SG: Public Transport to be restructured

Both SBS Transit and SMRT will have their Bus Service Operating Licences (BSOL) expire on 31 August 2016. The Land Transport Authority (LTA) intends to restructure the public bus industry to one where it contracts bus operators to operate bus services through a competitive tendering process. LTA will determine the bus services to be provided and the service standards, and bus operators will bid for the right to operate these services. They will be paid fees to operate the services, while fare revenue will be retained by the Government. It is hoped that this new industry model will enable the Government to make public bus services more responsive to changes in ridership and commuter needs, and also to introduce competition into the industry to help boost service levels. The new model will see the government taking control and ownership of the bus infrastructure, which will lower the cost of entry for newcomers. The new scheme with bus contracting will promote greater competition amongst competitors, which should definitely drive service standards up.Pictures used for illustration purposes only.