Council
24 February 2022
Report PE22.10
For Information
NATIONAL TICKETING SOLUTION – INTERIM SOLUTION
Te take mō te pūrongo
Purpose
1. To advise Council of an interim solution for an electronic ticketing solution prior to the
implementation of the National Ticketing Solution (NTS).
Te aukati atu i te marea
Exclusion of the public
2. Certain information contained in this report relates to interim ticketing procurement
and contracting in the Wellington Region. Release of this information would be likely to
prejudice or disadvantage the ability of Greater Wellington to carry on negotiations with
its ticketing provider for the Metlink public transport network (section 7(2)(i)). Greater
Wel ington has not been able to identify a public interest favouring disclosure of this
information in public proceedings of the meeting that would override the need to
withhold the information.
Te tāhū kōrero
Background
3. Electronic ticketing has been provided on buses in the Wel ington Region since mid-
2018. Ticketing is provided by Snapper under the Interim Bus Ticketing System
Agreement (the IBTS Agreement).
4. Rail has continued to use paper tickets pending the introduction of the NTS which was
scheduled for implementation in 2021/2022.
5. On 14 November 2021, Greater Wellington initiated a Snapper on Rail trial on the
Johnsonville Line to learn from operational and customer experience as part of its
transition to NTS. This trial has been very successful – with a Snapper uptake of
between 70% - 80% of customers in the first four months.
6. Following advice from Waka Kotahi NZ Transport Agency (Waka Kotahi) in December
2021, we are now aware that the NTS wil not be available to implement on the
Wellington network until mid-2024 at the earliest.
Interim Solution
7. In recognition of the strong expectation of our communities to have electronic ticketing
available across the Metlink network, particularly as we continue to navigate COVID-19,
there is an opportunity for Greater Wel ington to extend Snapper across the whole
Wellington rail network on an interim basis prior to transitioning to the NTS (the Interim
Solution). The proposal is that Snapper would be rolled out across the Kāpiti Line by
August 2022 and then the entire rail network by December 2022.
8. The Interim Solution would enable the fol owing:
a
Contactless payment option in a COVID-19 environment. Greater Wel ington’s
only current mechanism to significantly reduce risk during a COVID-19
environment is to remove the requirement to pay on rail therefore increasing
revenue leakage
b
Increased fare revenue through reduction in revenue leakage on rail
c
Greater and significantly improved data and insights regarding rail usage to
increased network planning and efficiency
d
Meeting community expectations on having electronic ticketing across our bus
and rail networks.
9. The Interim Solution would also provide invaluable lessons for the implementation of
the NTS, including commencing the important step of cultural y transitioning rail
customers to electronic ticketing. Other key learnings for a smoother NTS transition
include ensuring appropriate location of physical electronic ticketing devices and its
retail network, as well as embedding revenue protection strategies.
10. Waka Kotahi senior management has indicated it is supportive of the Interim Solution
as a transitional activity to the NTS provided the terms and conditions of any contract
with Snapper enable a transition to NTS when it is available. This would result in the
costs of the Interim Solution being FAR funded. Waka Kotahi Board approval is expected
to be sought at its March 2022 Board meeting.
11. Out of Scope
Timelines and actions required
12. Out of Scope
13. Out of Scope
Implications for implementation of National Ticketing Solution
14. As set out above, the Interim Solution will enable early access to electronic ticketing for
the remainder of the Greater Wellington’s rail network customers given the delay in the
NTS.
15. We are able to use this delay to reduce risks in transitioning to NTS when it is available
by starting the cultural shift of rail customers to electronic ticketing. We will also have
better passenger flow data to enable us to set up validators and ticketing machines
under NTS to better meet our customer and network requirements.
16. The contract with Snapper for the Interim Solution wil be set up to ensure Greater
Wellington can transition to NTS when it is available.
Ngā hua ahumoni
Financial implications
17. There is currently a provision in the 2021-31 Long Term Plan (LTP) of $86 mil ion ($49
million Capex, $36 million Opex) for the introduction of integrated fares and electronic
ticketing over the four year NTS implementation period.
18. The estimated cost for implementing NTS is $51 million and the estimated incremental
cost of implementing the Interim Solution is $18 million. This means that we will
remain within the current LTP provision for implementing both the Interim Solution
and NTS.
Note th
at the $18 million estimated cost of implementing Snapper on Rail relates to both one off implementation costs
of $8 m illion plus estimated ongoing ticketing operation costs of $10 million. These ongoing ticketing operation costs
would have needed to be incurred if NTS was introduced earlier.
Of the $ 8million one off implementation costs, it is estimated that approximately half relates to infrastructure costs
that w
ill not be reincurred for NTS.
19. Out of Scope
Te whakatūtakitaki
Engagement
20. Out of Scope
Ngā tūāoma e whai ake nei
Next steps
21. Out of Scope
Ngā kaiwaitohu
Signatories
Writer
Nicki Lau Young – Manager NTS, Metlink
Approver
Scott Gallacher – General Manager, Metlink
He whakarāpopoto i ngā huritaonga
Summary of considerations
Fit with Council’s roles or Committee’s terms of reference
While the subject matter of this report more closely aligns with the purpose of the Transport
Committee in its terms of reference (To …set the operational direction to deliver public
transport and mode-shift), the timing of the next Transport Committee meeting (24 March)
means that it is appropriate that Council be informed.
Implications for Māori
There are no implications for Māori resulting from this report.
Contribution to Annual Plan / Long term Plan / Other key strategies and policies
This matter is set out in the 2021-31 Long term Plan:
National ticketing solution: We will continue our work from the previous Long Term Plan on
the roll-out of a contactless ticketing system through the development and phased
implementation of the National Ticketing Solution and integrated fares across the public
transport network
Internal consultation
The Metlink Group has consulted Finance and Legal & Procurement.
Risks and impacts: legal / health and safety etc.
Identified risks are set out in the body of this report.
Document Outline
