Author: kktan
SMRT – AmFraser
SMRT plans $900m in rail maintenance, upgrade Bulk is for renewal, replacement; sum is on top of $30m annual maintenance
April hasn't been a good month for SMRT with five breakdowns and an ongoing inquiry into earlier disruptions in December, so the rail operator plans to spend an estimated $900 million in additional maintenance and upgrading to make the ride a lot smoother.
Between now and 2019, nine areas have been identified for the upgrade to ensure a safe and reliable rail system, said Tan Ek Kia, SMRT Corp's executive director and interim chief executive officer.
"The bulk will be for renewal and replacement, with some brought forward instead of maintaining it, for example, the train‐borne electronic cards," he said yesterday at a media briefing.
The system upgrade over the next eight years will be implemented on top of the usual $30 million‐plus annual maintenance programme for the North‐South and East‐West MRT lines.
Mr Tan stressed that the $900 million is an estimate and discussions with the Land Transport Authority are necessary regarding a "costsharing
arrangement".
According to SMRT Corp senior vice‐president for communications and services Goh Chee Kong, the plans to install wheel impact load detection systems and positive‐locking rail claws, and re‐sleeper and re‐signal the train lines, among others, have always been there.
"They are ongoing. But after the disruptions in December, we decided to bring them forward," said Mr Goh.
On Dec 15 and 17 last year, two massive MRT breakdowns affected 210,000 commuters and resulted in the ongoing Committee of Inquiry (COI). The COI, which started on April 16, is expected to last six weeks.
SMRT – Lim and Tan
• The $900 mln to be spent over 8 years to deal with the ageing rail infrastructure ($112.5 mln pa) will likely unnerve investors first. And merely saying it will be co-funded with LTA does not help either.
• What would be helpful would be for the authorities to clarify that LTA will be responsible for the infrastructure replacements, and SMRT for replacing what needs to be replaced of the operating assets.
• Assuming 50-50 split, which is too simplistic, but which works out to $56 mln a year for SMRT.
• Point is SMRT presently spends about $30 mln a year on repairs and maintenance.
• We have earlier downgraded SMRT to a HOLD.
SingTel – BT
Proposal to raise spectrum rates sinks telco stocks
Regulator wants ten-fold rise from the controversial 2008 sale prices
The Indian telecoms regulator's proposal for a near 10-fold increase in basic mobile phone spectrum prices and switching of radio spectrum given to older carriers knocked down shares of leading operators on fears that the big potential payouts will further hurt an already bleeding industry.
Shares in top mobile operator Bharti Airtel fell as much as 7.5 per cent yesterday morning to their lowest level since July 2010, while fourth-ranked Idea Cellular fell as much as 9.8 per cent, before cutting some losses. Second-ranked Reliance Communications fell as much as 3.4 per cent.
The country's telecoms sector, the world's second-biggest by subscribers, has been battered by ferocious competition and a scandal over below-market price sale of lucrative mobile phone permits in a 2008 state sale process.
The Supreme Court has ordered 122 permits granted to eight operators in the 2008 sale be revoked in early June and asked the government to redistribute radio airwaves through an open bidding process.
SMRT – BT
SMRT to spend S$900 mln to renew, upgrade systems
Public transport operator SMRT Corp said on Tuesday it will spend S$900 million (US$720 million) on renewal and preventive maintenance to address problems that have led to numerous train breakdowns in recent months.
Most of the work will be done over the next four years, SMRT said.
"Some of the measures are already on-going and will be accelerated, while others are new," interim chief executive officer Tan Ek Kia said in a statement.
SMRT said it was discussing cost-sharing arrangements with the Land Transport Authority.
SMRT – BT
SMRT to spend S$900 mln to renew, upgrade systems
Public transport operator SMRT Corp said on Tuesday it will spend S$900 million (US$720 million) on renewal and preventive maintenance to address problems that have led to numerous train breakdowns in recent months.
Most of the work will be done over the next four years, SMRT said.
"Some of the measures are already on-going and will be accelerated, while others are new," interim chief executive officer Tan Ek Kia said in a statement.
SMRT said it was discussing cost-sharing arrangements with the Land Transport Authority.