SOURCE: Cubic Corporation

July 16, 2008 12:30 ET

Cubic Awarded $68 Million in Contracts From Long-Time Customer, L.A. Metro, to Deliver Gating & Services

Fare Evasion Protection, Transit Security High Priorities of 10-Year Lease Agreement

SAN DIEGO, CA--(Marketwire - July 16, 2008) - The Los Angeles County Metropolitan Transportation Authority (Metro) has awarded Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (AMEX: CUB), contracts totaling $68 million to enhance Metro's automated Universal Fare System (UFS) operated on TAP™ smart card technology by adding Cubic's advanced gating system and related services. The first contract, a $46 million lease agreement, is a 10-year arrangement for Cubic to deliver more than 420 fare gates as well as upgrading of the ticket vending machines to distribute Limited Use smart cards to all subway and selected light rail stations. Two additional related contracts totaling $22 million provide for associated civil works and system maintenance. These contract awards continue Cubic's nearly 25 years of service to Metro.

The contracts complement Cubic's current contract with Metro as TAP™ is being introduced in a phased rollout across the agency's bus and rail networks and 10 other regional bus operators and, when completed in 2009, will be California's largest 100% "smart" ticketing system for transit. Metro -- the recipient of the American Public Transportation Association's (APTA) 2006 Outstanding Public Transportation Award -- continues to experience rail ridership gains and now provides over 370 million rides annually.

The Cubic-designed TAP™ system is based on Cubic's open architecture Nextfare® Solution Suite, an open system of highly flexible hardware and software components. The new fare gates will support both plastic smart cards and proven economical Limited Use smart cards made of environmentally friendly paper designed for use by occasional riders and tourists. In addition, existing smart card devices, including ticket vending machines in the Metro system and on board Metro bus devices to include regional operators, will be modified to accept both smart card types.

The addition of gating to the system on the Metro Red and Purple lines and selected light rail stations will support Metro's goals to prevent fare evasion, improve system security and capture invaluable ridership data to enable Metro to enhance its service to the public. Gates will reduce the need for fare inspectors while giving Metro the flexibility to add law enforcement personnel as needed to focus on station security.

Significantly, the addition of gating to the TAP™ system provides the key infrastructure required to enable additional threat detection and security features. Metro and Cubic are working together with appropriate government agencies on the subject.

In addition to fare protection and enhanced security, the addition of the gates to the TAP™ system will deliver other significant benefits to Metro, including the ability to collect valuable ridership data that will help the agency learn more about its customers' needs and enhance its customer service in a timely fashion. Other benefits include future options to integrate bank cards and Near Field Communication (NFC) cell phone technology as fare instruments and to introduce beneficial fare strategies.

The flexible, stylish modular design of Cubic's gating system is proven in service in New York, Baltimore, Atlanta, Brisbane, Puerto Rico and London and incorporates Cubic's award-winning Americans with Disabilities Act - compliant gate, giving the same level of convenience and access to commuters with physical disabilities and those with luggage, baby strollers, or other oversized accessories.

Cubic Transportation Systems, one of Cubic Corporation's major segments, designs and manufactures automated fare collection systems for public mass transit authorities. The corporation's other major segment, Cubic Defense Applications (CDA), is a world leader in realistic combat training systems, mission support services and defense electronics. For more information about Cubic, see the company's website at www.cubic.com.

Los Angeles County Metropolitan Transportation Authority (Metro) is unique among the nation's transportation agencies. It serves as transportation planner and coordinator, designer, builder and operator for one of the country's largest, most populous counties. More than 9.6 million people -- nearly one-third of California's residents -- live, work, and play within its 1,433-square-mile service area.

Contact Information

  • Contact:
    David Liddle
    858 505-2642