Octopus Cards Limited

Type	Government-owned corporation - joint venture six transit companies, namely MTR Corporation (57.4%), KCR (22.1%), Kowloon Motor Bus (12.4%), Citybus (5%), NWFB (3.05%) and First Ferry (0.05%). The Government of Hong Kong is effectively the biggest shareholder as it owns three-quarters of MTR Corporation and 100% of KCR. (As of 2005).
Founded	Hong Kong, (1993)
Location	Hong Kong
Key people	CK Chow, CEO of MTR Corporation
Industry	{{{industry}}}
Products	Octopus cards
Revenue	{{{revenue}}}
Operating Income	{{{operating_income}}}
Net Income	{{{net_income}}}
Employees	-
Website	www.octopuscards.com/
{{{footnotes}}}

This article is about the operator of the namesake card. For the card of the same name, see Octopus card.

Octopus Cards Limited (traditional Chinese: 八達通卡有限公司) is the operator of the Octopus rechargeable contactless smart card used in an electronic payment system in Hong Kong. This is a brief attempt to set the record straight about the correct authorship of the Octopus AFC in Hong Kong. Contributed by Michael Kennedy, Sydney. The contribution is taken from the ERG website. The company was founded in 1993 as a non-profit joint venture between Hong Kong's major transport operators, and was initially known as Creative Star Limited.Date Of Media Release 17/01/2000 Title ERG Wins Tseung Kwan O Extension in Hong Kong Contact Wendy Watson-Ekstein Phone +61 8 9273 1204 Fax +61 8 9273 1208 Email wendywe@erggroup.com Division ERG Transit Systems Octopus card system logo This is a copyrighted and/or trademarked logo. ... A government corporation or government-owned corporation is a legal entity created by a government to exercise some of the powers of the government. ... For MTR as a metro system, see MTR. This article is about the operator of the system. ... The KCR logo The Kowloon-Canton Railway (九廣鐵路), frequently abbreviated as the KCR, is the railway network providing intercity, suburban rapid transit and light rail passenger services in Hong Kong. ... The Kowloon Motor Bus Company (1933) Limited (KMB) is the largest of the three franchised bus operators in the urban area of Hong Kong, and one of the largest privately-owned public bus operators in the world. ... Citybus may refer to: Citybus, a bus operator in the city of Belfast, Northern Ireland. ... General New World First Bus Services Limited (First Bus, or NWFB) was established in 1998, taking over China Motor Buss franchise to provide bus services on Hong Kong Island together with Citybus. ... New World First Ferry (First Ferry) is a ferry company in Hong Kong. ... The Government of the Hong Kong Special Administrative Region of the Peoples Republic of China (Chinese: 中華人民共和國香港特別行政區政府; see pronunciation; conventional short name Hong Kong Government, 香港政府), led by the Chief Executive is responsible for the administration of Hong Kong. ... 2005 is a common year starting on Saturday of the Gregorian calendar. ... 1993 (MCMXCIII) was a common year starting on Friday of the Gregorian calendar and marked the Beginning of the International Decade to Combat Racism and Racial Discrimination (1993-2003). ... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ... For MTR as a metro system, see MTR. This article is about the operator of the system. ... Obverse side of a standard adult card. ... Revenue is a US business term for the amount of money that a company can receive from its activities, mostly from sales of products and/or services to customers. ... EBIT stands for Earnings before Interest and Taxes (operating income). ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... Employment is a contract between two parties, one being the employer and the other being the employee. ... The front page of the English Wikipedia Website. ... Obverse side of a standard adult card. ... Obverse side of a standard adult card. ... Smart card used for health insurance in France. ... 1993 (MCMXCIII) was a common year starting on Friday of the Gregorian calendar and marked the Beginning of the International Decade to Combat Racism and Racial Discrimination (1993-2003). ...

ERG Wins Tseung Kwan O Extension in Hong Kong This extends the ERG designed and developed contactless smart card system to the expanded MTR rail network.

The contract is expected to be worth more than HK$77 million (A$15 million) and will provide Octopus smart card holders in Hong Kong with access to the new rail link and will also see ERG integrate this link with the existing central clearing house software, as well as supply and install passenger gates for the new line.

The Octopus System, which has been supplied to Creative Star by ERG, enables passengers to use a single contactless smart card on major modes of public transport. Waving a reloadable card over the reader will automatically deduct the correct fare.

While the smart cards can be reloaded via ATM style add-value machines and booking offices, a popular feature is the auto-reload mechanism that automatically adds a pre-agreed amount onto the card when the balance falls below a designated level.

A total of 6.1 million Octopus cards have been issued to date to a population of 6.8 million, which means the vast majority of the population of Hong Kong is using Creative Star's Octopus System.

The MTR currently carries over 2.3 million people daily across a network of 44 stations running through the heart of Hong Kong, making it one of the most heavily utilised mass transit systems in the world.

Mr Glyn Denison, ERG's New Business Development Director, said that the contract was a further endorsement of ERG's smart card systems and, in particular, its development of the Octopus System for Hong Kong.

