First package of routes under bus contracting model up for tender

SINGAPORE — The first package of routes under the new bus contracting model was put up for tender today (Oct 3), kickstarting the authorities’ overhaul of the bus industry towards a model where the Government will own the bus assets and pay the operators a fee to run the services.

There will be 26 routes up for grabs — two more than the 24 routes previously announced by the Land Transport Authority (LTA). This is to make provisions for plans to run two additional new routes, the LTA said.

The package will be open to both Singapore and foreign bus operators. Services will operate from the Bukit Batok, Clementi and Jurong East interchanges, and terminate at the Bedok, Boon Lay, Marina Centre, Shenton Way, and Toa Payoh interchanges.

Under the tender specifications, the operator is expected to run bus services under specified performance standards. It is also expected to operate and maintain the buses, the onboard equipment such as the driver console and ticketing equipment, as well as the Bukit Batok and Jurong East Bus Interchanges and the new Bulim Bus Depot.

The operator also has to collect the fares of those services on behalf of the Government and provide customer management services such as a lost and found service, and a commuter hotline.

The LTA said the service fee — which is the successful operator’s bid price for the package — will be adjusted during the contractual period, to take into account inflation, changes in wage levels, and fuel costs. Fees will be paid on a monthly basis with deductions for non-operated mileage that is within the operator’s control, such as driver absenteeism.

The operator’s performance will also be assessed annually under an Incentive Framework, such as on its bus service reliability, the punctuality of its first and last bus, and whether it maintains the bus operating assets.

The operator will receive an additional payment of up to 10 per cent of its annual service fee if it meets the standards, or have its fees deducted by up to 10 per cent if it does not.

The tender, which will close in January, will be awarded in the second quarter of next year. The services will be implemented in three tranches in June 2016.