Lui Tuck Yew
Singapore
“What they do is that they report to me on a three-monthly basis. After the December 2011 incident, I felt that the way LTA was overseeing the operators needed some improvement. In the past, we were looking at the outcomes and the indicators that we get every so often.”
“SMRT has also combed through the tunnels to ensure that there are no other leaks with water dripping onto trackside installations and will be installing data loggers at all traction power substations within the next two months to better monitor the condition of the insulators.”
“But because we think that actually it could have lasted us longer if it was better maintained over the years, therefore, you also take a discount from what the Government would otherwise have to pay. But the formulas are all set out in the White Paper. I believe I have answered the Member's questions.”
“The tight labour market is, indeed, a challenge for the bus industry. To address this, a multi-pronged strategy is needed. To attract more local bus captains, both operators have raised entry level base monthly salaries by about $400 since the Bus Service Enhancement Programme (BSEP) commenced in 2012.”
“Over the past three years, there were 355 cases of fare evasion and 162 cases of passengers assaulting taxi drivers. Passengers found guilty of fare evasion may be fined up to $1,000 and repeat offenders may be fined up to $2,000 or jailed for up to six months, or both.”
“The insolvency of Alpine Bau affected the completion timeline of three stations, namely, Tan Kah Kee, Sixth Avenue and King Albert Park, and their associated tunnels.”
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“Since the introduction of the Taxi Availability (TA) standards in January 2013, the percentage of taxis on the roads during peak periods has increased from about 82% in 2012 to 87% in the first five months of this year. This translates to over 1,300 more taxis available during peak hours. The percentage of taxis plying at least 250 km daily has increased from about 75% to 78% over the same period. The taxi utilisation rate, or the proportion of total taxi mileage under hire throughout the day, has increased from about 65% to 68%. In other words, more taxis are plying the roads and commuters are using them. To complement the TA framework, the Land Transport Authroity (LTA) will conduct a taxi information system trial later this year at five selected taxi stands. This will allow LTA to monitor real-time commuter demand and provide this information to taxi companies to alert their drivers to locations with high demand.”
“The move to the Government contracting model is a major shift, involving more than 270 bus services across the country. The Land Transport Authority (LTA) is, therefore, adopting a gradual approach by tendering three packages initially while retaining the current operators in the remaining nine packages. This is to ensure a smooth transition and minimise the risk of disruption to bus services and inconvenience to commuters. A gradual transition provides time for new operators to become familiar with our market, and for LTA to refine and improve on the tendering and handover processes for each successive tender. The Bus Service Operating Licences (BSOL) of SMRT and SBST will expire on 31 August 2016. At that time, the nine packages that they will continue to run will also move to a Government contracting model. Since the service standards for these nine packages will be similar to that of the three tendered packages, we can use returns from the competitive tenders as a reference for our negotiations with the operators on the nine packages. Contracts for the nine packages will vary in duration and we will continue to gradually move more of them in phases towards competitive tendering when the contracts expire. We expect more than half of bus packages to be competitively tendered by the early 2020s and, the rest, thereafter. Page: 112”
“I am not aware of any pilots who have made known their concerns flying over war zones. It is not being brought to my attention. What happens now is that for flights to and from Europe, SIA and indeed almost all airlines, have avoided flying over Ukrainian airspace completely. What it means is that this requires approximately a 30-minute deviation from the most optimal flight route. So, depending on which part of Europe SIA flies to, they may choose to fly to the north of Ukraine or south of Sevastopol, over the lower southern part of the Black Sea, in order to reach their designation. But it involves approximately a 30-minute deviation from the most optimal flight path.”
“CAAS draws from a variety of different sources, most of all from its interactions with other national bodies, as well as regional groupings. Airlines, too, would rely not only on the advisories given but on the exchange of information with other fellow airlines on what they are doing, what they are avoiding, what they are continuing to fly over. Overall, I think we probably have better insights into what is happening in our part of the world. So, nearer home, I think we watch it and we know it best. Further away, I think you Page: 36 will have to rely on bodies that are closer in geography to those parts of the world and exchange views and information with them. But as we have known from recent issues released from ICAO, they are looking urgently at setting up a senior task force to look at how the process around the world can be strengthened.”
“No other national body, no other regional grouping, actually came up to express an advisory or to prohibit the use of the space. Indeed, as I mentioned, there were also other airlines that were using it, including airlines from the US, Europe, Asia and so on. So, we will have to make our own best decisions for ourselves because if you are to avoid every area with conflict, I think it would be very difficult for us to continue flying to many parts of the world.”
