Preparing for the operations of Tuas West Extension also raised operating expenses.
The profits after tax of rail operator SMRT Corp. plunged by a massive 67.9% YoY from $81m to $26m in 2017 as the company bears higher operating costs from daily repair and maintenance works.
Operating expenses hit $785m as the company shelled out money for the upcoming operation of Tuas West Extension as well as ongoing maintenance for the train’s ageing network.
Total revenue also dipped from $811m to $791m over the same period as the rail operator dealt with lower average fares. Total passenger-kilometers also contracted from $8.32b to $8.27b.
As ridership rose to 768m last year, SMRT is targeting the implementation of the new communication-based train control track signaling system in the near future. Works on the North and South Line have already been completed and the East-West Line is scheduled to be completed next year.
“The signalling system will allow trains to be run closer together, increasing capacity by up to 20% as a result of higher train frequency, whilst enhancing train reliability,” SMRT said in its group review.
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