same ticket, as the same agencies operate Lines 1 to 3. There is no transfer system with other modes of transport, such as buses. An RF transit card is purchased at 25EGP and can be recharged by increments of between 10EGP and 100EGP

Both MS tickets and RF transit cards are being used as fare media. The RF transit card system was introduced in 2015, RF validators are installed on some turnstile gates. The fare collection facilities are being operated and managed by Cairo Metro. Even though the facilities were built well by the world-renowned fare collection system vendors, it has difficulties in maintaining the system and facilities in a proper way. It has been claimed that insufficient budget for maintenance is the main reason for the difficulties. However, in a technological sense, the vendor dependency on equipments and technologies should be the primary concern. And, in a management aspect, it also should be pointed that the capacity of Cairo Metro x Summary

has not been built up to manage and operate the fare revenue collection and protection effectively. Due to technological dependency, the cost of operation and maintenance became uncontrollable. And the lack of capacity in management could not have protected fare revenue from being lost or promoted its revenue to its potential.

Through the comparative review of fare collection practice in Cairo to the history and the status of fare collection operation of Korean public transport, this study could draw two points to be addressed: establishment and enforcement of national standards for fare collection related technologies and capacity building for the relevant management organizations and personnel.

It is strongly recommended for the central government to establish technology standards of AFC-related systems and devices and announce them as the national standards. These standards are to help the related companies to prepare their solutions and devices in advance. It results that the local government could shorten AFCS project periods and costs and avoid the vendor-dependency. Based on the national standards, the central government could develop test-and-certificate system and this system could help the quality of AFCS project to be guaranteed. In addition, the central government needs to set up a comprehensive national plan for installation of the transit card devices for public transit operators to accept other transit cards.

Under the current system of Cairo Metro, the transit card is not the major fare media and its use needs to be promoted. In the current Cairo Metro, passengers with period tickets only can get discount benefit. Public transit fares in Cairo are so low that discounts would be difficult to be implemented. However, since the promotion of transit card use is to lead to significant saving of operational cost and to contribute to the transparency of fare revenue, it is strongly recommended that Cairo Metro takes promotional action for transit card use. In particular, in Cairo, the general buses of trunk role are run by CTA, a public entity, while the metro is under Cairo Metro, another public entity. It implies that political determination could easily lead to introduction of a variety of promotional actions over the whole public transportation system in Cairo.

It is strongly recommended that a dedicated entity should be in charge of the transit fare and transit card related policies and planning and all the work processes and manual of transit fare and transit fare media should be reorganized. A national basic plan should be established. Cairo City, Cairo Metro and CTA should formulate detailed action plans for the short, mid- and long term from of the national plan. To be effective, it requires joint efforts by the government and public transit operating entities. Plans should consider ways of establishing standards and players who will run the authentication system. An integrated settlement system

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and ways to select its operator should be considered as well.

To create a transit card market with various forms of cards (such as pre-paid cards, bank cards and mobile cards) and diverse issuing parties, the related standard technologies should be defined. Since transit card systems depend on their fare structure, to achieve the interoperability of AFCS over a city like Cairo with multiple modes of transport and various fare products, the business rules for fares and fare products should be carefully designed. And the technologies for the accommodation of these business rules also should be carefully designed. On top of these, the information management for interoperability should be executed at the level of government. Furthermore, international standards should be applied in accordance to fit Egypt’s situation. Standards should also be set up for interoperability of devices, reloaders and SAM as well as for each form of card (pre-paid, post-paid, mobile).

As shown in Korea case, there needs to be certification system for the approval of transit card operators. Since a transit card is a type of prepaid card, if the pre-paid card operator happens to be in insolvency, the franchised transit operator cannot have the fare back. Accordingly, the supervising entity should continuously monitor pre-paid card companies to ensure they remain financially stable and reliable. Also, certification regarding transit card and transit card reader should be established. If a card is used in multiple transit operators, each reader creates transaction records with the card in line with the same contracted rules without error. When handling a card with a device, instability could result in value-related errors, which could cost either the card holder or transit card operator.

The current system is designed for cards issued by Cairo Metro to be used on the system directly operated by Cairo Metro. For cards issued by Cairo Metro to be used on other modes of transport, the center will need to manage information on card issuance, card transactions, reloading, reloading stations, card distribution, card-using processes for approval/returns/ payment and Black list. Device management is especially needed in terms of reloading limits and the process for refunds. To realize a multi-issuer, multi-operator system, a system is needed that can collect more detailed information and control major hardware at the center. Moreover, as the center distributes operational information and device software, it needs to have a system that can flexibly respond to the demands of various policies and card companies

Moreover, as the center distributes operational information and device software, it needs to have a system that can flexibly respond to the demands of various policies and card companies. Manual distribution of software will carry significant costs, as well as causing errors in fare handling until the distribution is complete. Countermeasures against this will be needed.

xii Ⅰ. Project Outline

Ⅰ. Project Outline

1. Background & Purpose

1.1. Background

The Republic of Korea has actively provided policy advice and consulting to developing countries through the Knowledge Sharing Program (KSP), led by the Ministry of Strategy and Finance. The City of Cairo, Egypt, has experienced the drastic increase of traffic demands as its population continues to grow, which has resulted in serious challenges like traffic congestion and air pollution. To resolve these issues, Egypt’s government has built metro lines and now plans to expand them. Furthermore, Cairo government has given much consideration to the issue of interoperability and extendibility of fare collection system in parallel with constructing new lines of metro. The Egyptian government and the AfDB (African Development Bank) have requested assistance from Korea in tackling the interoperability issues in fare collection system and to improve the current situation. To this end, Korean government would

Figure 1 Project Background

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like, through the joint KSP-AfDB consulting project, to share its experience with the city of Cairo in developing a basic plan for implementation of a new ticket vending machine(TVM) system of Cairo Metro for more effective operation and management.

1.2. Purpose

The purpose of this project is to contribute to development of an effective transit infrastructure and to eventually strengthen the urban competitiveness of Cairo through analysis of the status of the fare collection system of Cairo Metro, diagnosing the problems, and then suggesting a way to adopt efficient systems based on the Korean experience with the AFC system.

Figure 2 Project Purpose

2. Details and Scope

2.1. Temporal Scope

The duration of the project is 7 months, initiated on November 14, 2016 and ended on May 15, 2017.

2.2. Spatial Scope

The spatial scope of this project is the whole area of Cairo (Egypt) where the AFC is relevant to the public transit system.

2 Ⅰ. Project Outline

Figure 3 Spatial Scope

2.3. Contextual Scope

2.3.1. Contents of the Project Concept Paper

The features of the project, suggested in the Project Concept Paper (PCP), consist of four activities 1, 2, 3, 8 while capacity-building program was to be held in Korea.

Figure 4 Activities of the Project

Source: Project Concept Paper for Knowledge Sharing Program, pp.5~6

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2.3.2. Project Content

There are four features of the project and the details of each are specified and elaborated.

Figure 5 Project Contents

4 Ⅱ. Status Survey & Diagnostic Evaluation

Ⅱ. Status Survey & Diagnostic Evaluation

1. Status of Cairo

1.1. Generals

Cairo is the capital of Egypt and the largest city in the Arab region and on the African continent. It is one of the oldest Islamic cities and holds the nickname of “the capital of the Arab world”.

- Official name: Mohafaza Al Qahirah - Position under administrative law: Cairo Governorate - Administrative divisions: 37 divisions (kism), 4 zones - Size: 3,085 ㎢ - Population: 9.28M (2015), about 18M in metropolitan Cairo area (2015) - Population density: 3,047 persons/㎢ - Language: Arabic - Gross Regional Domestic Product: USD 168B (2013) - PPP per capita: USD 2,980 (2014) - Climate: Desert with 25mm annual rainfall - Average Temperature: Max. 40℃ - Min. 20.5℃ in summer, Max. 18.2℃, Min. 8.8℃ in winter - Ethnic groups: Arab (94.12%), Copt (5.82%), Others (0.06%)

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Figure 6 Location of Egypt & Complete Map of Cairo

Source: Seoul Institute, World and Cities Vol. 12, 2015

1.2. Society

1.2.1. Geography

Cairo is in a strategic location that connects , Africa, and Europe, as well as the Mediterranean and at the north-eastern part of Egypt. It has been developed at a location where the Delta and desert meets east of the Nile, 165 km south of the Mediterranean and 120 km west of the Canal.

Cairo has the largest population of the 96 big cities in Africa, and the second largest economy, making it one of the most developed cities in North Africa and the Middle East.

Ranking of Large Cities in Africa in Terms of Table 1 Population & Size of Economy (2012)

Index Ranking by Population Ranking by Size of Economy

1 Cairo (Egypt) Johannesburg (Republic of South Africa) 2 Lagos (Nigeria) Cairo (Egypt) Kinshasa 3 Luanda (Angola) (DemocraticRepublicoftheCongo) 4 Johannesburg (Republic of South Africa) Capetown (Republic of South Africa) 5 Luanda (Angola) Pretoria (Republic of South Africa)

Source: Oxford Economics, 2014(a), p.3

6 Ⅱ. Status Survey & Diagnostic Evaluation

1.2.2. Administration

In accordance with the administrative law of Cairo, it consists of 37 administrative divisions in 4 zones.

Table 2 Administrative Divisions in Cairo

Index Zone Administrative Divisions Comment 1 Heliopolis 2 Salam 1 3 Salam 2 4 Mataria 5MargEast 6Nozha 7 Ain Shams 8 City East 9Nasr City West 10 Gharb New city area 11 Abdeen Cairo City Hall 12 Azbakia 13 Mousky 14West Wasat 15 Bab Shaarea 16 Waily 17 Boulak 18 Manshyet Naser Largest slum zone in Egypt 19 Sayeda Zainab Historic city area 20 Khalif Historic city area 21 Basatin 22 Dar Al-Salam South 23 Mokattam New city area 24 25 Maasara 26 27 Tebbin 28 15-May 29 Masr El-kadima Historic city area 30 Tourah 31 Shoubra 32 Sahel 33 Zaitoun 34North Hadayek El-kouba 35 Zawia El-hamra 36 Rod El-farag 37 Sharabia Source: Seoul Institute, World and Cities Vol. 12, 2015

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1.2.3. Economy

Cairo started industrialization from the 19th century and has been rapidly developed since the Revolution of Egypt in 1952. At the early stage of industrialization, the development of the city was based on the textile and food processing industries and later with the steel and consumer goods industries. Long staple cotton has been the traditional industry of Egypt.

The GDP of Cairo is 168 billion USD as of 2013 and about 56% of the national economy. The service industry is ranked first regarding the employment, followed by public service, finance industry and trade are in order. Tourism is the most valuable national revenue source and the arms trade, oil industry and tariffs follow.

PwC ranks cities for business opportunity in Africa and Cairo was the first in evaluations of infrastructure, human resources, economy, society and demographics. (CNN, Top 10: Africa’s Cities of Opportunity, March 17, 2015) Oxford Economics expects that the potential for a middle-class consumer market in Cairo will increase from 15th place in 2013 to 9th in 2030.

Ranking of Cities with Potential for an Active Table 3 Middle-Class Consumer Market by 2030

Rank in Rank in Size of Middle Class in City Name (Country Name) 2030 2013 2030 (million households)

Jakarta (Indonesia) 1 2 9.4

Chongqing (China) 2 8 8.7

Shanghai (China) 3 5 8.6

Tokyo (Japan) 4 1 7.7

Beijing (China) 5 13 7.6

Sao Paulo (Brazil) 6 4 5.6

Buenos Aires (Argentina) 7 7 5.1

Tianjin (China) 8 23 5.0

Cairo (Egypt) 9 15 5.0

Mexico City (Mexico) 10 6 4.7

Source: Oxford Economics, 2014(a), p.3

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1.2.4. Demography

Since the late 1960s, the rate of population influx has increased significantly in Cairo. In 1927, the city’s population reached 1M for the first time, and by 1947 it was 2M; 13 years later in 1960, the population reached 3M and then 5M by 1970. The annual population growth rate was 1~2% in the 1930s, increased to 4% by the 1960s and back to 2% by the 1970s. As of 2015, the population is recorded as 9.28M, with about 18M people living in the Greater Cairo Region.

With an open-door policy beginning in 1973, international investment expanded and urbanization has progressed rapidly in Cairo, and urban sprawl has spread to neighboring regions. In 1986, the population of Cairo was 6.069M, but the urbanization of neighboring areas like and Qalyibia meant that the population of the Greater Cairo Region surpassed 10M. From 1990 to early 2000, the growth rate slowed down, but after the revolution in 2011, it has begun to rise. (, Official (December 1, 2015): “Egypt will have 90 million residents by next week”) The World Bank states that the annual population growth rate of Egypt was 1.7~2% between 2006 and 2010, but rose to 2.1~2.3% between 2011 and 2014. As of 2015, the populations of Cairo, Giza and Qalyibia had increased to 9.28M, 7.58M and 5.1M, respectively. (Central Agency for Public Mobilization and Statistics, Egypt in Figures 2015)

The urban population in the Greater Cairo Region is about 16M, or about 18% of the total national population and 43% of its urban population.

In 2017, according to the UN, Egypt is the fifth in the world in terms of population (94M people).

Figure 7 Population & Rate of Growth: Egypt

Source: http://www.worldometers.info/world-population/egypt-population/

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1.3. Status of Urban Development

1.3.1. The Cairo 2050 Plan

The Egyptian government initiated its ‘Cairo 2050 Plan’ in 2008 to modernize and globalize the city to resemble Tokyo and Paris. (Nada Tarbush, 2012) The Cairo 2050 Plan is a strategic urban development plan for the Greater Cairo Region and had a budget of USD 3.5M under the Mubarak administration. This plan has been pursued as the GOPP (General Organization for Physical Planning) and handles urban planning and national development, working with several organizations like UNDP, UN-Habitat, the World Bank, GIZ (Aid organization under the German government) and JICA (Japan International Cooperation Agency).

Table 4 Vision & Direction of the Cairo 2050 Plan

Vision Direction

•Become a gateway city to Africa, emerging as the best capital in the Middle East Global •Become a regional and international hub in politics, administration, culture, tourism and economy •Build an image as a world heritage capital

•Create an excellent physical and architectural urban scape, remove slum areas Green •Construct pedestrian paths, public and green spaces

•Create greater social connection •Physically connect the city through road networks and efficient public Connected transportation •Connect in technological terms

Source: Seoul Institute, World and Cities Vol. 12, 2015

Major issues and challenges, faced by the Greater Cairo Region, include rapid urbanization and population influx. The population of the Greater Cairo Region is currently 21.97M and is expected to reach 23M in 2030 and 38M in 2050.With rapid urbanization, about 60% of the residents living in the Greater Cairo Region have settled in “ashwa'iyyat,” unofficial housing, which takes up half of the entire urban area. 75% of residents live within 20 km of the downtown area, giving rise to such issues as overpopulation in the downtown area, extended unofficially-developed areas, traffic congestion and environmental degradation.

In 2006, a survey on about 50,000 households was conducted towards identifying the priority tasks in the region. The survey showed that sanitation, improvement of public facilities, extension of transportation networks, development of existing and new housing and provision of urban infrastructure were on the most pressing demand.

10 Ⅱ. Status Survey & Diagnostic Evaluation

Primary Demands as Identified in a Figure 8 Survey of Greater Cairo Region Residents

Source: Seoul Institute, World and Cities Vol. 12, 2015

The ultimate goal of the Cairo 2050 Plan is to decentralize the population presently concentrated within 20 km of Cairo to suburban areas (Within 20kim of the Greater Cairo Region, 75% of its population is concentrated).

Figure 9 Population of Cairo & Other Cities

Cairo Seoul Paris Tokyo Mexico City New York

Source: Cairo Vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p. 10

Figure 10 Direction of Urban Development in the Cairo 2050 Plan

Source: Cairo Vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.10

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Achievement of the goals in the 2050 Plan are being sought through different strategies for the downtown areas, neighboring regions and suburbs and strengthening interconnection. In downtown area, it plans to maximize the benefits of each component by improving the regional value of downtown. In neighboring areas, to aim to reduce population density in Baulaq Al-Dakrour and Ain Shams. And it is to promote the development of the Express Transport Network in the metropolitan area to reduce travel times within 1 hour between downtown, neighboring areas and the suburbs.

Figure 11 Urban Development Strategies under the Cairo 2050 Plan (by region)

Source: Cairo Vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.10

1.3.2. Major Plans to Develop Cairo into a Global City

1) Improving Khedival Cairo

This project aims to expand pedestrian paths, put in large city plazas, make use of some areas of the formal central government complex as a park or cultural space and build several underground parking lots.

