🇦🇺Australia

Automated Fare Collection Implementation Overruns

1 verified sources

Definition

Outsourced automated fare collection for Melbourne's network, including buses, totalled $332M with 32-33 month delays from unrealistic milestones.

Key Findings

  • Financial Impact: AUD $332M total contract cost; 32-33 months delays (equivalent to millions in holding costs)
  • Frequency: Project-based, recurring in upgrades
  • Root Cause: Fast-tracking bypassing feasibility analysis; unrealistic contract milestones

Why This Matters

The Pitch: Bus operators in Australia 🇦🇺 waste $332M+ on delayed fare reconciliation systems. Automation of scheduled route processes avoids such overruns.

Affected Stakeholders

Procurement Managers, IT Project Leads, CFOs

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Fare Evasion and Revenue Leakage

AUD $10M+ annual industry-wide (pre-automation era); fast-tracked projects caused 32+ months delays amplifying leakage

Reconciliation Delays and Revenue Apportionment Bottlenecks

Ongoing revenue allocation delays (industry est. 1-2% of farebox revenue; $10M+ p.a. for metro networks)

Manual Fare Evasion and Insufficient Enforcement

Large-scale evasion losses (est. 5-10% farebox revenue pre-AFC; AUD $20M+ p.a. metro-wide)

Bußgelder wegen Nichteinhaltung der Disability Standards im ÖPNV

Logic-based estimate: AUD 5,000–20,000 per founded discrimination complaint (compensation plus handling), potentially AUD 15,000–100,000 per year for an operator with multiple mishandled accommodation requests.

Hohe Verwaltungskosten durch manuelle Bearbeitung von Barrierefreiheitsanfragen

Logic-based estimate: 17–100 extra admin hours per month at ~AUD 40–50/hour, or approximately AUD 8,000–60,000 per year in avoidable administrative labour cost for manual accommodation request handling.

Kundenabwanderung durch unzureichende Unterstützung von Fahrgästen mit Behinderung

Logic-based estimate: AUD 10,000–50,000 in annual recurring revenue loss from 20–50 passengers with disability and companions churning due to poor accommodation request handling (assuming AUD 500–1,000 per passenger per year).

Request Deep Analysis

🇦🇺 Be first to access this market's intelligence