“Mdm Speaker, I thank the Member for his supplementary question. On the incentives for national authorities, I think it may be a bit too presumptuous to harbour the belief that they are motivated only by commercial considerations because of the money they collect from overflight of aircraft. I do believe that many, if not most of all, are concerned over safety of civilian aircraft. And, certainly, if they were to take a longer Page: 35 term look at things, any time a serious incident of this nature happens, everybody avoids the airspace thereafter, and in the longer term, it does them no good. On whether given what we now know about what happened in eastern Ukraine, why CAAS and SIA did not take more stringent measures – much, much more stringent than what other airlines were doing – I guess it goes to show that 20-20 hindsight is more prescient in those who operate from the side lines. And we just have to make sure that we take these factors into consideration, we look at what other airlines are doing, we look at what other regional authorities and the warnings that they are issuing and we take all that into consideration. Let us not forget that when the Simferopol airspace was closed, ICAO, FAA, the European authorities came up very quickly and all of them made recommendations, advisories or prohibitions on the use of that space. SIA had already decided some weeks before that, because of the confusion over who was really in charge of the airspace, that it was better for them to avoid Simferopol FIR. Even after the Ukrainian transport aircraft was downed, three days before 17 July, the only advisory that came up was from the Ukrainian authorities.”
“We will try and improve on this, but it is not so easy or always possible to have direct and accurate intelligence with all that we can do. Assoc Prof Tan Kheng Boon Eugene (Nominated Member): Madam, national civil aviation authorities have every incentive to keep their airspaces open because they earn overflight fees. In this case, when you look at the Ukrainian national authority, there were tell-tale signs that things were not right. I find it incongruent that the airspace could be opened beyond 32,000 feet but not below 32,000 feet. I think that is a tell-take sign. And prior to that, the downing of MH17, in June and July, there were at least four incidents in which aircraft were shot down over part of this airspace in Ukraine. If this information is not enough to persuade SIA and CAAS that it would be risky to fly across eastern Ukraine, then I do not know what is. It is important to recognise that even though other airlines may fly over this airspace, we should not take the view that what is good enough for them is also good enough for SIA. We need to recognise that there is no single global authority that is responsible for keeping the skies safe. Ultimately, it is down to each individual airline and the national civil aviation authorities.”
“Mdm Speaker, I thank the Member for her supplementary questions. Indeed, SIA is one of the more frequent users of the airspace over eastern Ukraine, more so than Malaysia Airlines, mainly, in part, because we have so many flights to and from Europe. On whether we should have followed the example of Qantas, Korean Airlines, British Airways and so on in avoiding this area, I think for Korea to Europe, the most natural and optimal flight route actually does not require them to fly over the Ukrainian airspace. They are in a different geographical part of Asia and it is mainly the Southeast Asian, South Asian, Middle Eastern countries that are on the most direct route between Europe and these areas Page: 34 that would require overflight of eastern Ukraine. For Qantas, they have a stopover in Dubai enroute to London, which I believe it is probably the only area in Europe that they fly to now using Qantas Airlines. And that flight path, again, does not require them to overfly the eastern part of Ukraine, whereas the partner airline, Emirates, which they have a code-share with, actually flies over eastern Ukraine, whether it is to parts of Europe or to New York on their flights. British Airways, indeed, avoided Ukrainian airspace for their flights to our part of the world, but British Airways has also decided and, very recently, affirmed their decision that they will continue to fly over Iraq, which is an airspace that many airlines have decided not to fly over. There is no one example that we can follow. Each airline would have to make its own best judgement, taking all factors into consideration. On improving intelligence on the ground, we will try our best, but our airlines operate to many parts of the world and there are conflicts in many parts of the world as well.”
“The CAAS does this through the Singapore Air Operator Certificate Requirements it issues, which requires Singapore carriers to take into account all necessary information for the safe conduct of their flights. In addition, CAAS also requires Singapore carriers to have in place the appropriate organisation structure, processes and systems. Audits and checks on compliance with such procedural and organisational requirements are conducted regularly. Furthermore, CAAS will promptly update Singapore carriers with safety or security information issued by relevant national and international aviation authorities. When necessary, CAAS may provide additional guidance to Singapore carriers. Following the MH17 incident, CAAS has requested Singapore carriers to review their risk assessment of flight operations over conflict areas. Let me conclude. International civil aviation requires an aircraft to traverse multiple countries and no single authority would be able to provide all the information on the situation outside its jurisdiction. Countries need to rely on one another and need to work Page: 33 together in order to ensure the continued safety of civil aviation. CAAS is looking into measures to enhance the sharing of safety and security information among national aviation authorities and airlines. Airlines can then plan their flight routes and assess the risks involved, more robustly. The downing of flight MH17 is a horrible tragedy and we hope that it would never happen again. As a nation, we stand shoulder-to-shoulder with our neighbours and we express our deepest sympathies to the families of all the victims.”
“In addition, for several years now, SIA has proactively avoided flying over certain conflict areas in the Middle East, even though the airways there have been available for commercial flights and even though various other carriers continue to use them. I believe that Singapore carriers will always put safety first and will not compromise on the lives of passengers and crew. With regard to the airspace in which MH17 was flying, SIA had relied on the information available and kept its flights clear of the restricted heights. However, as there were no restrictions for flights above 32,000 feet or any information suggesting threats to aircraft at those heights, SIA, like many other airlines plying between Europe and Asia, had continued to use that airspace. At the time of the downing of MH17, flight SQ351 from Copenhagen was estimated to be approximately 90 km away. As soon as SIA received news of the incident, they immediately re-routed all their flights to avoid Ukrainian airspace entirely. Since the incident, many have expressed concern over the safety of flights overflying conflict areas. I wish to assure the House that safety is and remains of paramount importance for civil aviation in Singapore. The international community, led by ICAO, is urgently reviewing the issues and potential responses to be pursued with respect to civilian aircraft operating to, from and over conflict areas. We will participate actively in these efforts to make air travel safer and more secure. Moreover, as the regulatory authority, CAAS requires Singapore carriers to put in place a robust flight planning process to ensure the safe operations of flights.”
