The company that runs myki has refused to deny reports it is considering walking away from its contract to upgrade the state’s public transport ticketing system.
In 2023, US-based Conduent was awarded a $1.7 billion contract to take over the operation of myki.
Conduent beat two other bidders, with at least one of those understood to be cheaper.
As part of the deal, the company is responsible for upgrading myki, which would allow commuters the option to tap on with their mobile phone or credit card to pay for trips.
Conduent won the contract to run the ticketing system for Victoria’s public transport last year. (ABC News: Giulio Saggin)
The Victorian government and Conduent are reportedly in a legal stand-off over amendments to their contract, due to additional costs and technical work required for the upgrade.
When asked if Conduent was on the verge of walking away from its contract, the company declined to comment and referred the ABC to the state government.
The government said the upgrade remained on track and there had been no discussions about Conduent trying to get out of its contract.
But Victorian Premier Jacinta Allan declined to say whether she was confident Conduent would remain the company to deliver the myki upgrade.
“This is a really complex technology project putting next-generation technology on one of the world’s most complex public transport systems — when you consider this has got to operate across metropolitan rail, regional rail, metro and regional buses and also trams as well,” Ms Allan said.
“It is tracking along.”
Jacinta Allan denies the contract with Conduent is in jeopardy. (ABC News)
Ms Allan said the government was working closely with the company and that a small regional trial of new payment options was scheduled to begin within weeks.
The Public Transport Users Association said Melbourne was falling behind other Australian cities where passengers can already pay with phones and credit cards, and it was worried any contractual problems would delay the trial and eventual introduction of the technology in Victoria.
“This technology is well overdue,” said spokesperson Daniel Bowen.
“Tap and go really opens up public transport for people who don’t usually use it.
“At the moment, there are so many barriers to buying a ticket — buying a card, loading it up with the correct amount of money that many people just get in their car instead.”
The Public Transport Users Association’s Daniel Bowen says Melbourne should have the same ease of payment that other cities already have. (ABC News)
The state opposition leader John Pesutto said any delay to the upgrades would blow out costs.
“Conduent and the Labor government are in dispute about basic financial things,” Mr Pesutto said.
“What this latest debacle around the myki ticketing system is telling us is that this contract of $1.7 billion will cost a lot more than that and it will take a lot longer than we were told last year to get this ticketing system up and running.”
In a previous statement about the upgrades, the Department of Transport and Planning said a range of new infrastructure had been tested since Conduent took over in December 2023, including new myki readers, screens and gates.
It said around 23,000 new myki devices had been ordered to be installed on the network once testing was completed.
