Looking at the videos taken of new bus service 944, I now
realise the reason why LTA decide to let SMRT operate the route
instead of Tower Transit. The reason is because 944 does not have
any target audience, besides that pair of bus stop outside Bukit
Batok Polyclinic at Bukit Batok West Avenue 3. Because the profit
margin is low, in fact negligible, it's better to reduce the loss
as much as possible. That's why they award it to SMRT instead of
Tower Transit.
There was probably a tender which we are not aware of, that was
called by LTA to determine the operator that can offer the lowest
price possible to operate the service. Unfortunately, Tower Transit
did not offer the lowest price. Instead, it was SMRT that offers
the lowest price. That's why the bus service was awarded to
SMRT.
The story is the same as city direct bus services, which were
awarded to SBS Transit and SMRT instead of the private operators
that were operating the bus services originally. As to whether the
story will be replicated at other bus routes, I think it depends on
the profitability. If the route is profitable, or sustainable with
the current contract, it would probably be awarded to the operator
that is operating the contact.
In this case, 944 is really not profitable, in fact incurring
losses that is really too great to incur - if operated by Tower
Transit under the current contract. As a matter of fact, this bus
service is not even required until end of this year or next year
when the new HDB flats are completed. Hence, awarding it to SMRT is
the better option.
I believe there was a tender called for bus service 944 which we
are not aware of, that's why we are under the illusion that LTA may
have changed its approach by awarding bus routes to the lowest
tender. Nonetheless, LTA could have explained the situation, but it
probably finds no need for that, that's why it did not explain the
situation in the press release, but just say that there will be a
new bus service launched today that is called 944, serving the new
residential developments at Bukit Batok.