Upgrades to troubled Myki system in doubt

Upgrades to the state’s trouble-plagued Myki system are under a cloud as the government reveals a shortlist of just three companies in line to take over the technology.

Long-awaited upgrades to the troubled Myki system are in doubt as the Andrews government balances a budget emergency with intense negotiations to fix the decades-old technology.

The Herald Sun understands the state is down to a shortlist of just three companies to manage the next contract for the state’s public transport ticketing system.

This includes current operator NTT, New Jersey-based Conduent or Cubic, who operate ticketing in London and New York.

But its feared cost pressures could influence the result as the government considers a final decision.

Treasurer Tim Pallas has previously acknowledged Myki is not up to global standards and it was hoped the next contract would allow the roll out of credit card and phone payments for all customers.

Upgrades to the trouble-plagued system are in doubt. Picture: Paul Jeffers

Concerns are now mounting that these improvements could be jeopardy as the state assesses the higher costs of paying a contractor to bring the system into the 21st century.

NTT is on the shortlist is widely expected to have the cheapest bid to continue operating the current system.

Other bids which may offer more modern technology would likely require significant expense to allow payments without a Myki card.

This would include new readers that can cater for these upgrades.

It is feared these bids could now fall flat as the government weighs up options to balance its budget amid rising interest rates.

Mobile Myki, touching on with your phone, is available on Android but Apple products cannot do the same despite the government committing $1m in 2019 to find a solution.

Sydney allows travellers to tap on using their debit or credit card, and Brisbane is rolling out the same technology.

But this is not available in any form in Victoria.

A Department of Transport spokesman said:

“A procurement process is underway for the continued operation and upgrade of the myki public transport ticketing system, and as such it would be inappropriate to comment on the specific details.”

When Myki was introduced it was considered leading technology, but the system has come under fire as phone and card payments have progressed.

There have also been frustrations about tourists being forced to fork out $6 for a card to travel around the state.

The current contract expires in November but the state would likely need a significant lead-in time to ensure a new operator rolls out without major disruptions for commuters.

Originally published as Upgrades to troubled Myki system in doubt