SBS Transit

[GPD]

Will that mean that SBS and SMRT will be expected to collect a lump sum payout for their assets as and when the govt is taking over?

Will that imply a few rounds of special capital reduction since they are going to be asset light?

How about those retail areas? Are the govt taking over them too?

Yes, I was thinking along the line of SBSTransit/SMRT receiving a lump sum for their asset. I thought those routes are their earning and they might get some compensation as well but obviously they are not eligible for any. I thought SBSTransit will stands to benefit the most since they are the largest bus operator.

I initially thought the package approach might mean volatility in their revenue and profit since they might not win the package again when time due for renewal. However, I got the feeling that the same operator will just keep winning the same package over and over again until someone or something seriously cocks up. In the end, what the govt wants is smooth operational and stability in workforce. These coy will also capitalised on their experience with the routes of the packages and operation of those buses to score point during the bidding process. So unless someone seriously cocks up I think those officers in LTS accessing the bid will simply take the safest route of awarding the same packages to the same operator.