New bus sector plan attracts strong interest

The Straits Times reported that local and international bus operators are making plans to grab a slice of the public bus industry following news of an impending overhaul of the system.

Woodlands Transport General Manager Roger Wong said the new model is a 'golden opportunity' to break into the public bus sector. He said he will study the tender and has not ruled out bidding.

Mr. Wong added that the new model eliminates the need for heavy capital investment in assets, so what remains is the question of how to innovate and provide good service.

Meanwhile, Australian firm Tower Transit, which operates in London, will set up a bid team to study the market and prepare for the tender.

Chairman Neil Smith believes that it will be 'difficult and challenging' going up against SBS Transit and SMRT, but pointed to his firm's track record and extensive experience in operating under the contracting model.

Mr. Tony Dufays, Regional Director of the International Association of Public Transport, believes that with the barrier to entry set very low, local companies will be positioned to make 'very competitive and valuable' offers.

However, he noted, "The flipside of making the barrier so low for new entrants is that for bigger international players that need to compensate corporate and overhead costs, the contracts might be too little to come in."