LTA to contract out public bus services from second half of 2014

[Runifyouhaveto]

Full implementation in 2016

LTA to contract out public bus services in second half of 2014
http://www.channelnewsasia.com/news/singapore/lta-to-contract-out/1115356.html

How the agency intends to restructure the industry: Bus operators will bid for the right to operate the services, based on the routes and service standards laid out by the LTA, which will pay the operators. Fare revenue will be retained by the Government, it added.

All bus infrastructure such as bus depots, as well as operating assets such as buses and existing fleet management system will be owned by the Government, too

 

[Runifyouhaveto]

ComfortDelgro rallies ahead of new bus operating model framework
http://www.businesstimes.com.sg/bre...s-ahead-new-bus-operating-model-framework-201

 

[winners]

There are 2 sides to this situation. Presently, the bus division of the transport operators are making loses. In the new system, they will bid and ensure that they won't suffer loses. If they ever do, then it's due to their poor planning and probably mismanagement. Bus operation and frequencies will also be more consistent as they will have a set of rules to abide to, failing which I believe the LTA will penalize them with fines.

The government will be able to control the fares since these will be regulated by them. If the government is sincere in maintaining affordability, they may use their coffers to cross subsidize the bidding and maintain the fare structures. Otherwise, they will just increase the fares to compensate for the higher bidding by the transport operators. 1 advantage is that there may be more bus operators (than the current 2) bidding in the system, hopefully making it more competitive.

I believe the government had already planned for this when they approved the S$1.1bn package last year to purchase new buses and trains. So, they are smart because majority of the assets from this S$1.1bn amount will flow back to them again. However, I have no confident with those ass holes in LTA to technically manage the fleet well. So, be prepared Sinkies.

 

[enterprise2]

There are 2 sides to this situation. Presently, the bus division of the transport operators are making loses. In the new system, they will bid and ensure that they won't suffer loses. If they ever do, then it's due to their poor planning and probably mismanagement. Bus operation and frequencies will also be more consistent as they will have a set of rules to abide to, failing which I believe the LTA will penalize them with fines.

The government will be able to control the fares since these will be regulated by them. If the government is sincere in maintaining affordability, they may use their coffers to cross subsidize the bidding and maintain the fare structures. Otherwise, they will just increase the fares to compensate for the higher bidding by the transport operators. 1 advantage is that there may be more bus operators (than the current 2) bidding in the system, hopefully making it more competitive.

I believe the government had already planned for this when they approved the S$1.1bn package last year to purchase new buses and trains. So, they are smart because majority of the assets from this S$1.1bn amount will flow back to them again. However, I have no confident with those ass holes in LTA to technically manage the fleet well. So, be prepared Sinkies.

As close to nationalizing as it gets!!

 

[dr.wailing]

Yeah the real motive for doing this is to prepare for GE 2016 as a short term goal while the long term goal is to prepare for 8 million inhabitants

 

[Confuseous]

As close to nationalizing as it gets!!

But die die will never admit.
Same when they say they do not believe in minimum wage - but start 'forcing' companies (like in the cleaning industry) to pay their people minimum wages before they qualify to tender.
This is one govt that will never admit that they have made a mistake, and change plans.
No, they will resort to semantics.

 

[Runifyouhaveto]

WSJ: Singapore Overhauls Public-Bus Industry
Move Will Affect Two Transport Firms SBS Transit and SMRT Corp.
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-537785

SBS, in a statement late Wednesday, said the changes would have a “major impact” on its operations, but should make the industry “more sustainable for the future.” SMRT didn’t immediately comment. It isn’t clear when and how the government would take control of SBS and SMRT’s bus-operating assets, though analysts say regulators could buy those assets at book value....................
Analysts say Singapore regulators are also likely to introduce similar reforms to the subway system, which has been plagued by repeated service disruptions in recent years.

 

[winnipegjets]

This is a government bailout of private business. Another of PAP's socialize loss and privatize profits.

Who is benefitting from this bailout?

 

[winnipegjets]

There are 2 sides to this situation. Presently, the bus division of the transport operators are making loses. In the new system, they will bid and ensure that they won't suffer loses. If they ever do, then it's due to their poor planning and probably mismanagement. Bus operation and frequencies will also be more consistent as they will have a set of rules to abide to, failing which I believe the LTA will penalize them with fines.

The government will be able to control the fares since these will be regulated by them. If the government is sincere in maintaining affordability, they may use their coffers to cross subsidize the bidding and maintain the fare structures. Otherwise, they will just increase the fares to compensate for the higher bidding by the transport operators. 1 advantage is that there may be more bus operators (than the current 2) bidding in the system, hopefully making it more competitive.

