French firm to operate Jurong Region Line with SBS Transit
The Land Transport Authority (LTA) has awarded the contract to operate the Jurong Region Line (JRL) to a joint venture between SBS Transit Rail and RATP Dev Asia Pacific, a subsidiary of French public transport operator RATP Dev.
This joint venture, called SRJV, marks the first time a foreign public transport operator has entered Singapore’s rail industry.
The JRL operator tender, launched in May 2023, invited bids from existing operators SMRT and SBS Transit. Foreign operators were permitted to participate only through joint ventures with local partners, holding a minority stake of less than 25 per cent.
SRJV’s bid came in at about S$750 million for 11 years of operation, eight per cent lower than SMRT’s offer. The LTA evaluated bids based on both quality and price, ensuring a fair process where price submissions were assessed only after quality evaluations were completed.
For the initial licensing period, SRJV will receive a service fee of approximately S$750 million, with the government retaining all fare revenue. This arrangement mitigates the risk for operators arising from potential ridership and revenue uncertainty during the initial years of operation.
The government also provides incentives for high performance in service reliability, customer satisfaction, and operational processes, but will impose deductions from the service fee if operators fail to meet requirements.
The contract for another rail line, the Cross Island Line (CRL), has not yet been awarded. While both SRJV and SMRT submitted proposals for the CRL, the LTA deemed them insufficient, stating they did not adequately address the operational uncertainties surrounding the line.
The JRL is scheduled to open in phases starting in 2027.
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