Gradual, phased move to bus contracting

We refer to Mr Goh Kian Huat’s letter “Open up all bus routes to competition” (May 27). The ultimate goal of bus contracting is to subject all 12 packages of public bus services to competitive tendering.

The Land Transport Authority is phasing the transition to this end state by tendering out three packages first.

This allows us to refine the management of contracts, tendering and handover processes, and minimise the risk of disruptions for commuters during the transition. Through negotiated contracts, the incumbent operators will continue to operate the nine packages not tendered out in the first phase. More packages will gradually be tendered out thereafter.

As Mr Goh mentioned, regular fare adjustments are required to ensure the financial sustainability of the public transport system.

The Public Transport Council, which must strike a balance between ensuring this financial sustainability and keeping fares affordable, will continue to decide fare adjustments.

We thank Mr Goh for the opportunity to clarify.