2) Khufu Plaza Parko

This project aims to make improvements to the unofficial residences near the cultural historic site of the Giza Pyramids, encourage tourism and leisure, build underground parking lots and draw up suitable landscape plans.

12 Ⅱ. Status Survey & Diagnostic Evaluation

3) Nazlet El-Semman area

This project aims to relocate residents living in unauthorized areas near cultural and historic sites and make better use of utilizing the area in terms of leisure and culture.

4) Construction of a new government complex

Aims to relocate some governmental offices in the downtown area to the suburbs → a new financial and business hub will be established in East Cairo on an area of 1,800 feddan (7.56 ㎢) and be connected to the downtown area by express Tram and metro.

5) Pursue large-scale projects to attract new investment and create jobs in and City

It will establish technology universities at major development areas, increase the number of hotels which has more than 50,000 rooms and establish an international library. A tourism, sports and medical/health hub will be established near 6th of October City. Logistics facilities dispersed in downtown areas will be integrated and relocated to 6th of October City suburbs.

Plans for a Tourist Center in the South-east Region Figure 12 of 6th of October City

Source: Cairo vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.48

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1.3.3. Major Plans to Develop Cairo into a “Green” City

1) Redevelopment of Nile Region

Involves changing roads into one-way streets and improving the environment of neighboring areas. The area will be developed into an administrative, service and tourist zone (Total size: 1,200 feddan (5.04 ㎢)).

2) Development of Nile islands

State-owned land will be developed as public parks. Island residents will be permitted to stay, and essential services will be provided, as well as support for economic activity to meet the demands of tourism and new leisure activities. Approximately 10% of the land will be allocated as commercial area and leisure and service facilities provided.

3) Development of Korsaya island and Giza area

El-Moneeb park and Korsaya park will be constructed on an area of 18 feddan (75,600 ㎡) and 80 feddan (336,000 ㎡), respectively. Existing residences will be redeveloped as a residential area with special characters and restaurants and cafes will be allowed.

4) Development of northern El-Giza

 Airport Park was constructed (Size: 38 feddan (159,600 ㎡), completed in 2010)

5) Construction of Cairo Central Park

This project will involve relocating a cemetery area in the northern part and construction of a central park area on 600 feddan (2.52 ㎢) of land. Major historical and cultural relics will be protected, and the traditional craft industry regenerated. A cultural and sports park will also be built.

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Figure 13 Plan for Redevelopment of the Nile Region

Source: Cairo vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.57

Figure 14 Plan for Redevelopment of Cairo Central Park

Source: Cairo vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.68

1.3.4. Major Plans to Develop Greater Connectivity to Cairo

The main goals here are to strengthen the connectivity with new cities and prepare for ever-increasing traffic volumes through implementation of a basic transport plan for the Greater Cairo Region and promoting construction of various transport networks with the JICA.

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The 2050 Master Plan for Transportation in the Greater Cairo Region aims at building Metro networks and constructing 15 express tram and metro routes for a length of 600 km.

Figure 15 2050 Metro Construction Plan

Source: Original Cairo 2050, p. 65 (https://cairofrombelow.wordpress.com/cairo2050/)

For a bus network, the BRT (Bus Rapid Transit) will be adopted for operation on arterial roads in the Greater Cairo Region and major roads and “bending” buses will be introduced to improve passenger service capacity.

Figure 16 2050 BRT Bus Route Plan

Source: Original Cairo 2050, p. 81 (https://cairofrombelow.wordpress.com/cairo2050/)

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This project (Arterial Road Network) aims to construct a 750-km that connects New Cairo City, 6th of October City and El Sadat City by 2030.

Figure 17 Ring Road Plan

Source: Cairo vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.87

This project will result in construction of a transfer center at major spots in and outside the city to reduce the use of vehicles in the Greater Cairo Region.

Figure 18 Transfer Center Plan

Source: Cairo vision 2050, The Strategic Urban Development Plan for the Greater Cairo Region, p.98

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1.4. Status of the Transportation Infrastructure

1.4.1. Vehicles & Modal Split

More than half of the vehicles in Egypt are registered in Cairo, and the vehicle ownership in the city is increasing rapidly by 4% per year. The number of vehicles registered in Cairo surpassed 2M in 2007, with 100,000 vehicles added each year since then, bringing the 2015 total to 2.7M. The average traffic velocity has decreased from 18 km/h in 2002 to 10~15 km/h in 2015. The average traffic volume in 2015 was 22M vehicles a day.

Table 5 Traffic Volume & Modal Share in Cairo

Index Traffic Volume (Trips/day) Modal Share (%) Metro 350,000 15.9% Buses 250,000 11.4% Taxis 650,000 29.5% Mini Buses 110,000 5.0% Trams, River Buses 10,000 0.5% Index Automobiles 830,000 37.7% Total Traffic Volume 2,200,000 100%

Source: Seoul Institute, World and Cities, Vol. 12, 2015. p. 96

Table 19 Traffic Congestion in Cairo

Congestion in the central market Congestion on a bridge

Source: http://www.gettyimages.com/photos/cairo-traffic-congestion

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High population density, increasing numbers of vehicles, low public transit use and a poor pedestrian environment in Cairo have resulted in problems like serious traffic congestion, a dearth of parking facilities, a high number of car accidents, air pollution and noise. The modal share of automobiles and taxis is now at 67.2%, while the modal share for public transit (metro, buses and trams) is a relatively low at 32.8%. In addition, the city lacks enough pedestrians- only streets, and the direct interface of vehicles and pedestrians greatly weaken the effectiveness of any safety facilities for the latter.

1.4.2. Major Modes of Transport in Cairo

1) Cairo Metro

There are three metro lines, currently operating in Cairo. Metro Line 1 opened in 1987 and was the first metro system in Africa and the Middle East. The annual ridership of Metro Line 1 and 2 is about 700M passengers, while Metro Line 3 carries around 40M.

Table 6 Status of Cairo Metro

Total No. of First Final Line Section in Service Length Stations Opened Extension

No. 1 44.3 km 35 1987 1999 Helwa~ No. 2 21.6 km 20 1996 2005 Shobra El Kheima~El Mounib No. 3 12.0 km 9 2012 2014 Attaba~Al Ahram

Source: Cairo Metro internal document (Interview on Jan. 19, 2017)

Daily average fare revenue is about 1.7 million EGP. The fare for a single ride is flat and 2 EGP for all sections of Cairo Metro system and discount tickets are available for students, veteran, emplyees of Cairo Metro, police and soldiers. In 2015, RF transit card system was introduced and MS ticket and RF transit card are both used. The tickets and transit cards are neither applicable nor transferable. There are two types of transit card; stored value card and seasonal ticket card. The former contains the money value in its secured domain, functioning like a prepaid card, and the latter contains a seasonal ticket with a predefined zone and expiration data. The stored value card can be purchased at 25 EGP and can be reloaded by the amount of from the minimum of 10EGP to the maximum of 100EGP.

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Figure 20 Devices and Facilities of Cairo Metro

Magnetic Stripes ticket E-money RF card

Automatic Gate Machine RF Only Automatic Gate Machine

Collecting Used Tickets Ticket office

Source: Field Survey (Jan. 15~19, 2017)

2) Commercial Service of Motorized Vehicles

The service of buses, mini buses, taxis and three-wheelers are available in Cairo, other than metro services. Buses are operated by the Greater Cairo Bus Company (GCBC), a subsidiary of Cairo Transport Authority (CTA), which also operates mini-buses and ferries. Microbus services of 9-seater mini-van are available at reasonable fares and they are managed by private regional associations. Three-wheelers are being operated as in the form of taxis operation, but with no regulations on fares, vehicles and drivers.

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Figure 21 Motorized Vehicle Services.

Bus stop General bus

Bus with Air-conditioner Microbus (route information displayed on LED)

Taxi Three-wheeler

Source: Field Survey (Jan. 15~19, 2017)

3) Tram

The Cairo Tram opened in 1896 and operates 3 routes, all of which are operated and managed by the CTA, currently being operated in and Helwan. It had been an efficient form of public transport for citizens. However, while being outdated, it is not possible to continue to maintain them in a proper way. Therefore, since 2014, the tram service started to be discontinued and the partial operation remains now. Pathway and walking trail were

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installed in the areas where the tram rails were removed and certain sections are now used for passenger cars, taxis and mini-buses. Also, National Authority of Tunnel(NAT) plans to construct BRTs on the tram-way.

Figure 22 Tram Facility & the BRT Plan

Tram Tram Route Map

BRT Plan(Before) BRT Plan (After)

Source : http://cairobserver.com, Bus rapid transit for Greater Cairo, 2015

1.4.3. Plans to Improve Public Transit in Cairo

The plans are in place to improve the facilities for public buses and increase the number of bus stops. The number of operating buses has increased from 1,300 in 2014 to 2,650 in 2015 and 2,500 natural gas buses are planned to be commissioned by 2017. The bus routes are to be grouped and identified by the colours. The plans include the construction of additional 600km of metro lines on 15 routes by 2050.

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Table 7 Metro Construction Plans (Cairo)

Index Plans

Ministry of is scheduled to provide financing of about USD Line 1 1B to enhance the local environment and put in new metro.

1st stage will be 18 km from New Cairo City El-Malek El-Salehto with 17 stations Line 4 and scheduled to open in 2016 (Investment: USD 1.2B from JICA, USD 2.4B from Egyptian Government)

Open a new line with 17 stations (20 km length) connecting , Heliopolis Line 5 and Rod El Farag areas in the Greater Cairo Region

New section (20 stations over 30 km: 20 km underground and 10 km elevated) Line 6 from El-Khosous near the northern ring road of the Nile to New Maadi in the south

Construct a 30-km section from Heliopolis to the American University in New Cairo Light metro and a transfer service with Line 3

Source: KOTRA, Attracting investment to Egypt’s railway and road; Desires for a Cooperative Development Project, April 8, 2014

Figure 23 Metro Construction Plans for Egypt

Source: Ministry of Transport, Egypt

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2. Status Survey and Diagnostic Evaluation of Public Transit Fare Collection System in Cairo

2.1. Organizations of Public Transportation System

Ministry of Transportation, Ministry of Commerce, and the City of Cairo are the three major governing bodies of public transport agencies who currently operates and manages public transportation systems in Cairo

Figure 24 Organization of Public Transportation in Cairo

Source: Field Inspection

2.1.1. Egyptian National Railways

Egyptian National Railways(ENR), under the Ministry of Transportation, operates and manages the railways which carries approximately 500 million passengers per year. The total distance of railroad is 9,570km with 705 stations. The number of locomotives and passenger rolling stock are 820 and 3,500, respectively, among which 850 rolling stocks are air conditioned, and the trains are operated at 90~120km/h. Passengers can purchase train tickets at ticket offices in the stations, at ticket vending machines(TVM) and on line.

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Figure 25 Cairo Station

Cairo Station Railroad Ticket(Cairo→Alexandria)

Source: Field Inspection

2.1.2. National Authority of Tunnels(NAT)

NAT, established in 1982, is the organization which conducts research on science and economics as well as implements metro projects with the cooperation of government agencies and foreign investors. It has built 83km of metro lines so far, with a project investment of approximately 23 billion EGP. In order to resolve traffic problems, NAT has been extending metro lines.

Figure 26 NAT Organization

Source: www.nat.org.eg

1) Line 1 (Helwan~New al Marg)

Line 1 was designed to accommodate approximately 2 million passengers a day. The railway,

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of the length of 44km and 35 stations, comprises underground tunnel of 4.7km and 5 underground stations. It runs from 05:00 to 24:00, with the speed of 100km/h and operates every 3.5 minutes during rush hour. The initial phase of construction was completed in 1987 with 22 stations and the length of 28km. The second phase was completed in 1989 with additional 12 stations and the length of 14.5km added. The third stage in 1999 with 1 station and 1.3km.

2) Line 2 (Shuobra~AlMoneeb)

Five constructions stages were completed with a total length of 21.8km, among which 12 stations were underground, 8 stations on surface and 2 stations were elevated. They were designed to accommodate 1.96 passengers per day. The trains operate from 05:00 to 24:00 with a speed of 80km/h and operate every 3 minutes during rush hour.

Figure 27 Line 1 & 2 Route Map

Line 1 Line 2

Source: www.nat.org.eg

3) Line 3 (Cairo Airport~Imbaba)

Line 3 connects the east and west of Greater Cairo, with a total length of 47.87 km. Of its 36 stations, 23 are underground, 2 are on surface, and 11 are elevated. Line 3 consists of 4 phases and the first and second have been completed and the third and fourth are under construction

26 Ⅱ. Status Survey & Diagnostic Evaluation

Figure 28 Line 3 Route Map

Source: www.nat.org.eg

4) Line 4 (New Cairo~West of Ring Road)

The line is to cover 42km and the construction began in early 2016.

Figure 29 Line 4 Route Map

Source: www.nat.org.eg

5) Other Planned Metro Projects

Line 5 is to cover 24 km between Naser City and AlSahel. The research began in 2014.

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Figure 30 Line 5 Route Map

Source: www.nat.org.eg

Line 6(New Maadi-El Khosos) covers a length of 30km and the research began in 2014.

Figure 31 Line 6 Route Map

Source: www.nat.org.eg

The Qalyubia Project will extend Line 2 by 8 km toward Qalyubia State.

28 Ⅱ. Status Survey & Diagnostic Evaluation

Figure 32 Qalyubia Project

Source: www.nat.org.eg

The Project involves construction of a tunnel which will connect the east and west of the Suez Canal from the South of Port Said. The design is for 2 tunnels for vehicles and 1 tunnel for rail.

Figure 33 Port Said Project

Source: www.nat.org.eg

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2.1.3. Cairo Metro

Cairo Metro is the company in charge of operating and maintaining the metro lines and was established in 1984 by Egyptian National Railways, but the company became affiliated by the Ministry of Transportation on April 9, 2003. The development of metro is planned and financed by MOT, NAT is in charge of construction and implementation, but Cairo Metro is in charge of operation. Cairo Metro receives the budget for operation from MOT. There are approximately 6,000 employees, working for Cairo Metro, which are organized as follows;

Figure 34 Cairo Metro Organization Chart

Source: www.nat.org.eg (cairometro.gov.eg)

2.1.4. River Transport Authority

River Transport Authority(RTA) is affiliated with the Ministry of Transportation and conducts the following;

Designs and determines routes for cargo and passenger ships using the Nile. Licenses ships operating in the Nile Determines conditions and regulations for passengers and cargo on the ships Inspects Nile projects Constructs, manages and operates the Nile docks

Currently 27 water-buses are operating on Nile. However, 5 out of 27 water-buses have been operated for more than 30 years, resulting in frequent problems such as breakdowns

30 Ⅱ. Status Survey & Diagnostic Evaluation

and malfunctioning communication devices. The fare for a ride is 5 EGP and, specially, the demand for the ride is at the peak on holidays. The monthly revenue per bus is 35,000EGP on average and it goes up to EGP 180,000 during holiday seasons. It operates from 07:00 to 20:00. 5 foreign companies showed their interest in the development of new water-bus system.

2.1.5. Cairo Transport Authority

Cairo Transport Authority is affiliated with the Cairo Municipal Government(CMG). According to CTA web-site, it operates and manages 3,029 buses, 954 mini buses, 92 trams and 49 metros and offers transportation services to approximately 18 million people. In addition, CTA operates and manages approximately 1,000 private mini buses in cooperation with 14 bus companies.

2.1.6. Ministry of Business Sector

Holding Company for Maritime and Land Transport is an affiliated company of Ministry of Business Sector has 3 international and inter-city bus operators:

East Delta Travel Company; West and Middle Delta Bus Company; Upper Egypt Bus Company

2.1.7. Private Companies

Private companies and individuals operate taxis, mini-buses and tour buses. In Egypt there are approximately 324,000 taxis and all are operated privately. Mini-buses, in particular, are operated by private individuals and do not have bus stations. Tour buses operate with licensed travel agencies.

2.2. Status of Fare Collection System

2.2.1. Status of Metro Fare Collection System

“Buying tickets from ENR and selling them to others” is subject to punishment according to Law No. 277 of 1959. Passengers may cancel their reservation 48 hours before the train

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departures and may have 80% of ticket value back. Group tickets must be purchased at a station, not sold on the website. ENR is preparing the reservation service, to allow customers to purchase the tickets by phone.

There are two types of tickets for the first class and the second-class seats and children, soldiers, police officers receive discounts.

