So by now, everyone knows LTA awarded 2 tenders for bus services. One centred around the Bulim interchange and the other around Loyang interchange. Under the new Government Contracting Model (GCM) for Public Transport, the govt will take away bus routes (about 20 + in each of the tenders) from SBS and SMRT and give it to whoever wins the tenders. Because these tenders are for hundreds of millions of $, and because the oppo WP and the Prostitute media have not raised even a "Why is it necessary to tender question", I thought I should raise up these points. To me, these are the main questions:
1) Why do we even have to take away routes from existing companies and give them to another company from overseas who have never done business in Singapore and expect them to run it more efficiently then SBS and SMRT? The official excuse given by LTA is that the Government will restructure the public bus industry to a “Government contracting model”, enlabling the Government to make public bus services more responsive to changes in ridership and commuter needs, as well as inject more competition into the industry, thereby raising service levels for commuters over time.
But wait a minute. These 2 bus companies are GLCs, and in fact so heavily influenced and controlled by the govt that they can appoint whichever CEO they want into these companies e.g Desmond Kuek into SMRT. If the govt does not feel that these 2 bus companies are responsive to the commuter needs, don't you just fire the CEO and appoint new management? Is it not easier to put in the proper management who will do this? As for injecting competition into the industry, since when has it been the PAP goal to have competition in industries that it dominates with its own GLCs? Will they now also grant TV and radio license to foreign companies compete with Mediacorpse? Will they now allow foreign newspapers here to compete with SHit Times? How about if a foreign airline want to start a new airline to compete with SIA, Silkair, Tiger and Scoot? Can or not? The obvious answer to all of this is no, they will not be allowed. Then why only the bus business? This kind of excuse about competition is really hollow. If there is one thing the PAP hates, and that is competition.
2) How does this even work? LTA and MOT says they will own the bus depots and interchange and even the buses themselves. The winners of the tenders will then operate everything for them. So now, not only does LTA have to pay for these bus companies to run the services for them, they will also need to invest in buying the buses and arranging depot maintenance for them. This will easily cost a few hundred million $ on assets like buses which depreciate rapidly due to high use. This depreciation of assets is now absorbed by the govt instead of by a semi private company like SMRT or SBS. Why should the taxpayer take this hit? The Bus companies will hire the drivers and mechanics and operate the lines. One of the winners say they will hire a staff of 900. But again, there is no assurance that singaporeans will be given first choice. In fact NTUC has worked with the winners of the tender to rehire the old drivers employed on the same routes. Very nice of NTUC to do something about job retention for lay off workers, unfortunately, they are mostly from PRC and not Singapore. Once again FTs benefit.
3) The winner of the second tender is a UK company called Go Ahead Group. They bid the lowest bid of $497.7 million to operate the 25 bus services for 5 years. In the 5 years, the CEO has said the revenues will be $500 million, which is retained by the LTA. WTF!! You are telling me that after spending hundreds of $million buying all the buses, setting the depots and maintenance infrastructure etc. LTA is expected to earn just $2.3 million over 5 years? What is this shit business plan? Why are the taxpayers even footing this? At this rate, the the taxpayers will never recover the capital investment.
4) The winner of the first tender for Bulim was another UL company called Tower transport. Tower bid $557 million for the tender and won it. But guess what, was it the lowest bid? Not even close. SMRT had the lowest bid at $453 million, but for some reason, LTA did not award them the bid which was $113 million lower then the winning bid. Unbelievable. LTA is not interested in saving $113 million over 5 years for the taxpayers of Singapore? WP is ok with this? Now LTA will have to buy 380 buses for Tower to operate. What will it cost the taxpayer?
5) The PAP decided many years ago to nationalize the bus industry as well as with many other business sectors in singapore. They then decided to privatize them and sell them off on the stock exchange while they retain controlling interest. Now, it seems the pentulum has swung back the other way, and they are nationalizing the bus services again. If this is a fundamental shift in govt policy, lets hear it from the gay man himself.
6) If this is a ploy by the 2 bus GLCs to get money losing bus operations off their books, and concentrate on rail service, why is the govt catering to them? They are owned and controlled and beholden to the govt. Not the other way around. Its the tail wagging the dog. The taxpayers are really caught in this money sucking circle. Incompetent management cost losses in the bus line route service. PAP bails them out by transferring the money losing routes to a tender won by another foreign company. If the foreign company loses money, then it only loses on the operating portion and not on the capital investment portion. if they win, they keep the difference of their cost and their bid price as profit. In either case, the taxpayers loses because they have paid for buses and infrastructure, and cannot recover the costs. The best scenario for taxpayers is to see these 2 companies continue to operate the services. If they lose money, not the taxpayer's business. If they make money, good for the shareholders of SBS and SMRT. But for some reason, LTA has decided to step into this equation and take the losses for these 2 jack ass companies run by incompetents. This is productivity and meritocracy?
