Group 6 - Final Requirement - Automated Fare Collection

TABLE OF 1 CONTENTS 5 1. INTRODUCTION 10 2. TECHNICAL CONTENT 15 17 2.1. Global View of AFCS 23 2.2. AFCS in the Philippines 2.3. How it Works 28 2.4. AFCS Considerations 2.5. Advantages and Disadvantages 32 of AFCS 3. SUMMARY, CONCLUSION, AND RECOMMENDATION 4. REFERENCES



A method for collecting passenger fares is required by all public transportation systems. However, implementing a fare collection system entails more than just a technological decision. Transit authorities can collect data utilizing an integrated system in order to optimize fare and passenger traffic. Significantly, fare collection technologies today include the most up-to-date electronic payment systems, such as magnetic stripe and smart card systems, as well as systems that allow payments and confirmation via smart phones. Depending on the demands of each transit agency, each alternative offers advantages and disadvantages. Tokens or paper tickets were first distributed by employees or via self-service vending machines in AFC systems. Magnetic stripe cards have largely taken their place. Contactless smart cards have become the standard fare media in AFC systems since their introduction in Hong Kong in 1997 with the Octopus card, while many systems offer different media types (Olivkova, 2016). Contactless smart cards from bank networks have been more common in AFC recently. The advancement of electronic fare collection technology has made significant advances in various sorts of payments, including transportation. When compared to the present payment method, the use of new technologies in public transportation adds to improved customer satisfaction and smoother passenger flow. It also boosts the efficiency of fare collecting. Various market forces are currently present to enhance the check-in system based on paper tickets, whether in the form of a new system draft or potential initiatives to improve the current situation. Current ticketing systems, whether cash-based or digital, may not always meet today's needs, making it difficult for service providers to provide frictionless solutions to their customers. Automated Fare Collection improves transparency not only for ticket prices, but also for levels of abuse, theft, and corruption, as payments for transportation fares are made through the collection facility rather than in cash. Automated Fare Collection: Technical Reaction Paper | 2

In this technical reaction paper, the talk about the Automated Fare Collection System presented by Engr. Francisco S. Rondilla, an Information Technology Manager and AFCS Specialist, is extended. Various credible sources, locally and internationally, are cited. Main topics and information presented came primarily from the recently concluded “International Railway Engineering Conference 2021.” Numerous compelling topics were featured and tackled in the event and this particular topic, the Automated Fare Collection System, is decided by the people behind this paper to elaborate and discuss even further because transportation in the Philippines has always been a sector that needs improvement and it is about time that Filipinos make this bold move to alleviate this concerning matter. This topic ignited the interest of the group, ergo, chosen this to be the subject of the discussion in this paper. Automated Fare Collection: Technical Reaction Paper |3



Automated Fare Collection (AFC) is a solution that automates the transportation industry's fare collection or ticketing systems. This solution improves the efficiency of the ticketing system and transaction rate. Globally, the installation of AFC systems enables transport authorities to offer enhanced services to end-users. Meanwhile, the integration of advanced technologies such as electronic payment, contactless technology, and smart card with automated fare collection systems has also significantly diminished some costs associated with manual ticketing systems in the transportation industry. Geographically, according to an article published by Inkwood Research (2020), the region of North America, which includes the United States of America and Canada, accounted for the most extensive Automated Fare Collection System in 2019. On the other hand, Asia Pacific Region is anticipated to be the fastest-growing regional market of AFCS over the years. This anticipation is principally due to the high economic growth rates, followed by growing applications and transport infrastructure across the region. The rising monorail and metro services in various cities and virtual ticketing systems will propel the demand for automated fare collection systems in the Asia Pacific. AFCS GLOBAL MARKET BY APPLICATION 50 40 30 20 10 0 Train Toll Car Bus 2019 2028 Figure 2.1.1.Global Market of AFCS By Application Furthermore, as seen in Figure 2.1, the automated fare collection system is prominently being applied in train transport compared to other transportation aspects. This may be because of the millions of railways passengers, wherein a total of 29,066 million passenger-km in the world was recorded by Knoema (n.d.) in 2019. Automated Fare Collection: Technical Reaction Paper | 5