“The responsibility for flight planning lies with airlines, which are required to take into account all necessary information to ensure the safe conduct of their flights. Such information includes airspace restrictions or prohibitions, weather conditions, safety and security considerations and advisories from international and regional bodies. Singapore carriers, such as SIA, utilise sophisticated computer-based flight planning systems to help in their flight planning. They also continuously conduct risk assessments on their flight routes. Experienced and trained specialists evaluate the integrity of the flight plans and make adjustments based on real-time information. They take into consideration advisories from national authorities and international aviation bodies, as well as information shared by partner airlines and the wider airline industry. The decision is then made by the carrier on whether to impose limitations on its flights through a particular airspace, even if the national authority managing that airspace may not have issued any advisories. Throughout this process, the safety of the passengers and crew is paramount. I should highlight that SIA, as part of its safety assessment process, had proactively avoided overflying certain conflict areas even if the airways were available for use. For example, in early March 2014, weeks before ICAO and other authorities issued advisories on the Simferopol FIR that was closed in April, SIA had in early March already made its own Page: 32 safety assessment and adjusted its flight routings to avoid the airspace above Crimea.”
“On the other hand, airlines plying routes between Europe and North Asia typically do not need to use Ukrainian airspace as it does not lie on the most optimal route between those two regions. The airspace over Ukraine is divided into several Flight Information Regions, or what is known more commonly as FIRs. One such FIR is the Simferopol FIR over Crimea. In April this year, ICAO issued an advisory for airlines to avoid the Simferopol FIR airspace, due to a Page: 31 potentially unsafe situation with both the Ukrainian and the Russian authorities claiming to be controlling that airspace. There were similar advisories issued by the US, Ukrainian and European authorities for the Simferopol FIR. MH17 was downed in a different FIR, the Dnipropetrovsk FIR in eastern Ukraine. I think it is easier to refer it to the eastern Ukraine FIR from now on. In technical terms, it is the Dnipropetrovsk FIR. The Ukrainian authorities on 1 July 2014 issued a prohibition for commercial flights from ground level to 26,000 feet in this particular FIR in the eastern Ukrainian region. On 14 July 2014, almost two weeks later, this prohibition was extended to 32,000 feet. No reason was given by the Ukrainian authorities and they continued to allow commercial flights in this airspace above 32,000 feet. The Ukrainian authority is in the best position to assess the threat to commercial flights over its airspace. Indeed, under international law, Ukraine is responsible for putting in place measures to ensure the safe passage of civilian aircraft. Since the Ukrainian authorities continued to allow commercial flights in Dnipropetrovsk FIR above 32,000 feet, no other national authorities, no regional aviation bodies, nor ICAO, had provided any advisories to avoid that part of the Ukrainian airspace.”
“Let me first start off by expressing my deepest condolences to the families of those who were on board flight MH17. Indeed, we all know and agree that this was a terrible tragedy. Let me now move on to address the queries raised by Members. They are related to how Singapore carriers plan their flight routes, whether they flew over the same airspace in Ukraine as MH17 and how the Government exercises oversight over Singapore carriers in their flight planning. Let me start off by providing an explanation on the management of airspace. Under today's international civil aviation system, states are responsible for the oversight and management of the airspace for which they are providing air traffic services. From time to time, a state providing air traffic services may restrict or prohibit aircraft from flying over certain parts of that airspace. These restrictions may be imposed for various reasons, including military requirements and meteorological events, such as the presence of volcanic ash or adverse weather conditions. All these restrictions must be publicly communicated to airlines, other states and the International Civil Aviation Organization (ICAO) as soon as possible. Ukrainian airspace lies on the major air routes between Europe and Asia. In particular, it lies on the most optimal route for aircraft travelling between Europe and the Middle East, South Asia and Southeast Asia. At the time of the incident, it was, therefore, being regularly and heavily utilised by many airlines. These include, for example, Qatar Airways, Emirates, Etihad, Air India, Finnair, KLM, Lufthansa, Virgin Atlantic, Swiss Air, Thai Airways, as well as SIA.”
“Mdm Speaker, with your permission, I would like to take Question Nos 10 to 15 together, please.”
