Cross Island Line Operator to be Selected at a Later Date

          The Land Transport Authority (LTA) has awarded the contract to operate the Jurong Region Line (JRL) to a joint venture between SBS Transit Rail and RATP Dev Asia Pacific (SRJV). The first licensing period for JRL is for nine years, with the option for LTA to extend the licence for an additional two years. The service fee quoted for 11 years is approximately $750 million. LTA has decided not to award the contract to operate the Cross Island Line (CRL).

2.       The appointment of SRJV to operate the JRL marks the introduction of a foreign operator in Singapore’s local rail industry. SBS Transit Rail and RATP Dev Asia Pacific, the subsidiary of the French public transport operator RATP Dev, have committed to use the experience of RATP Dev to build local capabilities in rail operations and maintenance.

Evaluation process

3.       The tenders to appoint the JRL and CRL operators was called concurrently in May 2023. This was done with the understanding that subject to the assessment of bids, LTA could award licenses for both lines, or for only JRL. Existing rail operators in Singapore, SMRT Trains and SBS Transit Rail, were invited to submit bids for the rail lines. Foreign operators were allowed to participate in the tenders through joint ventures with local rail operators, as minority partners of less than 25% shareholding.

4.       Tender submissions were evaluated based on a two-envelope process which looked at both quality and price factors. The price submissions were only opened for assessment after the quality evaluation was completed. This process ensures a fair and independent evaluation on the quality of proposals before price is taken into consideration to ensure value-for-money.

5.       Both tenderers submitted strong quality proposals which demonstrated their ability to operate and maintain the JRL while bringing added value to commuters and enhanced resilience for the rail industry. Tenderers also committed to more placemaking initiatives and community engagement efforts.

6.       SRJV offered a more competitive price for the JRL, as the total service fee quoted ($750 million) was about 8% lower than that quoted by SMRT Trains.

7.       LTA has decided not to award the CRL contract as we assessed that the tenderers’ proposals have not adequately reflected the uncertainties of operating the line when service commences in six years’ time. LTA will select the CRL operator at a later juncture. LTA thanks SMRT Trains and SRJV for their bids for the CRL.

Service fee arrangements

8.       Given ridership and fare revenue uncertainties in the initial years of operation for new lines, the Government will bear the fare revenue risk during the first licensing period of the JRL. The awarded operator will be paid a service fee to operate the line while the Government retains all fare revenue. Similar to the Thomson–East Coast Line, there is a framework to encourage good performance in key areas such as service reliability, customer satisfaction, and operational and maintenance processes. This is in addition to licensing and regulatory requirements on service and maintenance performance that the operators have to adhere to. The operator will receive an incentive payment for outperformance, and conversely, a service fee deduction if it does not meet expectations.

About the JRL

The JRL will be Singapore’s seventh MRT line, serving both existing and future developments in the western part of Singapore. It will significantly improve connectivity of the region and support the development of the Jurong area, which is set to be the largest commercial hub outside the Central Business District. Commuters can expect to be connected to key activity nodes in Jurong, such as the Jurong Industrial Estate, Jurong Innovation District, and the Nanyang Technological University (NTU).

A fully elevated line spanning 24km, the JRL will comprise 24 stations and one depot. With three interchange stations bringing more connectivity to the existing rail network, commuters will enjoy more alternative routes of travel. 60,000 more households in Jurong will be within a 10-minute walk from a train station when the line is fully completed. The JRL will open in phases from 2027.

About the CRL

The CRL will be Singapore’s eighth MRT line. It will serve existing and future developments in the eastern, north-eastern and western corridors, linking major hubs such as Jurong Lake District, Punggol Digital District and Changi region. The CRL will have almost half of its stations as interchanges with other rail lines, making it easier and more convenient for commuters to travel across the rail network.

The fully underground CRL will be constructed in three phases. Announced in 2019, CRL Phase 1 is 29 kilometres long, and comprises 12 stations. Construction works have commenced and are targeted to be completed by 2030. CRL Phase 2, announced in 2022, is approximately 15 kilometres and comprises six underground stations. Engineering studies for the CRL Phase 3 are ongoing and more details will be announced after these studies are completed.