Table 8 Metro Construction Plans (Cairo)

1st class train 2nd class train Destination Fare Child/Solider Officer Fare Child/Solider Officer BANHA232115151510 TANTA322518201813 DAMANHOR 41 32 23 26 21 15 ALEXANDRIA 51 38 29 30 26 18 ALEXANDRIA FAST 70 52 48 45 35 31 ZAQAZIQ - - - 19 18 12 ISMAILIA - - - 27 22 15 PORT SAND - - - 33 28 19 MAHALLA - - - 22 20 14 MANSOUR - - - 25 21 14 MEMIATTA - - - 50 40 27 MARSA MATROH - - - 50 40 27

Source: Field Inspection

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Table 9 Metro Ticket Prices­Southbound

(Unit: EGP) 1st class train 2nd class train Destination Fare Child/Solider Officer Fare Child/Solider Officer BENISWIF 37 30 21 22 20 14 ALMENYA 59 43 33 34 28 19 ASYOUT 76 53 41 42 34 25 TAHTA 82 59 44 45 37 26 SOHAG 87 60 46 46 38 26 GERGA 91 64 49 50 40 27 NAGA HAMADI 95 66 51 52 42 28 QENA 103 69 53 55 43 29 LUXOR 109 75 58 57 45 30 ESNA 113 78 60 59 46 32 EDFU 120 82 64 63 48 33 KOMOMBO 127 78 66 65 51 34 ASWAN 132 90 68 67 52 35

Source: Field Inspection

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When buying tickets through web-site of ENG with credit card, the fee of 4% will be added to metro fare. When getting on, passengers shall present the credit card receipt and a copy of e-mail from ENR to the conductor. An ID card shall be presented when buying a ticket at a ticket office and may be cancelled 48 hours in advance for 80% refund. When purchasing at a TVM, customers may use a credit card. Customers can buy a maximum of 4 tickets at once.

2.2.2. Status of Bus Fare Collection System

1) Fare for Bus Services The main modes of public transportation in Cairo are buses and Nile ferries, which are operated by the Cairo Transport Authority (CTA). Buses are operated by the Greater Cairo Bus Company (GCBC), a subsidiary of CTA. The fare for red bus is 1 EGP and that of the newly-introduced blue bus is 2EGP. The fare for smart mini-bus is 2.5EGP and that of regular mini-bus fare is 1.5EGP. Smart mini-buses offer differentiated services such as air conditioning, Wi-fi, and bus stop announcement, but these buses are not popular among the passengers due to the high price of the fare.

There are two types of seasonal tickets for buses: 3-month ticket and 12-month ticket. The price of 3-month ticket is 527.5EGP while the 12-month is 1,550EGP. It takes about two weeks to obtain a seasonal ticket after application and it is available only through 5 places: Al Azhar Terminal, Al Abbasia Terminal, Al-Giza Terminal, Almajalat Terminal, and Heliopolis Terminal. Seasonal tickets are applicable to the red and blue bus services, but not to air-conditioned buses or mini-buses. The lost seasonal tickets are not to be reissued.

Figure 35 Cairo Metro Organization Chart

Source: www.nat.org.eg (cairometro.gov.eg)

34 Ⅱ. Status Survey & Diagnostic Evaluation

2) Bus Operation

Figure 36 Bus Types

Common Bus Air-conditioned Bus

Mini bus Smart mini-bus

Approximately 4.65 million passengers use CTA buses daily, and 270,000 passengers use the Nile ferries. Surveys show that mini-buses are the most popular mode of transportation. Mini-buses transport citizens to metro stations and main bus stops. It functions as the “Ma Eul Bus” does in Korea. Mini-buses in Cairo are crucial to transportation, resulting in a higher operation rate (97%) than other means of transportation.

Figure 37 Use of CTA Transportation

Source: Towards Reliable Public Bus Services in Greater Cairo, 2012, Data reprocessed

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Buses operate under the management of CTA and stations and stops are managed by CMG. The service routes could not be expanded enough to keep up with the demand for services. There are no properly designed transfer services to the metro and no fare discount for transfer passengers.

The network of public transportation service needs to be reviewed, especially in terms of inter-connectivity among the modes of transportation, based on the specifically defined roles of each mode. For the purpose, it requires to survey the number of passengers using each bus stops and metro stations, transport demand OD, passengers of each bus route, configurations of bus and metro route.

Figure 38 Route Map for Common Buses and Mini-buses

Source: Bus rapid transit for Greater Cairo, June 2015, p.12

2.2.3. Status of Fare Collection System of Mini-buses, Taxis, Three-wheelers

1) Fares

Fare Meters are installed in taxis and the basic fare is 4EGP and 1.75EGP is added for 1km. 0.25EGP is added for each minute of being idle. For mini-buses and three-wheelers, there is no regulated fare structure, and the fare is negotiated between the driver and passenger.

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2) Operations

Mini-buses, taxis and three-wheelers in Cairo are operating without fixed routes, assigned by the proper authorities. Mini-buses services are being provided with vans of 11 to 14 passengers. Their operations are managed by associations. Each of them belongs to one specific area where their depots are located. There are 20,000 licensed mini-buses, but there are more than 80,000 mini-buses running, which needs to be better-managed (World Bank, 2006). The mini-buses does not operate on publicly declared fixed routes, but their operations cover implicitly known points of stop and the passsengers are aware of where they can find the mini-bus of their interest. Fares are not fixed and can be negotiated. However, outdated vehicles and careless driving of mini-buses are a threat to the safety of passengers. Three-wheeler is a type of small vehicle, converted from a motorcycle and its operation is similar to that of taxi. There is no basic regulation safety concerning its operation.

Table 10 Operations of Mini-buses/Taxis/Three-wheelers

Index Egypt (unit) Cairo (unit) Common Bus 16,494 3,162 Micro Bus 38,227 7,329 Taxi 320,098 61,336 Three-wheeler 65,844 12,623

Source: Egypt Statistics Office, 2014

2.3. Metro Fare System and Fare Media

2.3.1. Fare System

1) Fare structure

Cairo Metro has adopted a flat fare system that imposes a single price regardless of the distance, time or service quality: It uniformly charges 2EGP for single journey, irrespective

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of get-on/get-off stations. Discount fare of 1.5EGP is applied to soldiers, policemen, children of 4~10 years old, veterans and reporters with valid ID cards. The fare for seniors over 60 and the passengers with impaired mobility is 1EGP. Lines 1, 2, and 3 are run by one entity, Cairo Metro, so that the transfer to a different line is possible without additional charges. However, discount is not applicable to other modes.

2) Fare policy

The decision over the fare level belongs to the Ministry of Transport. Since metro fare is directly connected to the standard of living for residents of Cairo, it is considered as a politically important issue. The CMG suggested plans for fare raise several times, but they had failed to be realized due to political aspects of the fare raise. The metro fare in Cairo has not been changed since 2002. As the fare covers only 9% of the operation cost, the Cairo Metro suffers from serious deficit.1) The deficit has been offset with government subsidies, but the Egyptian government also feels financial burden, caused by increasing operation cost.

3) Fare Media

There are no ticket vending machines in Cairo Metro stations and the tickets are being sold through the fare box operation. Once bank cards and credit cards can be used for buy tickets, but nowadays, only cash is accepted.

2.3.2. Ticket types

Cairo Metro uses MS ticket and RF card as a fare media in parallel at all lines.

Figure 39 Types of Metro Tickets

Magnetic stripe paper ticket (MS ticket Pre-paid RF transit card

Source: Field Inspection (Jan. 15~19, 2017)

1) 400% Increase in Cairo Metro Ticket Prices May Be a Reality, 2016.08.28. Cairo Scene, http://www.cairoscene.com/ Buzz/400-Increase-In-Cairo-Metro-Ticket-Prices-May-Be-a-Reality

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1) Magnetic stripe paper ticket

Most of Cairo Metro passengers use magnetic stripe(MS) ticket for single journey whose fare is 2EGP, being sold at all metro station ticket booths. It is estimated that more than 95% of all metro passengers use MS tickets.

2) RF cards

Cairo Metro adopted a smart card in 2015, which can be purchased from fare boxes of all stations: all stations sell the stored value card and some designated stations sell stored value card and seasonal ticket card which is valid for 5 years. The stored value card enables multiple payments, meaning that one person can pay for a number of passengers.

The seasonal ticket cards can be categorized into 4 types, based on the duration of validity:1-month, 3-month, 6-month and 12-month. But currently, only the 3-month and 12-month cards are available. The seasonal ticket card is valid only for a defined number of trips within the duration of validity and must be replenished when the designated number of trips is used up or the validity expires. A user must pay 25EGP for the purchase of a transit card with the application fee of 5 EGP. For a 3-month transit card, the fare is 214EGP for general passenger, 33EGP for students and 22EGP for passengers of impaired mobility, allowing 180 trips within 1 zone. The fare for 2-zone trip with same conditions is 280EGP for general passengers, 41EGP for students and 27EGP for the passengers with impaired mobility. For a 12-month transit card, the user must pay 25EGP in addition to the application fee of 10EGP. The fare for 730 trips on two lines is 772EGP and 320 EGP for soldiers and police, and 200EGP for seniors. The fare for 730 trips on three lines will be 970EGP, 400EGP for soldiers and police, and 300EGP for seniors.

The seasonal ticket card is operated in line with the zonal system. So far, there are 11 zones, but currently only 10 zones are in operation. One zone includes 25 stations. A seasonal ticket card is supposed to be used in the specified zones or within the specified lines. If the card is used out of the predefined lines or zones, the penalty is to be collected from the stored value of the card or subject to deduction of a proper number of the remaining trips.

To obtain a transit card, a general customer must submit an application along with a copy of his/her ID card and a photo. For a student to obtain a concession card, a copy of birth certificate and an application form with enrollment certification stamp of the school should be submitted. Veterans and seniors must submit copies of their ID cards with the applications.

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Figure 40 Transit Card Promotion & Reloading Information

1. The card is valid for five years. 2. If you lose your card and report it, you may get a new card and the old one will be invalidated 3. Faster and more convenient. 4. The card provides a variety of information (balance, number of remaining trips, last boarding, etc.) 5. In the future, the card may be used for other modes of transport, such as trains, buses, and taxis and grant access to parking lots. 7. If the balance is more than 30% of the card cost, it is refundable. 8. It is not necessary to remove the card from your wallet. Transit card promotion poster 9. In the future, you may be able to find your card information on Cairo Metro website.

1. Card cost is EGP 25, which is a one-time fee. 2. Reload the card as often as you want, from EGP 10, 20, 30 to EGP 100. 3. Anyone may use. 4. Reload multiple times. 5. Available for purchase at all metro stations.

Pre-paid card Promotion Poster

Source: Field Inspection

2.3.3. Discount and Concession of Fare System

1) Discount and concession, applied to MS tickets

There are concession single journey tickets for students, members of armed forces and police men and the government subsidies are provided to finance the fare loss for them.

2) Discount and concession, applied to cards

Stored value cards (E-Purse cards or E-money cards) are anonymous so that concession cannot be applied. Seasonal ticket cards are sold to particular ID card holders, whose photo is printed on the card. Discounts do apply for multiple rides and the differentiated discount rates are applied to particular concession groups such as students, soldiers and police officers.

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2.4. Status of Automatic Fare Collection System of Cairo

2.4.1. RF Cards

1) Card Specifications

RF cards(contact-less) transmits and receives data to and from card readers and the power for the communication is supplied through an RF antenna without contact. The card does not have to be inserted into the device and the contact point is not exposed to outside, which renders good protection against static electricity. 13.56 MHz is used for wireless communication channel and the protocol and specifications for the wireless communication is defined in ISO/IEC 14443. Cairo Metro uses DESFire card of NXP which follows ISO/IEC 14443.

2) Card Manufacturing and Procurement

Cairo Metro hires a card manufacturing company in Egypt to produce its transit cards. The card manufacturing company purchases DESFire chips and antennas from NXP and directly manufactures the card. All processes are carried out in accordance with NXP policy. In 2013, it signed a contract to deliver 2 million cards with a minimum order of 50,000; the card design can be changed at each order. The manufacturing company produces blank cards and delivers them to Cairo Metro. The cards are then distributed to each station

3) Methods for use and reloading

RF transit cards can be purchased at all Cairo Metro station ticket offices. It can be used by tapping the card on the RF readers mounted on the top of the fare gate. The amount of fare is deducted from the remaining stored value when it is tapped on the reader. After the valid tap, the gate open. The transit cards can be reloaded at all Cairo Metro station offices.

4) Card Issuance & Refunds

The card manufacturing company makes the card and delivers it to Cairo Metro as a blank card. Initialization is processed at each station at the request of purchase by using the software, distributed in the form of CD, to define the card map. The card map is designed for 8 multiple applications for undefined future use. For seasonal ticket cards, Cairo Metro prints a photo of the card holder and name on the card at the issuance. The process for issuing stored value cards and seasonal ticket cards is as follows

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Figure 41 Card Issuing Process

Figure 42 Card Refund Process

2.4.2. RF Readers

1) RF Readers

Cairo Metro uses two kinds of RF validators; one manufactured by the Spanish Company ‘Indra’, for Line 1 and Line 2, and the other by the French company ‘Thales’. for Line 3.

Figure 43 RF Device Types

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2) Gates

There are three types of gates in operation:

- Magnetic-only: Exclusively for magnetic tickets. Currently, the gates for entrance are maintained normally, but there are many gates for exit remain out of order due to the shortage of parts and insufficient budget for maintenance. - RF-only: Cairo Metro has modified the top of some of the magnetic-only gates and mount RF readers. They are operating as RF-only readers. - Magnetic & RF bimodal: These readers are also modified from the Magnetic-only gates into bimodal form. RF cards and MS tickets can both be used.

At each station, all the three types are in operation. But they are used either for exit or for entry only. Figure 44 Gate Types

Magnetic only RF only Magnetic & RF

3) SAM (Security Authentication Module)

The SAM of Cairo Metro reader complies with ISO 7816 in the form of USIM and it is provided by Thales. Four SAM slots are installed, 2 of them are assigned to Thales and one of them are assigned to Indra.

4) Portable RF Reader

Portable RF readers is used to handle the complaints of customers. It is to read and write data, stored in the transit card, even in the secure element. It implies that reload the value, but now the reloading function is blocked due to security issue. The operating system is Windows and it communicates via RS232C port and USB B Type port.

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Figure 45 Portable RF reader

Front Back Bottom

2.4.3. Control and Management System

MS transit ticket system and RF transit card systems are independently operated..

1) Line 1 Station Management System

Line 1 separately operates MS Station Control Unit(SCU) and RF SCU at each station the data of MS ticketing and RF card sales of Line 1 and the transaction data of RF readers are transmitted to the central server room located at the computing center of Line 1 through SCU of each station. However, the communications network between MS reader and SCU does not have the expected quality to handle the traffic volume with regularity.

2) Line 2 Station Management System

Line 2 is mostly similar with Line 1 station management system, but it has two separate ticket offices: one for MS ticket operation and the other for RF transit card operation.

3) Line 3 Station Management System

In Line 3, MS ticket and RF transit card are handled at one ticket office, but MS SCU and RF SCU are managed separately the ticketing records and transaction records of RF readers is transmitted to the central server room at the head office of Line. The communication of the Line 3 equipments use ethernet and it promotes the speed of communication much faster than Line 1 and 2.

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Figure 46 Network Configuration of Station Management System

Line 1 Line 2, 3

Source: Cairo Metro Field Inspection (Jan. 15~19, 2017)

4) Line Control System

MS line control system and RF line control system(LCS) are separately operated by each metro lines. For Line 1, the MS system does not have LCS, but only the RF system has LCS. For Line 2, there are separate MS LCS and RF LCS and Line 3 has the integrated LCS which controls MS system and RF system.

Figure 47 Network Configuration of Line Control System

Line 1 Line 2, 3

Source: Cairo Metro Field Inspection (Jan. 15~19, 2017, Mar. 6~8, 2017)

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Figure 48 AFC System Diagram after Improvements

Source: Cairo Metro Field Inspection (Jan. 15~19, 2017, Mar. 6~8, 2017)

5) Fare Collection System Center

a) MS central system for lines 1 and 2

There is no separate MS central system for Lines 1 and, 2. Cairo Metro operates a single line control system for both of them. The figure below shows the system and now it controls MS system for Line 2. The central system for Lines 1 & 2 is now under construction for improvement through a new project. With a new system, it is to draw up an efficient HR management plan, generating effective revenue statistics management, and effective operation of equipment and firmware downloads. The Line 2 LCU is operated as a central system of Cairo Metro. If necessary, it can print out or view various statistics.

