SMRT clinches Thomson-East Coast Line contract for $1.7 billion

Rail operator SMRT has clinched the operating contract for the upcoming Thomson-East Coast Line with a bid that is 30 percent lower than rival SBS Transit's. SMRT's bid was $1.7 billion for the nine-year contract to run the new line, which will open from 2019.

In announcing the award on 15^th September, the Land Transport Authority (LTA) noted that recently privatised SMRT also scored higher on quality in the tender. "In particular, its proposal featured a commitment to invest heavily in predictive and reliability-centred maintenance to enhance reliability," it said.

"SMRT Trains' proposal also included a strong staff development plan, including customer-oriented training, and tailored community engagement initiatives. SMRT Trains also undertook a set of contractual guarantees in the form of service fee deductions should key obligations not be met," said LTA.

SMRT currently runs the East-West, North-South and Circle lines as well as the Bukit Panjang LRT. SBS Transit, despite having a higher rail reliability track record going by performance statistics in the first half, lost out. This will relegate it to being a minor player in the growing rail industry. SBS Transit currently runs the North-East Line, Downtown Line and Sengkang and Punggol LRT lines.