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Page 1: IBM Client Reference Singapore Land Transport Authority · PDF fileSingapore Land Transport Authority (LTA) ... its business model down the road. ... use of IBM’s open standard products—was

IBM Client Reference

Singapore Land Transport Authority

Synopsis: Integrated fare systems enable LTS to create holistic, detailed

transportation profiles of riders that span all modes of travel.

Insights drawn from rider data enable LTS to configure more

convenient routes, schedules and fares—making public transport more

attractive and increasing long-term ridership.

Location:

Singapore

Industry: Government Travel & Transportation

URL: www.lta.gov.sg

Client Background: The Singapore Land Transport Authority (www.lta.gov.sg) spearheads land transport developments in Singapore. The LTA’s mission is to deliver a land transport network that is integrated, efficient, cost-effective and sustainable to meet Singapore’s needs.

Business Need: With Singapore’s population growing, the Singapore Land Transport Authority (LTA) needed a way to head off traffic congestion and maintain its world-class business climate. Even in a part of the world known for its brisk growth, Singapore stands out as a beacon of economic vitality. The island nation has achieved one of the world’s highest per capita incomes despite having virtually no natural resources. Singapore's most important resources are its people, including a government committed to keeping the company a magnet for foreign investment. With nearly 5 million people sharing an island smaller than New York City, Singapore's faces a continuing challenge in managing the impacts of its high population density, especially traffic congestion. Its record has been stellar. As a result of heavy investment in its public transportation infrastructure—including the deployment of the world's first congestion charging system—Singapore has created one of the most modern, affordable and heavily used public transport networks in the world, with nearly 3 million people riding the bus and 1.6 million people riding the train on any

Page 2: IBM Client Reference Singapore Land Transport Authority · PDF fileSingapore Land Transport Authority (LTA) ... its business model down the road. ... use of IBM’s open standard products—was

given day.

Solution: LTA worked with IBM to develop a flexible, open and unified fare processing system that integrates all modes of public transport. Solution Components Software •IBM WebSphere Application Server •IBM WebSphere MQ •IBM DB2 Enterprise Edition •IBM Tivoli Storage Manager •IBM Rational Hardware •IBM Power 570 and Power 520 •IBM System x3650 •IBM SAN Storage DS4800 •IBM Tape Library TS3310 Services •IBM Software Services •IBM High Performance On Demand Team (HiPODS) Even with this impressive record, Singapore realizes that its ongoing population growth—projected at 50 percent in the coming decades—requires it to find new ways to make public transportation more efficient and convenient in order to increase utilization and keep traffic congestion at bay. In addition to schedules and routes, the choices riders have as to how they pay their fares is an important factor in the overall convenience equation. Put simply, public transport payment options that are simpler, more flexible and more complementary to riders' lifestyles are the most direct route to increased ridership. Like most public transport entities, the Singapore Land Transport Authority (LTA) relied on different fare processing systems for bus, rail and taxi services. Because of the systems' rigid architecture, the LTA could only accept—and thus riders could only employ—one payment card option. Beyond this basic shortcoming, the LTA also lacked what it wanted most: the capacity to take a holistic, predictive approach to managing its transport network. To address this, the LTA worked with IBM to create a seamless national transport fare clearinghouse that enables riders to use a single card of their choice to pay for all modes of travel—bus, rail and taxis—as well as vehicle congestion charging and car parking. The most direct benefit of the solution, known as Symphony for e-Payment (SeP), is that it simplifies and streamlines fare payment for riders, making it a virtually invisible part of their public transportation experience. The solution's more strategic benefit derives from its ability to glean insights from the 20 million trip-related transactions generated each day—information on where, when and how riders are traveling—and translate them into a more convenient, affordable travel experience for Singapore's citizens by optimizing routes, schedules and fares. Designed and implemented with support from IBM Software Services and the IBM High Performance On Demand Solutions team, the SeP solution runs on powerful IBM System p servers and leverages IBM DB2. In designing its new fare system, the LTA was very conscious of the need to accommodate its future initiatives. This meant, for example, employing an SOA approach in the design of the solution to give the LTA the leeway to change any or all aspects of its business model down the road. Indeed, the fact that it took an SOA approach—enabled by the use of IBM’s open standard products—was critical to its strategy of supporting multiple card issuers.