Figure 49 Metro Line 2 MS LCU System

Source: Field Inspection (Mar. 6~9, 2017)

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b) Line 1 & 2 central RF system

Cairo Metro installed and operates a center system for RF system. This center system receives transaction data from LCSs of Lines 1 and Line 2. The RF system is configured to make the best use of data when preparing various reports by receiving data from each station such as reloading, card sales, gate traffic, etc.

Figure 50 RF central system

Entrance of Data Center Room Center Sever

Source: Field Inspection (Mar. 6~9, 2017)

a) Line 3 Center System

Line 3 operates a single center system for MS ticket operation and RF transit card operation. The center server is located at the headquarters and it handles all the data from MS operation and RF operation

2.5. Status of Operation & Maintenance

2.5.1. Analysis of Fare Collection Operation

Cairo Metro operates three metro lines independently. Each metro line manages its rolling stocks, operation schedules and signal control independently. The departments, marked in purple in Figure 51, are responsible for Automatic Fare Collection System of three metro lines. Station staffs choose one of the two types of shift: 8 hours of on-duty with 16 hours off-duty

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or 16 hours on-duty with 24 hours of off-duty. There are on-duty staffs overnight. Before the staffs begin the shift, they input their ID number and their own passwords for security. Revenue reconciliation is done at the end of each shift by the station chief.

Figure 51 Cairo Metro Organization Chart

Source: Cairo Metro Website

For Lines 1 and 2, Cairo Metro operates and manages everything, including ticket office and SCU. For Line 3, Cairo Metro only operates and manages the ticket office; SCU management is divided between Cairo Metro for MS and Thales for RF

Table 11 Line Operators

Index Line 1 Line 2 Line 3 Remarks

Ticket Office Cairo Metro Cairo Metro Cairo Metro Operation SCU Cairo Metro for MS, Thales Cairo Metro Cairo Metro Management for RF RF Reader Cairo Metro for MS, Thales Cairo Metro Cairo Metro Management for RF Cairo Metro for MS, Thales Maintenance Cairo Metro Cairo Metro for RF

Source: Field Inspection (Mar. 6~8, 2017)

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2.5.2. Analysis of the Maintenance Operating Process

1) MS system maintenance

Cairo Metro staff are in charge of maintenance operation. But it has been seen that most of the MS validation function of the gates out of service due to the shortage of parts. In reality, the station staffs are positioned at the entrance gates and manually collect the tickets with eye checking.

2) RF transit card system maintenance

The scope of maintenance staff responsibility varies by line. Details are as follows:

Table 12 Scope of RF System Maintenance by lines

Index Line 1 Line 2 Line 3 Remarks

Initialization Cairo Metro Cairo Metro Thales Exchange PCB Cairo Metro Cairo Metro Thales Work requiring SW download Indra Indra Thales

Source: Field Inspection (Mar. 6~8, 2017)

3) Challenges

The challenges in maintenance and operation are as follows:

- The most of MS readers, especially ticket collection modules, are out of service and left unrepaired. - Work details and scope of maintenance staff responsibilities are not clarified. For example, the roles and responsibilities of MS staff and RF staff are not clearly defined and cannot be verified. - Cairo Metro staffs are equipped with the necessary skill sets for fare collection devices

2.6. Brief Diagnosis of Current Status

In this section, the current status of public transportation system of Cairo is analysed with respect to fare collection system and, more specifically automatic fare collection system. It comprises critical review over current status of the four areas: transportation system of Cairo,

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as a whole, fare structure, automatic fare collection system(AFCS) of Cairo Metro, and finally the operation and maintenance of AFCS

Figure 52 General Diagnosis of Status

2.6.1. Transportation System

The serious level of traffic congestion, car accident rate, air pollution, and noise impose challenges to the Egypt Government ant Cairo Municipal Government. These challenges become aggravated due to high population density, increasing number of automobiles, and low level of public transport supply. In particular, the modal share of automobiles and taxis stands at 67.2%, whereas the share of public transport remains 38.2% and tram operations were closed in 2014.

The operation and management of public transport has failed to respond to the demands of the public due to limitations of staffs and financial resources, which in turn cause even more inconveniences to passengers. In case of micro-buses, licenses were issued to 20,000 units but in reality, more than 80,000 micro-buses are in operation, whose role are similar to the “Ma Eul” bus (community bus) in Korea. In fact, micro-buses play a role as major public transportation mode in Cairo.

As shown, in Cairo, various transport modes are being operated: the metro, buses (air- conditioned bus, general bus, Mini-bus, Micro-bus), Three-wheelers, taxis, Uber and ferries. But each mode is being operated independently without proper consideration of connectivity and integration and even without proper regulation. These modes have their own characteristics concerning service distance, loading capacity, etc. The urban transport planners are to design the whole urban transport system and network by placing these modes in proper positions and integrate them effectively, reflecting their characteristics. However, the passenger

50 Ⅱ. Status Survey & Diagnostic Evaluation

transport system and network of Cairo has not been coordinated in a proper manner. Each metro line had been built very well mechanically, bur without good consideration with interface with other transport modes and other metro lines and without the well-defined role within Cairo passenger transport as a whole.

To resolve the traffic generating issues, it is best to raise the modal share of metro and general bus. For the purpose, the service quality of public transport needs to be improved. To enhance the service quality, it is necessary to improve system efficiency through coordination of transportation modes and enhancement of connectivity.

2.6.2. Fare Structure

The fares of all transportation modes are different. The fares under public control are too low to cover the operation cost and, as a result, the business motivation for their operation becomes deteriorated. As a consequence, the service quality is getting worse and the necessary service expansion cannot be achieved so that the un-serviced areas of public transportation modes are being serviced by un-regulated or under-regulated private transportation modes with much higher fare levels. Hence, it is needed to review the current fare structure in a balanced manner to promote better service of public transportation and to induce more ridership to metros and general buses against the use of passenger vehicles and mini-buses.

2.6.3. Automatic Fare Collection System

Cairo operates three metro lines and plans to add more. However, their AFCS are not organized and the AFCS of each metro line is independently operated, Each AFCS project was dependent of each metro project and vendor-oriented, not treated as a part of the whole AFCS of Cairo Metro. This independence became an obstacle to integrated operation and efficient maintenance of the AFCS.

Seoul Metro experienced this same issue prior to public transit system reform in the 1990s and managed to overcome it. A national standard should be enacted in Egypt to enable easy system extension and inter-operation.

2.6.4. Operation & Maintenance of AFCS

It appears that the maintenance processes are s in place, but most of MS reader and RF readers, installed in stations, are out of service or malfunctioning. It is quite clear that Cairo Metro does not have enough technical and financial resources to maintain AFCS. It has to be noted that the budget, needed for construction of transportation infrastructure and

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procurement of rolling stock, is relatively minor, compared to the operation cost. Above all, capacity building program should be pressed before building transport infrastructure.

3. A Case Study of Korea

3.1. Public Transportation System and AFCS of Seoul

3.1.1. Generals of Seoul

1) Geography

Seoul Metropolitan City covers 605 ㎢ while the Greater Seoul Metropolitan Area, including Gyeonggi Province and Incheon covers 11,731㎢.

Figure 53 Area of Seoul

Source: Internal SMG materials

The population of Seoul was 10,204,057 persons as of March, making up 40% of the population of the Metropolitan Area and 20% of the nation’s population.

Figure 54 Total Population of Seoul

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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There were 3,083,007 vehicles registered in Seoul as of March 2017 and a record high for automobiles.

Figure 55 No. of vehicles registered with Seoul Metropolitan Government

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

2) Transport infrastructure

There is a total of 8,042 km of road covering 82.47 km², with a roadway rate of 22.02%.

Table 13 Status of Roads in Seoul

Index 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Road 7,889 7,935 7,973 7,988 8,011 8,046 8,067 8,078 8,093 8,012 8,042 Length (km) Road 78.69 79.36 80.01 80.39 80.64 81.22 81.57 81.57 82.02 82.25 82.47 Area (km²) Roadway 21.01 21.19 21.38 21.46 21.53 21.68 21.78 21.78 21.89 21.96 22.02 Rate (%)

Source: Internal SMG materials

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SMG has built and is operating ITS (Intelligent Transport System). Through TOPIS, SMG provides traffic information, public transit information, information on car accidents etc.

Figure 56 Seoul Intelligent Transport System

ITS Service of Seoul

Provides online Transportation information for Seoul

Source: Seoul Metropolitan Government, Seoul ITS Basic Plan, 2013 and http://topis.seoul.go.kr/

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A Public Transportation Transfer Center is operating in support of transfers between buses, between bus and metro, and between cars and public transit options. Bus traffic flow is separated from the flow of other vehicles.

Figure 57 Seoul Transfer Center

Seoul Station Transfer Center Guro Digital Complex Station Transfer Center

Cheongnyangni Station Transfer Center Yeouido Transfer Center

Planned transfer centers at major entry/exit points to Seoul

Source: Internal SMG materials

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The Seoul Metropolitan Government reformed its public transit system in 2004 to reinvigorate its use and resolve urban transportation issues: bus routes and the public transit fare system were reformed and adopted semi-public bus operation and exclusive center lanes for buses.

Figure 58 Bus Infrastructure in Seoul

12 medium bus only lanes Medium bus only lanes

Bus stop at medium bus only lane CNG Bus

BMS/BIS System Transit card system (T-money Card)

Source: Internal SMG materials

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3.1.2. Public Transportation Operations in Seoul

1) Metro

The metro system in the metropolitan area, including Seoul, has a total of 20 lines in operation, including lines 1~9 and the New Bundang Line.

Figure 59 Seoul Metropolitan Metro Line Map

Source: SMRT website (http://www.smrt.co.kr/program/cyberStation/main.jsp)

Frequency of weekday metro service decreased between 2003 and 2010 but has grown rapidly since 2011. The reason of the decreased frequency was that the metro corporations increased the headway of the train to save energy during the vacation when the demands and ridership dropped. In 2011, with the opening of the new Bundang Line, the service frequency started to go up.

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Figure 60 Trends in Metro Operations

Footnote: Metro section and the number of metro stations are using the unit in the right auxiliary axis Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

Figure 61 Status of Train Operations

Footnote: If the number of riders and seats are the same, the congestion rate will be 34%. Biannual survey since 2005 Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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The number of passengers (pure riders + transfer riders) on Seoul Metro has been increasing 2.1% annually since 2006, recording 2,518,165,000 riders in 2011. Total ridership has gradually grown by 248,755,000 between 2006 and 2011, from 2,269,410,000 to 2,518,165,000, with an average of 6,899,000 riders a day. In terms of ridership by metro line in Seoul, Line 2 is responsible for about 30%, far higher than the other metro lines (lines 3, 4, 5, 7 = 11~14%, lines 1, 6 = 6~7%, and lines 8, 9 = 3~4%).

Figure 62 Passenger Trends (by Metro Line)

Footnote: The axis on the right refers to the daily average ridership. Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

The average congestion in Seoul Metro in 2011 was 164%: increasing from 2001 but reversing in 2007. As of 2011, Line 2 has been deemed the most congested for Seoul Metro (196%) and Line 7 for Seoul Metropolitan Rapid Transit Corporation (182%).

Figure 63 Metro Congestion Trends

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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Metro basic fare for the Seoul metro system is KRW 1,050, with a distance-based fare system in place. IN 1974, the metro opened with a fare of KRW 30, but after about 40 years (by 2012), this had increased about 35 times to KRW 1,050. The distance-based fare system that is presently in place unifies all inter-regional/metro lines with the system integrating into the bus routes when transferring to and from the metro.

Figure 64 Metro Fare Trends

Source: Seoul Metro, 2013 Seoul Metro Transport Plan

13.4% (234,830,000 trips) of total ridership in Seoul was made up of free-riders in 2012. As the aging of society accelerates (Aging population in 2000 = 7%; Aging population in 2018 = 14%; Aging population in 2026 = 20%), it is expected that the number of free-riders and related costs will continue to grow. The costs associated with free-ridership in 2012 is estimated to have been KRW 26,723,000.

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Figure 65 Number & Trend of Free Metro Rides

Footnote: The ratio of ridership to free-riding used the unit in the right auxiliary axis. Source: Seoul Metro, 2013 Seoul Metro Transport Plan

Seniors aged over 65 years, those with disabilities and persons of national merit all ride for free.

Figure 66 Ground for & Those Eligible for Free Rides

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

SMG has installed screen doors to keep metro riders away from the tracks, keep the air on the platform cleaner and to save energy. metro arrival information is also provided on screens to maximize user convenience.

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Figure 67 Screen Doors & Provision of Information on Metro Train Arrivals

Screen Doors (Gwanghwamun Station) Screens with information on metro arrivals

Source: Internal SMG materials

SMG initially used turnstile gates, which have been supplemented with or replaced by flip-style gates and all payment methods such as pre-paid/post-paid transit cards and single-use cards are accepted.

Figure 68 Gates & Ticket Vending Machines

Turnstile gates Flip type gates (slim)

Wide aisle gate for those with disabilities Ticket vending machines

Source: Internal SMG materials

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2) Buses

SMG categorizes the city’s buses into trunk lines (blue buses), feeder lines (green buses), circular lines (yellow buses) and inter-regional lines (red buses). Trunk lines connect CBD and sub-centers to satellite areas while feeder lines provide access to metro stations, trunk lines, or other feeder lines.

Figure 69 Seoul Bus Types

Source: Internal SMG materials

Since reforming the bus system in July 2004, rapid changes have occurred in terms of the number of lines and number and type of buses. After the reform, the number of routes and buses on trunk lines decreased but the number of routes and buses on feeder lines increased. In 2000, Seoul had 1,029 buses on 34 routes but the system has grown to 7,522 buses on 361 routes.

Figure 70 Number of Bus Lines (by Bus Type) & Vehicles

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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Ridership on intra-city buses was 1,772,859,000 persons in 1996: this decreased to 1,456,978,000 persons by 2004 but rapidly increased to 1,631,004,000 persons by 2005. It is assumed that this trend was affected by the bus reforms initiated by SMG in 2004. The ridership on intra-city routes around Seoul was 1,684,313,000 persons, or a whopping 30.4% of total nationwide bus ridership.

Figure 71 Bus Passenger Numbers

Note: Seoul bus ridership used the unit in the right auxiliary axis. Source: Association of the Nationwide Bus Transport Union, 2011

In 2012, there were 40 sections of curbside bus lanes in Seoul covering 88.3 km of road, and 13 sections of medium Exclusive Bus lanes covering 122.1 km. The length of medium bus only lane is longer than that of curbside bus lanes.

Figure 72 Exclusive Bus Lane Extensions

Note: The number of bus only lane sections used the unit in the right auxiliary axis. Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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There were 6,054 intra-bus stops in Seoul in 2012, an increase of 902 stops (17.5%) from 2004. The number of medium Exclusive Bus lanes has increased annually, whereas curbside bus lanes have decreased or stagnated since 2007.

Figure 73 Intra-city Bus Stations

Note: The number of stops in 2008 for center Exclusive Bus lanes was not available so an average of 2007 and 2009 was applied. The number of stops on center Exclusive Bus lanes is indicated on the far right. Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

SMG operates 11 public bus depots in Eunpyeong, Gangdong, Songpa, Yangcheon, Joongnang, Gangseo, Jinkwan, Jangji and Nangok. The first one opened in 2000 at Eunpyeong Public Depot with 340 spots, which had grown to 2,765 slots at all depots by 2013.

Figure 74 Public Garages for Buses & Parking Slots

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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As part of efforts to provide mobility to transport-vulnerable persons, low-floor buses were introduced in 2004 in earnest after conducting pilot operations in 2003 and have been instrumental in improving mobility not only for senior citizens and those with disabilities, but also for other citizens. As of 2012, 2,018 low-floor buses were in operation. Plans were in place to introduce 1,667 additional low-floor vehicles between 2013 and 2015, towards a goal of low floors being in 50% of all buses.

Figure 75 Adoption of Low-floor Buses & Numbers

Source: Hopeful Seoul Life Index (http://www.socialindex.seoul.go.kr/)

The Ministry of Environment initiated CNG intra-city buses in September 1999 as part of a project to have low-emission intra-city buses operating frequently in big cities. Starting with CNG buses making up 0.5% of city buses in 2000, the number has annually increased until as of 2012, 100% of all 7,896 city buses ran on CNG.

Figure 76 Adoption of CNG Buses & Numbers

Note: CNG bus penetration rate used the unit the right auxiliary axis. Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

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As a semi-public bus system has been implemented by SMG, ‘Association for Transport Revenue Joint Management Committee’ is managing all revenue for bus companies and transport fees paid in line with an ‘Intra-bus standard transport cost’ determined through an external institute.

