Transport for London (TfL) has terminated GBP100 million per year contract with the TranSys, which provides ticketing system, popularly known as ‘Oyster Card’, for different transport systems in London.
The contract was scheduled to run until 2015, but TfL has ended the indenture 5 years before the decided tenure.
TfL has maintained that the contract is being terminated due to business reasons, and it has nothing to do with the recent system breakdowns, which reportedly compelled staff to open Tube barriers for hours.
The contract was signed in 1998, with a stipulated ten year “break option”.
Responding to TfL’s decision, the TranSys consortium said, “The London transport system has changed dramatically over the past ten years”, and stated that it has been negotiating with TfL for the past one year, for the benefit of shareholders; however, the consortium will keep on operating for the next two years.
The mayor Boris Johnson, has put forth the need for enhanced and cost-effective services to Londoners, and expected that TfL would work in the direction to achieve this goal.