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| Sunday, May 17, 03:12:12pm | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4, 5, 6, 7, 8, 9, 10 ] |
| Subject: Re: MarginsThe Downer syndicate was offering electronics and computer systems developed by Britain's Wayfarer."ERG is committed to achieving a positive cash flow profile and return for shareholders." - Rob Noble, ERG | |
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Author: July 18 2003Downer will provide a replacement smartcard package, sourced from Wayfarer, for existing machines on Perth's buses, trains and ferries. |
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Date Posted: Saturday, July 19, 03:43:55am In reply to: Analysts in the past have suspected that ERG pursued contracts without adequate margins to cover the cost of developing and tailoring technology. 's message, "Margins" on Saturday, July 19, 02:51:59am ERG fares poorly in Perth deal July 18 2003 By Ian Porter The share price of fare collection technology company ERG was punched yesterday after the company failed to win the public transport contract for its home city of Perth. After improving more than 40 per cent to $1.16 since trading resumed following a 10-into-one consolidation, the price dived 13¢ to $1.03 yesterday. The West Australian Government named the incumbent syndicate, headed by Downer EDI, as preferred tenderer to supply and maintain a smartcard ticketing system to replace the current magnetic cards. The Downer syndicate was offering electronics and computer systems developed by Britain's Wayfarer. Announcing the decision yesterday, WA Planning and Infrastructure Minister Alannah McTiernan said the contract would be worth more than $30 million. ERG had been retained as the reserve tenderer and the winning bid was more than 30 per cent lower than its closest competitor, she said. advertisement advertisement Ms McTiernan said Downer/Wayfarer would expand its national service centre in Perth as part of the contract. ERG was "very disappointed" at not being selected as the preferred tenderer, ERG Asia-Pacific managing director Rob Noble said. But he indicated there might not be much profit in the deal. "ERG is committed to achieving a positive cash flow profile and return for shareholders and is not prepared to compromise these principles simply to gain market share," he said. "ERG is committed to achieving a positive cash flow profile and return for shareholders." - Rob Noble, ERG He said it was disappointing not to be selected in Perth following ERG's wins in Seattle, Stockholm, Sydney and Washington. Those contracts were worth more than $500 million. Downer's Delairco Bartrol subsidiary has been the ticketing contractor in Perth since the late 1980s. Downer will provide a replacement smartcard package, sourced from Wayfarer, for existing machines on Perth's buses, trains and ferries. Ms McTiernan said transport authority Transperth would build fare gates at major stations and stand-alone readers or validators at other stations. "The fare gates will be staffed, adding to station security and helping reduce fare evasion," she said. Downer will manage the system, including systems and equipment maintenance for 10 years. Its shares were steady at 74¢ yesterday. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| In tendering ERG was committed to achieving a positive cash flow profile and return for shareholders and was not prepared to compromise these principles to gain market share, he said. | July 19, 2003 | Saturday, July 19, 03:47:21am |