New bus contracting model a "more sustainable option": SBS Transit

[streetsmart73]

Originally Posted by hkh

don't say too soon........

aiyoh! me betterer off as some monk than eunuch

monk can still steal eat mah

[Auratus]

Originally Posted by streetsmart73

if ah saw returns, me chop off

Cleopatra looking for you, Antony.

[byfun]

How about those retail outlet at bus interchanges which help to generate rental income for those bus companies ?

Without running the bus operations which is losing money, SMRT and SBS will make more money.

Bus operations losing money government use tax payers money to subsidies but profit making assets SMRT and SBS will still get to keep for their shareholders ?

[hkh]

Originally Posted by byfun

How about those retail outlet at bus interchanges which help to generate rental income for those bus companies ?

Without running the bus operations which is losing money, SMRT and SBS will make more money.

Bus operations losing money government use tax payers money to subsidies but profit making assets SMRT and SBS will still get to keep for their shareholders ?

What makes you think the shares of SMRT & Comfort Delgro surged after hearing this news.......Huat huh.......

[streetsmart73]

Originally Posted by Auratus

Cleopatra looking for you, Antony.

seeing auntie saw, ready soft hoh.

seeing she in the butt, confirm, stamp, guaranteed chop, cannot do it.

worse than kena chop off

[Auratus]

Originally Posted by streetsmart73

seeing auntie saw, ready soft hoh.

seeing she in the butt, confirm, stamp, guaranteed chop, cannot do it.

worse than kena chop off

Dun play play hor....she got millions for you. Even she also don't take mrt prefer her chauffeur driven non COE transport.

[globalcookie]

Somehow when i look at a few men carrying heavy object on shoulder, just tells me 'kua cha'

[Aris]

Spike in transport shares being probed

Published on May 28, 2014 6:53 AM

By Christopher Tan Senior Correspondent

The authorities are looking into why land transport stock prices soared just before a landmark restructure of the bus industry was announced.

The Straits Times understands at least one police report has been filed pertaining to the spike in SMRT and ComfortDelGro shares on May 20. That was a day before the Government said it would assume ownership of all buses and depots, and that transport firms would bid for routes to operate in competitive tenders.

The investment community views the change as largely positive for transport companies.

Community worker and National Solidarity Party member Ravi Philemon, 46, lodged a police report last Saturday. He did so after reading a newspaper article on the share price spikes, "which troubled me a lot", he said yesterday.

- See more at: http://www.straitstimes.com/news/sin....9Agw3JO7.dpuf

[Auratus]

Originally Posted by Aris

Spike in transport shares being probed

Published on May 28, 2014 6:53 AM

By Christopher Tan Senior Correspondent

- See more at: http://www.straitstimes.com/news/sin....9Agw3JO7.dpuf

So clear, market experts can tell lah. Now wayang.....

[globalcookie]

Closing date of first tender under bus contracting model extended by two weeks
By Saifulbahri Ismail
POSTED: 17 Dec 2014 19:37

SINGAPORE: Bus operators vying for the first tender under the new contracting model will be given more time to submit their bids. The Land Transport Authority (LTA) has pushed back the closing date of the tender by two weeks, to Jan 19.

This was at a request of one of the bus operators keen to participate in the tender process.

In an interview with Channel NewsAsia, Transport Minister Lui Tuck Yew said he would like to see a mix of companies vying for the tender, saying it would make for a "good bid".

Mr Lui also said the competitive tendering process will be a "price discovery mechanism" when the Government negotiates with incumbent operators for packages run by them. The first package to be bid on, Bulim, is expected to be awarded in the second half of 2015.

Singapore moved to a bus contracting model in May 2014, as the Government overhauls the bus industry to raise service levels for commuters. Bus operators now have to bid for the right to run routes.

Services are bundled into 12 packages. Three will be open for competition, while the rest will continue to be run by incumbent operators. The LTA will negotiate with the incumbents on the nine packages when their operating licence expires in Aug 2016.

The first Bulim package has attracted a lot of interest from potential bidders. More than 20 companies have collected tender documents, most of them foreign operators. The interest is encouraging, but Mr Lui said it is unlikely all of these companies will eventually put up a bid.

"I hope we are able to attract good bids from a range of operators - the incumbents, other local companies that are already active in Singapore market, especially in private transport, as well as a number of reputable foreign companies” he said.

“If I have a range of companies coming in, then I think we have a good bid, because I will be able to see the quality of submissions, and I will have an indication of the kind of prices that they will attach to their bids. This will be helpful to me, because beyond the tenders that are going out, I also have to negotiate on the remaining packages with the two incumbent operators. So, I am using this as a 'price discovery mechanism', in order to be able to carry out good negotiations in the future,” he added.

OTHER BENEFITS IF TENDER ATTRACTS MANY OPERATORS

There may be other benefits too, if the tender attracts many operators. Professor Lee Der-Horng, Deputy Head of Research, Department of Civil & Environmental Engineering at the National University of Singapore, said: "According to some academic studies, including some empirical studies, the more bidders you have, then the final bidding price will become more competitive. This means the passengers will get the benefit, as well as the regulators, because the bidders will all try their best to provide the most competitive operations to serve the passengers.”

Job security and welfare of drivers and workers are priorities under the contracting model. These guidelines for Public Transport Operators (PTO) ensure workers affected by any transition are not worse off.

Mr Cedric Foo, Chairman of the Government Parliamentary Committee for Transport, said: "For example, what happens when a PTO changes - what happens to the employees? I think those are important considerations. I think in a labour-scarce situation, employees should have no fear, because it is quite probable that the winning PTO would want to take over the employment of the losing PTO."

However, in a tight labour market, bus operators may also want to hold on to workers. Under the guidelines, affected workers can choose to stay on with the outgoing operator.

Professor Lee said: "For the two incumbents - when one of them loses this package, I am sure they will try as much as they can to keep their existing bus drivers. The reason is very simple. At this point of time Singapore is suffering from a shortage of bus drivers. So bus drivers are very precious, they are precious assets to the incumbents. But this will also affect the newcomers. Where are they going to get sufficient numbers of bus drivers?"

As such, transport experts say operators will have to pay close attention to manpower issues in their bids.

- CNA/dl

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Dig biscuit tin and buy SMRT and Comfort Delgro shares