SINGAPORE – Tenders for the rail operating rights to the upcoming Jurong Region Line (JRL) and Cross Island Line (CRL) are now open, and both SMRT and SBS Transit will compete for them.
The operating model for both lines will be similar to Singapore’s bus contracting model, where successful bidders will be paid fixed fees to run and maintain the MRT lines, and the Government will collect fare revenue. The first rail line to go under this model is the Thomson-East Coast Line, operated by SMRT.
In a statement on Tuesday, the Land Transport Authority (LTA) said the first licensing period for the two upcoming lines will be for nine years, with the option of a two-year extension. The authority expects to award the operating licence for the JRL – and possibly the CRL as well – by the end of 2024.
“During the first licensing period of the JRL and CRL, the Government will bear fare revenue risk under the same model as the Thomson-East Coast Line, given the higher fare revenue and ridership uncertainty in the initial years of operation for such new lines,” the authority said.
When the first operating licence expires, “LTA will review the model for subsequent rail operator licences, taking into consideration the viability and ridership of the lines”.
The JRL is a 24km, 24-station medium-load transit system serving the western part of Singapore, including the Nanyang Technological University and the Tengah new town. It is set to open in three stages from 2027 to 2029.
The CRL is a 50km pan-island underground full-load MRT line stretching from Changi to Jurong, which is expected to open in phases from 2030.
The LTA said the two tenders will be limited to existing rail operators in Singapore, while foreign operators will be allowed to participate as minority partners of joint ventures with SMRT or SBS Transit.
SBS Transit has entered into partnership with French transit group RATP Dev to bid for new lines here.
Commenting on the joint bid, SBS Transit spokesman Grace Wu said: “Together, we have more than 90 years of combined experience, knowledge and skills in railway operations and maintenance, and we aim to deliver world-class metro services in Singapore.”
SMRT Trains president Lam Sheau Kai said: “As the pioneer rail operator in Singapore with more than 35 years of experience, we have acquired deep engineering and operational capabilities... SMRT looks forward to submitting a highly compelling proposal and to serving more Singapore commuters on the new lines.”
The LTA added that although the tenders to appoint the operators for both lines have been called concurrently, bids for each line will be assessed on their own merits, including quality and price.
“This approach increases the value of the tender and encourages both bidders to submit more competitive bids by taking into account potential savings in the event both lines are operated by the same operator,” the LTA said.
