Taxis will be removed from the Certificates of Entitlement (COE) bidding process from next month, the Land Transport Authority (LTA) announced today.
As LTA is encouraging Singapore towards a lower vehicle growth, LTA has noticed the taxi operators influence on COE prices, as they have been taking up a larger proportion, up to 25 percent of Cat A COE’s in recent times. Currently, taxi operators bid for a new COE or pay Prevailing Quota Premiums (PQP) though the latter is only allowed when a new taxi replaces a deregistered one within six months.
Under the new move, taxi operators will pay for COEs based on the Prevailing Quota Premiums (PQP) of CAT A, under the Vehicle Quota System. The PQP is a three month average average of COE prices. This is regardless whether the new taxi is a replacement for a deregistered one or for fleet expansion.
Additionally COEs used for fleet expansion will be taken from the CAT E, Open Category.
"This is more reflective of the role of taxis in our public transport system and it is more equitable to use CAT E quotas that are contributed by all vehicle types, rather than drawing solely from CAT A quotas," says LTA in a statement.
LTA is in discussion with taxi operators regarding the proposed changes while it requires operators to meet new taxi availability standards from January next year. More details regarding the change will be provided early next month. This ensures enough cab's are available to meet customer demand. According to transport minister Lui Tuck Yew, there are 5 taxis per 1,000 people here, a ratio three times higher than the city of New York, double of Hong Kong and fifty percent more than London.
"Eventually we intend also to link taxi operators getting COEs to expand their fleet, to their meeting taxi availability standards. This will be implemented from January 2014," commented the LTA.
This new change in COE practise does not affect the revised COE quotas for the next six months that were announced earlier.
As LTA is encouraging Singapore towards a lower vehicle growth, LTA has noticed the taxi operators influence on COE prices, as they have been taking up a larger proportion, up to 25 percent of Cat A COE’s in recent times. Currently, taxi operators bid for a new COE or pay Prevailing Quota Premiums (PQP) though the latter is only allowed when a new taxi replaces a deregistered one within six months.
Under the new move, taxi operators will pay for COEs based on the Prevailing Quota Premiums (PQP) of CAT A, under the Vehicle Quota System. The PQP is a three month average average of COE prices. This is regardless whether the new taxi is a replacement for a deregistered one or for fleet expansion.
Additionally COEs used for fleet expansion will be taken from the CAT E, Open Category.
"This is more reflective of the role of taxis in our public transport system and it is more equitable to use CAT E quotas that are contributed by all vehicle types, rather than drawing solely from CAT A quotas," says LTA in a statement.
LTA is in discussion with taxi operators regarding the proposed changes while it requires operators to meet new taxi availability standards from January next year. More details regarding the change will be provided early next month. This ensures enough cab's are available to meet customer demand. According to transport minister Lui Tuck Yew, there are 5 taxis per 1,000 people here, a ratio three times higher than the city of New York, double of Hong Kong and fifty percent more than London.
"Eventually we intend also to link taxi operators getting COEs to expand their fleet, to their meeting taxi availability standards. This will be implemented from January 2014," commented the LTA.
This new change in COE practise does not affect the revised COE quotas for the next six months that were announced earlier.
