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ERG Group

ERG Group is an Australian-based technology company with offices worldwide. It designs, supplies and operates Automated Fare Collection (AFC) systems for the global transit industry. The company has been listed on the Australian Securities Exchange under the stock code "ERG" since 1984. ERG’s AFC systems range from large systems with multiple operators and multiple transport modes, to systems as small as single operators with single transport modes. The company is involved in AFC systems around the world, including Hong Kong's Octopus card system,, San Francisco's TransLink system, and Stockholm's Resekortet system. Collectively, the company has delivered systems that support more than 32 million smart cards in circulation and handle approximately 6.5 billion transactions per annum.

Timeline of Significant Events

In 1978 Associated Electronic Services Ltd (AES) began developing an Automated Fare Collection system.
In 1984 AES won a contract for a system in Toronto, Canada. That same year Energy Research Group (ERG) was listed on the stock exchange. ERG was a venture capital company, researching various technologies including an electronic sign board and a manufacturing process for surfboards.
In 1987 ERG acquired a controlling interest in AES. The first project the new ERG won was in Darwin, resulting in the world's first use of smart cards for passengers by a commercial transit organisation. In 1988 ERG acquired the balance of AES.
In 1989 ERG acquired Radiolab, which specialised in pagers and base stations, to become ERG’s telecommunications and manufacturing division.
In 1992 ERG together with Nokia won contracts for Optus Communications, BellSouth New Zealand and Telstra. ERG acquired 70% interest in Prodata Electronics Belgium.
In 1993-1995 with full manufacturing and software development capabilities ERG bid for and won contracts in Argentina, Belgium, Brisbane, Hong Kong, Melbourne and Sydney.
In 1995 an alliance between ERG and Banksys was formed. The QuickLink smart card trial in Newcastle was established.
In 1997 ERG formed an alliance with Motorola primarily for their card technology and won substantial contracts in Berlin, Rome, San Francisco and Singapore. American Express alliance formed. Ecard established.

Major Contracts

Hong Kong - ERG developed the components of the Octopus Card system for Hong Kong. The Octopus cards are recognised by card readers within half a second without the passenger removing the card from a wallet or purse. Hong Kong was completed in September 1997 and remains the largest transit smart card project in the world with over over 14 million transactions per day.

San Francisco - In April 1999 the ERG Motorola Alliance was contracted to the largest smart card project in United States to design, build, operate and maintain the TransLink fare payment system in the San Francisco Bay Area. The contract encompasses the six largest transit operators and involves selected buses, light, medium and heavy rail carriages and ferries. Muni and Caltrain began accepting TransLink on all routes starting in September 2008. BART will begin accepting TransLink in early 2009, followed by SamTrans and Santa Clara VTA in 2009.

Stockholm - In April 2003, ERG signed a contract with Stockholm’s public transport authority, Storstockholms Lokaltrafik (SL) to implement a smart card based fare collection system throughout Greater Stockholm. The contract involves the upgrade of the current rail and metro magnetic ticketing system to the smart card platform, together with the extension of the system to the bus network, sales outlets, and new ticket vending machines. The contract involves the issuing of over 1 million cards. The system goes into public trial from September 2008 and will be widely available to the public in 2009.

Singapore - In 1999, the ERG Motorola Alliance won a contract in Singapore to design and install an integrated smart card ticketing system known as EZ-link for the Land Transport Authority. On 13 April 2002, the smart card ticketing system went into full service on Singapore's public transport network. At the end of the first week in operation it was processing more than 500,000 transactions per day, a figure that has now risen to more than 7 million. The Singapore project is now one of the largest integrated smart card based transit systems in the world with more than 22,000 readers in place across the 5 transit operators covering bus, rail and light rail.

ERG has also designed and developed systems for the following: • Beijing, China
• Bouche Du Rhone, France
• Cape Town, South Africa
• Clermont, France
• Gothenberg, Sweden
• Grenoble, France
• Melbourne, Australia
• Oslo, Norway
• Rome, Italy
• Seattle, USA
• Toulon, France
• United Kingdom
• Utah, USA
• Valenciennes, France

Tcard controversy

The company's contract to develop the Tcard system for the New South Wales Public Transport Ticketing Corporation (PTTC) was terminated 23 January 2008. The NSW Government announced its intention to recover the project costs from ERG. ERG lodged a countersuit in May 2008 to recover over $200 million in costs.