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New deal for Oyster card company

19 November 08 18:29 GMT

Transport for London (TfL) has awarded its lucrative Oyster card contract to two key firms in the consortium that held the cancelled contract.

TfL announced in August that it would not renew its existing contract with TranSys after it expires in 2010.

A TfL spokesman would not say how much the new contract with Cubic and EDS would cost, citing competition rules.

It has said it is looking for substantial savings in any new deal for maintaining the payment system.

Oyster cards are the widely used pre-pay ticketing system that can be used on all London tubes, buses, the Docklands Light Railway, the Overground and some regional train services.

Despite the secrecy surrounding the new deal, the spokesman said: "We are pleased with the deal we reached."

As part of the new deal, TfL has obtained the rights to the Oyster brand, although the price paid for the name was also not released.

In August, there were two failures in the system used for 38m journeys each week, causing confusion and costing TfL more than £1m in lost revenue.

The TfL spokesman said that money was recovered from the company that holds the existing contract, TranSys, which expires in 2010.

That contract, which originally was to run until 2015, was worth an estimated £100m.

The new contract with the two principles of the TranSys consortium will run from 2010-2013.

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