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Cubic Signs $220 Million Contract to Design, Build, Operate and Maintain Vancouver Smart Card and Faregate System

^{Published on 2011-01-27 04:06:00 - Market Wire}
 

SAN DIEGO, CA--(Marketwire - January 27, 2011) - TransLink, the Greater Vancouver transit authority, has awarded Cubic Transportation Systems, Inc., a business unit of Cubic Corporation (NYSE: [ CUB ]), a contract valued at $220 million to deliver and operate a new smart card fare payment and revenue management system for the region's rail, bus, ferry and paratransit services.

The base contract for $84 million includes the design, build and installation of the system, which will include new faregates, to be delivered by 2013. Following delivery, a 10-year services contract valued at approximately $13 million per year, plus a one-time $6 million transition cost, will begin. The contract includes an option for five additional years of services.

TransLink's new system will be built on Cubic's Nextfare® technology, which has been fielded in more than a dozen major transit systems. The Nextfare system gives transit operators better reliability, revenue recovery from fare evasion and valuable business data to support planning and transit services.

A major addition to the new system will be smart card and open payment capability to accept bank cards and other media that meet contactless technology standards. In addition, the system will include the faregates specified by TransLink in its quest to reduce fare evasion and increase customer security. Today TransLink operates a proof-of-payment system, which relies on roving fare inspectors to conduct random checks on customers to produce a ticket or receipt. Faregates will require all customers to present their contactless smart or bank card to a reader to enter the paid areas of the transit stations prior to boarding the trains.

The contract is the third largest initial award in Cubic Transportation Systems' history, preceded by London and Sydney. It is Cubic's fourth contract for complete design-build-operate-maintain services, with previous contracts including London, Brisbane and Sydney.

The contract also continues Cubic's nearly 15 years of service to Vancouver's regional transit systems. Through contract awards in 1997 and 2001, Cubic designed and delivered a magnetics-based system linking Coast Mountain Bus, SeaBus ferry and SkyTrain. In 2009, Cubic delivered the fare collection system for Canada Line, which was completed 15 weeks ahead of schedule and well in time for the 2010 Winter Olympics.

"We are pleased to continue our relationship with TransLink, one that will approach 30 years strong by the end of our initial 10-year services contract in 2023," said Richard Wunderle, senior vice president and general manager of Cubic Transportation Systems. "Our expandable technology will deliver a revenue management and business information system that will serve our customer well into the future."

The project originally attracted 10 companies for prequalification, including ACS, Accenture and LG, and was down-selected to three competitors, including Cubic.

Cubic Corporation (NYSE: [ CUB ]) is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems.

Cubic® Transportation Systems, Inc., is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; Brisbane (Southeast Queensland) region, Australia; New York / New Jersey region; Washington, D.C. / Baltimore / Virginia region; Los Angeles region; San Diego region; San Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales) , Australia; and Scandinavia.

Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. For more information about Cubic, see the company's Web site at [ www.cubic.com ].