“This review, which is being done in collaboration with other stakeholders, takes into account the safety and security risks posed by unmanned aircraft activities, particularly near aerodromes, built up areas and critical/sensitive installations. The review will provide the necessary regulatory oversight of UAS activities while allowing for the growth of the industry. Operating guidelines to advise operators on the safe conduct of UAS activities are also being developed. The proposed regulatory framework will be rolled out for public consultation in the coming Page: 99 months. Page: 100”
“The International Civil Aviation Organization (ICAO) has embarked on the development of international standards to regulate unmanned aircraft operations, particularly in airspace used by manned aircraft. The work covers areas such as certification of the unmanned aircraft system (widely known as UAS), competency requirements of the UAS operator/pilot, and guidance on its operations. Singapore, represented by the Civil Aviation Authority of Singapore (CAAS), is a member of the ICAO Panel tasked with developing such standards. In Singapore, there is growing public interest in civilian unmanned aircraft activities for recreation and commercial purposes such as aerial filming. There are also several companies in Singapore seeking to grow the commercial UAS industry here. The Singapore Air Navigation Order (ANO) currently applies to the operation of unmanned aircraft that weighs not more than 7 kg without its fuel and that is capable of being flown without a pilot. To preserve the safety of manned aircraft operations, the ANO disallows the flying of such unmanned aircraft within 5 km of an aerodrome, or at an altitude higher than 200 ft above mean sea level when outside 5 km of an aerodrome, unless a permit has been obtained from CAAS. The current regulations do not adequately address unmanned aircraft heavier than 7 kg, to which regulations for manned aircraft would apply. In parallel with the development of international standards by ICAO, CAAS is reviewing the regulatory framework for the various types of unmanned aircraft and their operations in Singapore.”
“Universal design seeks to create an environment where people with different levels of physical or cognitive capabilities can move independently and integrate as fully as possible into the mainstream of daily life. In this regard, our intent is for all bus stops to incorporate universal design principles and to be completely barrier-free accessible wherever feasible. Since 2009, the Land Transport Authority (LTA) has mandated that all new bus stops be designed for barrier-free access. Today, 4,500 of the 4,700 bus stops island-wide, or 95%, comply with the Code on Accessibility in the Built Environment, as they have been designed for barrier-free access. For the remaining 200-odd bus stops that are more complex due to site constraints, LTA will start implementing site specific solutions from next year to upgrade them. LTA has also started introducing other enhancements such as seats with grab bars to assist the elderly to get up with ease, and lighted bus information panels that are easier to Page: 95 read at night, and will implement these on a larger scale if they are found to be feasible.”
“The Bus Service Reliability Framework was introduced to make waiting times more predictable for commuters through better managing the headways between buses while they are on the road. To provide time for the bus operators to build up their capabilities, incentives were not paid out and penalties did not apply from February to May 2014. During that time, bus operators had recruited and trained more service controllers to monitor and regulate en-route bus service performance. Bus captains were trained to work with service controllers more closely to regulate bus speeds. Operators also enhanced their bus management systems so that they can more easily identify and monitor buses with irregular headways. The results have been encouraging, with fewer instances of bus-bunching and reduced excess wait times for 12 out of 15 bus services in the trial. Page: 94”
“The Fusion AnalyticS for public Transport Emergency Response (FASTER) project aims to enhance the capabilities of Land Transport Authority (LTA) and the Public Transport Operators (PTOs) to respond to public transport incidents and emergencies. It uses data from multiple Page: 126 sources, including telecommunications, farecard and video data, to determine commuting patterns and analyse the impact of public transport incidents. Research partners benefit in developing new capabilities, services and products. This two-year programme costs about S$6.3 million, with LTA funding about S$2.7 million and IBM funding the remaining S$3.6 million. Measures will be taken to ensure strict confidentiality of the data used. For instance, telecommunications data will be anonymised and cannot be used to identify individuals. Strict Non-Disclosure Agreements have also been signed by the partner organisations involved.”
“Discussions between SMRT and LTA on the transition to the new rail financing framework are confidential and, hence, I am unable to disclose the details of SMRT's proposal. However, I understand that there remains a wide gap between SMRT's expectations and LTA's position. One of LTA’s considerations is that the valuation of SMRT's business must take into account not only the value of the existing assets SMRT owns, but also its current and future capital expenditure obligations, as required under the existing licences. Page: 153”
“Under the current licensing and financing framework, SMRT is responsible for procuring operating assets, such as trains and the signalling system, to meet projected ridership. When replacing such assets, SMRT can apply for a Replacement Grant to cover the cost of inflation for such operating assets. For infrastructural assets, which include permanent structural elements, such as viaducts and tunnels, SMRT can request LTA to fund major replacement or renewal of such assets that have reached the end of their useful lives. These principles guide the apportionment of the $900 million asset renewal plan for the North-South-East-West Line, which comprises two main projects the replacement of Page: 152 sleepers and the upgrading of the signalling system. The Government is funding the replacement of sleepers as these are considered infrastructural assets. The total cost for the project will be determined after the contracts for the various phases of re-sleepering have been progressively awarded over the next few years. SMRT will fund the replacement of the signalling system as it is an operating asset. SMRT has applied for a Replacement Grant and LTA is currently assessing the application. The asset renewal projects are not affected by the Rail Financing Model proposal submitted by SMRT. Discussions between SMRT and LTA on the proposal are ongoing and they have not reached any agreement nor are they close and, unless and until they do reach agreement, we will continue to work on the basis of the current financing framework.”
