SBS Transit (SBST) Rail and French transport operator RATP Dev Asia Pacific have secured a nine-year contract to operate Singapore’s upcoming Jurong Region MRT Line (JRL).
This partnership, announced by the Land Transport Authority (LTA) on 28 November 2024, marks the first time a foreign entity will be involved in Singapore’s rail sector.
The joint venture bid, valued at approximately S$750 million for 11 years, was 8 per cent lower than the competing bid from SMRT Trains. The JRL will be Singapore’s seventh MRT line and is scheduled to open in phases between 2027 and 2029.
Building expertise and resilience
LTA highlighted that the venture would leverage RATP Dev’s global expertise to enhance local capabilities in rail operations and maintenance. The joint venture has committed to adopting innovative technologies to boost service reliability, safety, and sustainability.
In a statement, SBST group chief executive Jeffrey Sim expressed the joint venture’s dedication to leveraging innovative and smart technologies to enhance service reliability, safety, and sustainability. He noted that their goal is to not only meet commuters’ expectations but to surpass them.
Henri Pottier, RATP Dev’s Asia-Pacific chief executive, highlighted that the combined expertise of the partnership would ensure the JRL delivers top-tier reliability and innovation while integrating seamlessly into Singapore’s wider transport network.
Operational structure
The Government will bear fare revenue risks during the initial nine-year licensing period due to uncertainties around ridership and fare collection in the early years. Instead, the operator will receive a service fee for running the line, incentivised by a framework that rewards good performance and penalises lapses.
This model, already used for the Thomson-East Coast Line operated by SMRT, evaluates the operator on metrics such as service reliability, customer satisfaction, and maintenance standards.
Enhancing western connectivity
The 24km JRL will consist of 24 above-ground stations, connecting key hubs such as the Jurong Industrial Estate, Jurong Innovation District, and Nanyang Technological University. Initial ridership is expected to be 200,000 daily, potentially exceeding 500,000 as the area develops.
The new line will introduce improved access to western Singapore while addressing demand in densely populated and industrial zones.
Tender and evaluation process
The JRL tender, launched in May 2023 alongside a tender for the Cross Island Line (CRL), evaluated submissions through a “two-envelope process” that considered quality and price. Although both JRL bids met quality standards, the CRL contract remains unawarded.
LTA explained:
“The proposals did not adequately reflect the uncertainties of operating the line when service commences in six years’ time.”
The CRL will open in phases starting in 2030, with a procurement plan to be announced later.
Historical context and competition
This is not RATP’s first foray into Singapore’s transport market. Past bids in 2001 and 2015, including one with Trans-Island Bus Services for the Marina MRT Line (now part of the Circle Line), were unsuccessful.
SBST currently operates the North East and Downtown MRT lines and the Sengkang-Punggol LRT, while SMRT manages the North-South, East-West, Circle, and Thomson-East Coast lines, along with the Bukit Panjang LRT.
SMRT Trains president Lam Sheau Kai congratulated SBST and RATP Dev on their success, stating:
“Although we missed this opportunity, SMRT remains steadfast in delivering safe, reliable, and comfortable journeys across our existing lines.”
Background on the Cross Island Line
The Cross Island Line (CRL) will be Singapore’s eighth MRT line. It will connect key hubs like the Jurong Lake District, Punggol Digital District, and Changi region, serving both current and future developments.
Nearly half its stations will be interchanges, enhancing connectivity across the rail network.
The fully underground CRL will be built in three phases. CRL Phase 1, announced in 2019, spans 29 kilometres and includes 12 stations.
Construction has begun and is targeted for completion by 2030. Phase 2, announced in 2022, adds six underground stations over 15 kilometres. Phase 3 details will follow after engineering studies conclude.