Still, in a global context, it is truly beneficial to learn from the success stories of other countries when it comes to their Automated Fare Collection System. Mr. Rondilla let the webinar attendees hear the stories of achievements of other nations where the Philippines can take learning and apply it in the country's future AFCS. In Hongkong, they use the \"Octopus Cards\" in trains, buses, and taxi cabs. People also utilize it to buy products in the drugstore. The card is not limited to using it for fare collection in trains since it can also be used in other purchases. This makes the card flexible, and it serves different valuable functions. Similar stories like the Oyster in London and Metro Card in Subway in New York were mentioned. The Oyster Card is a magnetic rechargeable plastic card valid for all of London's public transport (Civitatis, n.d.). This card not only simplifies the payment system, but it is also cheaper than paying for a single journey ticket for every ride. On the other hand, the Metro Card in New York, introduced in 1993, has enhanced the transit system's technology and eliminated the burden of carrying and collecting tokens in the city railways. Equally important, several other developed countries are using AFCS cards: Korea and Japan. Figure 2.1.2. Hongkong’s Octopus Card Figure 2.1.3. London’s Oyster Card Figure 2.1.4. New York’s MetroCard Automated Fare Collection: Technical Reaction Paper | 6

The Philippines can significantly learn more about the Automated Fare Collection System (AFCS) from Japan, a neighboring country. This is to further the discussion regarding AFCS in other countries in accordance to the International Railway Engineering Conference 2021. By the end of 2001, East Japan Railway Company (JR East), a major passenger railway company in Japan and is the largest of the seven Japan Railways Group companies, introduced a new and improved automatic fare collection (AFC) system with contactless IC card (CIC) as a new generation AFC system (Takahashi et al., 2001). The following were the requirements of the AFC system that served as a basis for the company and guided it on which areas in the old fare collection system needed development: (1) Compatibility with the existing AFC system with magnetic cards (2) No less performance compared with the existing AFC system with magnetic cards: such as throughput of AFC gate (3) No less reliability compared with the existing AFC system with magnetic cards These stated, the projected new AFCS in the Philippines can use this to ensure that the project will attain its primary objective, which is to provide people an efficient mode of transportation. Moreover, to know more about Japan’s one of the most successful projects, the specifics of this project will be discussed in the following pages. Automated Fare Collection: Technical Reaction Paper | 7

Suica is the name of an electronic prepaid card that allows an easy use of public transportation networks in Japan as well as to pay at some shops and vending machines. The Suica system of virtual wallet is debited each time its holder uses it and help travel faster by metro, train or bus in the archipelago. Suica was introduced in the early 2000s, and since then, it has been a necessary tool that offers convenience among users. In Japan, where a March 2013 check counted almost 82 million circulating cards (65% of the total Japanese population!), and especially in urban areas, the prepaid card has become a real institution (Kanpai Japan, 2020). Commuter Pass + SF Rechargeable Reusable with Rewriting Rechargeable Figure 2.1.1. Japan’s Super Urban Intelligent Card (SUICA) The CIC card, originally an IC Card of JR East, was named SUICA (Super Urban Intelligent Card) to create a familiar image for the Japanese customers. As seen in Figure 2.1.1, SUICA Card has two types: the first type of Suica is a commuter pass with SF (Stored Fare) function, named as “Suica-teikiken (Suica Pass)” while the second type only has the SF function named as “Suica IO card”: IO means In and Out. Automated Fare Collection: Technical Reaction Paper | 8

Touch and Go As Suica is a contactless IC card, customers can go through the AFC gates just by touching softly on the R/W with the Suica in a pass case. Recharge Function When the stored value in the card becomes low, the user can recharge with a ticket vending machine or a card vending machine with cash or a View Card. The upper limit for charge is 20,000 yen (160 US$). Rewrite Function As existing commuter pass has the valid range, valid period and user’s name etc., written on its surface, the Suica Pass can be rewritten more than 60 times. When the Suica Pass is renewed, new valid information is written on the same card. With this rewrite and the charge function, customers/passengers can continue to use the same card and waste of cards can be reduced significantly. Automatic Fare Adjustment Function When a Suica Pass is used outside of its valid range, additional fare is collected automatically by the AFC gates, if the Suica is charged enough. Passengers don’t have to buy a ticket from a ticket vending machine or pay additional fare at the adjusting machine. Automated Fare Collection: Technical Reaction Paper | 9

