FIRST it was buses. Now rail operations, too, will be exposed to more competition.

Transport Minister Raymond Lim said on Friday at a visit to the Circle Line's Kim Chuan Depot that transport companies will have to 'compete for the right to operate rail services'.

But once they win that right, they will 'have to meet service obligations or risk being replaced at the end of their term', he said.

The Government plans to enhance 'contestability' by shortening the tenure of operating licences to 10 to 15 years, from the current 30.

It cited Melbourne, Manchester and Dublin as cities which also award relatively short contestable rail contracts.

Mr Lim clarified, however, that contracts already awarded and those in force would not have their tenures shortened unless there was 'mutual agreement' on both sides.

Read the full story in Saturday's edition of The Straits Times.