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Bus contracting model of Singapore

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The Bus Contracting Model (BCM), formerly known as the Government Contracting Model, is a contracting model introduced by the Land Transport Authority (LTA) in 2014 for public buses in Singapore, implemented in 2016. The BCM is based on the Transperth model in Perth, Western Australia with quality incentive elements from London Buses.[1] Under the BCM, local and overseas bus operators bid for contracts to operate public bus services on behalf of LTA. The LTA has also adopted a new unified lush green livery and logo for all buses, and now procures and owns the bus fleet for all public bus services in Singapore.

Buses under the Bus Contracting Model now bear the unified lush green livery for all new buses, and is now being progressively applied to older buses.

History

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First introduced in 2014, the Government of Singapore claimed that the new contracting model allows public bus services to be more responsive to changes in ridership and commuter needs and to encourage competition between bus operators, improving bus services for commuters.[2]

With the Bus Service Operating Licenses (BSOL) of SBS Transit and SMRT Buses expiring on 31 August 2016, the Land Transport Authority (LTA) decided to revamp the country's bus operations into a competitive tendering process. Under the contracting model, bus operators bid for the right to operate services while with the LTA as central planner, setting service levels and service standards. The LTA retains ownership of bus, depot and fleet management system assets. Operators that win a tender for a bus package are paid a fixed fee to operate the services.

Under the bus industry model, the LTA claims that the commuters will benefit with lesser waiting time for buses. All bus services will run at intervals of not more than 15 minutes, and feeders will run at even shorter intervals at 6 to 8 minutes.

The LTA initially tendered out three packages. These contracts are for five years, with two years extension if performance criteria are met. The remaining nine packages were reorganised into 11 packages, and are being run by the existing operators for periods of two to 10 years - this marked the completion of transition to the BCM. LTA will tender out these packages after these negotiated contracts expire.[3][4]

Tendered bus packages

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Bulim Bus Package

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In October 2014, the LTA called for tenders to operate the Bulim Bus Package comprising 26 existing bus services[5] originating from Bukit Batok, Jurong East and Clementi bus interchanges. Since then, services 653, 657 and 944 were added into this package under SMRT Buses on 13 April 2017, 24 April 2017 and 27 August 2017 respectively. In 2020, Service 651 was also added into this package.

Aedge Holdings, Busways, Go-Ahead Group, a Jiaoyun Group / Travel GSH joint venture, Jinan Public Transportation, Keolis, RATP Dev Transdev Asia, SBS Transit, SMRT Buses, Transit Systems and Woodlands Transport lodged bids.[6] In May 2015, the LTA awarded the contract to Transit Systems with the new Bulim Bus Depot handed over to Tower Transit Singapore on 31 July 2015.[7][8] The depot is able to accommodate about 550 buses.

In September 2020, the LTA awarded the contract for the second term of this package to Tower Transit Singapore. Operations under the second term commenced on 29 May 2021, which also involves the transfer of services 653, 657 and 944 from SMRT Buses to Tower Transit Singapore.[9][10]

With the development of Tengah New Town, Route 944 was extended to Tengah Interchange and renumbered 992. Two new routes originating from Tengah itself, namely Routes 870 and 871, were also introduced.

Loyang Bus Package

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In April 2015, the LTA called for tenders to operate the Loyang Bus Package comprising 24 existing bus services originating from Changi Airport Bus Terminal, Changi Village Bus Terminal, Pasir Ris Bus Interchange and Punggol Temporary Bus Interchange. Later on, services 381 and 12e were introduced. On 1 April 2018, service 68 was added into this package.[11] On 9 September 2019, service 43e was added into this package. On 27 December 2020, service 384 was added into this package.

Busways, Go-Ahead Group, Keolis, RATP Dev Transdev Asia, SBS Transit, SMRT Buses, a Tian Tan Shipping/Kumho Buslines joint venture and Woodlands Transport lodged bids.[12] The contract was awarded in November 2015 to Go-Ahead Singapore.[13] The 29 bus routes are based at the new Loyang Bus Depot[14] which was completed in June 2015 and is able to accommodate about 505 buses.

In August 2020, Go-Ahead Singapore received a two-year contract extension to continue operating the bus package until September 2023.[15] In September 2022, this was further extended until September 2026.[16]

Seletar Bus Package

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In June 2016, the LTA called for tenders to operate 24 existing bus services originating from Yishun Bus Interchange, Yio Chu Kang Bus Interchange and Ang Mo Kio Bus Interchange, with 3 new bus services (71, 668 and 851e under SBS Transit as well as 652 and 807 initially under SMRT Buses) to be introduced.[17] The 29 routes are based at the new Seletar Bus Depot which was completed in the 3rd quarter of 2017 and is able to accommodate about 515 buses including 20 lots for electric buses. The tender was closed on 27 October 2016 (with original deadline as 6 October 2016).[18][19]

Busways, Go-Ahead Singapore, a Jiaoyun Group / Travel GSH joint venture, National Express, SBS Transit, Shenzhen Bus Group, SMRT Buses, a Tian Tan Shipping/Kumho Buslines joint venture, Tower Transit Singapore and Woodlands Transport lodged bids.[20] In April 2017, the LTA awarded incumbent operator SBS Transit the package.[21]