I believe the government had already planned for this when they approved the S$1.1bn package last year to purchase new buses and trains. So, they are smart because majority of the assets from this S$1.1bn amount will flow back to them again. However, I have no confident with those ass holes in LTA to technically manage the fleet well. So, be prepared Sinkies.

Who is benefitting from this bailout using taxpayers' money??????

 

[Rossi]

Who is benefitting from this bailout using taxpayers' money??????

It's anyone's guess. I am curious too.

 

[winners]

Who is benefitting from this bailout using taxpayers' money??????

Most likely the government will have to subsidize from their coffers. Those who don't take public transport too often will of course kpkb.

Also, since they will still maintain the PTC and they have already mentioned that periodical fare reviews will be on the cards, I'm afraid that eventually, fares will be increased on the pretext of better service standards. So Sinkies, you are all screwed, both tax payers and non-tax payers alike.

Anyway, the last time I took a public bus in Sinkie Land was in November 2010.

 

[tanwahp]

As close to nationalizing as it gets!!

Actually, this is not nationalizing of services under the government but creating more competition in the private market.

To be fair, it is closer to NSP and SDP proposals than WP proposals.

 

[Dark Knight]

Gahbrament really Contracting out public bus service?
Think again as it's just another wayang show.

Guess who owns ComfortDelgro anyway?

 

[Seee3]

Just cannot understand how this restructuring can help improve standard and cut cost. The service level is dependent mainly on the man on the ground i.e. the drivers. Punctuality, maintenance cost, comfort level... all depend on the quality of the drivers. We can buy all the buses we need but we cannot find enough quality driver. So by market theory, we need to increase pay to attract good individuals to become drivers. But that would mean cost increase. So we bring in more Ft to cover the shortfall. But with them racing like F1, engine will wear faster, more accidents and uncomfortable rides.

Shall wait for more details to understand the logic. I trust LTY to be less of a wayang and not be doing what had been happening at other agencies; "changing the soup but not changing the medicine."

 

[laksaboy]

Just cannot understand how this restructuring can help improve standard and cut cost.

Hint: It is not supposed to. It is a political move, designed to take some heat off Lui Tuck Yew, or the chump who's going to be the next Transport Minister.

 

[frenchbriefs]

can someone tell me why this bidding is necessary?why the fark cant they just give licenses to whoever wants to operate and let them compete to see who can provide the best,cheapest and most reliable service?

 

[McDonaldsKid]

Waiting to see how many more transport GLCs will sprout in the upcoming future.

 

[hockbeng]

Full implementation in 2016

LTA to contract out public bus services in second half of 2014
http://www.channelnewsasia.com/news/singapore/lta-to-contract-out/1115356.html

How the agency intends to restructure the industry: Bus operators will bid for the right to operate the services, based on the routes and service standards laid out by the LTA, which will pay the operators. Fare revenue will be retained by the Government, it added.

All bus infrastructure such as bus depots, as well as operating assets such as buses and existing fleet management system will be owned by the Government, too

can they also remove that silly 3/4 tank rule?

 

[Cestbon]

Should be implemented 10 year ago.
Since LTA are the one build MRT>> they should maintain it.
LTA subsidy by buying bus>> they should maintain it

The Operator only need to >> manage it (salary & benefit of all employee and fuel). If accident due to Operator need to bare the cost of repairing and time loses.
If bus/MRT breakdown due to part failure then LTA have to bare the cost.

 

[Seee3]

Hint: It is not supposed to. It is a political move, designed to take some heat off Lui Tuck Yew, or the chump who's going to be the next Transport Minister.

I am trying to be more positive to believe that there is indeed some good intention. The only advantage I can see in the change, is that it will empower LTA to dictate the routes to be provided and the frequencies of each service. With govt taking over the revenue from the fares, LTA can focus more on service than profit as tax payers will unknowingly absorb the losses incurred in those economically unviable routes.

In a way, it is like town councils. Instead of HDB carrying out the maintenance, a new animal called TC was created. Like it or not, any creation of new entity will give rise to operating cost. LTA will probably set up new departments to take care of the additional roles. The current transport companies will reduce their org structure. Unfortunately, the net overall change in management cost will still be an increase because LTA will employ new top management but the pay of the top management of the transport companies will not be reduced although their workload is reduced. At the end, any cost increase will be translated to fare increase and the excuse will be that, it is the price for better service. Is there really no better solution or is it simply an issue of avoiding accountability?