Transport operators to press for fare hikes
By Christopher Tan
TRANSPORT operators SBS Transit and SMRT Corp on Friday submitted applications for fare hikes, but insiders are not holding their breath for any measurable increase this year.
This is because the Public Transport Council declared last month that the fare adjustments were likely to be far smaller than last year's average 1.8 per cent increase.
PTC chairman Gerard Ee said the council would aim to keep any rise 'below one per cent'.
In a statement on Friday, SBS Transit said it is applying to raise bus and train fares because of fuel and energy costs have 'increased significantly in the last year''.
But it would keep concession, children and student fares unchanged.
SMRT explained that even if fares were raised by 3 per cent, it 'will not fully mitigate cost increases due to an inflationary and higher operating cost environment.'.
The company which posted record net profit of $150 million last year added that 'the operating environment continues to be challenging'.
While the PTC's decision will only be announced next month, indications are that commuters who make transfers, say, from train to bus or bus to train or bus to bus, will see their travel expenses fall when new fares kick in on Oct 1.
This is because the Government has decided that fares should be purely distance-based, regardless of whether a journey involves transfers. Currently, a journey with transfers costs more than a similar one without transfers.
SMRT said it supports this move.
But commuters who enjoy direct services may end up paying more.
Four in 10 commuters today make at least one transfer a day.
As before, any fare adjustment is likely to hit commuters who pay in cash hardest. For one, the fare system can only 'recognise' transfer trips via the ez-link fare card.
That is, if a commuter transfers from a bus to a train within a specified time, the system considers it a transfer trip and charges him less for it. For cash payments, the system has no way of knowing.
But on the whole, the PTC has committed to keeping the average fare hike to one per cent or less.
By Christopher Tan
TRANSPORT operators SBS Transit and SMRT Corp on Friday submitted applications for fare hikes, but insiders are not holding their breath for any measurable increase this year.
This is because the Public Transport Council declared last month that the fare adjustments were likely to be far smaller than last year's average 1.8 per cent increase.
PTC chairman Gerard Ee said the council would aim to keep any rise 'below one per cent'.
In a statement on Friday, SBS Transit said it is applying to raise bus and train fares because of fuel and energy costs have 'increased significantly in the last year''.
But it would keep concession, children and student fares unchanged.
SMRT explained that even if fares were raised by 3 per cent, it 'will not fully mitigate cost increases due to an inflationary and higher operating cost environment.'.
The company which posted record net profit of $150 million last year added that 'the operating environment continues to be challenging'.
While the PTC's decision will only be announced next month, indications are that commuters who make transfers, say, from train to bus or bus to train or bus to bus, will see their travel expenses fall when new fares kick in on Oct 1.
This is because the Government has decided that fares should be purely distance-based, regardless of whether a journey involves transfers. Currently, a journey with transfers costs more than a similar one without transfers.
SMRT said it supports this move.
But commuters who enjoy direct services may end up paying more.
Four in 10 commuters today make at least one transfer a day.
As before, any fare adjustment is likely to hit commuters who pay in cash hardest. For one, the fare system can only 'recognise' transfer trips via the ez-link fare card.
That is, if a commuter transfers from a bus to a train within a specified time, the system considers it a transfer trip and charges him less for it. For cash payments, the system has no way of knowing.
But on the whole, the PTC has committed to keeping the average fare hike to one per cent or less.
