LTA launched tender for selection of operators for Singapore Metro's future lines

Singapore (Metro Rail Today): The Land Transport Authority (LTA) of Singapore has floated tenders to appoint operators for the upcoming Jurong Region Line (JRL) and Cross Island Line (CRL) of Singapore Metro.

The JRL will support the growth of the Jurong area while the CRL will connect major hubs that are under development in the eastern, western, and north-eastern parts of Singapore such as Jurong Lake District, Punggol Digital District and Changi region.

The successful tenderers will be paid a service fee to operate and maintain the JRL and CRL for the first licensing period of nine years, with the possibility of a two-year extension. 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 higher fare revenue and ridership uncertainty in the initial years of operation for such new lines.

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

Tenders to be called concurrently, with limited participation by foreign operators allowed. The tender will be limited to existing rail operators in Singapore – SMRT Trains and SBS Transit Rail.

Foreign operators will be allowed to participate in the JRL and CRL operator tenders as minority partners of joint ventures with SMRT Trains or SBS Transit Rail. The calibrated participation of foreign operators will strengthen our domestic operators’ capabilities in operation and maintenance. 

The tenders to appoint the operators for both lines will be called concurrently. 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.

After assessment of bids, LTA may award licenses for both lines, or for only JRL, by end of 2024. This would provide sufficient time for operators to ramp up their operations before the initial phases of these lines commence passenger service in 2027 and 2030 respectively. If only the JRL tender is awarded in this round, LTA will appoint the CRL operator at a later juncture.