Based on the Grand View Research (2019), Automated Fare Collection is a high- tech system created specifically for the transportation industry. Such applications necessitate integrated and stable systems in order to guarantee a smooth flow of travelers during peak hours, as well as collect and transmit data to the center. Passengers can pay for their transport or drive using relevant travel items or their card balance. These systems are used in a variety of high-traffic areas, such as major commercial buildings, government buildings, public transportation ports, etc. According to the Department of Transportation (n.d.), a nationwide accessible Automated Fare Collection System (AFCS) for all modes of transit is one of the objectives of the government in improving urban public transportation. The goal of this strategy is to make the lives of the public transportation commuters easier by providing a convenient payment alternative. As a result, the Department of Transportation is in the process of creating and finalizing the AFCS National Standards. This is a national standard specification for transit fare media and readers that ensures interoperability and mutual trust between numerous automatic fare collection users and systems. Automated Fare Collection: Technical Reaction Paper | 10

Overtime, the mode of payment improved and became more convenient. The following rail transit system witnessed the development of the fare collection system in the Philippines: LRT 1 The LRT1 began with a token in 1984 and runs between Taft Avenue and Rizal Avenue. The most inconvenient aspect of employing a token as a form of fare collection is when the token slips from your hands and rolls towards a hole or crack. However, it was improved, and the fare collection system began to use contact cards instead of tokens. As a result, switching from a single trip token to a single journey and multiple journey contact card becomes more convenient because the number of rides you can take is determined by the value of your contact card. Then, more recently, it has moved to a contactless fare collection method known as the beep card. Figure 2.2.1. Evolution of Fare Collection Method in LRT 1 MRT 3 On December 15, 1999, the MRT 3 began service. It operates a 16.9-kilometer modern rail system that spans from North Avenue in Quezon City to Taft Avenue in Pasay City along the 10.5-meter median of EDSA. The fare collection method in MRT 3 was originally a contact card, however has been modified over time. As a result, MRT 3 now operates an Automatic Fare Collection System (AFCS) that accepts contactless cards as a payment method. The mechanism collects fares based on distance. The Automatic Exit Gate subtracts and calculates the journey and saves the information on the card. Moreover, the Gate is capable of processing up to 30 passengers per minute. Figure 2.2.2. Evolution of Fare Collection Method in MRT 3 Automated Fare Collection: Technical Reaction Paper | 11

LRT 2 Effective on December 16, 2015, the Department of Transportation's partnership project for the Automatic Fare Collection System for LRT 2 completely replaced the old magnetic ticket fare collection system with the new contactless smartcard based AFCS. The old magnetic-based ticketing system, which was implemented in the early 2000s, has been replaced by the new AFCS project, which is based on contactless technology. Figure 2.2.4. Evolution of Fare Collection Method in LRT 2 MRT 7 The project management company, San Miguel Corporation, is fully funding the construction of the 22-kilometer mass transit system, which connects with the MRT-3 and LRT- 1 and runs from North Avenue in Quezon City to San Jose del Monte, Bulacan. This project aims to reduce travel time from Quezon City to Bulacan to 35 minutes, a luxury for daily commuters whose trips typically take hours due to traffic congestion and limited transportation options. Despite pandemic restrictions and unresolved right-of-way issues, this project is currently 55.3 percent complete. Furthermore, this modern train system, MRT-7, will include, among other things, electric power systems, computer and communications systems, signaling systems, and automatic fare systems. Figure 2.2.4. Evolution of Fare Collection Method in MRT 7 Automated Fare Collection: Technical Reaction Paper | 12

.AFCS is critical in providing a high-quality transportation system, and with a well- planned system design, it will undoubtedly provide a reliable collection of data, monitor transportation operations, and facilitate regulation of transportation services. Due to this, the design of the Automated Fare Collection system is essential in order to provide the expected features that will definitely benefit the commuters, transportation industry, and government. Therefore, as shown in the table below, the people behind AFCS devised a step-by-step system design that will be implemented once the project is already operational: Table 2.2.1. System Composition of AFCS FUNCTION COMPOSITION 1 Station Automatic Separates the unpaid and paid areas of each station and Gates provides check-in and check-out functions for contactless cards 2 Point of Sale Interfacing with contactless cards is the primary method. Terminals 3 Ticket Vending Automates the sale and distribution of SJTs and SVCs, as Machines well as the provision of SVC-specific services such as card status inquiry and Add Value/Top-Up. 4 Station The central hub for all AFCS devices within each station. Computers 5 Monitoring and Allows you to monitor and control all station equipment Control along the line. For the entire system, one (1) unit is Workstation installed. 6 Central Control and monitoring of line-related functions such as Computer Station report generation and parameter updates are available. For the entire system, one (1) unit is installed. 7 Central Clearing Obtains transaction data from all Rail Operators, House reconciles and settles transactions, and maintains parameter data that is shared by all Rail Operators. For the entire system, one (1) unit is installed. Automated Fare Collection: Technical Reaction Paper | 13

