Project NEXT

Project NEXT is a proposed public transport payment system for New Zealand. Project NEXT was previously known as the National Ticketing Programme (NTP) from early 2016 to early 2018, preceded by the Auckland Integrated Ticketing Scheme (AITS, also known under its brand name HOP) and Auckland Integrated Fares System (AIFS)[1] prior to that. The aim is to achieve a nationally consistent payment system, with a choice of payment by cash, phone, credit card, debit card, or a transit card valid for the whole country.[2] Whilst work at a national level has been undertaken since 2009 and integrated ticketing has been introduced for public transport in Auckland, as of 2020 there is still no national system available. Nine smaller regional councils have meanwhile formed a consortium to introduce a common tag-on-tag-off card branded as "Bee Card" as an interim solution, with rollout of the system from November 2019. Project NEXT is expected to be completely implemented by 2026.

For the professional development program sponsored by the Mathematical Association of America, see Project NExT.

History

Background

The desire to achieve a nationwide public transport payment system was first raised in 2007 when it was announced that Snapper was working on a stored-value card for public transport in the Wellington Region, with Wellington and Auckland transport officials in talks about teaming up to work on a system that could be applied nationwide.[3]

Wellington: Snapper card

The Snapper card was introduced in Wellington in July 2008 and applied to buses operated under the GO Wellington branding; those buses were owned by NZ Bus.[4][5] The company that owned both Snapper (until May 2019[6]) and NZ Bus (until September 2019[7]) is infrastructure investment company Infratil. The Snapper card was not valid on services not owned by NZ Bus, e.g. Mana bus, the Wellington Cable Car, ferries, or the Metlink trains. That is, the introduction of the Snapper card did not achieve an integrated fare system for Wellington;[8] this is still the case in 2020.[3]

Auckland Integrated Ticketing Scheme
See also: AT HOP card § HOP/Snapper card debacle

The NZ Transport Agency joined the discussions held between Auckland and Wellington officials in 2009.[3] The Transport Agency's board signed off on NZTA joining in October 2009[9] in the context of the Auckland Regional Transport Authority (ARTA, which was succeeded by Auckland Transport in November 2010) tendering for an integrated ticketing system for public transport in the Auckland Region named Auckland Integrated Ticketing Scheme (AITS); this was later given the brand name "HOP". The underlying thinking of the Transport Agency was that it would make sense for the development cost to be paid only once, with other regional authorities able to join and use the same technology. The Transport Agency opted to lead the project, provided co-funding, wanted to be in control of the central clearing house system, and stated that it was most interested in getting information out of the system.[10] The Transport Agency's aim was to develop the National Integrated Ticketing Interoperability Standard (NITIS).[1]

ARTA awarded the tender for the Auckland stored-value card to the Thales Group as the French technology on offer was technically superior to what Snapper had offered. The Thales Group offered a technical solution based on the DESFire system, which at the time was the international industry standard for public transport payment systems. Snapper's system used the Java Card OpenPlatform, which is common for payment systems but with slower transaction times, which is an issue for mass payments.[11] Within a short time of awarding the contract to the Thales Group, ARTA invited Snapper to join the project. Infratil went ahead and fitted out its NZ Bus fleet in Auckland with hardware that could read their Snapper card. On the condition that Snapper would adjust its system so that it could interact with the Thales components, this was sanctioned by ARTA staff. Labour opposition spokesperson for Housing and Auckland Issues, Phil Twyford, alleged in parliament in November 2012 that there had been political interference, with the Minister of Transport, Steven Joyce, having instructed Transport Agency officials for Snapper to be included in the Auckland project.[12][13] Snapper, based on its system already in use in Wellington, could roll out the system more quickly and the aim was to be operational on the entire NZ Bus fleet for the Rugby World Cup to be held in New Zealand from 9 September 2011. In August 2012, Auckland Transport terminated its agreement with Snapper over an ongoing inability to configure their system to work smoothly with the Thales Group system.[14] Auckland Transport rolled out the AT HOP card from October 2012 (starting with trains and ferries) until April 2014 (finishing with buses).[15][16] The contract with the Thales Group runs until 2021, with an option to extend it to 2026.[9]

Wellington: Integrated ticketing

The Wellington Regional Council announced in May 2013 that they were investigating an integrated ticketing system for the Wellington region. At the time, they thought that they would be tendering the new system in circa 2016.[17] Transport Agency staff approached the Wellington Regional Council in December 2015, suggesting that they introduce the Hop card system, therefore working towards having a unified system for the country. Part of the Transport Agency's proposal was that its subsidiary, New Zealand Transport Ticketing Limited (NZTTL, established in November 2011[9]), be appointed to act as the central clearing house.[18] Under the leadership of Paul Swain, the chair of Wellington Region's transport committee, the Transport Agency's approach was rejected.[19] One generic argument against a single system is that it would create a monopoly, whereas with more than one system there is "healthy" competition.[20] Another argument for rejection was that by then, the technology had moved on, from closed-loop[lower-alpha 1] card-based[lower-alpha 2] systems to account-based[lower-alpha 3] systems. The latter includes the possibility that payments get made via smartphones, debit cards and credit cards, removing the need for users to have a proprietary payment card linked to a public transport provider. At the same time, it was announced that the tender for the Wellington integrated system would now happen by 2018.[19]