“In Singapore, cars are first inspected in the third year after registration, and biennially thereafter until the tenth year, beyond which annual inspections are required. This is to ensure that owners maintain their vehicles regularly to meet roadworthiness and emission standards. Our inspection regime is in line with the recommended practice in the European Union where all cars are to be inspected no later than four years after its first registration, and biennially thereafter. Various studies by the LTA also show that the current rigorous inspection regime should be maintained. For example, in 2012, close to 30% of car breakdowns on major roads that were due to mechanical issues involved cars below five years old.”
“The construction of the King Albert Park, Sixth Avenue and Tan Kah Kee stations and their connecting tunnels have progressed well following the appointment of new contractors. Barring further unexpected events, we should be able to open Downtown Line 2 by mid-2016. Page: 151”
“I think the third thing is really to look at regular fare increases. From the middle of the last decade, I think we have actually allowed operating cost to well exceed the fare increases that were taking place each year. For example, from 2005 until 2012, when we had the Fare Review Mechanism Committee's work and we suspended any fare increases thereon, 2005 to 2012, the annual fare increase was, on average, 0.3%. We know, of course, that wage increases were much higher than this 0.3%; likewise, fuel cost. So, there will be a need for us to make sure that we have regular fare increases of the right quantum. In this, we will continue to be guided over the next few years by the formula that has been established by the Fare Review Mechanism Committee led by Mr Richard Magnus, as well as the decision that the Public Transport Council will make with regard to each and every fare increase.”
“Mdm Speaker, I want to thank the Member for a very important question because I think financial sustainability of the industry is something that we have to pay a great deal of attention to. Page: 20 I would look at it in several ways. One is to make sure that we judiciously assess all the requests that come in, whether it is to operate new routes or to improve service standards. Because if you operate more and more new routes and the ridership is low, well, the Government and indirectly the taxpayers take on the burden of making sure it is financially sustainable. If you run too many new routes where the ridership is low, then subsidies will, of course, have to go up because the operating cost will exceed the fare revenue that you can collect. That is number one – to make sure that you are quite careful about what you agree to in terms of the new routes. So, we have LTA now working out on a framework that we can perhaps all agree on, on what is the threshold that a new route ought to meet before we can agree for it to be operated, or, if you are prepared to test the new route for a certain number of months and it does not cross the threshold, then I think we will have to sometimes make a painful decision to cut that route and eliminate it. The second has to do with service standards. If you run a service where the headway is one bus every 10 minutes, the cost is less than if you were to run it every five minutes. We all know that. The more frequently you run the buses, the higher the cost will be. So, we again have to be quite judicious when we raise service standards to make sure that we do not over-step and, hence, ultimately, result in a much bigger bill in terms of the subsidies that we have to pay.”
“First, I thank the Member for the very perceptive question. It is not clear at this point in time that all the packages will require subsidy or how much the subsidy is going to be. Essentially, what will happen is that the operators will bid, most likely, on the cost to run a bus on a per-km basis. We may contract them to run, for example, a million km. So, there is a certain price that we will have to pay them for doing so. Under the gross cost model which we are adopting, all the fare revenues will be collected and it will come to the Government. Of course, if the fare revenues do not match what we have to pay to the operator, there will be a need for a subsidy. Or if the fares do not go up enough in subsequent years, even as the cost may go up based on what is built into the tender returns, then there would be a need for a subsidy. So, we do not yet know at this point in time. What we will know when the tender returns come in is that we have asked the potential bidders to run a package of routes that we are already operating today. That package of routes, based on the number of buses, frequency and service quality, will let us know what is the revenue that is collected. We will also know how much we have to pay each of the bidders and we can then match the revenue collected for this package of routes with what we have to pay to the successful tenderer. That will determine whether we need to provide a subsidy or not. Hopefully, that results in a higher degree of transparency in terms of how we award this, based on a competitive tender.”
“What we are trying to do here in the Government Contracting Model is to provide as much as possible the same Page: 19 kind of support to the bus industry as we did to the rail industry in the early years.”
“Do they bring in second-hand buses, meaning the lifespan would run out by the time they finish; or do they bring in new buses knowing that this could disadvantage operators from certain countries, for example, the European countries, because they are on the different side of the road? And so the buses that they use here may well not be so suitable if they were to use them in some other place, like back in their home countries. So, genuine contestability comes about from lowering the barriers to entry, making sure that you have got competitive bids, structuring the tender so that it is as clear and as simple as possible so that when you evaluate, you can evaluate across a common base line, so that the potential operators do not need to price in too many areas of uncertainty. As to how many new players, we are actually open to this. The initial part is that three of the 12 packages will be put up for tenders and we will then negotiate with SBST and SMRT to run the remaining nine packages. Over the longer period, the intent is to put up all 12 packages for tender. Whether we continue to have two, three or more players will depend on the returns that come in. On the not-for-profit entity and whether there should be a corporate player to own the buses, we do not see a necessity for that at this point in time. Basically, it is really the same model that we are trying to adopt as for rail. In rail, we provide the infrastructure, we provide the first set of rolling stock and the operator then subsequently buys it over at the right point in time. The bus industry had been operating on quite a different model in the past because the operators used to have to pay for the depots, buses and everything.”
