SBS Transit – BT

SBS Transit to operate Downtown Line

LTA shortens licence period to 15 years to boost contestability

The Downtown Line (DTL), the first stage of which will open in 2013, will be operated by SBS Transit (SBST) under the new rail financing framework.

 

 

 

The Land Transport Authority (LTA) yesterday announced that it has awarded the licence to operate the DTL to SBST with a shorter licence period to enhance contestability in the rail sector, with the operating assets to be owned by LTA.

The DTL is the first rail line put up for competitive tender under the new rail financing framework. The framework was announced by the government last year to inject greater contestability in the industry and achieve the Land Transport Master Plan's objectives by driving greater efficiency and service improvements.

Under the framework, the period for new Rapid Transit System (RTS) licences is being shortened from the existing 30-40 years to about 15 years. This means SBST's licence to run the DTL will end 15 years after the full completion of the line in 2017.

LTA says that a shorter licence enhances the level of contestability as the operator faces the prospect of competition at the end of its licence terms.

At the same time, LTA can refresh the licence conditions when the licence ends to allow for changes in the operating and business environment.

The new framework also makes the LTA, not the operator, the owner of the rail operating assets. The authority will decide on the replacement of and investment in trains and operating assets, thus allowing it to influence train carrying capacity and service levels more directly.

Also new is an annual Licence Charge that SBST as the appointed DTL operator will have to pay for 19 years – from 2013, when the first stage of the line is opened, until 15 years after 2017 when all three stages of the DTL are completed. Total payment during this 19-year period is expected to be $1.6 billion.

The DTL is a medium-capacity RTS that will facilitate direct travel from north-western and north-eastern Singapore to the Central Business District and Marina Bay. When fully operational, daily ridership is expected to be 500,000 initially and rising to 700,000 over time.

SBST, which operates three out of four public buses in Singapore, already runs the fully automated North-east Line (NEL) as well as the Sengkang and Punggol Light Rail Transit (LRT) systems.

The fully automated underground DTL will increase SBST's rail network from 40km currently to 82km, and its share of Singapore's total rail network will rise to 36 per cent.

But SMRT Trains remains the bigger rail network here with its North-South and East-West MRT Lines, as well as the recently fully opened Circle Line.

SBS Transit – BT

SBS Transit to operate Downtown Line

LTA shortens licence period to 15 years to boost contestability

The Downtown Line (DTL), the first stage of which will open in 2013, will be operated by SBS Transit (SBST) under the new rail financing framework.

 

 

 

The Land Transport Authority (LTA) yesterday announced that it has awarded the licence to operate the DTL to SBST with a shorter licence period to enhance contestability in the rail sector, with the operating assets to be owned by LTA.

The DTL is the first rail line put up for competitive tender under the new rail financing framework. The framework was announced by the government last year to inject greater contestability in the industry and achieve the Land Transport Master Plan's objectives by driving greater efficiency and service improvements.

Under the framework, the period for new Rapid Transit System (RTS) licences is being shortened from the existing 30-40 years to about 15 years. This means SBST's licence to run the DTL will end 15 years after the full completion of the line in 2017.

LTA says that a shorter licence enhances the level of contestability as the operator faces the prospect of competition at the end of its licence terms.

At the same time, LTA can refresh the licence conditions when the licence ends to allow for changes in the operating and business environment.

The new framework also makes the LTA, not the operator, the owner of the rail operating assets. The authority will decide on the replacement of and investment in trains and operating assets, thus allowing it to influence train carrying capacity and service levels more directly.

Also new is an annual Licence Charge that SBST as the appointed DTL operator will have to pay for 19 years – from 2013, when the first stage of the line is opened, until 15 years after 2017 when all three stages of the DTL are completed. Total payment during this 19-year period is expected to be $1.6 billion.

The DTL is a medium-capacity RTS that will facilitate direct travel from north-western and north-eastern Singapore to the Central Business District and Marina Bay. When fully operational, daily ridership is expected to be 500,000 initially and rising to 700,000 over time.

SBST, which operates three out of four public buses in Singapore, already runs the fully automated North-east Line (NEL) as well as the Sengkang and Punggol Light Rail Transit (LRT) systems.

The fully automated underground DTL will increase SBST's rail network from 40km currently to 82km, and its share of Singapore's total rail network will rise to 36 per cent.

But SMRT Trains remains the bigger rail network here with its North-South and East-West MRT Lines, as well as the recently fully opened Circle Line.

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