LTA calls for tenders to appoint operators for JRL and CRL

The tenderers will operate and maintain it for the first licencing period of nine years.

The Land Transport Authority (LTA) is calling for tenders to designate operators who will also maintain the two upcoming Jurong Region Line (JRL) and Cross Island Line (CRL) for licencing period of almost a decade.

The successful tenderers will be given a service fee for the maintenance and operations of the two train lines. They may even get a two-year extension to operate the train lines.

During the first licensing period of the JRL and CRL, the government will bear fare revenue risk under the same model as the Thomson-East Coast Line (TEL), given the increased fare revenue and ridership uncertainty in the initial years of operation for such new lines.

Upon the expiry of the licence, LTA will evaluate the model for subsequent rail operator licences, taking into consideration the viability and ridership of the lines.

The tender will be limited to existing rail operators in Singapore – SMRT Trains and SBS Transit Rail.

Foreign operators will be allowed to join as minority partners of joint ventures with SMRT Trains or SBS Transit Rail. The calibrated participation of foreign operators will boost the domestic operators’ capabilities in operation and maintenance. 

“Nonetheless, each bid for each line will be assessed on 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,” read the statement.