Operator Workshop June/July NESTI Programme Team
Agenda This is NESTI The NESTI Proposal
Operator Workshop This is NESTI
This is NESTI Agenda What is NESTI? Who is NESTI? Why is the North East going smart? How is NESTI being delivered? What are the Benefits of going smart?
What is NESTI? 1/2 NESTI Stands for: The North East. The programme has two main aims: 1. The introduction of a region wide smart ticketing infrastructure on all public transport. 2. The introduction of a single smart Pay as You Travel product accepted on all forms of public transport wherever you see the symbol.
What is NESTI? 2/3 What is a Smart Infrastructure? Smart Tickets are electronic records stored on Smart Cards, the Smart Infrastructure is able to read these records, verify they are valid and record their usage. Smart Tickets are used to pay for Public Transport across the world including London Singapore Hong Kong NESTI will add the North East to this growing list. The infrastructure includes Ticket Machines, Gates, Validators and a shared Back Office. These are all able to communicate with each other via a standard specification known as ITSO.
What is NESTI? 3/3 What is a Smart Pay as You Travel product? Similar to a Pay as You Go mobile phone. The Pay as You Travel product will allow customers to pre-load their smart cards with money which they can redeemed to pay for travel on public transport.
Who is NESTI? The NESTI Programme was initiated by the leaders and elected mayors of the North East Councils at a meeting of the Association of North East Councils in October 2009. The programme is a collaboration between the 12 Councils in the North East and the Tyne and Wear Integrated Transport Authority (ITA). In total 10 million of funding was allocated to the project by the partners. The Tyne and Wear ITA were given lead authority status with its executive Nexus acting as Programme manager. The NESTI programme is governed by an officer board that has representatives from each of the North East Councils.
Why is the North East going smart? Nationally Changes to policy by both the current and previous Government have identified the introduction of smart ticketing as a priority, for example: An 8% uplift to the Bus Service Operator Grant (BSOG) is provided if the bus is equipped with smart ticket machines. All the English National Concessionary Travel Scheme cards are Smart. All rail new franchises identify smart ticketing as a requirement. Locally A number of individual, independent smart projects are currently being introduced across the North East. The region acting together now whilst theses schemes are being introduced has the opportunity to generate significant savings. NESTI is able to enhance and support the development of these projects to ensure interoperability.
Delivering NESTI NESTI is the combination of a number of individual projects that will see the programme s aims delivered in two phases: Phase 1 the Confirmed Programme: Delivery of the Smart Infrastructure. Phase 2 - the Intended Programme: Delivery of the Regional Pay as You Travel Product, A Regional Retail Network, A Marketing Campaign, and; Integration of additional council services eg. Library cards
Delivering NESTI - Metro The Tyne and Wear Metro The Tyne and Wear Metro is introducing Smart ticketing with the Pop card. This project is known as Ticketing and Gating and will provide the foundation of the smart infrastructure delivering: The Back Office system, The initial retail network, and; The Pay as You Travel product. NESTI will: provide funding and support to make the system fully smart by 2012.
Delivering NESTI Bus 1/2 Given the disparity of resources between bus operators in the region, NESTI has developed two different options of providing grant funding. Buses Option One This option is currently being progressed by Arriva, Go North East and Stagecoach. NESTI will: Grant fund the bus operator with 1,000/eligible bus. In return operators will purchase a compliant ticket machines and pass a number of tests.. Option Two NESTI will: establish a contract with a supplier for compliant ticket machines that an operator can lease or purchase. NESTI will: tender for a back office service to manage the ETMs and provide operators with 1,000 discount from the cost of the managed service on each eligible bus.
Delivering NESTI Bus 2/2 What is an Eligible Bus? Buses An eligible bus is defined within the operator agreement as: a bus operated by the Operator which is in operation on scheduled local services within the NESTI Area on the basis of peak vehicle requirement (PVR)-equivalents (computed on the basis of the proportion of vehicle mileage operated to from or within the NESTI Area where there are also crossboundary or out-of-area operations from the relevant eligible depots).
Delivering NESTI - ENCTS The English National Concessionary Travel Scheme Buses There are approximately 560,000 Concessionary Travel Bus passes in the North East all of which are smart cards. ENCTS NESTI will; work with its Council partners to redirect all the journey records to the regional back office ensuring accurate reimbursement payments.
Delivering NESTI Councils Buses ENCTS Councils Councils A number of Councils in the region have introduced citizen services on smart cards. All Universities and a large proportion of Colleges now issue their students and staff with smart cards. NESTI Will: Work with the Councils and institutions to integrate these services onto the regional infrastructure.
