But according to
my uncle, if LTA award the DTL to SMRT then SMRT will be MRT
metropolis right? SBS will only have 1 line which is NEL to serve
the commuters and some public buses while SMRT will have all the
lines except NEL and some public buses.
This will cause SBS stock to fall as investor feel that it is not
worth investing in that company and it may not give a good return
since it only had 1 MRT line and public bus service which SMRT have
most of the MRT lines and public bus service.
So can I infer that if LTA award the DTL to SMRT, it will
pratically indirectly cause SBS to fall?
If SBS is gone, then SMRT will fully be the public transport
metropolis than there wont be any competition between the two
company to give the bes service to the commuters right?
It also depends because if SBS were to remain as the operator of
the NEL, and every other line were to be operated by SMRT, then
won't the passenger ridership of SBS's NEL rise dramatically
because NEL is connected to DTL and all other lines? And also now
the government is developing the Punggol area. In a few years time,
when Punggol West LRT opens due to more people shifting into the
area, SBS will also have more profit from the LRT and NEL, because
ppl will want to go home by NEL from their workplaces mah. Also,
SBS still has its buses to back itself up if SMRT eventually buys
over NEL. But wat u said also makes sense lah. So we just need to
wait and see what happens to SBS in the end. 