“Mdm Speaker, I thank the Member for his supplementary questions. Perhaps, I will start with a reply to how we would encourage new players to enter the market and then I will go into the specifics of contestability and how many new players. One important thing is to lower barriers to entry, which is why we decided that as we embarked into the Government Contracting Model that it would be best for LTA to purchase and own the buses. For each package, you may be looking at perhaps 400 to 500 buses. For 400 buses, you may be looking at $150 million and $200 million dollars – quite a significant capital investment if it has to be invested by a new player. Page: 18 We do not want to preclude the possibility of operators that are already in the local market running private buses quite efficiently who may be prepared to make a bid for one of these packages, provided we lower the barriers to entry. How do we ensure genuine contestability? Well, to have as many bidders as possible, to make the bidding as simple as it can be so that your evaluation is as straightforward as possible. There is another reason why we have decided to purchase and provide the buses. Because we intend to have a five-plus-two option – five years, with the option for an operator, if he is successful and performing well, to extend for another two years. So, this is five-plus-two. After that, it is re-tendered. Obviously, the lifespan of a bus extends well beyond the five or seven years. If an operator were to bring in their own buses, then the challenge is how do they cost this into their bid?”
“In fact, the Government Contracting Model for buses brings us closer to the NRFF, where the Government, instead of the operator, owns the operating assets and is responsible for major capital asset investments.”
“I think it is probably not in the Government's interest to reveal any budget that we may have set aside and how much we are prepared to subsidise before the tenders are issued and the returns are seen, as this may well skew the bids against us. The eventual amount of subsidy will crucially depend on whether fares and bus service standards are set realistically. Regardless of industry model, the cost of the overall bus system has to be paid for either by commuters in the form of fares, or taxpayers in the form of Government subsidies. There surely is no free lunch. Therefore, we have to strike the right balance. The Government is committed to ensure the affordability of public transport fares. However, regular fare adjustments are still necessary to ensure the overall financial sustainability of the public transport system. Likewise, new bus routes and higher service levels have to be assessed judiciously. Even today, we receive many requests to run bus routes that have low ridership. From the point of view of the select few who benefit, these bus routes are, of course, "necessary". But if we run too many of these routes throughout the system, either higher fares or more Government subsidies will be required. Page: 17 Mr Giam asked about how we intend to treat the current bus assets owned by the two incumbent public bus operators. We will discuss this issue as part of our negotiations with SBST and SMRT on the nine bus packages that they will continue to operate after 2016. Finally, Mr Giam may perhaps not be aware that we have already implemented the New Rail Financing Framework (NRFF) starting with the Downtown Line last year, even before the announcement of the public bus contracting model.”
“As announced in May, we are moving the public bus industry from the current privatised model to a Government Contracting Model. We have been studying this move as early as the Land Transport Master Plan in 2008. Under the current model, the public bus operators rely on their fare and non-fare revenues to pay for their operations and buy operating assets, such as buses. When fare revenues are uncertain, as it has been in recent years, operators may be reluctant to expand capacity ahead of demand, or to improve service levels beyond regulatory standards on their own accord. This was why the Government had to step in with the Bus Service Enhancement Programme (BSEP) in 2012 to quickly raise service standards and to add capacity, even as we worked towards a more sustainable bus industry model. Under the proposed Government Contracting Model, LTA owns the buses, plans the routes and engages private bus operators through competitive tenders to run the services. This will enable us to respond more quickly and effectively to changes in ridership and commuter needs. The model also allows for more operators, potentially even overseas ones, to compete for the contracts. Bus operators will need to compete on the basis of costs and service quality. Over time, this will lead to the provision of better bus services in a cost-competitive manner, thereby benefiting commuters. Mr Dhinakaran, Mr Gerald Giam and Mr Teo Siong Seng asked whether the Government is setting aside a budget for the new bus contracting model and how much the Government will subsidise bus operations.”
“Mdm Speaker, with your permission, I would like to take Question Nos 1 to 6 together, please.”
“Discussions on the Singapore-Kuala Lumpur High Speed Rail (HSR) project are at a preliminary stage. Singapore and Malaysia have formed a working group under the Iskandar Malaysia Joint Ministerial Committee (JMC) to discuss various aspects of the HSR project, such as the system design, security and immigration requirements, as well as financing, governance and legal arrangements. LTA is conducting an engineering feasibility study to be completed early next year. As part of the study, we will determine possible options for the HSR's alignments and station locations in Singapore.”
