On Track Innovations (GER:OT5) today announced that its wholly owned subsidiary, OTI Africa, had signed a five year agreement to equip South Africa-based Exel Petroleum with OTI's fuel management system. Initial orders for the system are expected to reach $500,000, the company said.
Under the agreement, On Track Innovations (OTI) will provide Exel with equipment required to immediately equip 40 on-road Exel sites with the fuel management system, which is called FuelMaster. OTI says the agreement with Exel will boost the current network of FuelMaster sites by approximately 25% and the number of Fuel Master end users by 40% over the next two years, which will result in significant increase in the on going transaction fee and revenue sharing for OTI Africa.
In addition to cash payments for equipment, OTI Africa will receive volume-based payments from Exel based on all petrol and diesel sold through the use of the FuelMaster System at on-road and home base sites.
There are already 500 FuelMaster sites in BP service stations in southern and east Africa, OTI noted.
OTI Africa managing director Charlotte Hambly-Nuss said, "In promoting OTI's fuel management solution to Exel, OTI Africa highlighted the strategic, commercial and operational advantages which could be derived through an alliance with BP and we are very pleased that pursuant to an agreement between Exel and BP, customers who wish to make use of the FuelMaster System when purchasing petroleum products from Exel and BP will be able to do so on an interoperable basis,"
Exel general manager Herman Welman said, "Exel's decision to implement the OTI solution was made after an extensive review of the fuel management systems available in the market and was motivated by the fact that OTI's fuel management system is the most secure solution in the market which also complies with the standards for contactless smart card technology, thereby guaranteeing an upgrade path which will ensure that Exel remains in step with market demands. The OTI platform will accordingly form an integral part of Exel's e-commerce strategy,"
Established in 1990, OTI develops contactless microprocessor-based smart card technology. Applications developed by OTI include product solutions for mass transit, parking, gas management systems, loyalty schemes, ID and secure campuses. OTI, which is based in Rosh Pinah, has regional offices in the US, Europe, Asia Pacific, and Africa.
Published by Israel's Business Arena on 8 April, 2002