Regional Consortium: Bee Card

Nine of the smaller regional councils formed the Regional Consortium in 2013, a collaborative working group that could represent their shared interests in public transport matters.[1] These regions are (from north to south):[21]

By late 2013, service level agreements had been put in place for the coming three years in support of the existing ticketing systems; it was thought that this was a sufficient time frame for the National Integrated Ticketing Interoperability Standard (NITIS) to be ready. The smaller regions could subsequently procure systems that integrate with the national ticketing system. The governance group of the Regional Consortium was made up of representatives from the Transport Agency, its subsidiary NZTTL, and executives of seven of the nine regional councils. When NITIS, the critical component for integration into the national ticketing system, was not available on time, the regional councils extended their service level agreements to May 2018. In early 2016, it was agreed between the Regional Consortium, the Transport Agency, and Wellington region that the integration into the national ticketing system would no longer be pursued.[1]

In 2017, the Regional Consortium let a contract to INIT, a German-headquartered company that provides IT solutions for public transport. Their brief is to supply a solution that has been named the Regional Integrated Ticketing System (RITS). One "tag on, tag off" stored-value (i.e. closed-loop) card for all nine regions is to be implemented. It is planned for RITS to be an interim solution for up to five years prior to joining the national ticketing system.[21][22] RITS is much simpler than the open-loop account-based solution pursued for the national ticketing system.[9]

The payment card for the Regional Consortium has been branded as the "Bee Card". Rollout of the card started on 20 November 2019, with Whangarei the first city to use the system.[23] The second city to receive the card was Whanganui on 9 December 2019.[24] Other places in the Manawatū-Whanganui region (i.e. Palmerston North, Ashhurst, Feilding, Levin, and Marton) were to switch to the system in mid-January 2020,[25][26] but this has been delayed over teething problems.[27]

National Ticketing Programme: GRETS

Based on Greater Wellington's feedback, a working party was convened from 2016 under the project name of National Ticketing Programme,[19] also known under the acronym GRETS (Greater Wellington, Regional Consortium, Environment Canterbury Ticketing Solution).[28] Parties represented on the steering group were the Transport Agency, its subsidiary NZTTL,[lower-alpha 4] Bay of Plenty region, Canterbury region, Wellington region, Otago region, Taranaki region, and Waikato region. The smaller regional councils were there to represent the Regional Consortium.[1] Wellington Region led the project. Based on Auckland's contract with Thales running until 2021 (with an option to extent to 2026), it was assumed that they would not join the programme and were not included in the economic analysis. The Regional Interim Ticketing Solution (RITS) was endorsed by this group. The system requirement was now account-based ticketing and open-loop[lower-alpha 5] payment solutions that would accommodate EMV-based credit and debit cards (e.g. Visa and mastercard) as well as tokens and digital wallets (e.g. Apple Pay). In October 2017, indicative business cases for two options had been developed (a do-minimum and a GRETS rollout). Procurement was planned to start in late 2017.[9]

Project NEXT

The situation changed when Auckland Transport joined GRETS in early 2018 and in May 2018, this resulted in Project NEXT being formed as a successor to GRETS. The project continued to be led by Wellington Region. The Transport Agency disestablished the governance group and handed its oversight to a newly-formed group called the Connected Journey Solutions (CJS) unit.[9] When the Transport Agency's CEO, Fergus Gammie, resigned and was replaced by interim-CEO Mark Ratcliffe, concerns were raised internally and Ratcliffe commissioned professional services company Deloitte with undertaking a review of Project NEXT. CJS had already been subject to an earlier and damning audit by Deloitte[29] and the Project NEXT was equally critical. Key criticisms included:[9][30]

  • Transport Agency's focus on the National Ticketing Programme (NTP) appears to have lapsed
  • Lack of clear ticketing and public transport objectives
  • Governance mechanisms are not fit for purpose
  • Lack of business ownership
  • The Project does not have the Crown-level review and assurance disciplines as expected by Deloitte

There are two further public transport authorities (PTAs) in New Zealand, Gisborne and Marlborough districts. As of 2020, these PTAs are neither part of the Regional Interim Ticketing Solution (RITS) nor do they have plans to join Project NEXT.[9]

Next steps

Regional Consortium

As of January 2020, it has not been announced when the remaining seven public transport authorities will implement their Bee Card systems.[31] Earlier in 2019, it was anticipated that rollout would have been completed by December 2019.[9]

Project NEXT

The rollout for Project NEXT will begin with the Wellington commuter rail; this is expected for 2022, some two years later than previously planned.[32] Also in 2022, the system will be implemented on the Wellington bus fleet. In 2023, implementation on the services provided in the Canterbury region is expected. The nine PTAs that form the Regional Consortium are expected to have joined by 2024. Auckland Transport is expected to adopt the system in 2026.[9]

