SMRT has set up a subsidiary to market rail engineering expertise overseas

SMRT Corp, a listed company, has set up Singapore Rail Engineering (SRE) last month with an initial paid-up capital of $2, comprising two ordinary shares held by SMRT Corp, reported The Straits Times. SMRT Chief Executive, Desmond Kuek, said at an annual general meeting held yesterday that SRE is set up to "grow an indigenous engineering capability that can support rail networks locally and in the region".

Mr. Kuek added that SRE will build on the group's expertise in engineering services, maintenance repair and overhaul works, asset management, and risk-based maintenance programmes.

Also, he revealed that SRE will contribute to SMRT's bottom-line fairly quickly as it bids for rail engineering projects overseas. The SRE subsidiary will maintain an arms-length relation with SMRT Trains.

Mr. Kuek added that the train withdrawal rate for every 100,000km - a measure of reliability - has improved from 3.3 at the end of 2012 to 2.2 last year, and 1.2 for the first six months of 2014. 1.2 is equivalent to the withdrawal rate in 2007, despite operating an ageing network.

SMRT is collaborating with Disney Institute and NTUC Learning Hub to train and support all its staff in a bid to improve service quality and standards. SMRT received 18 compliments for every complaint it received in the 2014 financial year - doubling the figures in the previous year.

SMRT Chairman, Koh Yong Guan, also announced changes to the board during yesterday's meeting. Amongst other changes, Mr. Ong Ye Kung retired yesterday after being on the board for seven years and heading its nominating committee for six. He is succeeded by Mr. Lee Seow Hiang as chairman of the nominating committee.