For public transportation, AFPI provides an AFCS. Smart cards with saved value, single-trip tickets, season passes, and concessionary cards are all supported by the system. The functionality of the system is comparable to those of similar systems in Singapore, Hong Kong, Bangkok, and other Asian cities. 2.2.2.1. Single Journey Ticket These reusable tickets are good for one trip and can only be used at the automatic gates of each of the three light rail lines. Upon exit, these cards are surrendered. Figure 2.2.2.1. Philippines’ LRT & MRT Single Journey Ticket 2.2.2.2. Standard Stored Value Card (SVC) This card, which was first distributed in 2015 when beep cards were introduced to the three light rail lines, does not require to know any personal details of the customers. It can be used right away after the funds have been loaded into the card. It also has a four-year validity duration, no minimum load requirement, and a maximum load of P10,000. Moreover, it can be used for a variety of things, including transportation charge payment, payment for goods and services, and transit product storage (e.g. a weekly transit pass, season pass). Automated Fare Collection: Technical Reaction Paper | 14

The Automated Fare Collection system, a smartcard-based contactless back-to-back solution for payments and fare collection, comprises automatic ticket vending, ticket checking, and gate machines. Instead of paying the fare directly through real cash, ticket vending machines and online services or other methods are utilized (Grand View Research, Inc., 2019). The system's main components include tickets or some other media, such as generic paper tickets or electronic tickets. Another component is the ticket vending machines or online services, which have various payment options, a connected ticket reader including ticket validators, and the central management system. Indeed, automated fare collection is a high-tech solution exclusively designed for transport operations, but with all these intricate notions, one has to understand how AFCS really works. Note: a. Real $ = money flow in AFC System b. Real $ = money flow outside AFC System c. User Card Topup E-Money = E-Money in AFC System d. Cashier Card E-money = E-money in AFC System e. E-money = E-money in AFC System Figure 2.3. How AFCS Works Automated Fare Collection: Technical Reaction Paper | 15

Based on Figure 2.3, it can be viewed how Automated Fare Collection System (AFCS) works. In this regard, the left side shows how the user can make physical money to e-money that will be utilized as payment not only for fare purposes but for other purchases too. This left side explains that users have to deposit their physical money through reloading agents. Afterward, this reloading agent will give card cashiers or issuers the physical money or real cash. It will then be settled at the settlement area and will be given back to the issuer thereafter. The issuer will pass the card to the reloading agent as e- money already. As a final process, it will be given back to the user with their money in it as e-money. As the users receive this e-money, they can pay bills using the card, for it is topped up already. It is also important to note that the cashier card (issuer) in the diagram is the one keeping the cashier card float, while the User Card Issuer is the one holding the user card float. Meanwhile, the right side of the diagram shows the process as to how the consumer will use the unified card. Simply, it depicts the process in which the users utilize their card to pay bills as e-money that will be sent to the merchant and then to the acquirer that will be settled as payment. It was also explained in the webinar that the physical money entered in the card is equal to or less than the flow of money in the AFCS due to some instances like loss of card. Furthermore, the business model of the AFCS, with the direction of arrows, reminds the users that once they have deposited their physical money to the card, the e-money can no longer be converted back to cash. Automated Fare Collection: Technical Reaction Paper | 16

The expansion and development of the Automated Fare Collection System are critical to making public transport more efficient, affordable, and accessible. This system can bring a wide range of benefits to local governments, transport planners, operators, and, of course, to commuters themselves. As a significant initiative in the railway industry in the Philippines, the AFCS must have considerations in its transaction levels and standards. Automated Fare Collection: Technical Reaction Paper | 17

