Bus Contracting Model (Singapore)

The Bus Contracting Model (BCM), formerly known as the Government Contracting Model (GCM), is a contracting model introduced by the Land Transport Authority for more responsive bus services and higher service levels for commuters.

History

First introduced in 2014, the new contracting model will enable the Government to make public bus services more responsive to changes in ridership and commuter needs. This will also inject more competition between bus operators, improving bus services for commuters.^[1]

As Bus Service Operating Licenses (BSOL) for SMRT Buses and SBS Transit expire in 31 August 2016, the Land Transport Authority have decided to revamp the bus industry into a competitive tendering process where bus operators bid for the right to operate the bus services while LTA will be the central bus planner, deciding the bus services to be provided and bus service standards. It will also own all bus assets like bus depots and fleet management systems. Bus operators that win a tender for a bus package will be paid a fixed fee to operate the services.

Under the bus industry model, 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.^[2]

For a start, the Land Transport Authority will tender out 3 packages. The contracts will last for 5 years, with 2 years extension for good performance. The remaining 9 packages, now reorganised into 11 packages,^[3] be run by the existing operators for a period of 2 to 10 years after their Bus Service Operating License (BSOL) expire in 31 August 2016, after which the bus industry will complete transiting to the bus industry model. LTA will tender out more packages after these negotiated contracts expire.^[4]

Package 1: Bulim Bus Package

In October 2014, LTA called for tenders to operate the Bulim Bus Package comprising 26 routes from Bukit Batok, Jurong East and Clementi bus interchanges.^[5] The tender, which closed on 19 January 2015, attracted 11 bids. In May 2015, LTA announced that the tender has been awarded to Tower Transit and that the Bulim Bus Depot would be handed over to Tower Transit in the second half of 2014.^[6]

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Package 2: Loyang Bus Package

In March 2015, LTA called for tenders to operate the Loyang Bus Package comprising of 22 existing bus services originating from the Changi Airport Bus Terminal, Changi Village Bus Terminal, Pasir Ris Bus Interchange, and Punggol Bus Interchange, with 3 new bus services to be introduced in the future. Announced in November 2015, Go-Ahead Singapore was given the tender to operate the Loyang Bus Package, and will receive an estimated total fee of $497.7 million over five years.^[11] The 25 bus routes will be based out of the new Loyang Bus Depot, located off Loyang Way, which is scheduled to be completed in June 2015^[12] and able to accommodate about 500 buses.^[13][14]

*The 25th service, Bus Service 68, will be implemented in 2017. Details of the bus route will be announced at a later date.

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Package 3: Seletar Bus Package

In June 2016, the Land Transport Authority called for tenders to operate 24 existing bus services originating from Yishun Temporary Bus Interchange, Yio Chu Kang Bus Interchange, and Ang Mo Kio Bus Interchange, with 2 new bus services to be introduced in the future.^[17] The 26 bus routes will be based out of the new Sungei Seletar Bus Depot, located off Yio Chu Kang Road, which is scheduled to be completed in 3rd quarter of 2017 and able to accommodate about 500 buses. The tender was closed in 27 October 2016 (with original deadline as 6 October 2016)^[18] and attracted 9 bids.^[19]

*The future 2 services will be implemented at a future date. Details of the bus route will be announced at a later date.^[20]

Remaining Bus Packages

In August 2016, LTA announced the completion of the transitioning to bus contracting on 1 September 2016. The remaining 11 packages, of which includes 196 bus services operated by SBS Transit under 8 of the bus packages, and 77 bus services operated by SMRT Buses under 3 of the bus packages. They were organised in a way such that no change of employees from one operator to another is needed. Each package will last 2 to 10 years. Once the negotiated contracts expire, more bus packages will be gradually put up for tender. As such, packages might change bus operators in the future.^[21]

References