Cubic and Boston MBTA Announce New Agreement for Delivery of Next-Generation Fare Payment System

Cubic Corporation (NYSE:CUB) today announced its Cubic Transportation Systems (CTS) business division and the Massachusetts Bay Transportation Authority (MBTA) closed a new agreement, ratified by the MBTA’s Fiscal Management Control Board, to implement the much-anticipated contactless payment system previously known as AFC 2.0. Under the structure of the agreement, rollout of the program will unfold in phases, with incremental improvements throughout the term of the contract. The final phase, which will extend the new payment system to the commuter rail system, is scheduled for 2024.

"We listened to the asks of the public through various meetings and channels, and remain strongly committed to our partnership with the MBTA to reflect and deliver the state-of-the-art contactless payment solution to its transit riders and commuters,” said Jeff Lowinger, president of Cubic Transportation Systems. "I commend our teams for their relentless work, throughout the current COVID-19 pandemic, to finalize this agreement and ensure progress for a more sustainable roll out.”

The improvements implemented with this program will allow for payment flexibility for customers including mobile payment, contactless debit or credit cards and agency-issued fare media for those without a bank card or who prefer not to use one. As features are rolled out, the new system will allow for a more flexible fare system, with the ability to offer benefits such as zone and distance-based fares, time of day fares, and fare capping. These are in addition to the quality-of-life improvements like shorter wait times for bus boarding and unified fare transference across all MBTA modes which will result from the improvements.

"We’re pleased to have reached this major milestone in our continued efforts to completely transform the T’s fare payment system, and critical to that effort is incorporating the feedback we’ve received from our riders and stakeholders,” said Steve Poftak, MBTA general manager. "I want to thank the Fare Transformation Program team for their diligent work on this achievement, our partners Cubic | John Laing for their collaboration in adapting these changes, and our riders especially, for providing feedback that allows us to deliver a fare system that best meets their needs.”

The project is structured as a Public-Private Partnership with the project financing being led by John Laing, a leading originator, investor and manager of capital projects.

"John Laing’s commitment to this project is a testament to our ambition to work on projects which deliver long-term community benefits,” said David Wylie, asset director of John Laing. "The comprehensive upgrade and modernization of the MBTA fare system will bring a state-of-the-art, safe and secure system, which will also encourage more use of public transportation. We look forward to the roll out.”

About Cubic Corporation

Cubic is a technology-driven, market-leading provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers worldwide to decrease urban congestion and improve the militaries’ effectiveness and operational readiness. Our teams innovate to make a positive difference in people’s lives. We simplify their daily journeys. We promote mission success and safety for those who serve their nation. For more information about Cubic, please visit www.cubic.com or on Twitter @CubicCorp.

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