“The average number of vehicles on the MCE is 6,300 per hour westbound during the morning peak hours and 5,700 per hour eastbound during the evening peak hours. There are about 3,000 vehicles per hour in each direction during off-peak hours. Traffic speeds during peak hours are generally within the optimal range of 45 km/h to 65 km/h. The ERP rates will be reviewed quarterly and reduced if speeds increase above 65 km/h. Page: 87”
“Under the Road Traffic Act, only licensed taxis can ply the roads for hire. Any person who operates an unlicensed taxi, or permits a motor vehicle to be used as one, is liable on conviction to a fine not exceeding $3,000, or imprisonment for a term not exceeding six months, or both. The vehicle used may also be forfeited. There were no convictions related to unlicensed taxis in the past year. LTA is reviewing the impact of third-party taxi booking applications on the taxi industry and will share more details when ready.”
“Mdm Speaker, in reply to the Parliamentary Question from Mr Gan Thiam Poh, the average weekday ridership for the Downtown Line 1 (DTL1) from January till April 2014 was approximately 58,000 passengers daily with about 40% of the passengers travelling during the peak hours. The DTL1, given its short length, is primarily intended to provide connectivity within as well as into and out of the city area, rather than to alleviate loading on the North East Line (NEL) and Circle Line (CCL). The full DTL, on the other hand, when completed in 2017, will help relieve some of the loading on the North-South and East-West Lines (NSEWL) as well as some of the crowded interchange stations in the city. We can expect some relief to the loading on the NEL and the CCL from 2015, when a total of 42 new trains will be added progressively. The fleet capacity of the NEL and the CCL will then increase by up to 70% and 60% respectively. Page: 10”
“At the same time, in order to ensure that both our seaport and airport are able to grow, given national manpower constraints, we will be working with the industries and educational and research institutes to implement productivity initiatives. We will also continue our efforts to attract and develop talent for the maritime and aviation sectors, which provide many rewarding and quality jobs for Singaporeans. Page: 62”
“We will also enhance our schemes to ensure that our vehicle fleets are less pollutive. We will partner the industry to trial the use of electric vehicles on a larger scale, and study the possible adoption of diesel hybrid public buses. Page: 61 Our maritime and aviation sectors provide global connectivity for Singaporeans, businesses in Singapore, and our goods and services, and are key pillars of our economy. We will ensure that we maintain our position as one of the world's premier hub port. We will push ahead with the expansion of Pasir Panjang Terminal and the long-term development of Tuas Terminal, to ensure sufficient infrastructure capacity. We will continue to work with the industry and our neighbours to enhance the safety, security and accessibility of the Straits of Malacca and Singapore, and we will also ensure safe shipping in our own waters. To secure our future as a leading International Maritime Centre, we will step up efforts to attract and anchor ship owners and operators in Singapore. We will broaden and deepen the range of supporting maritime services in Singapore, such as maritime legal firms, shipping banks and marine insurance. With demand for air travel expected to continue growing strongly, we will be expanding our airport infrastructure. In addition to Project Jewel and Terminal 4, we have begun preparations and planning for a three-runway system and a fifth terminal. To increase the capacity of our airport, we will also enhance our air traffic management capacity and capabilities, and introduce new concepts and processes.”
“To complement mass public transport, we will ensure that more taxis are on the roads to meet commuter demand. We will facilitate better matching of taxi demand and supply, through providing better information to commuters and drivers, and harnessing technology. We will need to have regular fare adjustments, to ensure the financial sustainability of our public transport system. However, we will, above all, keep fares affordable. Whenever necessary, we will introduce and enhance financial assistance measures to help needy Singaporeans cope with their public transport expenditures. To ensure a liveable city, we will develop a greater variety of alternative, sustainable transport options. We will build over 200 km of sheltered walkways starting this year, and a comprehensive island-wide cycling path network totalling over 700 km. At the same time, we will continue to encourage commuters to rely less on private cars. This is necessary, given the limited land for more roads. We will review the vehicle population growth rate this year to ensure that the vehicle population remains within what our road network can accommodate. We will give more support to alternatives to owning a car, such as car-sharing, to cater to those who have the occasional desire to use a car. To future-proof our public transport system, we will continue to improve accessibility for the elderly and less mobile, with more barrier-free routes to our MRT stations and bus interchanges. We will install more lifts at overhead bridges and implement the Green Man Plus scheme at more pedestrian crossings. Pedestrian-friendly streets, and more School Zones and Silver Zones with enhanced pedestrian-safety features will be implemented.”
“Under this model, the Government can adjust bus capacity in a more responsive manner, and more holistically plan and optimise the overall rail-bus networks, while bus operators would be spurred by greater competition to innovate and provide better service in a cost-competitive manner. The Government also intends to set service standards higher than today's regulatory standards under the new bus model. The transition of the public bus industry will be gradual, to provide reasonable business continuity for the incumbent PTOs but, at the same time, allow experienced and committed bus operators, including foreign operators, to enter the market. By 2030, our rail network will double in length and our rail density will be comparable to New York City and London today. In the next three years, new lines and extensions will open, with the North-South Line extension in 2014, Tuas West extension in 2016, and the 42-km Downtown Line fully opened in 2017, expanding our rail network by some 25%. We will upgrade the signalling system for our oldest lines to run trains at higher frequencies, and Page: 60 add 83 more trains to reduce waiting time and crowding. Commuters can also look forward to a more reliable train network as major upgrades to the track, train and signalling systems are completed. We will enhance our initiatives to encourage commuters to travel during off-peak periods to optimise the capacity we have in our transport system. The free pre-peak travel scheme will be extended, and we will further engage employers to support flexi-work arrangements. This will enable employees to travel comfortably outside peak periods, and also help them better juggle work, family and personal commitments.”
