£30 million saved as new Oyster contract begins
Posted: 17 August 2010 | Transport for London (TfL) | No comments yet
A new era for London’s hugely successful Oyster card began today as a new contract for the service took effect…
A new era for London’s hugely successful Oyster card began today as a new contract for the service took effect...
A new era for London’s hugely successful Oyster card began today as a new contract for the service took effect.
Transport for London (TfL) has brought the PRESTIGE Public Finance Initiative (PFI) contract to an official end and commenced a new contract with Cubic Transportation Systems Limited.
The new contract, known as the Future Ticketing Agreement (FTA), will deliver better value for money for TfL. The new contract will also look at ways to improve Oyster for customers by looking at ways to use new technology.
The move is part of Transport for London’s £5bn efficiency savings programme as pledged by the Mayor of London.
Oyster has been a huge success since its introduction across the TfL network in 2003, with over seven million cards in regular use. Around 80 per cent of all journeys made each day on London Buses, Tube, DLR, Tramlink and London Overground are with an Oyster card. Since 2 January this year, Oyster pay as you go has also been available on National Rail commuter services in Greater London, and since November 2009 has been accepted on Thames Clippers river services.
Shashi Verma, TfL’s Director of Fares and Ticketing, said: “Oyster has been a huge success since it was launched in 2003 and is now the word’s most successful transport smartcard. The new contract with Cubic will deliver better value for money for TfL.
“TfL and Cubic will now work together to continue the success of Oyster, including investigating the future potential for Oyster to be extended to new and existing technologies and the commercial opportunities that provides. TfL has already undertaken a trial of Oyster on bank cards and mobile phones but now that we have complete control over the Oyster brand we can investigate options that make life easier and more convenient for Londoners to travel while also increasing the accessibility of Oyster.”
In August 2008, Transport for London gave notice that it intended to terminate the Private Finance Initiative (PFI) contract with the TranSys consortium. Further savings were realised earlier this year as part of TfL’s £5bn efficiency programme by the early repayment of £101 million of PFI debt. On termination of the PFI contract in August 2010 TfL was liable to repay a total of £101 million PFI debt to TranSys’ funders. This debt was re-paid approximately six months early in February 2010 delivering £4 million savings in debt interest payments for TfL.