Notelist
  1. closed-loop refers to a payment card from a single issuer, e.g. the Snapper card or the AT HOP card; these cards store a value on them
  2. card-based refers to both a value as well as the entitlement to travel being stored on a card in possession of the passenger
  3. account-based refers to a fare-collection system where the proof of entitlement to travel is held in a back-office and is not necessarily held on any media in possession of the passenger
  4. The Transport Agency shut down NZTTL during 2017[9]
  5. open-loop refers to a payment source (e.g. a card, mobile wallet, QR code) that is widely accepted by multiple merchants; examples are common credit cards
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References
  1. "Partnering for a National Ticketing Programme" (PDF). Wellington Regional Council. 8 February 2016. Retrieved 12 January 2020.
  2. "Project Next- Ticketing Solutions Programme" (PDF). NZ Transport Agency. Retrieved 10 January 2020.
  3. MacManus, Joel (8 January 2020). "13 years of waiting for promised national public transport card". Stuff. Retrieved 10 January 2020.
  4. "Snapper to make a splash". The Dominion Post. www.stuff.co.nz. 21 April 2008. Archived from the original on 22 February 2014. Retrieved 10 January 2020.
  5. "Snappy card speeds Wgtn bus riders' journey". The Dominion Post. www.stuff.co.nz. 21 April 2008. Archived from the original on 21 April 2008. Retrieved 10 January 2020.
  6. "Infratil announces sale of Snapper Services". Infratil. 31 May 2019. Retrieved 12 January 2020.
  7. "Completion of sale of NZ Bus to Next Capital". Infratil. 2 September 2019. Retrieved 12 January 2020.
  8. Ponter, Daran (7 April 2012). "Integrated ticketing – what is it and when are we getting it?" (Press release). Wellington. Scoop. Retrieved 10 January 2020.
  9. "Review of Project NEXT" (PDF). NZ Transport Agency. 18 October 2019. Retrieved 12 January 2020.
  10. Knackstedt, Andy (22 July 2009). "NZTA committed to integrated ticketing and fares system" (Press release). Wellington: NZTA. Retrieved 10 January 2020.
  11. Brash, Dave (8 September 2011). "Ministerial briefing note" (PDF). Greater Auckland. NZ Transport Agency. Retrieved 11 January 2020.
  12. "Govt's hand in Hop talks, says Labour". The New Zealand Herald. 5 November 2012. Retrieved 11 January 2020.
  13. Question 11: Phil Twyford to the Minister of Transport (Motion picture) (video). Parliament, Wellington: Parliament TV. 6 November 2012. Retrieved 11 January 2020.
  14. "Auckland council ends Snapper contract". Auckland Now. 24 August 2012. Retrieved 11 January 2020.
  15. "Auckland Transport unhooks Snapper". The New Zealand Herald. 24 August 2012. Retrieved 11 January 2020.
  16. "Auckland Transport completes AT HOP rollout" (Press release). Auckland Transport. Scoop.co.nz. 25 March 2014. Retrieved 11 January 2020.
  17. "Investigation Into Integrated Ticketing For Wellington" (Press release). Wellington: Greater Wellington Regional Council. Scoop. 23 May 2013. Retrieved 12 January 2020.
  18. Forbes, Michael (3 December 2015). "Snapper card faces uncertain future as NZTA pushes to have Auckland's Hop card in Wellington". Stuff. Retrieved 11 January 2020.
  19. Maxwell, Joel (12 February 2016). "Snapper not dead in water as NZTA backs down on sending Hop system south". Stuff. Retrieved 11 January 2020.
  20. Dooney, Laura (7 July 2016). "Wellington to get one ticketing system for all bus services". Stuff. Retrieved 12 January 2020.
  21. "INIT provides nine New Zealand regions with ticketing system". INIT GmbH. Retrieved 12 January 2020.
  22. "Improved ticketing system on the way for bus passengers". Horizons Region. 16 November 2017. Retrieved 12 January 2020.
  23. "Bee Card is here!". Northland Regional Council. Retrieved 12 January 2020.
  24. "New electronic card for Whanganui bus travellers". Whanganui Chronicle. 20 November 2019. Retrieved 12 January 2020.
  25. "Bee Card is nearly here!". Horizons Region. Retrieved 12 January 2020.
  26. Galuszka, Jono (5 November 2019). "New bus ticket system set to go live in December". Stuff. Retrieved 12 January 2020.
  27. Galuszka, Jono (12 January 2020). "Bee not ready to buzz for wider Manawatū bus users". Stuff. Retrieved 12 January 2020.
  28. Warburton, David (5 December 2017). "National Ticketing Update (GRETS)" (PDF). NZ Transport Agency. Retrieved 11 January 2020.
  29. Cropp, Amanda (10 July 2019). "Damning report canes Transport Agency team for "weak" and "lax" financial management". Stuff. Retrieved 12 January 2020.
  30. Niall, Todd (21 October 2019). "Review critical of NZTA role in ticketing project". Stuff. Retrieved 12 January 2020.
  31. "Bus better with Bee". Bee Card. Retrieved 12 January 2020.
  32. Pennington, Phil (28 November 2019). "Nationwide transport ticketing project behind schedule by two years". Radio New Zealand. Retrieved 12 January 2020.
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