{"id":60737,"date":"2024-06-06T08:22:24","date_gmt":"2024-06-05T22:22:24","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=60737"},"modified":"2024-06-06T08:22:33","modified_gmt":"2024-06-05T22:22:33","slug":"new-myki-operator-wants-more-money-to-run-troubled-system","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=60737","title":{"rendered":"New myki operator wants more money to run troubled system"},"content":{"rendered":"\n

The new operators of Victoria\u2019s long-troubled myki system have sought more money from the state government to deal with technical roadblocks and cost pressures as the state budget strains under the weight of increasing debt.<\/p>\n\n\n\n

Trials of an upgraded public transport ticketing system were expected this year, but sources said new operator Conduent<\/a> was struggling with key deadlines and negotiating variations on its contract with the state government.<\/p>\n\n\n

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The new myki operator wants more money to run the system.CREDIT: SCOTT MCNAUGHTON<\/figcaption><\/figure>\n<\/div>\n\n\n

Another key public transport contract for Melbourne\u2019s metropolitan rail network has been extended until 2027, pushing back the bidding process until 2026.<\/p>\n\n\n\n

Victoria signed a 15-year $1.7 billion contract with Conduent in May<\/a> last year. The US-headquartered firm took over running myki from its previous operator NTT Data in December.<\/p>\n\n\n\n

But two industry sources, speaking anonymously to detail confidential discussions, said teething issues with the takeover had prompted new negotiations with the Department of Transport and Planning.<\/p>\n\n\n\n

They said the project was tracking above its allocated budget and discussions were underway about contract variations.<\/p>\n\n\n\n

One source said ongoing issues with the system \u2013 which is yet to handle mobile payments for iPhones five years after the government put $1 million in to develop the feature \u2013 continued to haunt the new operator. This included overly complex IT systems and difficulties with the hardware used to scan myki cards.<\/p>\n\n\n\n

Another source said the company had been delayed on some deadlines during the transition from NTT Data.<\/p>\n\n\n\n

A spokesman for Conduent declined to comment and referred questions to the Allan government. The government was contacted for comment at 9am on Wednesday but did not respond by deadline.<\/p>\n\n\n\n

Conduent will gradually install new ticket validators and other infrastructure across the state\u2019s trains, trams and buses capable of taking contactless payments, meaning passengers can travel just using a credit or debit card rather than having to buy a physical myki smart card.<\/p>\n\n\n\n

Currently only Android smartphones can be used to touch on, but the new operator has pledged to deliver this for Apple devices as part of its work.<\/p>\n\n\n\n

State budget papers suggest the rollout of the next ticket system may have fallen behind schedule. The 2023-24 budget forecast $183.8 million would be spent this financial year for its public transport ticketing asset renewal project.<\/p>\n\n\n\n

But this year\u2019s budget, released last month<\/a>, estimates it will have spent less than two-thirds of that budget \u2013 or $113.7 million \u2013 by June 30, which is $70 million less.<\/p>\n\n\n\n

Budget papers forecast an $83 million spend in 2024-25. The full rollout of new ticket readers, turnstiles and other infrastructure is estimated to cost $543.6 million and will be completed by mid-2027.<\/p>\n\n\n\n

TheAge<\/p>\n","protected":false},"excerpt":{"rendered":"

But two industry sources, speaking anonymously to detail confidential discussions, said teething issues with the takeover had prompted new negotiations with the Department of Transport and Planning.<\/p>\n","protected":false},"author":20,"featured_media":60741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[273,9770,10073,163],"tags":[993,8],"class_list":["post-60737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australia","category-metro-trains-melbourne","category-myki","category-rail-industry-news-australia-new-zealand","tag-melbourne","tag-victoria"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t