ⓒ The Straits Times
The Land Transport Authority (LTA) has awarded the Jurong Region Line (JRL) operating contract to a joint venture between SBS Transit Rail and RATP Dev Asia Pacific (SRJV). This marks the entry of a foreign operator into Singapore’s rail industry, signifying a new chapter in the country’s public transport landscape. The 11-year contract, valued at approximately $750 million, will see SRJV manage the operations and maintenance of the new MRT line, with an initial nine-year term and a possible two-year extension.
The selection of SRJV followed a rigorous tender process involving both local and foreign operators. The evaluation considered both the quality and price of proposals, with price only assessed after a thorough quality review. This two-envelope system ensured a fair and transparent selection process, prioritizing service quality and value for money. While both bidders submitted strong proposals, SRJV’s bid proved more competitive, offering an 8% lower service fee compared to SMRT Trains.
The government will absorb the fare revenue risk for the JRL’s initial operating years, covering any potential shortfall. This approach mirrors the strategy used for the Thomson-East Coast Line and aims to mitigate the uncertainties associated with new lines’ ridership in early stages. A performance-based incentive framework will reward SRJV for exceeding expectations in service reliability, customer satisfaction, and operational efficiency, ensuring accountability and high-quality service for commuters.
The JRL, Singapore’s seventh MRT line, will enhance connectivity in the western region, serving key areas like the Jurong Industrial Estate and Nanyang Technological University. The 24-kilometer elevated line will feature 24 stations and one depot, with three interchange stations providing convenient connections to the existing network. Upon completion, 60,000 more households in Jurong will be within a 10-minute walk of a train station.
Meanwhile, the LTA decided against awarding the Cross Island Line (CRL) contract at this time, citing concerns over the bidders’ proposals adequately addressing the operational uncertainties expected when service begins in six years. The CRL operator will be selected at a later date.
The JRL is scheduled to open in phases starting in 2027, promising improved connectivity and supporting the development of Jurong as a major commercial hub.