Delivering NESTI National Rail Buses ENCTS Councils National Rail Northern Rail Have no franchise commitment to go smart however, they have expressed a desire to work with NESTI. NESTI will: Work with Northern Rail to develop a local heavy rail solution. East Coast Have installed barriers at Darlington, Durham and Newcastle, NESTI will: work with the new franchisee to smart enable them.
What are the Benefits of going smart? Access to BSOG uplift payments - The Bus Service Operator Grant allows operators to claim an additional 8% if they operate a service with a smart ETM. (In addition there is a further 2% add on if the bus also has Real Time information) Access to Bus Service tenders - Bus service tenders across the North East will begin to request the acceptance of smart cards. Access to the NESTI Pay As You Travel product - Operators who receive NESTI funding will be able to accept the NESTI Pay as You Travel product. - Reducing cash handling Simpler Reimbursement for Concessionary Fares All concessionary journeys will be automatically recorded. Reduced Fraud The ticket machines will be able to detect lost or stolen cards when they are presented. New Ticket Machine
Operator Workshop The NESTI Proposal
Part 2 - Agenda Agenda Terminology Components of a Smartcard System Operator Options Timescales Next Steps Questions?
Some Terminology ENCTS English National Concessionary Travel ETM Electronic Ticket Machine HOPs Back office (where the smart transactions go) Hotlist a list of cards to block e.g. bank card ISAM ITSO Security Application Module (SIM card) IPE product details e.g. Concessionary Travel STR Stored Travel Rights also known as Pay as you Travel
Typical Components of a Smartcard System
NESTI - Operator Options Option 1 Procurement of the system is totally under the control of the operator. NESTI will make a 1,000 contribution for each eligible bus converted once certain grant conditions are met. Option 2 Under this option NESTI will procure a managed service from a supplier along with a framework for the supply of ETMs. NESTI will provide a contribution of 1,000 towards the managed service. Operators must purchase/lease ETMS from this supplier.
NESTI Option 1 Refers to a legal agreement between NESTI and an Operator Provision and maintenance of the ETM is the operator responsibility Under this agreement the Operator is totally responsible for implementing an ITSO smartcard system NESTI will contribute 1,000 towards the scheme cost when the Operator: Accepts smart Concessionary Travel and provides smart journey information, Provides subsidised bus service journey information, Accepts the NESTI STR as payment for day products, and Accepts CT and NESTI Hotlists. This option is available to anyone.
Option 1 Operator Provides (everything) Products and Fares Payments and Journeys Bus with Smart ETM Customer With Smartcard Depot System Smartcard Transactions Product Information Blocked Cards Operator HOPS Usage Information Set Fares Operator Responsibility
NESTI Option 2 Refers to a legal agreement between NESTI and an Operator Provision of the ETM is the operator responsibility (but must use recommended supplier) Under this agreement NESTI will provide a smart managed service (including ISAM) and will make a contribution of 1,000 to this service NESTI will initially configure the ETM to accept CT and the NESTI STR Operator able to configure ETM for additional use beyond CT and NESTI STR This option will be available to anyone.
Option 2 Schematic Products and Fares Payments and Journeys Bus with Smart ETM Customer With Smartcard Managed Service Smartcard Transactions Product Information Blocked Cards NESTI HOPS Usage Information Set Fares Operator Responsibility
NESTI - Responsibilities Option 2 NESTI Responsibilities NESTI will provide a Managed service (Data collection, reporting package, setting fares) NESTI will provide an ISAM configured for CT and STR product NESTI will provide access to the NESTI HOPS Undertake ETM testing for CT and STR products before delivery to operator
Operator Responsibilities Option 2 Operator Responsible for: ETM (purchase or lease) with NESTI ETM supplier. ETM maintenance ETM repairs Consumables Fitting of the ETM (day rate in tender as yet unknown) Removal of the ETM Data communication costs (projected to be 50-60 per annum) Operator to provide PC with Internet access to use the managed service Claiming additional BSOG payments.
Timescales Summer 2011 NESTI is tendering for managed service system and prices for the supply ETMs. Autumn 2011 Spring 2012 Spring 2013 Supplier selected First operator converted Spring 2013 conversion of all operators.
NESTI Next Steps Please keep an eye on our website Copy of large operator agreement upon request General questions, email: nesti@nexus.org.uk General questions speak to your council rep Let us know which, if any, is your preferred option Further presentation in Autumn 2011.
NESTI - Key Messages All Councils will require smart operation for CT and tender services. NESTI will assist operators to go smart via one of two agreements NESTI support only available for eligible buses Operators may choose either agreement NESTI support for either option is 1k Operator to claim additional BSOG payment
Thank You