With components that automate the ticketing system of the public transportation network, the AFCS is composed of five levels: Level 0, Level 1, Level 2, Level 3, and lastly, Level 4. Figure 2.4.1. Five Levels of AFCS Level 0 (Contactless Smart Cards and Tokens) Passengers and workers utilize smart cards for fast railway transactions, including payments and fare collection. These cards, situated in Level 0 of AFCS, must be contactless and comply with ISO 14443. In detail, ISO 14443 is a standard designed for proximity or contactless smart card communication that typically uses a 13.56MHz radiofrequency. However, ISO 14443 is limited to handling only one kilobyte; hence, it was suggested to consider looking for cards with more storage capacity than ISO 14443. Also, the chip and application technology in railway systems should be widespread and proven in the AFCS industry. The products should be predominantly commercial off the shelf to mitigate the risk of vendor lock-in. Automated Fare Collection: Technical Reaction Paper | 18

Level 1 (Validation and Sales Device) Level 1 contains the devices that transact with the card, which are the gates. Essentially, Level 1 is the transacting device or the card reader that adds and deducts money from the passenger's digital wallet. Since Level 1 sustains the validation and sales devices, considerations include fitting each entry gate with a single contactless reader. Exit gates must also be equipped with a contactless reader and a token acceptance slot. Level 2 (Station Transaction Aggregators) Located in Level 2 are the Station Transaction Aggregators, which are devices or computers that collect all the transactions. The station computer systems must control all the Level 1 devices and function as a store-and-forward hub in the communication between Level 1 devices and Level 3. Meaning, information is tentatively sent to an intermediate station where it is kept and then mailed at a later time to the final destination or another intermediate station. Level 3 (Line Central Aggregators) Level 3 encompasses the Line Central Aggregator or the totalizer that stores or maintains the record of the accumulated transactions over time. Like Station Transaction Aggregator, the Line Central Aggregators also function as a store-and-forward hub, but this time, in communication between Level 2 and Level 4. Aside from this, Line Central Aggregator, as a huge server, also works for various management and operation information systems in the railway. Level 5 (Clearing House System) Essentially, it is not yet a transaction when a passenger enters one station, but only when the passenger gets off or exits the station. It becomes a transaction when it is recognized and processed by Level 3 – Line Central Server and subjected to Level 4 for settlement. This Level 4 is where one can find the Clearing House System that is the enabling layer validating and clearing all transactions, including discounted railway tickets and employee passes. Automated Fare Collection: Technical Reaction Paper | 19

Conclusively, the AFC transaction levels in the train system are simple and easy. However, it is the volume that makes the process a little complicated. In other words, the system can basically accommodate hundreds or probably a thousand transactions every day. However, if there are 500,000 transactions, it signifies that the system must process a million entry and exit transactions. Nonetheless, AFC is really advantageous since it would be really challenging, or even already impossible, for a manual ticketing system to work with millions of transactions. Railway workers, including transit operators, might get tired of selling and retrieving tickets, collecting and distributing money, and validating transfers. Automated Fare Collection: Technical Reaction Paper | 20

The Department of Transportation (DOTR) is currently conducting a public consultation with the objective of forming AFCS National Standard Specification. This initiative is a recognition that AFCS is ideal for improving the transportation business or system not only in the Metro but also in the whole Philippines. Nonetheless, the AFC system shall, as far as possible, operate using industry standards and shall be a highly reliable, scalable, secure, and customer-friendly facility (METRO MANILA SUBWAY PROJECT PHASE 1, 2019). Listed below are some of the standards and specifications that AFC must adhere to. ISO 14443 Contactless Cards The International Organization for Specification (ISO)/ International Electrotechnical Commission (IEC) developed the international standard for a contactless card: ISO 14443 Identification Cards, Contactless Integrated Circuit Cards, or Proximity Cards. The standard defines proximity cards used for identification and the transmission protocols for communicating with it. It describes how contactless cards and terminals should work to ensure industry-wide compatibility. Since ISO 14443 assures smartcard security (Thales Group, n.d.), it plays a crucial role in identity (electronic passports), payment (contactless credit cards), mass transit, and access control applications. PKI – Public Key Infrastructure A public key infrastructure (PKI) is a set of roles, policies, hardware, software, and procedures needed to create, manage, distribute, use, store and revoke digital certificates and manage public-key encryption. PKI is crucial in AFC in public transport since it oversees security through encryption. Automated Fare Collection: Technical Reaction Paper | 21

