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Perth-based ERG has become a world leader in smart-card technology. Now it has set its sights on Asia's public transport systems.

Global smart-card leader, ERG, is poised for explosive growth as it pursues a strategy to meet the smart card needs of Asia's rapidly developing mass public transit systems.

Through its automated fare equipment and software systems for the transit industry, smart card systems and telecommunications, the West Australian-based ERG group has grown to become a world leader in its field -- with a global presence that takes in 11 countries.

Its success comes from a recipe of clever technology, deep pockets for research and development and the judicious use of alliances with carefully chosen global giants to sell its technology to Berlin, Rome, San Francisco, New Zealand, Hong Kong and Singapore.

Those alliances have been made with the likes of Motorola, Nokia, Proton World, Banksys SA, American Express, Visa International, Interpay Nederland and Unisys Corporation.

ERG's automated fare collection and software division, ERG Transit Systems, which opened an office in Singapore this year, is now positioning itself to cater for a rising thirst for its technology by Asian transport operators.

The automated fare collection systems are already in use in more than 200 cities around the world and handle more than 22 million transactions per day, or more than 8 billion annually.

Ingenuously, the technology generates major cost and time efficiencies for both transport authorities and passengers by enabling a smart card user to embark a train, ferry or bus with a simple wave of their card.

The user's passport is a credit card-sized device embedded with a computer chip that accepts, stores and sends up to 100 times more information than traditional magnetic-striped cards.

ERG Transit Systems Asian regional general manager John Farrer said Asia was bursting with opportunities, with major transit projects planned for Delhi and Bangkok.

However, ERG would tread modestly and take an incremental approach to new business in Asia.

The sales effort would be driven from Singapore with supplies initially coming out of Perth.

ERG and its alliance partners provided operators of integrated intermodal transport systems -- train-bus-ferry -- with the convenience of seamless fare collection based around just one ticket.

Asian transport operators were keen to attain benefits such as increased passenger throughput while reducing operating costs and controlling revenue leakage.

ERG's trump card for the region is Hong Kong's central clearing and smart card management system -- the world's largest automated fare collection system.

This system, installed through an alliance with the United States-based wireless communications company, Motorola, reconciles the four million daily transactions which take place in Hong Kong and apportions the correct revenue to each of the seven participating transport companies.

In April, the same ERG-Motorola alliance won a contract to provide an integrated smart card fare collection system for Singapore's public transport network.

In the 1998-99 financial year, ERG's group revenue totalled A$269 million across its divisions after sustaining over 20 per cent revenue growth annually since 1992.

Group profit jumped 47 per cent to A$20.3 million, up from A$13.8 million in 1998.

It is phenomenal growth for a company which began in its current form in 1986 from almost a standing start with Peter Fogarty as chief executive officer.

ERG is now working to piggyback the development of other applications such as electronic purses, loyalty programs, parking, vending and security access on its transit systems.

"We believe that for smart cards to reach their potential, they need to ride on the back of a `killer application' which will provide a sufficiently large card base and frequency of use," Fogarty said.

"ERG believes that killer application is transit."

# posted by Medical Information : 2:31 AM