In 2022, SBS Transit received a two-year contract extension to continue operating the bus package until March 2025. They subsequently retained control of said package for the second term, edging out four other bidders, including Bravo Transport of Hong Kong.[22]

Bukit Merah Bus Package

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In April 2017, the LTA called for tenders to operate 17 bus services originating from Bukit Merah Bus Interchange, HarbourFront Bus Interchange, Buona Vista Bus Terminal, Marina Centre Bus Terminal, Kampong Bahru Bus Terminal, Queen Street Bus Terminal and Shenton Way Bus Terminal.[23] The 17 bus routes (including cross border services 160 and 170/170X) will be supported by the new Ulu Pandan Bus Depot which was completed in the first quarter of 2018 and is able to accommodate about 480 buses.[24]

Go-Ahead Singapore, a Jiaoyun Group / Travel GSH joint venture, SBS Transit, Shenzhen Bus Group, SMRT Buses and Tower Transit Singapore lodged bids.[25] In February 2018, the LTA awarded incumbent operator SBS Transit the package.[26]

Tenders for the second term of the Bukit Merah bus package were called on 23 November 2022, along with the initial term of the Jurong West bus package. The tender closed on 3 April 2023. On 18 August 2023, it was announced that SBS Transit won the tender for the package and will continue operating the bus services in this package.[27]

Sembawang-Yishun Bus Package

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In November 2019, the LTA called for tenders to operate the Sembawang-Yishun bus package, which was held concurrently with the tender for the second term of Bulim bus package. This involves 24 bus services operating out of Woodlands, Sembawang and Yishun bus interchanges. Service 110 will be handed over to Woodlands Bus Package while 652 will be handed over to Seletar Bus Package. They are based at the new Mandai Bus Depot which is able to accommodate about 550 buses (co-located with the Thomson–East Coast line MRT depot) from September 2021.[28]

In September 2020, the LTA awarded the contract for this package to Tower Transit Singapore. Operations commenced in 3 tranches from 5 September 2021, involving the transfer of the services from SMRT Buses to Tower Transit Singapore.[9][10]

In January 2022, route 801 was introduced and added to the package.

Route 861 was introduced and added to this package in September 2024.

Jurong West Bus Package

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In November 2022, LTA called for tenders for the Jurong West Bus Package, along with the second term of the Bukit Merah package. This involved 26 bus services operated by SBS Transit operating mainly out of Boon Lay and Joo Koon bus interchanges. The tender closed on 3 April 2023. On 18 August 2023, LTA announced that SMRT Buses had won the tender for this bus package and will take over the bus services from 2024 onwards.[27]

Negotiated bus packages

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In August 2016, the LTA announced the completion of the transitioning to bus contracting on 1 September 2016. The remaining nine packages covered 230 routes. They were organised in a way such that no change of employees from one operator to another was needed. Each package will last from five to 10 years. As the negotiated contracts expire, they will be put up for tender. These are the following bus service packages:[4][29][30]

Table of bus packages

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Package Bus depot Operator Commencement Date End Date[n 2]
Tendered packages
Bulim Bulim Bus Depot Tower Transit 29 May 2021 2026[n 2]
Loyang Loyang Bus Depot Go-Ahead 4 September 2016 2026
Seletar Seletar Bus Depot SBS Transit 16 March 2025 2030
Bukit Merah Ulu Pandan Bus Depot SBS Transit 28 April 2024 2029[n 2]
Sembawang-Yishun Mandai Bus Depot Tower Transit 5 September 2021 2026[n 2]
Jurong West Soon Lee Bus Park SMRT Buses 1 September 2024 2029[n 2]
Negotiated packages
Sengkang-Hougang Sengkang West Bus Depot SBS Transit 1 September 2016 TBA
Bedok Bedok North Bus Depot SBS Transit 1 September 2016 TBA
Choa Chu Kang-Bukit Panjang Kranji Bus Depot[n 1]
Gali Batu Bus Depot		 SMRT Buses 1 September 2016 2026
Woodlands Woodlands Bus Depot SMRT Buses 1 September 2016 2026
Tampines Bedok North Bus Depot[n 1]
East Coast Bus Depot		 SBS Transit 1 September 2016 TBA
Serangoon-Eunos Hougang Bus Depot[n 1]
Kim Chuan Bus Depot		 SBS Transit 1 September 2016 TBA
Clementi Bukit Batok Bus Depot SBS Transit 1 September 2016 TBA
Bishan-Toa Payoh Hougang Bus Depot
Braddell Bus Park		 SBS Transit 1 September 2016 TBA

Notes

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  1. ^ a b c d e f g h i j k Predicted
  2. ^ a b c d e Subject to a 2-year extension

