In his speech today, Transport Minister Khaw Boon Wan has hinted again at restructuring the rail industry. Given the increasingly frequent breakdowns, we reckon this will happen soon - which will be positive for SMRT.
Excerpts from the article “LTA must be ready to take over MRT operations: Khaw Boon Wan”
· "Creating an excellent rail system requires an integrated approach, from design and construction, right through to actual operations and maintenance".
· "Our current model separates the designer and builder, LTA, from the maintainer and operator, SMRT and SBST," he said.
· "From an economist's viewpoint, this allows for more competition in choosing the operator. From an engineer's viewpoint, it is not so ideal from the life-cycle perspective."
· "It is not easy or desirable to change the model overnight", although for future MRT line, "we may have the opportunity to shape the way we do things".
· LTA, PUB, SBS Transit and SMRT have signed a MoU to jointly develop and extend existing relations in infrastructure maintenance.
Source : UBS Global Research
Labels: SMRT, Transportation Sector