Tuesday, August 30, 2011

Monopolized Transportation in Singapore

SBS Transit appointed Downtown Line operator

This is analyzed by by friend Gary.

Only SBS Transit Ltd and SMRT Trains Ltd were asked to submit competitive proposals. No one else?? LTA will own the rail operating assets and be responsible for timely replacements and enhancements. This sounds like LTA owns everything and SBS Transit only operate and pay rental of $1.6 billion over 19 yrs or about $84million a year or about $230k a day. Half million commuters are expected daily.

If each commuter spends $2 daily (less than round trip), daily revenue will be $1 million excluding advertisement and shop rental revenue. It appears to be pretty profitable!! May be we should have more operators tender to either increase the rental or lower the fares. Or even to consider to run this line as a cooperative!

ComfortDelgro, Temasek Holdings and GIC does not seem to be transparent with its expenses, and with record profits and poor services, the LTA seems to allow every
price increase, but the service seems to gets worse.

-- Ironbowl

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