References

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  1. ^ Sim, Royston (21 May 2014). "Govt to overhaul public bus sector, shift from privatised to contracts model". Straits Times. Archived from the original on 2 January 2018. Retrieved 1 January 2018.
  2. ^ "Transition to a Government Contracting Model For the Public Bus Industry". Land Transport Authority. 21 May 2014. Archived from the original on 13 October 2016. Retrieved 1 November 2016.
  3. ^ "LTA to move SBS Transit, SMRT into 11 packages worth $7.2B". The Business Times. 11 August 2016. Archived from the original on 13 September 2016. Retrieved 1 November 2016.
  4. ^ a b "Bus Industry to complete Transition to Bus Contracting Model on 1 September 2016". Land Transport Authority. 11 August 2016. Archived from the original on 15 September 2016. Retrieved 1 November 2016.
  5. ^ "First Bus Package under the Government Contracting Model up for tender". Land Transport Authority. 3 October 2014. Archived from the original on 15 September 2016. Retrieved 29 August 2016.
  6. ^ "First bus tender draws 11 bidders". The Straits Times. 20 January 2015. Archived from the original on 11 February 2017. Retrieved 9 February 2017.
  7. ^ "LTA awards first tendered bus package to Tower Transit Group Limited". Land Transport Authority. 8 May 2015. Archived from the original on 12 November 2016. Retrieved 1 November 2016.
  8. ^ "LTA hands over Bulim Depot to Tower Transit". Archived from the original on 1 December 2017.
  9. ^ a b "Tower Transit to run Sembawang and Yishun bus interchanges, taking over from SMRT". Channel News Asia. 30 September 2020. Retrieved 1 October 2020.
  10. ^ a b "Sealink awarded contracts for bus services in Singapore" (PDF). Australian Securities Exchange. Sealink Travel Group. 30 September 2020. Retrieved 1 October 2020.
  11. ^ "Second Bus Package under the Government Contracting Model up for tender". Land Transport Authority. 15 April 2015. Archived from the original on 20 December 2016. Retrieved 12 December 2016.
  12. ^ "Bid Prices for Loyang Bus Package" (PDF). Land Transport Authority (Press release). Archived from the original (PDF) on 8 April 2016.
  13. ^ "LTA awards second bus package to Go-Ahead Group PLC". Land Transport Authority. 23 November 2015. Archived from the original on 12 November 2016. Retrieved 12 December 2016.
  14. ^ "Joint News Release by The Land Transport Authority (LTA) and Go-Ahead Singapore - Loyang Bus Package to roll out on 4 and 18 September in 2 Tranches". Land Transport Authority. 4 August 2016. Archived from the original on 15 September 2016. Retrieved 12 December 2016.
  15. ^ "Singapore bus contract extension". Go Ahead News. 26 August 2020. Retrieved 26 September 2022.
  16. ^ Yufeng, Kok (31 October 2022). "Go-Ahead Singapore gets further extension on Loyang bus contract". The Straits Times. Retrieved 31 October 2022.
  17. ^ "Calling of Tender for This Third Bus Package under The Bus Contracting Model". Land Transport Authority. 7 June 2016. Archived from the original on 22 August 2016. Retrieved 28 December 2016.
  18. ^ "LTA extends deadline for Seletar bus tender". The Straits Times. 27 September 2016. Archived from the original on 1 November 2016. Retrieved 1 November 2016.
  19. ^ "Nine bids received for Seletar bus package". The Straits Times. 27 October 2016. Archived from the original on 1 November 2016. Retrieved 1 November 2016.
  20. ^ "Bid Prices Seletar Bus Package" (PDF). Land Transport Authority (Press release). Archived from the original (PDF) on 5 July 2018.
  21. ^ "SBS Transit wins Seletar bus contract". The Straits Times. 20 April 2017. Archived from the original on 25 May 2017. Retrieved 26 May 2017.
  22. ^ "LTA | SBS Transit Ltd to Continue Operating Seletar Bus Package".
  23. ^ "Bukit Merah Bus Package Up for Tender". Land Transport Authority. 28 April 2017. Archived from the original on 10 August 2017. Retrieved 26 May 2017.
  24. ^ "Bukit Merah bus package put up for tender". Channel NewsAsia. 28 April 2017. Archived from the original on 5 July 2018. Retrieved 24 February 2018.
  25. ^ "Bid Prices for Bukit Merah Bus Package" (PDF). Land Transport Authority (Press release). Archived from the original (PDF) on 5 July 2018.
  26. ^ "SBS Transit wins Bukit Merah bus package for S$472 million". Channel NewsAsia. 23 February 2018. Archived from the original on 23 February 2018. Retrieved 24 February 2018.
  27. ^ a b "LTA Awards Bukit Merah and Jurong West Bus Packages to SBS Transit and SMRT Buses". www.lta.gov.sg. Retrieved 18 August 2023.
  28. ^ "Tenders called for 56 Sembawang-Yishun and Bulim bus routes". straitstimes.com. 30 November 2019. Retrieved 12 December 2019.
  29. ^ "Annex B: Details of the 11 Negotiated Packages" (PDF). Land Transport Authority (Press release). Archived from the original (PDF) on 1 November 2016.. Retrieved 14 January 2017.
  30. ^ "Bus industry completes transition to Bus Contracting Model". Land Transport Guru. 27 August 2016. Archived from the original on 21 December 2016. Retrieved 9 February 2017.
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