What $568m overhaul of Opal system will mean for your commute

Concertgoers will be able to use event ticket QR codes to ride Sydney’s transit system, while those eligible for concession fares will find them easier to access if a $568 million upgrade of the Opal ticketing system is fully realised.

Known as “Opal Next Gen”, the NSW government project to modernise the ageing public transport ticketing system will give commuters the option of a digital Opal card on their smartphone as well as contactless payments regardless of fare type.

The existing Opal ticketing system is reaching the end of its working life.Credit: Rhett Wyman

New app technology will enable passengers to plan journeys on different types of public transport, such as buses, trains and light rail, as well as make it easier to access ticketing options.

Two years after an overhaul of the Opal system was announced, about 41 companies interested in vying to work on the upgrade attended a briefing by Transport for NSW last Wednesday ahead of it going to tender at the end of the month.

Transport for NSW secretary Josh Murray said the new digital Opal technology would give commuters more flexibility in how they used trains, buses and other forms of transport.

“It is much more intuitive as to understanding where they travel and how they travel, and it allows us to add apps over the years to come to improve transportation opportunities,” he said.

App technology will enable commuters to plan their trips using multiple types of transport such as light rail. Credit: Ben Symons

Murray said the existing system was inflexible for people eligible for discounted fares because it did not allow them to access the full range of concessions through one card.

“This [upgrade] will change that because the digital system knows when and how the customer will be using the product,” he said.

Concession cardholders make up more than a quarter of trips on NSW’s public transport system. At present, those passengers cannot get discounted fares if they use a bank card or contactless payment to tap on to pay for their trip.

Under plans for the upgrade, people eligible for a concession fare will be able to get a discount if they use a bank card to tap on at an electronic reader.

New app technology will allow passengers to plan personalised trips across multiple modes of transport, as well as access ride-share and e-bike operators.

Transport for NSW said the plans for “integrated ticketing” would enable people attending sporting events or concerts to “tap on” using their digital event tickets by scanning a barcode or QR code.

About 60 per cent of those who travel on public transport in NSW use their phone, watch or other apps to pay for fare instead of physical Opal cards.

The Opal project will involve replacement of 25,000 electronic readers on buses, at train stations, light rail stops and ferry wharves.

The main contract will involve the successful bidder rolling out an account-based ticketing system that offers commuters physical and digital ticketing options and new tap-on devices, as well as a “back-office” upgrade.

The agency will tender a separate package for new bus technology that will offer passengers extra real-time journey information via mobile devices. It will help bus drivers with navigation and timetable information.

Transport for NSW had previously planned for the Opal upgrade tender to be released to market late last year.

Senior transport officials have warned since at least early 2022 that the existing system’s hardware is “reaching end of life” and needs to be replaced to ensure fares are collected.

Transport technology company Cubic has had a $1.3 billion contract to run the Opal system in greater Sydney for the past 14 years. The contract was recently extended for another two years to September 2026, the cost of which will be revealed in the next few months.

The previous Coalition government set aside $568 million over three years for the Opal project, while the Minns government allocated $91 million in the state budget last month for the bus system upgrade.

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