SBS Transit

[opmi]

Their retail and advertisemnt is on govt leased land. The law is very clear on structures on leased land when the lease expired.

The business needs both hardware and software to survive. Claiming back the hardware alone wouldn't work.

what is the 'software'? a small retail mgt and advert team with probably less than 10 people. the 'software' is not proprietary. can just hire over or outsource if LTA wants to do themselves.

If not, LTA can tender the retail mgt to managing agents like PREMAS/Knight Frank etc OR tender to a master tenant. The advert can tender out like the bus stops to Clear Channel/JC Decaux. LTA done it before.

Well, I don't have the figures, but I doubt the bus stops' advert business is doing well, comparing with PTOs' advert business.

For the sake of owning it, yes, no problem, do a outsource, or even spin-off a subsidiary to do it, but it wouldn't be the same as before.

SMRT needs a CEO with retail experience to grow the advert business. By right it should be easily outsourced to professional or set up a small elite team to do the job, base on your arguments?

(not vested in both SMRT and SBST)

You mean the last SMRT CEO with the atas retail experience?
On her watch, that the trains keep breaking down?

On hindsight, the Board choice was a big mistake. the retail
did not take off in a big way. Long gestation. While the
trains ops was under-maintained.

The decision is to do in house may be due to Smrt board seeing retail
and advert is core business. As what specuvestor said, it should be a package
deal in the PTO outsource. Foreign players should have the retail and
advert businesses in their home countries.

Regarding the bus stop advert, it is good business for CC/JCD
coz it is profit-sharing basis. And the bus stop capex can last
very long. It is just maintenance and selling advert. Margin should
be as good. If not, they won't tender again and again.