ComfortDelgro and SMRT should merge.
SMRT president Saw Phaik Hwa is now singing a different tune from almost four years ago.
In 2003, when former transport minister Yeo Cheow Tong suggested for one operator to run all trains to save overheads and offered that SMRT take over the then loss-making North-East Line, Saw said she would not buy a loss-maker.
According to the Straits Times, she now says she does not have a problem running NEL, “but the price must make sense” since it is a business deal.
She also said then, that an industry overhaul is unnecessary, but that improvements could be made.
ComfortDelgro chairman Lim Jit Poh has, on the other hand, suggested “a mega-merger with rival SMRT to create a single public transport group” in his recent formal proposal to the Government. He also suggested an option of having one operator run buses and the other run trains.
The Transport Ministry wouldn't say what else ComfortDelgo has proposed, but is expected to release results of its review by the end of the year.
My two cents to the Transport Ministry is this: Suggest the merger of these two companies and split the running of buses and trains into separate divisions operating independently of each other, but adhering to the same corporate message and allowing cross-platform collaboration.
I had worked with SBS Transit and left just before NEL was launched, so most of my work only circled around buses and corporate matters. My sources from within the company then availed to how messy things were with NEL and how difficult it was to deal with both buses and trains.
The dust seems to have settled since then, but when (according to ST) SBS Transit says it does not make much money from rail and SMRT says it does not make much from buses, isn't it already blindingly obvious that something needs to be done?
Let's picture a scenario with only one public transport company – ComfortDelgro – which has bus (SBS Transit), train (SMRT) and taxi (Comfort) divisions.
SBS Transit would be able to run a more efficient bus company by planning services that ply unique routes without any worry of duplication, which usually leads to diluted revenue.
SMRT can run the North-South, North-East and circle line, which can all be further integrated to streamline operations and improve efficacy.
Both divisions can even come together to organise some transfer solutions for commuters.
Fares would also be standardised and regulated because there would be no competition, essentially.
One might argue that this does not necessarily require them both to merge into one entity since each only needs to concentrate on one business.
But unless both companies get the same memos from management, have both sides on the same page and are both working towards a common goal, SBS Transit and SMRT as individual companies will not be able to achieve the same level of productivity they would under one main group.
Perhaps after merging, ComfortDelgro may even decide to delist and become a co-operative instead to focus on serving the needs of the public.
We'd love to hear your comments.
Serene Lim
*pictures courtesy of clangnuts.com and www.rochford.gov.uk.
ArchivesIn 2003, when former transport minister Yeo Cheow Tong suggested for one operator to run all trains to save overheads and offered that SMRT take over the then loss-making North-East Line, Saw said she would not buy a loss-maker.
According to the Straits Times, she now says she does not have a problem running NEL, “but the price must make sense” since it is a business deal.
She also said then, that an industry overhaul is unnecessary, but that improvements could be made.
ComfortDelgro chairman Lim Jit Poh has, on the other hand, suggested “a mega-merger with rival SMRT to create a single public transport group” in his recent formal proposal to the Government. He also suggested an option of having one operator run buses and the other run trains.
The Transport Ministry wouldn't say what else ComfortDelgo has proposed, but is expected to release results of its review by the end of the year.
My two cents to the Transport Ministry is this: Suggest the merger of these two companies and split the running of buses and trains into separate divisions operating independently of each other, but adhering to the same corporate message and allowing cross-platform collaboration.
I had worked with SBS Transit and left just before NEL was launched, so most of my work only circled around buses and corporate matters. My sources from within the company then availed to how messy things were with NEL and how difficult it was to deal with both buses and trains.The dust seems to have settled since then, but when (according to ST) SBS Transit says it does not make much money from rail and SMRT says it does not make much from buses, isn't it already blindingly obvious that something needs to be done?
Let's picture a scenario with only one public transport company – ComfortDelgro – which has bus (SBS Transit), train (SMRT) and taxi (Comfort) divisions.
SBS Transit would be able to run a more efficient bus company by planning services that ply unique routes without any worry of duplication, which usually leads to diluted revenue.
SMRT can run the North-South, North-East and circle line, which can all be further integrated to streamline operations and improve efficacy.
Both divisions can even come together to organise some transfer solutions for commuters.
Fares would also be standardised and regulated because there would be no competition, essentially.
One might argue that this does not necessarily require them both to merge into one entity since each only needs to concentrate on one business.
But unless both companies get the same memos from management, have both sides on the same page and are both working towards a common goal, SBS Transit and SMRT as individual companies will not be able to achieve the same level of productivity they would under one main group.
Perhaps after merging, ComfortDelgro may even decide to delist and become a co-operative instead to focus on serving the needs of the public.
We'd love to hear your comments.
Serene Lim
*pictures courtesy of clangnuts.com and www.rochford.gov.uk.
Labels: bus, comfortdelgro, merger, smrt, train, transport
January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 August 2008 September 2008 October 2008 November 2008 January 2009