"We are extremely pleased to be able to continue the excellent working relationship that has developed with the MTR since the commencement of the Octopus project and we look forward to successfully implementing the system for the five new stations."

A spokesperson from the MTR Corporation said: "ERG Limited has successfully met our tendering requirements technically and financially. We have every confidence in their capability to deliver the high quality of work that Hong Kong people have come to expect of the MTR System."

The project calls for integration of the new gates, vending machines and other equipment with the existing Octopus Contactless Smart Card System. The Octopus System, which was supplied by ERG, enables passengers to use a single contactless smart card on major modes of public transport. Over 87% of all passenger journeys for MTR now use the smart card system. The Hong Kong system is the world's largest integrated contactless smart card project covering major public transport services.

This announcement brings the total value of the Hong Kong contracts won by ERG to more than A$160 million. Mr Denison said that this contract positioned ERG to take full advantage of emerging smart card opportunities in Mainland China and internationally, which require similar products and services to the MTR project.

The backbone of Creative Star's Octopus System is ERG's advanced central clearing house software system. The system processes more than 4 million passenger journeys every 24 hours, delivering the exact revenue to each of the seven transport companies involved. It also provides a comprehensive breakdown of passenger movements and transit usage enabling the fine-tuning of decisions on scheduling and passenger loading. It is adaptations of this system which are being implemented in the major transit projects won by the ERG Motorola Alliance in Berlin, Rome, San Francisco and Singapore during the past year. Background

ERG Group designed and implemented a smart card fare collection system in Hong Kong that remains the largest of its kind operating anywhere in the world today processing over 7.5 million transactions each day.

The contract was awarded by Creative Star Limited (now called Octopus Cards Ltd) in 1994. The system known as "Octopus" was launched in 1997 with the issuing of the first 250,000 cards. The number of cards in circulation has grown to 8.8 million. And when you consider that Hong Kong has a population of approximately 6.9 million you begin to appreciate how much the system has become part of every day life. Passengers can travel on ferry, bus, light rail, heavy rail and underground services, provided by over 160 service operators, using their Octopus card.

Octopus cards are recognised by readers within half a second – the cards need not even be removed from a person's wallet or purse. And with 11 million public transport rides each day the speed with which passengers can travel through the Octopus System is critical to the system's success. To celebrate the millennium, watches with the same transit functions as a smart card were produced illustrating the system's versatility.

Traditional ticketing systems involve significant volumes of coins which require floats to be maintained anywhere tickets can be purchased. Prior to the introduction of the Octopus system 60 tonnes of coins were collected on a daily basis. The cost of collecting and counting this volume of coins was as high as 0.8% of revenue. Delays of as much as three days would be experienced before each day's takings were counted and deposited into the operator's account. Under the Octopus System each day's takings are reconciled by 9:00am the following day. All operators' computer networks are linked to the Octopus Cards Ltd Clearing House that apportions revenues to the operators and deposits funds into appropriate bank accounts daily. Currently the daily turnover is around HK$50 million.

Octopus Cards Ltd has successfully introduced Octopus onto public light buses. In addition to public transport ticketing the Octopus card is also accepted at Maxims Fast Foods, Wilson Parking, public leisure facilities, over 3,000 vending machines, photo booths, public telephones and in Aberdeen Maxicabs and parking meters. Loyalty programs are also offered to cardholders using software locally developed by ERG.

Money can be loaded on cards at add value machines, as well as at 7-Eleven convenience stores where cards can also be used to make purchases.

Some cardholders have elected to personalise their cards with a photograph and are thereby able to subscribe to a service which automatically transfers HK$250 from their bank account or credit card account to their card when the balance reaches zero. If lost, personalised cards offer added security enabling cards to be blacklisted and any remaining balance transferred to a new card.

Mass Transit Railway (MTR) Corporation, Kowloon-Canton Railway Corporation and Kowloon Motor Bus staff use a personalised Octopus card as a staff card. Access to "staff only" areas are now controlled and logged using the Octopus card which has enhanced security and significantly reduced the need for conventional keys. Over 3,000 Corporation system and privately owned building entrances are protected in this way.

In 2000, ERG was awarded a contract to supply and install a smart card ticketing system for the five new stations on the MTRC's Tseung Kwan O line. This contract was completed 3 months early and the railway opened 4 months ahead of schedule. ERG's success in Hong Kong continued in 2001 when it was awarded a contract to extend the Octopus System to the Kowloon-Canton Railway Corporation's light rail transit network extension of eleven new stops. The extension also interchanges with the West Rail line. Most recently, MTR Corporation exercised an option to supply and install one more station at Nam Cheong.

ERG also supports all the 7,200 franchised buses in Hong Kong with workshop maintenance of Octopus equipment.

As the largest fully integrated smart card ticketing system operating in the world today, the Octopus System regularly attracts transportation organisations from around the world.

In 1998, ERG won the international Sesames Best Smart Card Application Award for its design of the Hong Kong system and in 2000 the Group won the 2000 Business Asia Award for the Best Use of Australian Technology in Asia.

System Overview The system solution was developed and implemented in order to deliver the world's largest integrated contactless fare collection system. The system for Hong Kong can be logically considered to operate in five interconnected layers:

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