PCI DSS for Third-Party Processor The Payment Card Industry Security Standard (PCI DSS) is a set of requirements intended to ensure that all companies processing, storing, or transmitting credit card information maintain a secure environment. Moreover, the protection of customers' privacy is truly enshrined in the EU Data Protection Act, which AFC systems need to comply with. When payment cards are used, there are requirements to tokenize the card details in compliance with PCI DSS requirements to reduce the potential for fraud. All security concerns are critical to successfully implementing a smart ticketing scheme, for any user's loss of trust in the system would damage the passenger acceptance of AFCS. NFPA 130 on Train Station’s Safety The National Fire Protection Association (NFPA) 130 is the Standard for Fixed Guideway Transit and Passenger Rail Systems. It contains requirements for train stations, subway stations, the trains or subway cars per se, and the tracks or paths these vehicles travel on. As the standard specifies fire protection and life safety requirements for underground, surface, and elevated fixed guideway transit and passenger rail system, the AFCS automatic gates is a significant component in this determination. The placing of gates must thoroughly consider evacuation times in case of emergency (O’Connor, 2021). There must still be sufficient egrees (pathway out of a building or structure that leads to the point of safety) to evacuate the platform occupant load from the station platform in 4 minutes or less. Meanwhile, the station shall still be designed to permit evacuation from the most remote safety point in 6 minutes or less. Automated Fare Collection: Technical Reaction Paper | 22

The collection of fares from each passenger has traditionally been done manually. Manual collection, for example, necessitates additional security and labor. It is also particularly time consuming, and boarding time increases as the number of passengers using the conveyance increases. Furthermore, inconsistencies and frauds are unavoidable for manual transactions. Automated Fare Collection Systems have made it possible to provide an easy, efficient, and smooth travel for the passengers. During the International Railway Engineering Conference 2021, Engr. Francisco S. Rondilla discussed the Automated Fare Collection System (AFCS) and why we should adopt it for transportation convenience. It is a dependable, reusable, and secure automated or computer-based system. Additionally, AFCS are beneficial to both operators and passengers. AFCS, like many other things, has its own set of benefits and drawbacks. Knowing this would allow us to determine whether AFCS are useful to operators and passengers. Automated Fare Collection: Technical Reaction Paper | 23

Figure 2.5.1. Advantages and Disadvantages of AFCS for Railway Operators The primary advantage of the AFC system for the railways operators is the efficient fare collection. With AFCS, collecting fares is made easy and fast. AFCS ensures fast transactions with the use of a contactless smart card and lowers the boarding time. It reduces fraud and inconsistencies are eradicated. Aside from this, railway operators would also have the opportunity to have more informed transport planning. AFCS gathers data from passenger travels. The data gathered provides information on journeys of passengers, which is more likely to be travelled and which places receive less travelers. The data of AFCS is very valuable and can support agencies in understanding travel demands, thus improving utilization of the AFCS, better operations and planning. Automated Fare Collection: Technical Reaction Paper | 24

Furthermore, one of the of governments is to promote public welfare. Through AFCS, the railway system may have an enhanced demand management. By investing in new infrastructure and rolling stock, we can increase the use of public transportation. Smartcard ticketing gives governments the ability to significantly affect public transportation demand and assist a shift away from private automobiles. With complete travel data on the demand side, transportation operators can provide discounts on trips to and from specific destinations at specific times to distribute demand across a network, optimizing revenue generating potential and encouraging increasing patronage during off-peak periods. However, entailed with the more developed system in fare collection is the higher cost to be spend it its implementation. AFCS are indeed much costlier than traditional manual collection. Equipment and production of the payment media have higher cost but may also depend on the type of media technology used. Fare collection equipment is expensive and would require high-skilled maintenance personnel. Likewise, planning for the new setup could be critical a little complicated. For new fare structures, planning and modeling techniques need to consider and understand the rider's potential reactions to new fares and payment median options. There is also greater lead time for implementation and procurement, followed by testing of the equipment, modify and prepare stations and transportations, and phase introduction. Automated Fare Collection: Technical Reaction Paper | 25

AFCS are quite beneficial for passengers. This is because the system is developed to be user-friendly with integrated ticketing system. Literally, a single card can go a long way. AFCS allows passengers for seamless transfers from one line to another. It has also great flexibility and might even encourage more people to take public mode of transportation. Moreover, one of the greatest possible advantages of having AFCS is the reduction of journey time. As mentioned, traveling with AFCS is easy and efficient. Boarding time is lessened and going from one place to another would no longer take too long. Transactions with AFCS takes only milliseconds to seconds to complete. In detail, a smartcard transaction takes just 150 milliseconds to be transacted, and the public transport employees would no longer have to collect fares and issue tickets. Therefore, the smartcard ticketing systems enable substantial savings in boarding times. For instance, as cited by Verougstraete and Ed MacDonagh (2016), the Oyster Card in London has contributed to a significant reduction in queue times at ticket machines: the average ticket office queue time has gone down from 129 seconds pre-Oyster to 78 seconds post Oyster. This data implies a reduction of 40% in queue times; and it is important to not here that this rate reduction happened in spite of the decrease in the number of ticket offices in operation. Automated Fare Collection: Technical Reaction Paper | 26

