Using one observation, when LTA step in to expand the bus fleet, this probably tells us that both SMRT and SBS were not even bothered to expand their bus fleet to service the population as the cost outweighed the revenue.
As for the bidding of routes, the 2 operators may bid that excessively. After all, their main aim will be to ensure cash breakeven where (all costs - depreciation)= revenue generated from the routes. So the costs related to running the route will limit their bid amounts. In some of my previous post, I highlighted that SMRT's bus operation has gone below cash breakeven point. This mean operating cost excluding depreciation & amortisation is higher than revenue generated. If this continues, SMRT may weigh the option of not renewing their licenses come 2016.
What about the COE and ERP and etc... money collected? Have the money been used efficiently in terms of improving our transport system? Any expert like to comment? Or some or most the money is lying somewhere not benefiting Singaporean-In-Common? Then why COE, etc?
As per my post previously, there is no segregated funds from COE, ERP, etc to improve transport system per se.
(11-09-2013, 09:58 AM)specuvestor Wrote: [ -> ]IMHO there are 2 very popular misconceptions here:
1) Revenue from COE does not goes to improving transport per se. There is no segregated accounts for COE which means the collection is comingled into general revenue. There is no direct link to transportation improvement vs COE collection. Compare that with the segregated accounts of the Totalisator Board to promote Arts and help the needy, or say the separate Eldercare Fund.
http://www.valuebuddies.com/thread-969-p...l#pid61570
I feel that it is more likely to move to a cost plus model instead of a tender model, because we might end up with just one PTO under tender system. Regardless of which model, it will be better than the current one, which is obviously not sustainable. So any change is good news to the PTO, IMO. Question now is when is it going to happen?
I think during budget cake cutting time, the share for defence should shrink while mot should grow. The before eight free ride to designated stations was quite a success or failure?
(25-09-2013, 09:10 PM)pianist Wrote: [ -> ]I think during budget cake cutting time, the share for defence should shrink while mot should grow. The before eight free ride to designated stations was quite a success or failure?
As far as I know, the initial response seemed favorable. But a conclusive result will be readied only after one year trial.
I think a better approach is to give a loan (by lta) to the bus operators, and let them buy new buses to enhance the bus services. In this way, there is motivation for the operators to run the system more efficiently and minimise wastage. The loan given will be below market rate so that there is incentives for the operators. In return, the operators must fulfill certain requirement and meet certain criterias.
(24-09-2013, 10:47 PM)CY09 Wrote: [ -> ]Using one observation, when LTA step in to expand the bus fleet, this probably tells us that both SMRT and SBS were not even bothered to expand their bus fleet to service the population as the cost outweighed the revenue.
As for the bidding of routes, the 2 operators may bid that excessively. After all, their main aim will be to ensure cash breakeven where (all costs - depreciation)= revenue generated from the routes. So the costs related to running the route will limit their bid amounts. In some of my previous post, I highlighted that SMRT's bus operation has gone below cash breakeven point. This mean operating cost excluding depreciation & amortisation is higher than revenue generated. If this continues, SMRT may weigh the option of not renewing their licenses come 2016.
Does anyone know how does PTC regulate transport operators?
What can the operators do when PTC (under some influence) does not allow their fare adjustment?
I think we will be able to read such a response from them:
"We are disappointed with the decision ... ...".
Don't think they can do anything. At least for now.
(25-09-2013, 10:02 PM)countonme Wrote: [ -> ]I think a better approach is to give a loan (by lta) to the bus operators, and let them buy new buses to enhance the bus services. In this way, there is motivation for the operators to run the system more efficiently and minimise wastage. The loan given will be below market rate so that there is incentives for the operators. In return, the operators must fulfill certain requirement and meet certain criterias.
Why do they want to take a loan from LTA to expand the bus services? With more buses, they will need more drivers, more fuel, more maintenance. The number of passengers will still be the same. At the end, isn't it going to make a bigger dent to their bottom line?
The commuters are asking for the sky, but paying peanuts and they complain and complain.
Maybe both SMRT and SBS should just quit to provide the service. Let government take it over and see tax rate rise.