SINGAPORE: The bus financing framework will be
refined, to help achieve greater level of parity with the rail
financing framework.
Transport Minister Lui Tuck Yew said in Parliament
that there remains a marked difference between the support given to
the bus and rail sectors.
For instance, the government funds the development
and land costs for rail depots, and grants rail operators the right
to generate and retain non-fare revenue such as advertising revenue
in their MRT stations.
Such support is comparatively lacking in the bus sector.
So going forward, consistent with what is done for the rail
industry, the government will bear the development and land costs
for bus depots and bus parking infrastructure, and lease these to
bus operators at a nominal fee.
This will also lower the entry barriers for new operators when
contestability in the bus industry is introduced, as bus parking
and depots are key infrastructure for running bus services.
Mr Lui said operators will also be allowed to retain a portion of
the advertising revenue from bus shelters, which today is retained
by the government.
He said this will provide the PTOs some help to cope with rising
costs in the future.
- CNA/cc