Transport costs are settled according to transport revenue. If there is a deficit (total income < total expenditures), financial support is given to make up the difference. To offset bus company deficits, SMG provides yearly subsidies, paying out KRW 1.8667 trillion since 2004.

Figure 77 Financial Support for Intra-City Buses

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

3.1.3. Reform Project of Public Transportation System in Seoul

In July, 2004, SMG reformed its public transportation system: Long distance/circuitous/ overlapping routes were aligned and the bus routes were divided into trunk line and feeder lines while improving the connectivity between the lines by putting into place an integrated transfer fare system that does not impose additional fees when transferring between of public transportation modes, reasonable travel pattern was enabled without the burden of additional costs. In addition, in line with the development of sophisticated technology, it could be escaped from former bus operation management methods that was rule-of-thumb and systemized bus operation management system could be built while improving city infrastructure so it was more oriented to bus services.

These reforms enhanced the level of service for public transit and made urban transportation more public transit-friendly through changing car usage trends and managing roads more efficiently.

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1) Reform of the Bus Route System

Reforms were also made to the bus routes to resolve several complaints raised by city bus users and allow the system to perform is function as a public service industry. Reorganization of the Seoul bus route system aims at improving speed of service and punctuality and alleviating congestion on crowded routes, improving fair access to services and convenience in terms of user’s aspect. From an operational viewpoint, the reforms aim to improve management, improving operational efficiency and increase the speed of service. In terms of management, the reforms target service stability, a comprehensive transportation system, active bus use, and improved environment and a decrease in the energy consumption.

Figure 78 Concept Map to Establish Hierarchy by Bus Functions

Source: Seoul Statistics (http://www.stats.seoul.go.kr/)

Bus lines are divided into trunk and feeder lines: trunk lines are long-distance routes that mainly operate along trunk roads (principal arterial roads) for rapid movement between regions while feeder lines are short-distance routes that operate mainly along minor arterial roads for convenient access between regions.

Seoul buses are divided into general trunk lines, metropolitan trunk lines, general feeder lines and circular feeder lines in line with service zones. General trunk lines handle traffic demand between regions in Seoul while metropolitan trunk lines handle traffic demand between the CBD and sub-centers in Seoul and major spots in satellite areas. General feeder lines cover traffic demand within a region while providing convenient connection with trunk lines or the metro system to assist with handling traffic demands between regions while the circular feeder lines handle traffic demand within a region while seeking to provide greater convenient access to dense commercial/business areas.

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Figure 79 Bus Operation Zones & Zone Classification Map in Seoul

Source: 2005, Analysis and implications of reforming public transportation in Seoul, Daegu Gyeongbuk Development Institute

The bus colour scheme and numbering system is designed to show bus starting point, route, and destination. Numbers have also been simplified for easy recognition and visibility from a distance.

Along with the metro, buses have served as the people’s transportation for decades but irregular headway due to traffic congestion led to greater inconvenience. People began to stop using buses and the use of personal vehicles skyrocketed, creating a vicious circle of traffic aggravation. To stop this cycle and return public transit to the fast and convenient service it had been, SMG introduced a comprehensive system of medium Exclusive Bus lanes. The medium Exclusive Bus lane serves to increase use of public transit and improve the urban transportation environment as the infrastructure separates buses from other transportation modes and guarantees transportation priority to the iconic public transit mode in Seoul.

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Methods for Assigning Route Number in Line with Table 14 SMG Route System Reforms

Index Meaning of Route Numbers

• Route number: 3 digits Trunk Lines • Allocation criteria: Zone number of the origin + Zone number of the destination + 1-digit serial number • Route number: 4 digits Inter-regional Lines • Allocation criteria: Inter-regional bus number (9) + Zone number of the origin + Route serial number (2 digits) • Route number: 4 digits Feeder Lines • Allocation criteria: Zone number of the origin + Zone number of the destination + Route serial number (2 digits) • Route number: 2 digits Circular Lines • Allocation criteria: Zone number + 1-digit serial number

Source: Internal SMG materials

Figure 80 Medium Exclusive Bus Lanes in Seoul (2004~2015)

Source: Seoul Policy Archive (https://seoulsolution.kr/ko/content/Medium bus-only lane)

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In July 2004, Seoul transportation was completely reformed and the medium Exclusive Bus lanes were extended an average of 15 km per year on congested roads predominantly, served by many bus routes such as Dobong/Mia-ro, Suseok/Seongsan-ro and Gangnam-daero. By the end of 2012, medium bus­only lanes had been introduced on 12 major trunk roads (115 km in total) and now provide fast and safe service as they seamlessly connect the major arteries in the city.

2) Reform of the Bus Operating System

SMG has initiated a reform of its bus operating system to maximize the benefit offered by all lines and to improve efficiency through the principle of competition while stressing the public concept. The core element of this reform was to systemically change the existing bus operating system from one that had been managed by the private sector to one that is ‘semi-public’ and highlights the public nature of bus operations and management. The semi-public model adopted by SMG was essentially a route bidding system and a joint revenue management system.

The goals behind reforming the bus operating system in Seoul is to secure fair access to a stable bus service in terms of citizens’ aspect and raise operational efficiency in terms of company’s aspect. It also aims to increase the reliability of bus operations by ensuring punctuality and broadening the scope of choice of transport and improving comfort while using the bus. To develop the bus industry in a desirable direction, it seeks to promote bus transportation and lay the groundwork for public transportation service along with improved operating efficiency while seeking reasonable management improvements and ensuring profitability for operators while also ensuring stability of service. Furthermore, reforming the system in Seoul focuses on minimizing inconvenience and frustration by providing financial support to companies to improve profitability, introduce the concept of public operation of bus services, securing labour’s status and on stabilizing employment.

SMG’s line bidding system is designed to minimize operating costs and improve service for 19 lines on 10 major trunk roads that are expected to be profitable. The operation and management system help SMG determine routes and lines and headway, etc., in line with demand while the operating company remains responsible for vehicle operation and depots as well as recruiting and managing transport operation staff. The system involves competitive bidding, considers the total budget bus operations including company business skills, ability to manage, financial situation, plans for service improvements and plans for improving worker welfare. The most qualified company is assigned a limited-term license of 6years in accordance with the operating contract.

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The Joint revenue management system is to establish bus association for 70 trunk lines and 291 feeder lines and for joint management of revenue. The lines are placed on the zones in line with the depot autonomically and SMG adjusts each bus line system, the number of operating buses and headway to ensure public sector involvement. SMG and the bus association consult each other to decide lines and routes according to demand, while headway and allocation interval can be coordinated with some flexibility by making changes to the business plan. SMG tries to establish an operating system run by the private sector that newly assigns business license by line and regularly evaluates the operating rules and level of service.

Joint revenue management is to distribute revenues in line with operating performance with standard costs set (vehicle unit/km) and to secure stability through financial support (compensate deficits of bus operating companies). A Joint Revenue Management Committee runs in accordance with a Joint Transportation Revenue Management Agreement. In addition, the committee has built competition system that evaluates operating performance and service by computerizing the related evaluations and the BMS (bus management system).

Figure 81 The Bus Information System in Seoul

Source: Seoul Public Transportation (https://bus.go.kr)

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As the necessity of restricting the use of personal vehicles and increasing the use of buses by improving satisfaction with the bus service like ensuring punctuality, keeping headway and providing bus information through BMS/BIS has been emerged, SMG has run a Bus Management System Center since the day the public transit system began its reforms (July 1, 2004).

3) Reform of the Public Transit Fare System in Seoul

Seoul’s public transit fare system was reformed to resolve the mismatch between users with different transportation demands and to improve competitiveness in public transportation.

To resolve the unfair criteria in a zone-based fare system that designated zones based on an arbitrary standard, SMG adopted a distance-based fare system that sets a basic distance and imposes additional charges as distance is added under the goal of strengthening the fairness for users. Setting single passenger fares that fail to reflect the average income or am average fare creates a vicious cycle that invites a steep decrease in service quality. Therefore, rather than encouraging chronic practices like fare increases to cover costs, SMG tried to reflect reality in terms of operator profits by forging an effective fare system and distributing new service formats at a reasonable level. Also, to ease the burden on users of public transit, which increased when transferring between public transportation modes, it discounts for transfers between bus and metro as well as between buses.

Figure 82 Background of the Reforml

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SMG announced the method it would use to reform the public transit fare system for buses and metro on June 10, 2004 and began implementation on July 1, 2004. SMG’s public transit fare system index is classified into 3 fields:

- The User Index sets directions for fare policy to contribute to an increase in demand for public transit, promote user convenience, overcome unfairness by calculating fares in line with trip distance and enlarging the scope of various options;

- The Public Transit Finance Index sets policy directions to increase revenue, prevent loss of profit, minimize collection costs and at the same time, strengthen financial situation; and

The Business Management and Acceptance Index sets policy directions for easy implementation of fare policy and acceptance by users. The integrated public transit fare system imposes a free transfer system that charges one price for total distance, regardless of the number of transfers. For example, if travel is within 10 km, only the basic fare (KRW 1,200 on a general card, KRW 1,300 cash) is charged, with an additional KRW 100 for every 5 km thereafter. Here, the fare should not surpass the sum of each fare for the modes of transportation that a passenger would use to go a long distance. This system is applied when transferring between trunk, feeder, circular or community bus and metro.

For inter-regional buses, the basic fare is higher (KRW 2,300 on a general card, KRW 2,400 cash) due to the long distance. And, only when boarding the bus by using transit card, this discount benefit could be applied. For single bus trips, a unified fare system is adopted and applies to trunk, feeder, circular (community) and inter-regional buses. For trunk and feeder buses operating beyond the city boundaries, existing fare policy that charges additional fees was abolished and the unified fare system that imposes the basic fare has been applied as well.

Metro fare is set from a basic fare (KRW 1,250 on a multi-trip card, KRW 1,350 for single journey cards) for a 10-km distance by unifying the zone system by each section of Seoul in line with the distance based fare system and an additional KRW 100 is levied for each additional 5 km up to 50 km total distance, and every 8 km thereafter.

Period tickets are accepted only at the metro and metropolitan railways. Seoul-only tickets can be used for Seoul metro lines 1~9 and certain sections of KORAIL between Seoul and Siheung, Guro and Onsu, Yongsan~Wangshimni~Dobongsan and between Seolleung and Bokjong and cost KRW 55,000. Tickets that can be used on all sections of metropolitan railway and metro cost KRW 58,000~ KRW 102,900 in line with the planned travel distances. These cards can be used for either 30 days or 60 times, whichever occurs first.

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Figure 83 Fare Systeml

The transit card discount system was abolished and a standardized fare system introduced to bring in the free transfer system only when using transit cards. The new system recognizes the departure and arrival stations and calculates the entire trip (despite transfers) and subtracts an integrated fare in line with the distance.

The discount system has been streamlined, changing the previous standard fare system for single journeys (paid in cash) into a standard transportation fare system that applies a discount for students only when a transit card is used. For students and the youth, fares are discounted 20% on all public transit, and 50% for elementary school students.

4) New Transit Card System

Before enforcing the new transit card policy, revenue was lost due to discounts in line with card usage so the financial situation had to be improved, which in turn, restricted further extension of discount rates. In addition, there are different card operator so limitations exist in maintaining a cooperative system in line with card compatibility. The transit card scheme was operated independently by regional companies running general intra-city buses, community buses and metro lines. The problem is that the card operators were different by each region

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so nationwide compatibility was impossible.

Cost increases and problems in policy operation due to proprietary technology from certain companies emerged and the system operating company wanted to retain responsibility for maintenance so it refused to reveal the technology that could guarantee stable operation of the transit card system (encryption and SAM storing methods). To this end, Seoul’s transportation policy and the rights and interests of other parties were in conflict, rendering it impossible to quickly reflect certain transportation policies for greater convenience. The card commissions, which amounted to KRW 23.3B a year, were another significant issue.2)

The Bus Transport Business Union of Seoul and credit card companies were responsible for issuing transit cards. Bus Transport Business Union of Seoul is in charge of issuing pre-paid transit card and card companies issues a credit card with transit card function. Kookmin Bank was responsible for settlement and the four metro corporations of Seoul Metro, SMRT, the National Railroad Administration and Incheon Metro were in charge of operation, making it difficult to pursue uniformity of policy. Moreover, the fare system failed to be properly operated in line with the different card types so accuracy could not be secured. Bus company revenues were not clear, resulting in unnecessary financial support and non-transparent management of the transit card project as the Bus Transport Business Union conducted settlements. In addition, stable business performance by operators and the settlement authority is absent so it is required for the bus company to ensure transparency above all.

Player of Issuing and Operating Transit Card Before Implementing Table 15 New Transit Card Policy (1990~2003)

Index General Buses metro Community Buses

8 credit card Card Issuer Bus Union - companies 4 metro corporations, Operation/Settlement Bus Union Community Bus Union Kookmin Bank Intech Inc., Ace System Supplier Information and C&C Enterprise Inc. KEBT Inc. Communications Inc.

Source: 2006, Seoul, Writing a History of Public Transport Again, Seoul Metropolitan Government

In the 90s, Seoul Metro and Incheon Metro had their own fare collection system as an independent public institute. Metro system operated a vending machine and fare gate based on MS ticket. Bus system collected a fare by using a token and coupon ticket.

2) 2006, Seoul, Writing a History of Public Transport Again, Seoul Metropolitan Government

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Figure 84 Status of Seoul Transit Card Operation in the Mid 1990sl

Source: Park Youngwook Ph.D., Evolution of E-Fare System in Seoul, KSCC

A contact-free card system was introduced for the metro and buses, but were not compatible with each other. Each entity signed independent contracts with a card-issuing company and installed the transit card system on top of their existing system. The commission was compensated by a card service fee.

Figure 85 Status of Seoul Transit Card Operation in the late 1990sl

Source: Park Youngwook Ph. D, Evolution of E-Fare System in Seoul, KSCC

Accordingly, for complete reform of the public transit system, the existing pre-paid transit card had to be changed. In addition, existing pre-paid transportation used a card with Type A specifications in a manner of Philips’ MIFARE methods, not the ISO technology standard

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so the risk of financial incidents like illegal card copying could occur. In addition, the card had to be charged on a regular basis and would not work once insufficient balance remained.

The background to introducing a transit card in Seoul in February 1996 was to improve convenience of public transit fare payment and secure transparency in managing transport revenue. Before adopting the transit card, bus passengers had to inconveniently have coins or tokens to pay the small fare. Drivers had to make change, which had the potential to result in unsafe driving. When using the metro, it was inconvenient to wait in line to buy a ticket, and the cost of ticket paper and the personnel needed to sell the tickets had to be factored in the price.

The transit card was introduced to resolve these issues. Pre-paid transit cards were adopted for certain intra-buses in February of 1996, and then in July of that same year, was adopted for all buses. Post-paid transit cards were adopted in June 1998. After announcing the introduction of a transit card system in December of 1995, pre-paid transit cards were adopted in August 1997 and post-paid cards in February 1998 for the metropolitan railway. To resolve the problems of the existing transit cards and accept an integrated fare system in line with the reforms to Seoul’s public transit system, a new transit card has been in use since July 2004.

The progress to initiate the transit card system in Seoul is as follows.

- Jan. 10, 1996 Policy to adopt transit card system announced - Aug. 1, 1997 Started paid-pilot operation - Mar. 1, 1999 Extended and operated a transit card (Commercialized post-paid card) - Jan. 20, 2000 Pre-paid (bus) cards began to be used for metropolitan railways - Jun. 5, 2000 Post-paid cards began to be used for bus (Compatible use) - Sept. 1, 2000 Adopted transit card discount system (General 8%, Junior high/high school student 20%) - May 2001 Community buses begin using transit cards - Jan. 10, 2001 Pre-paid card reloader installed (126 units at 99 stations) - Oct. 1, 2001 Introduced transit card transfer discount system (Between metro and bus) - Feb. 1, 2002 Increased the number of companies issuing post-paid cards (1⇒8) Dec. 1995 - Apr. 2002 Adopted community bus transfer discount system - Jul. 2004 Adopted new transit card for Seoul intra-buses and metropolitan railways - Jul. 2007 Gyeonggi Province adopts an integrated fare system - Jul. 2007 Initiated transfer discount between Gyeonggi Province and Seoul General/community buses and metros - Sept. 2008 Implemented transfer discount for Gyeonggi Province to Seoul seated (Inter-regional) buses - Nov. 2008 Unmanned issuance of transit cards begins

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The new transit card system was introduced as a part of Seoul’s project to reform the public transit system on July 1, 2004. It has significantly contributed to increasing the number of public transit users and alleviating the burden on the public with the integrated distance-based fare and free transfer systems in Seoul. Also, in July 2007, an integrated fare system in the metropolitan area (including intra-buses for Gyeonggi Province) was introduced and broadened to seated buses for Gyeonggi Province in September 2008, enlarging the scope of free transfer system implemented in downtown areas of Seoul to the metropolitan area.

