Bus contracting model of Singapore


The Bus Contracting Model, formerly known as the Government Contracting Model, is a contracting model introduced by the Land Transport Authority in 2014 for public buses in Singapore, implemented in 2016. The BCM is based on the Transperth model in Perth, Western Australia with quality incentive elements from London Buses. Under the BCM, local and overseas bus operators bid for contracts to operate public bus services on behalf of LTA. The LTA has also adopted a new unified lush green livery and logo for all buses, and now procures and owns the bus fleet for all public bus services in Singapore.

History

First introduced in 2014, the Government of Singapore claimed that the new contracting model allows public bus services to be more responsive to changes in ridership and commuter needs and to encourage competition between bus operators, improving bus services for commuters.
With the Bus Service Operating Licenses of SBS Transit and SMRT Buses expiring on 31 August 2016, the Land Transport Authority decided to revamp the country's bus operations into a competitive tendering process. Under the contracting model, bus operators bid for the right to operate services while with the LTA as central planner, setting service levels and service standards. The LTA retains ownership of bus, depot and fleet management system assets. Operators that win a tender for a bus package are paid a fixed fee to operate the services.
Under the bus industry model, the LTA claims that the commuters will benefit with lesser waiting time for buses. All bus services will run at intervals of not more than 15 minutes, and feeders will run at even shorter intervals at 6 to 8 minutes.
The LTA initially tendered out three packages. These contracts are for five years, with two years extension if performance criteria is met. The remaining nine packages were reorganised into 11 packages, and are being run by the existing operators for periods of two to 10 years, after which the bus industry completed transitioning to the bus industry model. LTA will tender out these packages after these negotiated contracts expire.

Package 1: Bulim Bus Package

In October 2014, the LTA called for tenders to operate the Bulim Bus Package comprising 28 existing bus services originating from Bukit Batok, Jurong East and Clementi bus interchanges. The depot is able to accommodate about 550 buses. Since then, services 944 and 991 were added into this package under SMRT Buses on 27 August 2017 and 8 July 2018 respectively.
Aedge Holdings, Busways, Go-Ahead Group, a Jiaoyun Group / Travel GSH joint venture, Jinan Public Transportation, Keolis, RATP Dev Transdev Asia, SBS Transit, SMRT Buses, Transit Systems and Woodlands Transport lodged bids. In May 2015, the LTA awarded the contract to Transit Systems with Bulim Bus Depot handed over to Tower Transit Singapore on 31 July 2015. Operations commenced on 29 May 2016.
A tender for the second term has been called and is now closed. It was held simultaneously with that of the Sembawang-Yishun bus package.

Package 2: Loyang Bus Package

In April 2015, the LTA called for tenders to operate the Loyang Bus Package comprising 24 existing bus services originating from Changi Airport Bus Terminal, Changi Village Bus Terminal, Pasir Ris Bus Interchange and Punggol Temporary Bus Interchange. Later on, services 381 and 12e were introduced. On 1 April 2018, service 68 was added into this package. On 9 September 2019, service 43e was added into this package.
Busways, Go-Ahead Group, Keolis, RATP Dev Transdev Asia, SBS Transit, SMRT Buses, a Tian Tan Shipping/Kumho Buslines joint venture and Woodlands Transport lodged bids. The contract was awarded in November 2015 to Go-Ahead Singapore. The 28 bus routes are based out of the new Loyang Bus Depot, located off Loyang Way, was completed in June 2015 and able to accommodate about 505 buses.

Package 3: Seletar Bus Package

In June 2016, the LTA called for tenders to operate 24 existing bus services originating from Yishun Bus Interchange, Yio Chu Kang Bus Interchange and Ang Mo Kio Bus Interchange, with 3 new bus services to be introduced in the future are 71 and 851e and 807. The 27 routes are based out of the new Seletar Bus Depot, located off Yio Chu Kang Road, was completed in the 3rd quarter of 2017 and able to accommodate about 515 buses including 20 lots for electric buses.. The tender was closed in 27 October 2016
Busways, Go-Ahead Singapore, a Jiaoyun Group / Travel GSH joint venture, National Express, SBS Transit, Shenzen Bus Group, SMRT Buses, a Tian Tan Shipping/Kumho Buslines joint venture, Tower Transit Singapore and Woodlands Transport lodged bids. In April 2017, the LTA awarded incumbent operator SBS Transit the package.

Package 4: Bukit Merah Bus Package

In April 2017, the LTA called for tenders to operate 17 bus services originating from Bukit Merah Bus Interchange, HarbourFront Bus Interchange, Buona Vista Bus Terminal, Marina Centre Bus Terminal, Kampong Bahru Bus Terminal, Queen Street Bus Terminal and Shenton Way Bus Terminal. The 17 bus routes will be supported by the new Ulu Pandan Bus Depot, located off Business Park Drive, was completed in the first quarter of 2018 and be able to accommodate about 480 buses.
Go-Ahead Singapore, a Jiaoyun Group / Travel GSH joint venture, SBS Transit, Shenzen Bus Group, SMRT Buses and Tower Transit Singapore lodged bids. In February 2018, the LTA awarded SBS Transit the package.

Package 5: Sembawang-Yishun Bus Package

The government has just called a tender for the Sembawang-Yishun bus package, which will be held concurrently with the tender for Bulim. This involves a group of 25 services currently operated by SMRT Buses operating out of Woodlands, Sembawang and Yishun bus interchanges. They are likely to be based at the future Mandai Bus Depot which is able to accommodate about 550 buses from late 2020 onwards.

Remaining Bus Packages

In August 2016, the LTA announced the completion of the transitioning to bus contracting on 1 September 2016. The remaining nine packages covered 229 routes. They were organised in a way such that no change of employees from one operator to another was needed. Each package will last from five to 10 years. As the negotiated contracts expire, they will be put up for tender. These are the following bus service packages:
PackageOperatorCommencedEnd DateNotes
BulimTower Transit
SMRT Buses		29 May 20162021Tower Transit: All bus services except Services 944 and 991
SMRT Buses: Services 944 and 991
LoyangGo-Ahead4 September 20162021
SeletarSBS Transit18 March 20182023
Bukit MerahSBS Transit18 November 20182023
Sembawang-YishunSMRT Buses1 September 20162020
Sengkang-HougangSBS Transit
SMRT Buses		1 September 20162021SBS Transit: All bus services except Service 110
SMRT Buses: Service 110
BedokSBS Transit1 September 20162023
Choa Chu Kang-Bukit PanjangSMRT Buses
Tower Transit		1 September 20162023SMRT Buses: All bus services except Service 974
Tower Transit: Service 974
WoodlandsSMRT Buses1 September 20162023
TampinesSBS Transit1 September 20162024
Jurong WestSBS Transit1 September 20162024
Serangoon-EunosSBS Transit1 September 20162025
ClementiSBS Transit1 September 20162025
Bishan-Toa PayohSBS Transit1 September 20162026