Step closer for electronic ticket system

Auckland's long-awaited electronic ticketing project aimed at making it easier to use public transport is heading to the starting gate again under a revised Government funding allocation.

The Transport Agency yesterday announced funding approval for the Auckland Regional Transport Authority to complete negotiations with a preferred tenderer for a seamless "integrated" ticket for passengers to ride on buses, trains and ferries under simpler fare structures.

It also confirmed an intention to turn a central processing system to be developed initially for Auckland into a national facility for other cities to share, to improve the popularity of public transport.

Neither the national agency nor the regional authority would disclose how much has been allocated, saying it is commercially sensitive until negotiations are concluded in the next month of so with the French electronic giant Thales, the preferred tenderer.

But agency chief Geoff Dangerfield indicated the overall deal would work out cheaper for Auckland ratepayers than a previous $80 million proposal, as his organisation would take ownership of the central processing system.

That could take about a third of the burden off the Auckland region, leaving it and the Transport Agency to share remaining costs, including for installing machines on vehicles and setting up electronic ticket barriers at railway stations.

The agency initially last year approved in principle Government subsidies of $48 million for capital costs and $3.9 million for each of 10 years of operations for an Auckland-only scheme.

That would have left regional ratepayers with capital costs of $32 million and annual operational spending of $2.6 million.

But a tendering round led by the regional authority was interrupted by the agency in March after a rival bidder, Infratil-subsidiary Snapper Services, complained to Transport Minister Steven Joyce that the scheme's design was flawed and that authority officials had demonstrated bias.

An investigation by the agency cleared the officials and found the process consistent with obtaining the best value for money.

Snapper, which says it could provide an integrated ticket for Auckland for $65 million over 10 years and have it ready for the 2011 Rugby World Cup, wants to examine the latest proposal before commenting.