Contractors Invited to Submit Bids to Build New Bus Depot
1. The Land Transport (LTA) will build a new bus depot off Loyang Avenue. This is the second depot that LTA is developing and funding as part of the review of the enhanced structural assistance that the Government is providing to the bus industry announced in Committee of Supply (COS) 2012. The depot is intended for SBS Transit Ltd (SBS Transit) to house the additional buses that it is bringing in over the next few years.
2. LTA is calling a tender today to invite contractors to submit their cost proposals to build the new bus depot. The tendering process will allow the most cost-efficient contractor to win the rights to build the depot.
3. The operator’s existing bus depots and bus parks are reaching full capacity. The new facility is necessary to support the higher number of buses as the overall bus capacity is progressively increased under the Bus Service Enhancement Programme (BSEP).
4. When completed by 2015, the new bus depot will accommodate about 500 buses and be equipped with facilities for daily bus operations, bus repair/ maintenance and a rest area for bus drivers. The bus depot will be handed over to the operator for outfitting and preparatory works before operations commence.
5. The move is in line with the Government’s announcement at COS 2012 to fund the development and land cost for bus depots and bus parking infrastructure, and lease these to bus operators at a nominal fee. This helps lower the entry barriers for new operators when we eventually introduce contestability to the bus industry, as bus parks and depots are key infrastructure for running bus services.
6. Under the framework, LTA had invited tender for the first bus depot funded by the Government last month. This bus depot located off Wenya is scheduled to be ready by 2015, and intended for SMRT Bus Ltd (SMRT).
7. In addition, LTA has developed and handed over one bus park at Upper Changi Road East (operated by SBS Transit) and another at Woodlands (operated by SMRT) in January 2013. Each bus park can accommodate about 200 to 300 buses.