Gradual, phased move to bus contracting

Media Replies 05 Jun 2015

We refer to Mr Goh Kian Huat’s letter, “Open up all bus routes to competition” (TODAY, 27 May 2015).

The ultimate goal for bus contracting is to subject all 12 packages of public bus services to competitive tendering. LTA is phasing the transition to this end state by tendering out three packages first. This allows us to refine and improve the management of contracts, tendering and handing-over processes, and minimise the risk of disruptions for commuters during the transition. The nine packages that are not tendered out in the first phase will continue to be operated by the incumbent operators through negotiated contracts. Thereafter, more packages will be gradually tendered out.

As Mr Goh has pointed out, regular fare adjustments are required to ensure the financial sustainability of the public transport system. Fare adjustments will continue to be decided by the Public Transport Council which has to strike a balance between keeping fares affordable and ensuring the financial sustainability of the public transport system.

We thank Mr Goh for the opportunity to clarify.

Helen Lim (Ms)
Director, Media Relations
Land Transport Authority

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