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Agreement for Warsaw City Card Extended and Expanded to 2022, with Estimated Revenues of $45 Million Expected Over the Next 10 Years
Mazovia (Central Poland) Railway Signs Five-Year Agreement – Estimated Revenues of $4.7 Million Lublin Municipal Transport Department Signs a Five-Year Agreement – Estimated Revenues of $1.5 Million
ISELIN, N.J., April 22, 2013 (GLOBE NEWSWIRE) -- On Track Innovations Ltd. ("
OTI") (Nasdaq:OTIV), today announced that its wholly owned subsidiary in Poland, ASEC S.A. ("ASEC"), was awarded multiple projects as e-ticketing operating for transit systems throughout Poland. Total direct revenues generated from transaction fees over the next 10 years are expected to reach approximately $50 million. ASEC is responsible for building and operating the three projects, including financing and installation of infrastructure equipment.
In Warsaw, ASEC's agreement for the Warsaw City Card with the Urban Transport Authority of the City of Warsaw was extended by additional term of five years, ensuring smooth and continuous operation until 2022. ASEC, which already operates 100 automated ticket vending machines (TVM) and 350 terminals, will expand the program by installing additional 100 TVMs. The equipment (ticket vending machines and terminals) is used for loading of Warsaw City Cards electronic and magnetic paper tickets and is located at subway and train stations, buses and tramway transfer hubs and at areas frequently visited by tourists. It is estimated that the new expansion will necessitate additional investment in the project in the approximate amount of $3.5 million over a 3-year period.
For Mazovia Railway, Koleje Mazowieckie (KM), ASEC will install 84 automated ticket vending machines in KM train stations. This includes 14 vending machines located in train stations in Warsaw and its suburbs, where ASEC already provides electronic ticketing services for the Warsaw City Card. ASEC will sell electronic and paper train tickets on behalf of KM. The Mazowsze region is the largest and most populated region in Poland and includes the capital city of Warsaw. ASEC will provide a sales network system, infrastructure, distribution service and maintenance for loading of transportation electronic cards. ASEC will generate direct revenues from transaction fees and are expected to aggregate about $4.7 million over the next five years. The infrastructure equipment is to be installed and operated by ASEC and financed by ASEC through Polish banks. The project is expected to start yielding revenues in the last quarter of 2013.