Would love to hear a truthful explanation from gay Loong and the PAP, but I guess it will snow in singapore before then.
1) Why do we even have to take away routes from existing companies and give them to another company from overseas who have never done business in Singapore and expect them to run it more efficiently then SBS and SMRT? The official excuse given by LTA is that the Government will restructure the public bus industry to a “Government contracting model”, enlabling the Government to make public bus services more responsive to changes in ridership and commuter needs, as well as inject more competition into the industry, thereby raising service levels for commuters over time.
But wait a minute. These 2 bus companies are GLCs, and in fact so heavily influenced and controlled by the govt that they can appoint whichever CEO they want into these companies e.g Desmond Kuek into SMRT. If the govt does not feel that these 2 bus companies are responsive to the commuter needs, don't you just fire the CEO and appoint new management? Is it not easier to put in the proper management who will do this? As for injecting competition into the industry, since when has it been the PAP goal to have competition in industries that it dominates with its own GLCs? Will they now also grant TV and radio license to foreign companies compete with Mediacorpse? Will they now allow foreign newspapers here to compete with SHit Times? How about if a foreign airline want to start a new airline to compete with SIA, Silkair, Tiger and Scoot? Can or not? The obvious answer to all of this is no, they will not be allowed. Then why only the bus business? This kind of excuse about competition is really hollow. If there is one thing the PAP hates, and that is competition.
2) How does this even work? LTA and MOT says they will own the bus depots and interchange and even the buses themselves. The winners of the tenders will then operate everything for them. So now, not only does LTA have to pay for these bus companies to run the services for them, they will also need to invest in buying the buses and arranging depot maintenance for them. This will easily cost a few hundred million $ on assets like buses which depreciate rapidly due to high use. This depreciation of assets is now absorbed by the govt instead of by a semi private company like SMRT or SBS. Why should the taxpayer take this hit? The Bus companies will hire the drivers and mechanics and operate the lines. One of the winners say they will hire a staff of 900. But again, there is no assurance that singaporeans will be given first choice. In fact NTUC has worked with the winners of the tender to rehire the old drivers employed on the same routes. Very nice of NTUC to do something about job retention for lay off workers, unfortunately, they are mostly from PRC and not Singapore. Once again FTs benefit.
3) The winner of the second tender is a UK company called Go Ahead Group. They bid the lowest bid of $497.7 million to operate the 25 bus services for 5 years. In the 5 years, the CEO has said the revenues will be $500 million, which is retained by the LTA. WTF!! You are telling me that after spending hundreds of $million buying all the buses, setting the depots and maintenance infrastructure etc. LTA is expected to earn just $2.3 million over 5 years? What is this shit business plan? Why are the taxpayers even footing this? At this rate, the the taxpayers will never recover the capital investment.
4) The winner of the first tender for Bulim was another UL company called Tower transport. Tower bid $557 million for the tender and won it. But guess what, was it the lowest bid? Not even close. SMRT had the lowest bid at $453 million, but for some reason, LTA did not award them the bid which was $113 million lower then the winning bid. Unbelievable. LTA is not interested in saving $113 million over 5 years for the taxpayers of Singapore? WP is ok with this? Now LTA will have to buy 380 buses for Tower to operate. What will it cost the taxpayer?
5) The PAP decided many years ago to nationalize the bus industry as well as with many other business sectors in singapore. They then decided to privatize them and sell them off on the stock exchange while they retain controlling interest. Now, it seems the pentulum has swung back the other way, and they are nationalizing the bus services again. If this is a fundamental shift in govt policy, lets hear it from the gay man himself.
6) If this is a ploy by the 2 bus GLCs to get money losing bus operations off their books, and concentrate on rail service, why is the govt catering to them? They are owned and controlled and beholden to the govt. Not the other way around. Its the tail wagging the dog. The taxpayers are really caught in this money sucking circle. Incompetent management cost losses in the bus line route service. PAP bails them out by transferring the money losing routes to a tender won by another foreign company. If the foreign company loses money, then it only loses on the operating portion and not on the capital investment portion. if they win, they keep the difference of their cost and their bid price as profit. In either case, the taxpayers loses because they have paid for buses and infrastructure, and cannot recover the costs. The best scenario for taxpayers is to see these 2 companies continue to operate the services. If they lose money, not the taxpayer's business. If they make money, good for the shareholders of SBS and SMRT. But for some reason, LTA has decided to step into this equation and take the losses for these 2 jack ass companies run by incompetents. This is productivity and meritocracy?
Would love to hear a truthful explanation from gay Loong and the PAP, but I guess it will snow in singapore before then.
