Forum: Impose stiffer penalties on rail operators for disruptions

I agree with Transport Minister Chee Hong Tat that public transport fare formulas should primarily reflect changes in operating costs (Public transport fares should not be tied to service levels, disruptions: Chee Hong Tat, Oct 15).

At first glance, this may seem contradictory. After all, we are paying more and may still be experiencing service disruptions. But there is room to introduce stricter penalties for rail operators to ensure accountability.

First, the Government should consider awarding rail contracts to operators with the best performance records. It is unclear why the Thomson-East Coast Line contract was awarded to SMRT, given that several lines operated by SMRT have been prone to frequent disruptions.

To improve service quality, Singapore should open up the bidding process to world-class rail operators globally, rather than limiting it to local players like SBS and SMRT.

Second, there appear to be insufficient penalties for operators who fail to meet reliability targets, which include factors like distance travelled between failures.

Currently, when targets are not met, operators simply do not receive incentive payments. For a disruption, rail operators can be fined a maximum of 10 per cent of their annual fare revenue. But the fines imposed so far seem less.

SMRT was fined $5.4 million for a breakdown in 2015 that affected more than 250,000 commuters, and $1.5 million for another disruption in 2017 that affected 230,000 commuters for a staggering 14.5 hours. Why was the fine lower for a longer disruption? It raises questions about how fine amounts are determined.

I look forward to the findings of the current investigations into the recent disruptions, as well as the slew of measures planned to prevent such occurrences.

Desmond Teo Mingjie