The foundation was laid for integrating the current transit card into a new transit card system as well as for implementing an integrated transfer fare system.

Figure 86 New Transit Card System (2004)

Source: Park Youngwook Ph. D, Evolution of E-Fare System in Seoul, KSCC

New transit cards are smart cards, not the existing memory cards with embedded IC chips and CPUs. Smart cards feature high security: encryption, authentication of the accessing party and management of the memory data. It is also impossible to copy so the same technology has been utilized for bank and ID cards.

A smart card: - Consists of a CPU, ROM, RAM, EEPROM and I/O system - Includes OS at ROM and store application at EEPROM - Changes data through the I/O system after satisfying conditions for access - Stores additional applications with read/write function - Provides stronger security functions than a memory card

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Figure 87 Smart Card Structure

Source: Internal KSCC materials

Table 16 Comparison of Existing & New Transit Cards

Index Existing Transit Cards New Transit Cards •Improved card to international •MIFARE of Philips company standards, EMV •Absence of security •Acquired security that can prevent fraud •Able to have various functions like •Simple RF function Transit e-cash Card •Able to accept ID by individuals (Must •Unable to accept ID by individuals adopt period card and senior priority card) •Monopoly by certain companies due to •Operate in RF EMV manner patents •Standard SAM •Intel SAM, C&C SAM •Multi SAM •Lack compatibility due to the use of Device non-standardized SAM from certain •Nationwide compatibility companies •Lack in volume and extendibility •Secure volume and extendibility •Secure momentum on new payment •Lack of independence from system system and transportation policy by supplier, who refused to disclose acquiring ownership of the technology encryption and storage key from system supplier •Different players in issuance, •Unify transportation issuance and settlement and management settlement system •No transparency in business as Settlement transport players engage in settlement •Transparency in settlement work System work •Concern of fraud due to significant •Manage expenditure of the pre-paid to amount of prepaid expenses improve system •Operate information management center for easy data collection and •Difficulty in managing materials management through system improvements Source: 2009, Case Study on the Transit Card System (Based on transit cards in the metropolitan area), Metropolitan Area Transit Headquarters

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In July 2003, the new transit card system was built and is now in operation. it integrated previously separate transit card systems for buses and railway-related institutes. The new transit card system includes data on collection/settlement/charging services on bus, railway and transport transactions.

Figure 88 Whole Block Diagram of the System

Source: Internal KSCC materials

The status of transit card system as of 2016 is explained in Figure 89.

The transit card system collects data in real time with a dedicated line for bus depots, railways and each station, with the data received/transmitted to external institutes such as credit card companies and computation centers.

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Figure 89 New Transit Card System (2016)

Source: Park Youngwook Ph. D, Evolution of E-Fare System in Seoul, KSCC

Figure 90 Block Diagram of the Infrastructure

Source: Internal KSCC materials

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Transit cards can be defined as a next-generation information processing cards that act as small computer systems with embedded CPUs and memory. They comply with international and domestic standards for compatibility and extendibility nationwide.

Figure 91 Characteristics of Seoul Smart T-Money

Source: Internal KSCC materials

Transit cards create a history of transactions, receiving/transmitting and verifying data for communications with the device and storing and updating the data after normal transaction with the device.

Figure 92 Using Smart T-Money

Source: Internal KSCC materials

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The discount rate could be changed with user identification code in line with transit card users. In addition, in case of losing the card, the user could report a lost card, shifting it to a faulty card, to prevent illegal use.

Figure 93 Shift to faulty card when losing the card

Source: Internal KSCC materials

B/L or P/L check is an offline test method conducted at the device to prevent illegal use: card validity is tested by searching at a table when tagging the card after downloading the (B/L or P/L) list from a device in advance.

Table 17 Preventing Illegal Use of Transit Cards

Index B/L (Black List) P/L (Positive List)

Storage space •Store it at a device with 4bytes •Store it at a device with 2 bits of one card Device storage •Stores faulty card numbers only •Stores all card numbers method •Transforms absolute address by •Stores in sequence based on BIN No. reading Alias number in a card of credit card company •If the corresponding address’s •Checks whether relevant number relevant bit is P/L Flag, it is normal. Search method exists on corresponding BL Table Treat as abnormal for N/L Flag when reading the card •1-bit registers whether to use and •If BL exists, deny (Err-06), if not, rest 1-bit registers information like normal treatment whether the user is a child or teenager. No. of storage •Less than 6M cases at maximum •More than 100M cases at maximum

Source: Internal KSCC materials

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Black List is transmitted to subsystem after converting and creating 16 digits of the credit card number. However, when downloading data to the device from the collecting system, additional condensed algorithm (Offset Conversion) will be applied.

Figure 94 B/L Composition

Source: Internal KSCC materials

P/L stores information by registering Alias number corresponding to one each card transaction and flag on designated memory area.

Table 18 P/L Composition

Card Registration Information Alias Scope No. of Cases Classification 1 2 Meaning 0 1 Pre-paid/Student 0 0 Pre-paid/General Serial number Accumulate to an Former pre-paid About 30M cases 11 From-To account/Student Accumulate to an 10 account/General Post-paid Serial number 1N/AUsable About 60M cases (Former, New) From-To 0N/AUnusable 1 0 Children Serial number 01Youth New Pre-paid About 30M cases From-To 1 1 General 00Unusable

Source: Internal KSCC materials

BL/PL operation of the railway system is as follows.

- BL/PL creating process is every evening at 11 pm: it closes the collecting work of the day and reflects changes. - Reflection is based on materials collected from 11 pm the previous day and 11 pm of the present day.

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- It is applied to the operating device (device) after checking created BL/PL file of the railway (23:50) and bus (00:30) at the development server.

Figure 95 Rail System BL/PL Operation

Source: Internal KSCC materials

BL/PL operation of the bus system is as follows.

Figure 96 Bus System BL/PL Operation

Source: Internal KSCC materials

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Devices situated on buses impose fares following the integrated distance-based fare system. This minimizes maintenance costs by allowing the bus device to automatically upload transaction lists through wireless communications at a depot and automatically download needed data. Figure 97 Bus Device Operation

Source: Internal KSCC materials

Devices on buses that record passengers getting on and getting off recognize transit cards and charge the appropriate fare. device Screen displays and voice prompts are provided for passenger convenience. In addition, the devices record transfer information on the card (such as time of boarding) and charges additional fees in accordance with that information.

Figure 98 Bus Get on/Alight Device & Driver’sManipulator

Boarding/alighting device Driver’s manipulator

Source: Internal KSCC materials

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Metro devices automatically upload transaction history and status information on the collecting system and download device operating information or payment-related data. The adjustment device handles errors occurring during the transaction, surpassed boarding time or free riding.

Figure 99 Operation of Urban Metro Device

Source: Internal KSCC materials

The main components on metro devices (validator) are as follows.

Figure 100 Composition of Urban Metro Device (Validator)

Source: Internal KSCC materials

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Metro collecting systems are installed at metro stations to collect all information gathered from reloaders and adjusting machines used there, as well as all passenger transaction histories.

They send and manage status information on devices and all other station devices in terms of system management aspect. Also, they support inquiry on settlement results and updated information on device operation through interlink with the central system of the metro operating institute.

Figure 101 Operation of Urban Metro Collection System

Source: Internal KSCC materials

This system reloads pre-paid transit cards for the value requested by a passenger, which can be done through wired and wireless reloaders, by mobile phone or online. The related information is managed through the reloading system of the adjustment/management center.

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Figure 102 Operation of a Reloader System

Source: Internal KSCC materials

Reloading of the transit card is done offline, and involves the user or reloading merchant inputting and checking the desired value and then reloading it within the reloading limitation of the master card.

Figure 103 Reloading Process

Source: Internal KSCC materials

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The adjustment system is responsible for following functions: 1) management of the basic information on fares that manages transit cost and commissions in line with differentiated pricing and various discount policy, 2) analysis and statistics management that comprehensively collects transaction history of the transit card from collection or central system of each transit operation authorities/institutes and provide materials related to statistics and accounts and 3) adjustment process with external adjustment center or other city/province’s adjustment institutes.

Figure 104 The Adjustment System

Source: Internal KSCC materials

Figure 105 Comprehensive Adjustment System in the Metropolitan Area

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Transit card are in a form of a/a card, accessary and mobile for convenient use.

Figure 106 Seoul T-money Cards

Cards Accessories Mobile Chips

Source: T-money website (www.t-money.co.kr)

A specific example of using e-cash in transit cards would be the parking lot system run by the Seoul Metropolitan Facilities Management Corporation under the Seoul Metropolitan Government. This system includes sophisticated license plate recognition and pre- and post­ paid cards at 11 of 17 parking lots under management.

Secondly, pre/post-paid transit cards can be used for purchases from so-equipped vending machines at highway rest areas and in the metro system.

Figure 107 Cases of Electronic Cash Functions

Parking system using transit cards Vending machine that accepts transit cards for (managedbySMFMC) payment

Source: 2009, Case Study on the Transit Card System (Based on transit cards in the metropolitan area), Metropolitan Area Transit Headquarters

Laws and national standards related to transit cards have been enacted for nationwide compatibility to increase the convenience of the system for users. The transparency secured in transportation industry revenues helps to maximize operational efficiency.

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Figure 108 Seoul T-money Card Operations

Source: Internal KSCC materials

There are benefits to using transit cards for users, operators and SMG.

SMG increased citizen’s satisfaction by adopting new transit card and it was analysed that new transit card system could have KRW 1.5 trillion worth of social cost effect.

Table 19 Benefits of Using Seoul’s Transit Card

Beneficiary Effect

•Removes the inconvenience of needing to have cash and it could be separately and receiving change •Convenient getting on and off thanks to quick payment of fare Users •Different modes of transport can be used with one card •Fare discounts can be applied •Other payments possible outside of transportation •System saves time and money as it both sells fares and calculates revenue •Digitalized fare collection enables management efficiency and ease •Aids in resolving disputes between company and union due to misunderstanding regarding revenue Operators •Removes distraction from the driver by minimizing his involvement in fare collection •Can be modified to handle various systems based on distance or zones etc. •Can realize efficient operation based on correct digital materials on performance. •Greater transparency in transport company revenues through e-payment •Reduce administrative involvement and budgetary waste in efforts to collect basic information related to fare adjustments SMG •More effective transportation policy (including on fares) and implementation due to the existence of accurate information •Increase use of public transit, thereby improving traffic conditions and lessening environmental damage

Source: Internal KSCC materials

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Figure 109 Effects of Adopting New Transit Card

Source: Internal KSCC materials

3.1.4. The Metro Fare Collection System

1) Developments in the Metro Fare Collection System

Metro system in Soul has accumulated know-how through numerous trials and errors till having current RE single journey card and based on these experiences, it could advance the system in more stable and efficient manner.

Figure 110 Developments of AFC System for Seoul Metro

Source: Internal materials of SMRT

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A) Before adoption of AFC (1974∼1985)

Seoul Metro line 1 was opened on August 15, 1974. The ticket used was developed by British man named Thomas Edmondson so it was known as the Edmondson metro Ticket. The system marked on the ticket the name of the departure and arrival stations and the fare. Ticket types included a single-journey ticket, carnet (11 tickets for the price of 10) and period tickets that could be used without restriction for a certain period of time. Fares were in accordance to a distance-based system where an additional fare was charged in line with the distance travelled after payment of a basic fare. Staff working at the station directly handled checking and collecting of the tickets in addition to selling. To mark boarding and alighting, the staff at the station punched a hole in each ticket.

In 1981, a machine was introduced that punched holes in tickets automatically, thereby decreasing wait time. However, boarding and alighting still took too long and staff at the station were often overloaded with ticket-related tasks. In addition, as new lines were constructed, the number of riders increased to the point where the existing number of staff could not handle the checking and collecting of tickets effectively. A computer system that could settle the revenue was not available to the station staff, so it took a lot of time to check the revenue manually.

Figure 111 Before Adopting AFC

Edmondson Railway Tickets (Firstmetroticketin1974) Ticketing Office

Source: SMG press release, July 22, 2011 Seoul Metro blog

B) Introduction of AFC and MS tickets (1986)

When metro lines 3 and 4 were opened in 1986, AFC was adopted and MS tickets were used.

An MS Ticket Office Machine (TOM) and Ticket Vending Machine (TVM) were adopted to issue tickets in volume and the types of ticket were diversified for single journey, round trip, one-day pass, subscription (set for a certain period), commute tickets (loaded with a certain amount of money) and transfer tickets.

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- In 1989, a transfer system between Seoul metros and buses was introduced. Up to that time, metros used MS tickets and buses used paper tickets or accepted cash. metro tickets had to be bought at a station and bus tickets at a ticket store next to a bus stop. - Transfer tickets were based on the concept of buying a metro ticket and bus ticket simultaneously at a metro station. The bus ticket was an MS ticket marked ‘Bus Ticket’, and could be purchased at a discount at metro stations. However, due to insufficient PR activities, the usage rate was not high. - The metro station calculated the cost of selling bus tickets and billed the bus company, while the revenue lost through discounts was compensated by the SMG. - Transfer tickets were not true transfers, but simply a system designed for user convenience. Efforts began to install MS counting machines on buses, but in the late 1990s, the transit card was introduced and the transfer ticket was abolished in 2001.

Ticket office machines and ticket vending machines allowed users to get their own tickets or have assistance from the staff, which greatly reduced staff work volumes. The specifications of ticket vending machines differed for lines 1~4 (first unit, operated by Seoul Metro) and lines 5~8 (second unit, operated by SMRT). The detailed specifications and status of installation are as follows.

Table 20 Automatic Vending Machines (Comparing First & Second Unit)

First Unit Vending Machines (Lines 1~4) Second Unit Vending Machines (Lines 5〜8)

•Vending machine structure: Independent type •Vending machine structure: Independent type •Bills: Cannot use •Bills: Inserted at 130 cm - Coins: Inserted at 150.2 cm (a little high) •Ticket exit: 84 cm •Ticket exit: 58 cm -Did not have to bend over - Have to bend over to get the ticket •Width of installed equipment: 60cm •Width of installed equipment: 120cm - Reduced needed facility area - Need extra facility area •Backside structure •Front structure - Easy to monitor and manage as machine - Independent type so installed in waiting could be installed in ticketing area areas but difficult to monitor and operate

Source: Seoul Metropolitan Government, “30 Years of History in Constructing metros in Seoul”, 2003, SMG, p. 147, extracted and edited

As a result of a feasibility study on automation methods for metro lines 2, 3 and 4 conducted in 1983, SMG classified Seoul into 15 zones (5 downtown, 10 suburban) and imposed fares according to number of zones travelled. This zone based system was initiated in 1985 and was in place until 2004, when the integrated transfer fare discount system came into being. However, the MS ticket had a downside in that it was easily damaged by magnets or sweat, and staff had a hard time reading damaged tickets. To solve this problem, efforts that promoted

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MS ticket management were made, but this was not a success. Finally, this issue was resolved after adopting an RF transit card. (Seoul Metro, “30 years of Seoul Metro History, Foot of citizens and Journey of citizens,” 2012, Seoul Metro, p. 63)

Table 21 Status of Automatic Fare Collection System (As of Feb. 1, 2001)

Seoul Metro SMRT Index Line 1 Line 2 Line 3 Line 4 Total Line 5 Line 6 Line 7 Line 8 Total Ticket Office 70 241 125 124 562 84 48 61 19 212 Machines Ticket Vending 53 221 113 101 492 505 287 424 129 1,345 Machines Single Journey 73 237 86 102 500 - - - - - Tickets Only

Source: Seoul Metropolitan Government, “30 Years of History in Constructing metros in Seoul”, 2003, SMG, p. 148, extracted and edited

Figure 112 MS Boarding Ticket

metro MS metro Ticket (1986) Automatic metro Ticket Vending Machine

Source: SMG press release, July 22, 2011

C) Introduction of an RF (Radio Frequency) transit card and simultaneous use with MS ticket (1998∼2008)

After adopting pre-paid cards in 1996, Seoul metro began to introduce more transit cards in 1998. With the start of a one-year pilot project at 8 stations in 1998, all sections of the metro were using the cards by 1999. The card was a credit card issued by Kookmin Bank and was called a ‘Public Pass Card’ and unlike pre-paid bus cards, it was a post-paid card and was incompatible with the bus system.