“We will continue to build a sustainable and people-centred land transport system that contributes to the Government's efforts to make Singapore a most liveable city. In the next few years, we will significantly raise the service standards and increase the capacity of our public transport system. We will further grow the maritime and aviation sectors to strengthen Singapore's global connectivity and economic competitiveness. We will deliver a higher quality, better integrated public transport system with more connections and better service. We have gradually introduced a new industry model for the public transport sector. We have introduced the New Rail Financing Framework (NRFF) for the Downtown Line and future lines, and are discussing with the public transport operators (PTOs) to possibly transit the existing rail licences to the NRFF on mutually acceptable terms. The NRFF lowers barriers to entry with a shortened licence period and Government ownership of operating assets, which also enables the Government to respond more quickly to changes in demographics and commuter needs and expectations with capacity and service enhancements. We are also restructuring the public bus industry. We have started experimenting with contracting private bus operators to run some public bus routes. Moving ahead, we will adopt a contracting framework for all public bus services, and tender out bus routes, which will be determined by the Government, to be run by private sector operators. We will own all key assets, such as bus depots and buses, to lower barriers to entry and inject greater contestability into the industry.”
“LTA's assessment is that current traffic conditions at Queen Street are manageable and that, based on the projected demand, a purpose-built facility for buses and taxis plying between Singapore and Malaysia is not needed in the near to medium term. In the longer term, LTA and URA will explore a suitable site at which to relocate the bus terminal at Ban San Street (Queen Street). Page: 127”
“The breakdown of the total motorcycle population and the revenue from Certificates of Entitlement (COEs) for the registration of motorcycles is shown in the table below. The COE system is intended to control the population of vehicles in Singapore at a level that can be sustained by our road network. As all motorcycles occupy about the same amount of road space, regardless of their engine capacity, it would not be appropriate to exempt motorcycles in the Class 2B category from COE. Page: 126”
“Today, taxi drivers prefer to be self-employed and are, therefore, responsible for their own CPF contributions. Nevertheless, under the Drive-and-Save Scheme initiated by the National Taxi Association in 2011, taxi drivers who contribute at least $15 a month to their Medisave accounts receive a co-contribution of $15 from their companies.”
“Training for Singaporeans to work on board commercial ships is primarily provided by Singapore Polytechnic and its Singapore Maritime Academy. Over the last 20 years, Singapore Polytechnic awarded the Diploma in Nautical Studies to 518 Singaporeans and Permanent Residents, and the Diploma in Marine Engineering to 1,927 Singaporeans and Permanent Residents.”
“The average cost for the construction of a pair of such ramps is about $1.8 million, compared to the construction cost of a pair of lifts at a pedestrian overhead bridge (POB), which is about $2.9 million. Given their typical length of 100 metres, ramps are built at existing POBs where there is space to do so, as they improve overall barrier-free accessibility, especially at locations near park connectors or across expressways. To make ramps accessible, particularly to the elderly, LTA has provided additional features, such as flat surfaces every nine metres, railings and hand grips. All ramps comply with gradient requirements of the BCA Code for Barrier-Free Accessibility in the Built Environment.”
“We plan to call a tender for the next generation electronic road pricing system, or ERP2, in the coming months. ERP2 will continue to be a congestion management tool. Some of the value-added services which could ride on ERP2 include improved dissemination of traffic information to drivers and electronic roadside parking, which will enhance the driving experience. It is too early to provide an estimated cost for ERP2 as this is dependent on the tender submissions and the technical solutions proposed. I understand the concerns over privacy but it is really too early to say how these concerns would be mitigated, before we have seen the proposals. What I can assure the Member at this stage is that we will put in the appropriate safeguards wherever required.”
“Heavy vehicles usually ply roads serving industrial areas, which are located away from residential areas. However, when there are construction activities within residential areas, some heavy vehicle movements are unavoidable. Before starting construction works, the developer or contractor will typically seek inputs from LTA on the routes of heavy vehicles moving to and from the site. In most cases, the localised traffic scheme and safety measures, such as warning signs, will also be shared with the community. Thereafter, LTA will monitor and make adjustments where necessary. To further ensure the safety of school children in particular, as I mentioned at the Committee of Supply debate last month, the Pedestrian and Cyclist Safety Committee has put together a comprehensive "toolkit" of School Zone safety initiatives. This will be piloted at 10 Primary schools this year before it is progressively extended to other schools.”
“Mdm Speaker, I thank the Member for the supplementary question. LTA is indeed currently studying ways to enhance the provision of real time public transport service information including through an integrated platform for both bus and train service updates. On service delays for trains, there is already a requirement under the Code of Practice that LTA has out up for the operators to make the information available to the public in a timely manner. Going forward, it is really looking at how we can integrate the provision of bus and train information.”