Page 3: IBM Client Reference Singapore Land Transport Authority · PDF fileSingapore Land Transport Authority (LTA) ... its business model down the road. ... use of IBM’s open standard products—was

The inherent efficiency of SOA has also enabled the LTA to reduce the total cost of ownership of its fare systems by 2 percent. Finally, the fact that SeP is based on SOA means that it can easily be configured to meet the different business rules and structural models of transportation agencies and operators around the world. That’s exactly what IBM and the LTA—who have

formed a strategic partnership to co-market the solution—plan to do.

Benefits of the Solution: Business Benefits •Ability to configure more convenient bus and train routes and schedules based on analysis of multi-modal travel patterns •Ability to accommodate multiple fare card issuers, increasing convenience for riders and lowering costs •80 percent reduction in revenue leakage from "lost" transactions •2% reduction in the overall cost of operation of the fare processing system while tripling its performance capacity to 20 million fare transactions per day The SeP solution is supporting the LTA's mission on many levels. By eliminating the inconvenience of having to carry multiple cards, for instance, the solution accommodates the lifestyle choices of public transport riders—such as which card they choose to carry—rather than imposing that choice on them. In this respect, the solution works in sync with the LTA’s efforts to promote public transportation by effectively eliminating payment convenience as a potential barrier. This customer-centric focus is also seen in the solution’s support for such advanced payment methods as contactless smart cards and ―readable‖ mobile phones. By federating all of its transactions records, the LTA can now look into the overall commuter base and create profiles based on routes taken (linking departure and destination locations), connections made between transportation modes and how these patterns change over time, from time-of-day to seasonal differences. By analyzing patterns within this data, the LTA’s planners are gaining insights into travel patterns that would have been impossible before, explains Silvester Prakasam, Director of Fare Systems for the LTA. ―By unifying our fare systems, we can see a person driving a car into the city, being charged for congestion, parking his car, catching the bus and then the rail—and capture it as a holistic picture we can learn from,‖ says Prakasam. ―Our engineers are using traffic data to develop more direct routes, which ultimately reduces congestion and makes public transport more appealing.‖ Yet another way the solution helps promote public transportation is by enabling the LTA to maximize its affordability. Since the LTA is a self-funded entity, its ability to keep fares low is a function of its overall operating efficiency. A significant weakness of its previous system was a vulnerability to ―lost‖ transactions, especially in case where riders would change transportation modes. As a result of this flaw, the LTA experienced a revenue leakage of as much as $5 million per year. When the LTA implemented the new fare system, it specified IBM WebSphere MQ to handle transaction messaging within the solution because of its guaranteed message delivery capability. By virtue of the improved transaction processing integrity of the new solution, the LTA has reduced the incidence of lost transactions by 80 percent, thus strengthening its already world-class efficiency and helping to keep fares low. In its continuing efforts to make Singapore’s public transportation system even more ―pro-rider,‖ the LTA plans to change its fare rules so that people only pay based on the actual distance they travel—a capability made possible by the seamless integration of SeP, as well as its ability to scale up to meet the roughly 40 million daily transactions this new scheme will generate. The LTA’s Prakasam sees this is as a clear example of how the new solution provides the level of flexibility in promoting the use of public transportation, and thereby lowering congestion. ―Our aim is to make Singapore’s public transportation system the most efficient, convenient and affordable in the world,‖ says Prakasam. ―By leveraging IBM’s technology and expertise, we’ve put a firm

foundation in place whose benefits will be felt for years to come.‖

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Client Quote: ―By unifying our fare systems, we can see a person driving a car into the city, being charged for congestion, parking his car, catching the bus and then the rail—and get a holistic picture we can learn from.‖ – Silvester Prakasam