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In January of 2000, card transfers between metro and bus were possible with pre-paid cards for metros, and post-paid cards became compatible in June of the same year. metro and bus cards were operated separately until 2004, when an integrated transfer discount fare system was adopted metro. After 2004, MS tickets were used less and less often. Purchasing MS tickets and reloading transit cards were possible through staff or vending or reloading machines at stations. However, transit cards were sold only by staff. Additional devices were installed on existing MS ticket gates so that both transit cards and MS tickets could be used. The zone-based system was also replaced in 2004, with SMG introducing a distance-based system as part of the integrated transfer discount fare system.

The integrated transfer discount fare system imposes a fare based on total distance and not for each mode of transport when transferring to a metro or bus in metropolitan area with the transit card. The highest basic fare related to the transit mode will be charged for the first 10 km, with an additional KRW 100 for every 5 km thereafter.

Figure 113 Introduction of RF Cards

Fare-adjustment machine for metro pre-paid metro An example pre-paid transport card cards and a ticket count machine (2000)

Source: SMG press release, July 22, 2011

In 2009, the MS ticket system was completely replaced with the transit card system, and a single-journey card introduced.

As the MS ticket system was abolished in 2009, station ticket offices were closed and vending machines could be used to purchase single journey cards, adjust fares, and obtain refunds. The pre-paid transit card and regular card must be purchased at the station office but reloading must be done at the reloading machine by the passenger him/herself.

Priority transit cards can be purchased at vending machines for single journeys or paid for with a credit card. Group cards are issued and collected manually by station staff.

Fare System - The integrated transfer discount fare system introduced in 2004.

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Table 22 Types of Metro Cards/Tickets in Seoul

Type Details Users Pre-paid transit card 8 companies Adults, Youth, Children Post-paid transit card 12 companies Adults Adults Adults, Youth Single journey transit Children Children card Seniors at least 65 years old (international age), Priority persons with disabilities, persons of national merit Free-ride (Pre-paid) Credit/debit Seniors at least 65 years old (international age), Priority transit card card persons with disabilities, persons of national merit Group cards Paper ticket Adults, Youth, Children (atleast20persons) (Issuedmanually) Exclusively for Seoul, Regular card Adults distance-based (1∼14 stages)

Source: Internal SMRT materials

Figure 114 Changes after Introducing the RF Transit Cards

Operate Information Center that mainly guides Single journey ticket passengers after closing the ticket office (Since 2008)

Source: Internal SMRT materials

2) Operation & Maintenance of Metro Fare Collection System

The internal regulations for operation and maintenance of a fare collection system include Passenger Transport Terms, bylaws to implement Passenger Transport Terms, Transport Revenue Management Regulations, Station Automated Facility Maintenance Regulations and bylaws to implement the Station Automated Facility Maintenance Regulations.

The organization for operating the metro fare collection system and maintenance is as follows:

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SMRT’s Fare Collection System Operation Figure 115 & Organization Chart for Maintenance

Source: Internal materials of SMRT

Metro system in Seoul has operated and managed system, transit card and organization based on Internal regulation on operation and maintenance.

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Figure 116 Status of AFC Operation and Maintenance for Seoul Metro

Source: Internal materials of SMRT

A) Outline of the metro fare collection system

The organization to operate the metro fare collection system is as follows: - The Service Support Center manages 8~15 stations. If it detects an error/malfunction in the fare collection system, it reports this to the technology center, which swiftly handles the situation. - Customer Service Headquarters actively operates the service support center. It reviews and conducts supporting methods, metro fares, and related systems. - The components of the metro fare collection system are explained below. - Validator: Recognizes transit cards and adjusts fares, controls passenger entry and exit and transmits data such as inquiry/event handling to the station’s computer system. - Manned reloader: Allows an operator to reload pre-paid transit cards - Ticketing machine for single journeys & reloader: Allows passengers to issue their own single journey cards (General, Discount, Priority) or reload pre-paid and regular transit cards - Deposit refund machine: Allows operators to read the transit card and settle the fare if a passenger cannot enter/exit the gate due to malfunction of the validator or errors on the transit card. - Portable adjustment device: Allows operators to read the transit card - and settle the fare if a passenger cannot enter/exit the gate due to malfunction of the validator or errors on the transit card. - Transit Card Adjustment/Reloader: allows a passenger to adjust single journey transit card, search transaction of the pre-paid transit card and reload small amount of money. - Station Computers: control gates, reloader, computer and single journey transit card system, collect statistical and account data and send them to the central computer network.

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B) MS Ticket Operation

The MS ticket system runs as follows. - When receiving tickets, the station manager checks the quantity and conducts an exterior test. - The serial number is marked by year on the packaging box and the tickets are used in a serial number order. - When tickets are used, a form showing usage is filled in and then signed and stamped. - Ticket status is reported to headquarters at the end of every month.

Transportation management documents are written up and reported in the following ways. - Station revenue report: The leader of each shift writes up a revenue list for the day, which is reported the following day by the station master to the CEO, with evidential material. - Daily revenue report: The department in charge at head office creates a daily transport revenue list by station. - Vending machine summary sheet: A list of daily vending machine revenues is sent to the station master and then on to the CEO, with evidential material. - Ticket office summary sheet: Staff in charge of ticketing write up a shift/revenue handling cost and working history and turn it over to the leader of the next shift - Revenue Correction Report: When discrepancies arise regarding revenue collected from vending machines and the reported amount or if other issues arise, the station master should report it to CEO with evidential materials. - Cash book management: The person in charge of the shift should write the revenue in the cash book and record the amount of turnover vault cash. The balance in the cash book and cash in the vault should be the same.

Methods for handling revenue collected from stations are as follows. - Confirmation of revenue: Close the vending/ticketing/reloading/adjusting devices after business hours and create a transport revenue report. - Account report: Compile output from issuing/ticketing/adjusting/reloading devices daily, by device, and print them out. - Revenue management: Daily revenue will be closed in line with the financial report when ending the day’s operations and the revenue is turned over to the leader of the next shift. - Work shift: Ticket office tabulation is recorded and turned over when the shift changes. - Revenue surplus/deficit: The station master resolves any surplus or deficit. Surpluses are revenues that surpass costs, and deficits will be compensated for. - Deposit revenue: The station master deposits daily revenue to the bank account of the metro operating institute.

The process of screening revenue tasks by head office is as follows: - Documents are screened by comparing various reports and deposit lists by station.

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- If a deficit is identified, the relevant station master must adjust it. - Revenue reports which pass the screening will be sent to the head of the accounting department after confirmation by stations, and then reported on a quarterly basis to the CEO.

C) Transportation Card Operation

Management of card receipts and disbursements is as follows. - The quantity of single journey cards distributed to each station will be directly managed by the support office (management office for each station zone). - The support office will check discarded or refunded cards returned to them by the station. - It will also take inventory every 10 days at each station and report the results. - Any discrepancies between e-stock volume and real stock volume will be examined and corrected.

Transport management documents and reports are filled out as follows. - Transportation-related document written at a station and its methods are as follows.

The methods of caring for station revenue are as follows: - Revenue close: When retrieving cash/random close when injecting or retrieving hopper - Revenue composition

Table 23 Metro Station Management Forms

Writing No Management format namet Classification Remarks frequency 1 Transport Revenue Report Daily Digitalized 2 Daily Special Passengers 〃 〃 3 Daily Passenger Refunds 〃 〃 4 Cash Book As needed 〃 5 Group Tickets 〃 〃 Manual Issuance 6 Passenger Transport Receipts 〃 HR Handling 7 Revenue Correction Report 〃 Digitalized 8 Revenue Correction Order 〃 〃 9Notice 〃 〃 10 Alternative Transport Payment Report 〃 HR Handling 11 Confirmation of Alternative Transport Cost Receipts 〃 〃 12 Confirmation (Alternative Transport Cost Receipts) 〃 〃 13 Not-boarding Confirmation 〃 〃 14 Delay Certificate 〃 〃 Issued at website

Source: Internal SMRT materials

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- Turnover of revenue: When closing for the day, the daily revenue will be turned over to the leader of the next shift. Revenue handled by devices will be treated in line with account reports and revenue handled by staff will be treated in line with the relative reports. - Work shift: Contents are turned over after comparing and checking the written account report and actual revenue - Account report management: An AFC account report is compiled and handled by the station master. - Handling revenue surplus/deficit: The station master handles revenue that have surpassed costs while deficits must be compensated for. - Deposit revenue: The station master deposits daily revenue into the bank account of the metro operation institute

Table 24 Formula of Confirming Revenue Collected by a Machine

Machine Revenue confirming formula

Daily machine deposit + Refund­Paid amount­Machine deposit of the Vending machine previous day

Machine deposit of the previous day+Paid amount-Refund­Daily machine Refund machine deposit

Daily machine deposit+Refund­Paid amount­machine deposit of the Adjustment device previous day

Ticket issuing Issued amount+Deposit+Lost data (only when occurred) machine

Unmanned reloader Refund

Manned reloader Reload a regular card­Return a regular card+Reload a transit card

Portable adjustment (Report a non-ticket+not report a non-ticket)-(Return pending travel + device Return train delay)

Source: Internal SMRT materials

- Revenue screening: Station revenue screening (station master)→comparison of information on the central computer and deposit list by station, and other reports (headquarters staff) →determine revenue (head of the HQ management department)→inform the head of the accounting department→report to the CEO (quarterly)

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Figure 117 Transport Revenue Handling Flowchart

Source: Internal SMRT Materials

3) Maintenance of fare collection system

The maintenance team is managed by the Technology Business Office, the Center and Electronic Services.

- Technology Business Office: Maintains equipment at 8~15 stations, takes measures against malfunctions at each station, conducts regular preventative check-ups and checks the status of field facilities when downloading various programs.

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- Center: Conducts preventative maintenance on the central system (central computers), downloads programs and firmware and checks for errors, and reports the results to the Technology Business Office. - Electronic Services: Formulates annual plans for maintenance, malfunction prevention measures, and purchase plans for related items and support technologies, to maintain a high level of maintenance.

The items needed for maintenance of a metro fare collection system are as follows: - Automatic gates/validators, manned reloaders, single journey card issuance/reloading machines, deposit refund machines, portable adjustment devices, transit card adjustment/ reloading machines, station computers, remote-monitoring panels, service support computers, operating computers, maintenance computers, central computer(s), uninterrupted power device(s), network management system, firewalls

Details of the regular check-ups and targets are as follows: - Weekly: Operating computers, maintenance computers, central computer(s), network management system, firewalls - Monthly: Automatic gates/validators, single journey issuance/reloading machines - Quarterly: Station computers, service support computers, maintenance computers - Semi-annually: Uninterrupted power device

Following is a block diagram on network maintenance.

Figure 118 Network Block Diagram

Source: Internal SMRT Materials

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4) RF Single Journey Cards

A) Background and Purpose

The need to improve rider convenience and efficiency in the use of transit cards has emerged as new lines such as Metro line 9 and the new Bundang Line open and new fare packages are adopted. Increasing the use of public transport, including the metro, and improving rider convenience is the purpose of this project.

Figure 119 Background of and Purpose for the RF Single Journey Card Project

B) Project outline

This was a project that designed a new station environment for RF cards that are recycled, and replacing the MS tickets. - Project period: November 2008 ~ May 2009 - Project goal: Shifting existing MS devices into RF devices - Project scope: Develop, mass-produce and install single journey ticketing machines, adjustment machines and deposit refund machines

Figure 120 RFID Boarding Ticket

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C) Single Journey Card System Architecture

Single Journey Card should take into account various systems like central system, adjustment device and refund machine in addition to ticketing machine. Especially, various operating processes like card balance monitoring, card washing and card recycling process.

Figure 121 Single Journey Card System Architecture

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A passenger purchases a single journey RF card at the ticketing machine and receives back the deposit through the refund machine. In case of excess fare or errors, it should adjust the fare within the paid area.

Figure 122 Use of an RF Single Journey Card

D) Equipment

Vending machines allow passengers to purchase and/or reload the transit card when using the metro.

Vending machines check coin and bill authenticity and issue RF single journey and /complimentary cards and allow users to reload transit cards through the LCD touch screen.

Functions of the vending machine exterior and composition: - Vending machines are made up of an LCD touch screen, a coin and bill handling device, an RF single journey card issuance device, an RF pre-paid card reloading module and an ID recognition device. When coins or bills are inserted, the machine will reload pre-paid transit cards (Include period cards) and issue RF single journey cards. - A bill releasing device allows the machine to provide change in bills and coins. All sales information is transmitted to the collecting system.

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Exterior and Block Diagram of a Vending Machine Figure 123 for Single Journey Tickets

Front Rear

- Main functions of the vending machines

Table 25 Main Functions of Ticketing Machines

Index Details •Resolves issues with KSCC RF single journey cards Issuing and •When card cannot be issued, discards it and issues refund discarding cards •Provides voice information and prints out receipts Choosing transit •Choose journey and check no. of cards to issue mode •Choose among period, discount and complimentary cards Issuing RF single •Displays entire metro map or certain line journey cards Destination •Also searches for station name •Receives operating materials, stores ticketing information and sends to the Transmitting/ collector receivingticketingi •Transmits/receives open/closing time, number of cards issued, purchasing nformation cost and balance Recognizing ID •Recognize residence registration cards, cards for persons of national merit Issuing cards and welfare card complimentary cards Issuing and •Provides voice guidance when complimentary cards Discarding •Handles discarding box when issuance fails •Reloads T-money, Union, Cashbee and regular cards Reloading •Allows choice of reload amounts Reloading •Choose the period ticket route and station name pre-paid transit cards Transmitting/ •Receives operating materials, stores charging information and sends to the receivingchargingi collecting machine nformation •Transmits and receives open/closing times, reload amount and stored amount •Search purchasing and reloading status, issue statement Account Handling •Search unpaid information Accounting Device storage •Search information(Coin/bill/card) stored in a device information •Sets time and equipment number, bill types and password Operation settings Equipment •Set stop-using and delete alarm setting and •Tests devices for coin handling bill handling and bill releasing testing Equipment testing •Equipment status marked

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Adjustment machines check and adjust fares reloaded to RF single journey cards and pre-paid transit cards through use of an LCD touch screen when the reloaded faire is insufficient. Passenger checks his or her own pre-paid transit card or RF single journey card and adjusts or charges the card by inserting a bill or coins into the adjustment machine.

Figure 124 Exterior and Block Diagram of Adjustment Device

Exterior Components

•Major functions of the adjustment machine can be seen in Table 26.

Table 26 Main Functions of Ticketing Machines

Index Details • Handles additional costs for KSCC single journey card Handling settlements • Provides voice information on changes Settling single • Receives operating materials, stores settlement list and sends journey cards Transmitting/receiving to the collecting machine settlement information • Transmits/receives open/closing/current time, settled amounts and balance • Handles charging of T-money, Union, Cashbee pre-paid cards Charging Manual charging (one bill) adjustment • Offers choice of reload amount amounts to pre-paid transit • Stores charging information and sends to the collecting machine cards Sending charging information • Transmits/receives open/closing/current time, reload amounts and balance • Search status of settlement and charging and issues a Handling account statement Accounting • Search un-payment information Storage information in a • Search stored information(coin/bill/card) in a device device • Set time, equipment number, password Operating settings Equipment • Set stop-using and delete alarm Setting and • Test coin handling and bill handling devices Testing Equipment test • Equipment status marked

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The deposit refund machine collects RF single journey cards from users and refunds the card deposit. It downloads operating system from the collecting system and sends the information treatment history to the collecting system. Then the RF single journey card is electronically wiped for reuse.

Figure 125 EExterior and Block Diagram of Refund Machine

Exterior Components

Table 27 Main Functions of Refund Machines

Index Details

•Retrieves KSCC single journey cards and provides voice information Retrieving •If the screening result is normal, card will be moved to the stacker Retrieve single •Refunds the deposit journey cards •Stores refund history and card reading failures, sends to the collecting machine Transmitting/receiving •Receives operating materials and sends equipment refund information number, open/closing/current time, refund amounts and money on deposit •Checks status of refunds, issues statement Account handling •Checks un-payment information Accounting Storing information on •Search stored information(coin/bill/card) in a a device device •Sets time, equipment number and password Operation settings Equipment •Set stop-using, and delete alarm setting and •Coin hopper/retrieving device for single journey testing Equipment testing cards/print test •Equipment status marked

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Vending machines allow for continuous issuance towards better handling crowds (demonstrations, stadium crowds, etc.)

