LTA to acquire buses, take over procurement contracts from SBS for S$187m

Singapore

THE Land Transport Authority (LTA) is taking over SBS Transit's contracts for incoming buses worth S$164 million and will also buy 50 other existing buses from the bus operator for S$23 million.

This is in line with the new bus contracting model, where the buses and other infrastructure are owned by the government. Fare revenue goes to the government, while operators are paid a fee to operate certain routes, which are awarded via a tender process. The rationale is that injecting competition in the market will raise service levels, while allowing the government to respond to changes in ridership and commuter needs.