UK bus operator Tower Transit wins contract for LTA's first bus package

UK bus operator Tower Transit Group Limited edged out local operators SBS Transit, SMRT Buses and Woodlands Transport, and players from France, Australia and the UK to clinch the first tendered bus package from the Land Transport Authority (LTA) under the new Government Contracting Model.

Tower Transit will operate the new Bulim Bus Depot and 26 bus services from the Jurong East, Bukit Batok and Clementi bus interchanges from the second quarter of 2016. The company will receive a total fee of about S$556 million over the five-year contract period.

Tower Transit operates about 650 buses in the UK and employs some 2,000 employees there. It was awarded the contract as it received the highest combined total score for both quality and price factors during the tender evaluation process.

Under the Government Contracting Model, LTA will provide public bus services through competitive tendering for operators to run. Fare revenue goes to the government while bus operators are paid a fee to operate the services. Bus contracting is meant to restructure the public bus industry and introduce more competition to improve service levels.