Figure 126 Exterior and Block Diagram of Ticket Office Machine

Exterior Components

Main functions of the vending machine:

Table 28 Main Functions of Ticket Office Machines

Index Details •Issues one card, continuous ticketing, cancelling during the Ticketing continuous ticketing and suing receipts •Stores and backs up ticketing data Storing event materials, •Stores and backs up the alarm materials backing up and sending •Stores and backs up closing data •Stores and backs up data for work shift Storing, searching and •Stores daily accounting data printing out account •Searches daily accounting data screen materials •Prints daily account data •Sending function to ticketing data collecting system Sending event materials •Sending function to alarm materials collecting system •Sending function to closing and work shift data Environment setting •Sets parameters for system operation Downloading objects and •Sets parameters for system operation parameters from the •Downloads vending machine program collecting system •Permits log-in by station staff or maintenance workers Maintenance •Module testing function •Searching and setting system parameters

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E) Single journey RF card map

Figure 127 RF Single Journey Card Map

5) Compose the location of installing an equipment for RF Single Journey Card

The location of installing a machine should be selected in consideration of the exit type of each station and users’ moving line. The ticketing and refund machine should be installed at the same location considering users’ convenience and the adjustment device should be installed in the Paid Area.

Figure 128 Locations for RF Single Journey Card Machines (Example)

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3.2 Legal Framework for AFCS in Korea

3.2.1 Enforcement of Nationwide Interoperability of Transit Card

1) National Basic Plan

The government enacted relevant legislation towards nationwide compatibility of transit cards. This legislation specifies details on setting up the desired budget and investment plans for compatibility.

(1) The Minister of Land, Infrastructure and Transport shall formulate a master plan for the national interoperation of transportation cards (hereinafter referred to as "master plan for national interoperation") to enable cards or other media (hereinafter referred to as "transportation card") to be interoperable anywhere in Korea, with which citizens electronically pay or settle transportation fares when they use means of public transportation. use means of public transportation.

(2) The master plan for national interoperation shall include each of the following matters: 1. General conditions, such as the actual condition of use and relations in use by regions; 2. Policy directions for national interoperation; 3. Details of major projects for national interoperation and directions for the promotion thereof; 4. Estimated expenses to be incurred in major projects for national interoperation, financing measures and investment plan; 5. Matters concerning the performance of pilot projects for national interoperation; 6. Other matters necessary for the interoperation of transportation cards.

(3) The provisions of Article 6 (1) through (3) shall apply mutatis mutandis to the settlement or alteration of the master plan for national interoperation.

Figure 129 Plan Implementation & Monitoring Process

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2) Execution Plan of Local Government

The Act on the Support and Promotion of Utilization of Mass Transit System specifies and suggests the need for local government leaders to set up detailed action plans in line with the basic plan on nationwide compatibility. To maintain uniformity of the plan, the Minister of Land, Infrastructure and Transport or relevant cabinet level official shall order corrections

(1) Every City Mayor or the head of each Gun shall formulate a regional action plan for the national interoperation of transportation cards (hereinafter referred to as "regional plan for national interoperation") for the administrative district concerned in accordance with the master plan for national interoperation.

(2) When a City Mayor or the head of a Gun proposes a regional plan for national interoperation pursuant to paragraph (1), the Special Metropolitan City Mayor, Metropolitan City Mayors, the Metropolitan Autonomous City Mayor, and the Special Self-Governing Province Governor shall submit it to the Minister of Land, Infrastructure and Transport and other City Mayors (excluding the Special Metropolitan City Mayor, Metropolitan City Mayors, the Metropolitan Autonomous City Mayor, and the Special Self-Governing Province Governor) and the heads of Guns to Do Governors for approval. In such cases, when the Minister of Land, Infrastructure and Transport and Do Governors deems that the whole or part of the matters of the proposal is in discord with the master plan for national interoperation or necessary for maintaining inter- regional linkage and regional integration, they may order to supplement the matters of such proposal.

(3) When every City Mayor or the head of each Gun obtains the approval under paragraph (2), he/she shall make it available for public inspection.

(4) The provisions of Article 7 (2) and (3) shall apply mutatis mutandis to the formulation of regional plans for national interoperation.

3.2.2. Obligatory Installation of AFCS on Buses

The Act on the Support and Promotion of Utilization of Mass Transit System specifies the details of installation of transit card devices as below.

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Any of the following persons shall install and operate relevant apparatuses, such as a PDA (personal digital assistant) necessary to pay and settle fares by means of nationwide interoperable transportation cards on means of public transportation, transportation facilities, etc. as prescribed by the master plan for national interoperation, regional plan for national interoperation and specific area plan for national interoperation under Articles 10-2 through 10-4:

1. An urban railroad operator under subparagraph 8 of Article 2 of the Urban Railroad Act; 2. A route passenger transportation business entity licensed under Article 4 of the Passenger Transport Service Act and a bus device business operator licensed under Article 36 of the same Act; 3. A railroad business entity under subparagraph 8 of Article 2 of the Railroad Enterprise Act; 4. A person holding the right to manage toll roads under Article 10 (2) of the Toll Road Act, such as the Korea Expressway Corporation established under the Korea Expressway Corporation Act.

A business improvement order was issued to have each local government manage public transportation fares transparently and encourage the use of public transportation device. For this, it is legalized to install the transportation device under the form of the business improvement order.

In addition to buses and metros, other modes of transport like taxis are obligated to install transit card devices in line with the decision of the local government.

Continuous management and enforcement shall be conducted to ensure public transit operators are complying with their obligations.

3.2.3. Establishment of National Standards for AFCS

1) National Standards

The Ministry of Commerce, Industry and Energy, which oversees managing national standards, did so in 2006 for devices related to the use of pre/post-paid cards. Transit card is categorized as contact-less pre-paid card so that it should adhere to the concerned standards.

- KS X 6923 SAM standard regarding the payment for contact-less e-cash device - KS X 6924 pre-paid IC card: user card responding to KS X 6923

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- KS X 6925 Payment device for pre-paid IC card - KS X 6926 Charging device for pre-paid IC card - KS X 6927 Charging SAM for pre-paid IC card

Figure 130 Standards for Pre-paid and Post-paid Cards

2) Standards for Transit Card

The Ministry of Land, Infrastructure and Transport enacted and announced technology standards on nationwide transit card compatibility in 2010.

- Mounting Config DF, which includes card holder and issuing information, additional information files and location information based on KS X 6924 technology standard, will provide connection and integration between cards, entrepreneurs and regions.

Technology Standards for Nationwide-compatible Transit Figure 131 Cards under the Ministry of Land, Infrastructure and Transport

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3) Certification System for Transit Card

The act on the support and promotion of utilization of mass transit system lets transit card and devices get certificated before being used. By adopting certification system of the transit card and its devices, it pursues stability of transit card while securing safety and credibility of an equipment related to the transit card.

(1) The Minister of Land, Infrastructure and Transport shall conduct duties concerning certification necessary to ensure the national interoperability of relevant apparatuses, such as transportation cards and PDAs installed and operated by public transportation operators, etc. pursuant to Article 10-5.

(2) For the efficient promotion of the duties concerning certification under paragraph (1), the Minister of Land, Infrastructure and Transport may designate an institution or organization having the human resources and apparatuses determined by Presidential Decree to have it conduct such duties on his/her behalf. In such cases, such agency may receive the minimum funding necessary to conduct such duties from those who have transportation cards, PDAs and other relevant apparatuses certified as publicly notified by the Minister of Land, Infrastructure and Transport.

Figure 132 Authentication Work System Chart

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3.2.4. Requirements and Responsibility on Transit Card Operation

Transit card operators must be approved in accordance with the Electronic Financial Transactions Act to ensure the stability and credibility of financial companies. The Electronic Financial Transactions Act specifies conditions for registration and approval of electronic financial companies as well as terms that they must abide by in detail.

This is in the desire to ensure that use of transit cards does not cause any disadvantages.

(1) Any person who intends to engage in a business issuing and managing electronic currencies shall obtain permission therefor from the Financial Services Commission: Provided, That the same shall not apply to the banks provided for in the Banking Act and other financial companies prescribed by Presidential Decree.

(2) Any person who intends to provide any of the following services shall register himself/herself with the Financial Services Commission: Provided, That the same shall not apply to the banks provided for in the Banking Act and other financial companies prescribed by Presidential Decree:

1. Electronic funds transfer services; 2. Issuance and management of electronic debit payment means; 3. Issuance and management of electronic prepayment means; 4. Electronic payment settlement agency services; 5. Other electronic financial services prescribed by Presidential Decree.

3.2.5. Promotional Methods to Promote Use of Transit Card

A transit card system was firstly introduced in city bus of Seoul in July 1996 in accordance with the Action Plan to Adopt Transit Card System initiated by the Ministry of Land, Infrastructure and Transport in May 1995. Since then, they have been promoted by the local governments with support from the national government and has become the most favorite payment media for public transport, including taxi. These governmental efforts for promoting transit card use has not been limited in enactment or standardization over the related issues and topics as mentioned previously. The governments have developed various types of various fare structure, which provide significant advantages to transit cards over other payment media.

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Figure 133 Nationwide Compatible Transit Card

1) Adoption of Transit Card Discount System

SMG sets the transit cards to carry the basic fare and has formulated the fare system to impose additional charges when using cash or a single journey card. Gyeonggi Province defines the basic fare in cash and provides a discount when using a transit card.

2) Adoption of Integrated Fare System

The Seoul Metropolitan Government, Gyeonggi Province and Incheon Metropolitan City are engaged in the metropolitan area integrated fare system. The fare is not imposed upon boarding the transportation mode when using city bus, community bus or metro. Instead, it is imposed once the whole distance has been travelled. However, with cash, passengers should pay whenever they get on a bus and again when they use the metro. This integrated fare system provides a huge boost in promoting both the use of public transit cards as well as the use of public transit. In addition, it reduces the need for cash, in turn decreasing the costs related to management of cash, which in turn again is of indirect benefit in improving public transit service quality.

3) Introduction of Complimentary Transit Cards Through Partnership with Commercial Banks

Providing complimentary transit cards to users at least 65 years of age further reduces the numbers of staff needed for fare box operation. Users also save time as there is no need to purchase a ticket whenever using public transit. The transfer fare system between buses and metro also applies to complimentary transit cards.

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Ⅲ. Recommendations

1. Legal Establishment and Promotional Action

1.1. Legal Framework and Standard Establishment

The relevant national-level standards for transit cards and their operation are needed for the interoperability that enable mutual compatibility along with enactment of overall standards for public transit operating institutes. It is strongly recommended for the central government to establish technology standards of AFCS-related systems and devices and announce them as the national standards. These standards are to help the related companies to prepare their solutions and devices in advance. It results that the local government could shorten AFCS project periods and costs and avoid the vendor-dependency. Based on the national standards, the central government could develop test-and-certificate system and this system could help the quality of AFCS project to be guaranteed. the central government need to set up a comprehensive national plan for and legalize installation of the transit card devices for public transit operators to accept other transit cards. In addition, as the transit card is unified, it is a must to draw up legal standards and management plan of transit card entrepreneurs to increase confidence in the system

1.2. Promotional Actions for Transit Card Use

Under the current system of Cairo Metro, the transit card users could not enjoy benefits. Only passengers with period tickets can get discount. Public transit fares are too low so that discounts would be difficult. However, since the promotion of transit card use is to lead to significant saving of operational cost and to contribute to the transparency of fare revenue, it is strongly recommended that Cairo Metro takes promotional action for transit card use. In particular, in Cairo, the general buses of trunk role are run by CTA, a public entity, while

122 Ⅲ. Recommendations

the metro is under Cairo Metro, another public entity. It implies that political determination could easily lead to introduction of a variety of promotional actions.

2. Improvements in Operation & Management of a Fare Collection System

It is strongly recommended that a dedicated entity should be in charge of the transit fare and transit card related policies and planning and all the work processes and manual of transit fare and transit fare media should be reorganized.

Methods to Improve Operation & Management Figure 134 of the Fare Collection System

2.1. Establishment of Dedicated Entity and Its Role

2.1.1. Basic Plans for Transit Card Interoperability

A national basic plan should be established. Cairo City, Cairo Metro and CTA should formulate detailed action plans for the short, mid- and long term from of the national plan. To be effective, it requires joint efforts by the government and public transit operating entities. Plans should consider ways of establishing standards and players who will run the authentication system. An integrated settlement system and ways to select its operator should be considered as well.

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2.1.2. Development of Standard Technology for Transit Card

To create a transit card market with various forms of cards (such as pre-paid cards, bank cards and mobile cards) and diverse issuing parties, the related standard technologies should be defined. Since transit card systems depend on their fare structure, to achieve the interoperability of AFCS over a city like Cairo with multiple modes of transport and various fare products, the business rules for fares and fare products should be carefully designed. And the technologies for the accommodation of these business rules also should be carefully designed. On top of these, the information management for interoperability should be executed at the level of government. Furthermore, international standards should be applied in accordance to fit Egypt’s situation. Standards should also be set up for interoperability of devices, reloaders and SAM as well as for each form of card (pre-paid, post-paid, mobile).

2.1.3. Introduction of Certification System

As shown in Korea case, there needs to be certification system for the approval of transit card operators. Since a transit card is a type of prepaid card, if the pre-paid card operator happens to be in insolvency, the franchised transit operator cannot have the fare back. Accordingly, the supervising entity should continuously monitor pre-paid card companies to ensure they remain financially stable and reliable.

Also, certification regarding transit card and transit card reader should be established. If a card is used in multiple transit operators, each reader creates transaction records with the card in line with the same contracted rules without error. When handling a card with a device, instability could result in value-related errors, which could cost either the card holder or transit card operator.

2.2. Improvements to Cairo Metro and Its Management System

2.2.1. Build Card & Settlement Systems

The current system is designed for cards issued by Cairo Metro to be used on the system directly operated by Cairo Metro. For cards issued by Cairo Metro to be used on other modes of transport, the center will need to manage information on card issuance, card transactions, reloading, reloading stations, card distribution, card-using processes for approval/returns/ payment and Black list. Device management is especially needed in terms of reloading limits and the process for refunds.

124 Ⅲ. Recommendations

For cards issued by other issuing companies to be used on a system operated by Cairo Metro, it is necessary to build a settlement system that includes the following abilities:

- Able to communicate with the card company regarding transaction lists - Able to bill the card company for costs (Including re-request process through transaction list data backup) - Able to distribute/manage card approvals and denials as requested by a card company - Include a risk management system that can prevent illegal use

2.2.2. Hardware & Software Control System

Currently, the center simply manages searches and print-outs of the collected information and distribution of fare information. To realize a multi-issuer, multi-operator system, a system is needed that can collect more detailed information and control major hardware at the center.

Moreover, as the center distributes operational information and device software, it needs to have a system that can flexibly respond to the demands of various policies and card companies. Manual distribution of software will carry significant costs, as well as causing errors in fare handling until the distribution is complete. Countermeasures against this will be needed.

2.2.3. Operational Work Manual

Introduction on Ticket Vending Machine, use of cards issued by other companies and use of metro cards by other operating institute require a more complex and precise system than the current one in place. The work process needs to be specifically defined and put into manuals. The role of each layer and working process should be thoroughly defined in line with the Cairo Metro system that will use cards, L1 (Devices and Gates), L2 (SCU), L3 (LCU) and L4 (CCU). Station staff and the center manager will need to follow the manuals as they perform their tasks. This will ensure reliability of transaction list management (such as on sales, use and charging data).

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References

“World and Cities Vol. 12: Emerging City”, 2015, Seoul Institute “Basic Plan for Seoul ITS”, 2013, Seoul Metropolitan Government “Basic Plan for Urban Traffic Improvement in Seoul Metropolitan Area”, 2014, Seoul Metropolitan Government “Case Analysis of the Reform of Seoul’s Public Transportation System”, 2005, Daegu Gyeongbuk Development Institute “Case Study of the Transit card System (Based on the Metropolitan Transit card)”, 2009, Metropolitan Area Transport Headquarters

Ministry of Housing, Utilities, and Urban Communities, 2012, Greater Cairo urban development strategy JICA Study Team, 2008, Outcomes of strategic urban development master plan and pre- feasibility study KSCC, Evolution of E-Fare System in Seoul, 2015, Park Youngwook, PhD CNN, Top 10 Africa’s Cities of Opportunity, 2015 Mada Masr, Official: Egypt will have 90 million residents by next week, 2015 Central Agency for Public Mobilization and Statistics, Egypt in Figures 2015 Cairo vision 2050, The Strategic Urban Development Plan of Greater Cairo Region Greater Cairo Urban Development Strategy, 2012, GOPP Informal Transport in Greater Cairo: The case of the Microbus, 2015, Amr Institute for Transportation and Development Policy, Bus rapid transit for Greater Cairo: Prefeasibility assessment, June 2015

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