By the same token, the fare types of AFCS can be considered tobe able to see which is the better option than the other, and which has more advantages and more beneficial to passengers and operators. Listed below are the different fare types of AFCS. Flat Fare Simple and convenient for long distance travels. Fare is the same for all journey lengths. It is seen as unfair as it is not ideal for short distance travel. Zone Based Fare Zone Based Fares are similar to Flat Fare except there is a specified amount addressed to each inter-zones. It is convenient for long distance travels. However, it is also seen as unfair and inconvenient for short travels. Distance Based Fare For fare structures, this is widely used. The fare amounts only to the distance travelled of the passenger. A passenger would enter AFCs from the first station and leave the desired destination, entering once again an AFC that would collect data from where the passenger is from. However, if the passenger decided to travel far and decided to just travel to a nearer destination than planned, it won’t reflect how many train rides the person had. Time Differentiated Fare Time Differentiated Fares creates balance in capacity and demand by utilizing peak and peak off hours. This fare type is beneficial for operators and fair for passengers. However, if there are delays in the arrival of trains, time is consumed. Automated Fare Collection: Technical Reaction Paper | 27



Automated Fare Collection System, also known as AFCS, is an innovated and developed means of fare collection that utilizes the advancements of modern technology. Globally speaking, in Hongkong, they are using Octopus Cards to pay in trains, buses, and taxis. The same goes in London that uses Oyster as a method of payment. Japan, one of the Philippines' neighboring countries, is also advanced regarding railway fare collection. Delving into the details, there are numerous requirements for the AFC that served as a basis for the company and guided it on which areas in the old fare collection system needed development. In Japan, the CIC Card was an IC card on JR east and was named SUICA (Super Urban Intelligent Card) to make a familiar image for the Japanese customers. The features of this card include Touch and Go, Recharge Function, Rewrite Function, and Automatic Fare Adjustment Function. Meanwhile, there are several Rail Transit Systems that experienced the development of the fare collection system in the Philippines. The LRT 1, MRT 3, LRT2, and MRT 7 transitioned from token to contact card to contactless fare collection. Significantly, AFC has system compositions of station automatic gates, point of sale terminals, ticket vending machines, station computers, monitoring and control workstation, a central computer station, and a central clearinghouse. Furthermore, AFCS Contactless Card comprises Single Journey Ticket (SJT) and Standard Stored Value Card (SVC). On the other hand, for the considerations, AFCS takes into account the five levels or subsystems of the said method of payment. This subsystem starts from Level 0 to Level 4. Also, the Department of Transportation (DOTr) is currently conducting a public consultation to form AFCS National Standard Specification. Concerning this, the standards and specifications discussed are ISO 14443 Contactless Cards, PKI or Public Key Infrastructure, PCI DSS for Third-Party Processor, and NFPA 130 on Train Station's Safety.. Automated Fare Collection: Technical Reaction Paper | 29

When there are new advancements, advantages and disadvantages were assessed in order to know its effectiveness and efficiency. Herein, the advantages of AFCS include efficient fare collection, more informed transport planning, and enhanced demand management. For the disadvantages, it comprises high cost and critical planning. Moving into the benefits of this system for passengers, it provides a user-friendly and integrated ticketing system and reduces journey time. For the fare types, there are flat fares, zone-based fares, distance-based fares, and time-differentiated fares. These fare types can be considered in deciding what is more beneficial to passengers and operators. The students behind this paper noted that the Automated Fare Collection System, or AFCS, is the gateway to the future of railway transportation. Not only is it for railways, but it is also applicable to other modes of public transportation. AFCS is already taking over other countries such as Japan, Singapore, London, Korea, and more. The AFC system in Japan is a resounding success, and the Philippines' anticipated AFCS will undoubtedly strive to replicate such achievement or go even further. Moreover, we learned that the AFCS in the Philippines is constantly evolving. Although there were some challenges at first, the AFCS and the seemingly ordinary cards involved will undoubtedly resolve those issues and make life easier for all citizens. Systems in the Philippines are a work in progress, but people are starting to notice the difference between having AFCS for their daily commutes and having a manual collection of their fares. Knowing how the process works, AFCS transaction levels are easy and simple for the train systems. As there are always many passengers commuting every day, the volume makes the system a little complex. Both manual collection and automated collection would have difficulties with such problems, but AFCS makes the way more manageable. In other words, the system can accommodate hundreds and thousands of people every day with a reduced amount of queue time for every transaction. Automated Fare Collection: Technical Reaction Paper | 30

