No talk on NEL deal yet, says SMRT chief
Denying rumours that SBS Transit and SMRT met, Ms Saw says she
doesn't even know if NEL is for sale
By Goh Chin Lian
NEARLY three months after the Government said it made sense for
transport operator SMRT to take over the loss-making North-East
Line (NEL), SMRT says it has yet to meet the line's operator on the
matter, even though industry talk is that the two have met.
Yesterday, SMRT chief executive Saw Phaik Hwa denied SMRT had
spoken to SBS Transit.
'We have no idea that anyone has talked to anyone in the
organisation,' she said.
She then added: 'I heard the ridership has gone up quite a lot
recently because of Chinese New Year, so they must be doing
better.
'So I'm not sure if it's for sale or not for sale. You should ask
the person who's talking to you whether it's for sale first.'
Asked about talk of the meetings and Ms Saw's comments, SBS
Transit, NEL's operator, said yesterday: 'It is not our policy to
discuss such issues.'
But, it confirmed that the number of trips has increased by 10 to
20 per cent in the first two weeks of this month in the run-up to
Chinese New Year, compared to the same period over the previous two
months, but declined to reveal absolute figures.
Only about 170,000 trips were made on the NEL each day
previously, instead of the 250,000 initially projected.
This means the line could chalk up a loss of $20 million to $40
million in its first year of operation.
Ms Saw had said that SBS should 'make me an offer I can't refuse'
when Transport Minister Yeo Cheow Tong floated the idea of SMRT
taking over the NEL.
This prompted Deputy Prime Minister Lee Hsien Loong to remark: 'If
I were SBS, I'd ask SMRT to make me an offer I can't refuse
either.'
Yesterday, Ms Saw maintained that any deal between SMRT and SBS
would have to be 'commercially driven' as 'we have shareholders to
answer to', when asked if her company would take over the NEL if it
is for sale.
'We're always looking at business deals of any kind,' she
hedged.
Asked about her expectations of the Circle Line, which her company
will operate, she said that SMRT is 'very bullish' about its
prospects. Its calculations match the Land Transport
Authority's of 500,000 passengers a day, she added. The
Circle Line, which will have interchanges at Bishan, Serangoon and
Paya Lebar, is scheduled to open in stages from 2007.
Unlike the NEL, for which ridership predictions were based on
expected growth in areas that were still to be developed, the
Circle Line will run through mature estates that already have a
'captive audience'.
'We know exactly how many people there are in the areas and how
many will take the MRT, so fluctuations won't be far off,' she
said, after a ceremony to commend 516 front-line staff for good
service.
At the event, SMRT also showcased the new lilac and orchid-pink
uniforms that all 5,900 front-line personnel from its train, bus
and taxi services will don from Thursday.