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LTA Calls for Tenders to Appoint Rail Operators for Upcoming MRT Lines

Images: LTA/Facebook and SGTrains File.

Images: LTA/Facebook and SGTrains File.

The tenders to appoint rail operators for the upcoming Jurong Region Line (JRL) and the Cross Island Line (CRL) are now open for bidding by local rail operators, SMRT Trains Ltd. and SBS Transit Rail Pte. Ltd., the Land Transport Authority (LTA) announced on Tuesday (May 9).

The 24-km JRL will support growth in the Jurong region and will open in three stages from 2027 to 2029, while the 50-km CRL will connect major hubs, namely the Jurong Lake District, Punggol Digital District and Changi region and will open in phases from 2030.

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LTA Opens Tender Calls for Rail Operators of JRL and CRL

Operating Model for Appointed Operators of JRL and CRL

LTA will use the same operating model first used on the Thomson-East Coast Line (TEL) for the appointed JRL and CRL rail operators, where the government will collect fare revenue and the operators will be paid a fixed service fee to operate and maintain the MRT lines.

It noted that the government will bear fare revenue risk “given the higher fare revenue and ridership uncertainty in the initial years of operation for such new lines.”

RELATED: Cross Island Line To Start Operating From 2030, Construction Work Has Officially Started »

The licensing period for appointed rail operators of the JRL and CRL will span over nine years, with a possible option to extend the term by two more years, the LTA said in a statement.

“Upon the expiry of the licence, LTA will review the model for subsequent rail operator licences, taking into consideration the viability and ridership of the lines,” it added.

Limited Participation by Foreign Operators Allowed

In an unprecedented approach to appointments of rail operators in Singapore, the LTA will allow foreign operators to participate in the JRL and CRL operator tenders as minority partners through joint ventures with SMRT Trains or SBS Transit Rail.

LTA said the “calibrated participation of foreign operators will strengthen our domestic operators’ capabilities in operation and maintenance”.

SBS Transit and French transport operator RATP Dev entered a “strategic partnership” in 2020, forming a new jointly-owned company, signalling possible participation in bidding.

Tenders for Both JRL and CRL Operators to be Called Concurrently

LTA noted that despite the tenders to appoint operators for JRL and CRL are called concurrently, it will assess bids for each line according to its own merits, including quality and price.

“This approach increases the value of the tender and encourages both bidders to submit more competitive bids by taking into account potential savings in the event both lines are operated by the same operator,” said the LTA.

RELATED: LTA Announces Start of Jurong Region Line Construction, 24 MRT Stations Opening from 2027 »

LTA says it expects to announce the appointment of the JRL rail operator, and potentially the rail operator for CRL, by the end of 2024, giving ample time for operators to “ramp up their operations” before the lines commence passenger service.



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Check Out Other Related Posts

LTA Announces Start of Jurong Region Line Construction, 24 MRT Stations Opening from 2027

Cross Island Line To Start Operating From 2030, Construction Work Has Officially Started

SMRT Launches Maintenance Engineering Centre at Kim Chuan Depot


Related Links
Jurong Region Line – SGTrains
Cross Island Line – SGTrains


External Links
Tenders Called to Appoint Operators for Jurong Region Line and Cross Island Line – LTA [Accessed 09 May 2023]
SBS Transit Teams Up With RATP Dev To Deliver World-Class Metro Services In Singapore – SBS Transit [Accessed 09 May 2023]


Images: LTA/Facebook and SGTrains File.
This article first appeared on SGTrains.

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Loh

I'm a train enthusiast who is broadly interested in the different means of technology which powers Singapore's train network.