Conclusively, AFCS is presumed to be very advantageous. Still, it is advisable to see both faces of the AFCS. While there are certain disadvantages to having an Automated Fare Collection System in place, it is still overwhelming to see the positive side of having this kind of system. On top of everything, we should have AFCS because this system is believed to be the future's gateway to easier and efficient travel. Ultimately, we believe that the Automated Fare Collection System is realistic, constructive, and rational to be involved in. AFCS is a pioneering initiative that can improve public transport in the Philippines. In implementing and widening the AFCS in the country’s railway industry, careful considerations and standards must be weighed up. Standards allow technology to work seamlessly and establish trust so that markets can operate smoothly. Therefore, well-presented level considerations and system standards are crucial in providing a common language for railway workers to measure and evaluate the system performance and make the public accept and favor the AFCS advancement. Aside from this, the group inscribed a few more recommendations regarding Automated Fare Collection System: • Commuters are encouraged to support the use of AFC in order to eliminate fraud and cash transactions. With this, the commuters are expected to buy cards in order to monitor the progress of the project. • Drivers are urged to cooperate in implementing AFC so the need of handling fares or issuing tickets will be eliminated. • People behind the new AFCS are advised to have a discussion with other transport companies about common use of the card in order to make joint CIC commuter passes and CIC SF cards. Moreover, AFCS should have either Distance based fare or Time differentiated fare since any of these two are beneficial once implemented. • Business owners are requested to cooperate with the people behind AFCS in order to extend card applications to non-transport use, such as adding electronic money functions. Automated Fare Collection: Technical Reaction Paper | 31



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Knoema. (n.d.). Number of passengers carried by railways by country, 2020 - knoema.com. Knoema. https://knoema.com/atlas/ranks/Number-of-passengers-carried-by-railways# Light Rail Transit Authority. (n.d.). Republic of the Philippines Light Rail Transit Authority. Retrieved December 2, 2021, from https://www.lrta.gov.ph/tickets-and-fares/. METRO MANILA SUBWAY PROJECT PHASE 1. (2019, December). C)TECHNICAL REQUIREMENTS (ERT) 6) AUTOMATIC FARE COLLECTION (AFC) SYSTEM. PS- PhilGEPS. https://ps- philgeps.gov.ph/home/images/BAC/ForeignAssitedProjects/2019/PH- P267/CP106/06%20AFC%20System_12%20Dec%202019%20(PA).pdf Nitelik, O. (2019, January 7). Basics of Automated Fare Collection System in Public Transportation. Retrieved December 1, 2021, from https://www.linkedin.com/pulse/basics-automated-fare-collection-system-public-ozan- nitelik?trk=related_artice_Basics Opurum, C. N. (2012, March 6). Automated Fare Collection System & Urban Public Transportation: An Economic & Management Approach to urban transit Systems. Retrieved December 1, 2021, from https://books.google.com.ph/books?id=YtvkR6aRZW8C&pg=PA38&lpg=PA38&dq=a utomatic+fare+collection+system+%22disadvantages%22&source=bl&ots=TwXeAA0 vz7&sig=ACfU3U359LSK2GtgNjFroT_IKhBOJb2Ddw&hl=en&sa=X&ved=2ahUKE wjlub6U1cH0AhXlwosBHdCjBWAQ6AF6BAgPEAM#v=onepage&q&f=true O’connor, B. (2021, August 27). Means of Egress with NFPA 130 | NFPA. National Fire Protection Association (NFPA). https://www.nfpa.org/News-and- Research/Publications-and-media/Blogs-Landing-Page/NFPA-Today/Blog- Posts/2021/08/27/Means-of-Egress-with-NFPA-130 Automated Fare Collection: Technical Reaction Paper | 34

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