Why LTA Awarded $173 Million to SMRT and SBS as Incentives

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Singapore’s MRT (Mass Rapid Transit) system is one of the most reliable, affordable, and secure rail networks in the world. Since 2011, the Land Transport Authority (LTA) has been working with rail operators like SMRT and SBS Transit to improve rail reliability and assets. 

LTA upgraded rail operating assets such as signalling and power systems, and backup operation control centres. On the other hand, rail transport operators are making a significant shift to preventive instead of corrective maintenance. As a result, the reliability of MRT services improved over the years. In terms of train-km travelled without delays, reliability has increased by 10 times over the past six years. The MRT network clocked 1.6 million train-km between delays in 2020. To recognise the efforts taken by rail operators to improve rail reliability, LTA awarded them with incentives. Learn more about it below.

Rail operators SMRT and SBS Transit were awarded $173 million in incentives by LTA for rail reliability in 2020. The incentives were given to these two operators because they had achieved more than one million mean kilometres between failures (MKBF) for the MRT lines operated by them.

The government of Singapore spends $1 billion on the MRT system. The incentive scheme is a part of this expenditure. LTA calculated the incentive amount based on a rate of 0.3 cent per place-kilometre. This temporary grant will last from 2020 to 2023.

Why Rail Operators Were Given This Incentive

The rail reliability incentive scheme is created to enhance the way rail operators can receive a subsidy for rail operations. LTA has set a standard of performance for rail operators. If they meet the performance targets, they become eligible for the incentive scheme. If they breach performance standards, they are required to pay financial penalties.

So what’s the standard for receiving the incentive? Rail transport operators need to achieve a Mean Kilometre Between Failure (MKBF) of at least 500,000 train-km to qualify for the incentive scheme.

SMRT operates the North-South and East-West lines as well as the Circle Line. The NSEWL line clocked between one million and 1.3 million train-km between delays and the Circle Line achieved 1.7 million train-km of MKBF. Both the operators have increased their maintenance efforts. They have adopted a preventive maintenance regime rather than corrective maintenance.

SMRT Trains signed a memorandum of understanding with SBS Transit and ST Engineering to share knowledge and grow local rail maintenance and engineering capabilities. SMRT has also set up the Railway System Technical Committee to formulate standards for improving the reliability, safety, and productivity of railway systems.

Transport Minister Ong Ye Kung said: “We will continue to work with operators and other stakeholders to provide reliable rail services in a sustainable manner.”

SMRT CEO Neo Kian Hong said: “Our focus on reliability, sustainability and continuous improvement are key to the turnaround of SMRT. SMRT Trains has achieved 1 million Mean Kilometres Between Failure (MKBF) for all our Train Lines and we are now amongst the best performing metros in the world.”

Conclusion

Over the last few years, rail operators SMRT and SBS Transit have been successful in meeting performance standards by LTA and fulfilling their operational and safety requirements. The incentive they received shows that the operators are working hard to improve rail services and provide commuters with comfortable journeys.

About the Author

Joon Ae-ok

Joon is a lead technical engineer at a metro car manufacturing company in Germany. He has a keen interest in railway operations and new rail technologies. When he is not working, he spends time sharing his views on the top metro lines around the world.

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