THE company behind London's public transport ''Oyster card'' has been handed the task of creating an electronic ticket for Sydney's trains, buses and ferries.

Eight years after its botched attempt to deliver Tcard, the NSW government has appointed Pearl Consortium, which includes Cubic Transportation Systems, to deliver the $1.2 billion ticket system.

Cubic has less than three years to get the electronic ticket launched across Sydney, Newcastle, the Hunter, Wollongong, Illawarra and the Blue Mountains.

In London, more than 98 per cent of commuters use the Cubic-produced Oyster card to board buses. The card can also be used on the Tube and on trains. It has been credited with cutting boarding times fourfold over the past decade.

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NSW Transport Minister David Campbell said: "The new system will allow commuters to tap on and tap off from different modes of transport … it will operate in a similar way to an e-tag - each card or tag can be linked to an account from which the price of the journey will be automatically deducted.''

The Tcard, which was to be implemented by the company ERG, could cost taxpayers more than $300 million. It is the subject of court action. The new scheme will most likely have to simplify Sydney's densely layered fare structure.