Some unsuccessful bidders interested in submitting second tender
TODAY file photo
SINGAPORE — At least three unsuccessful bidders for the first bus service package under the new bus contracting model have confirmed that they will be returning to the drawing board to prepare for the tender for the second package of bus routes in Loyang.
Out of the 10 failed bids, TODAY managed to contact eight transport operators. Australia’s Busways Group and China’s Jinan Public Transportation Corporation did not respond by press time.
The three parties interested in jumping into the fray again are French firm RATP Dev Transdev Asia (RDTA) and local operators Woodlands Transport and Travel GSH, which had submitted a joint bid with China’s Jiaoyun Group.
A key takeaway from the first bidding exercise is that quality service takes precedence over tender pricing, noted Mr Roger Wong, general manager of Woodlands Transport. The winning tender price submitted by London-based operator Tower Transit Group — S$556 million over five years — was the third lowest after SMRT and RDTA.
“We’ll have to look at service delivery and the engagement of bus drivers — how to entice more Singaporeans (to join us),” Mr Wong said.
Jiaoyun Group-Travel GSH is “very interested” in contesting again, despite having its bid tossed out earlier for failing to pass the quality evaluation.
“Our first tender was very rushed,” said managing director Chai Yin in Mandarin. “But we’re full of hope for the next round. We’ll be fine-tuning the remuneration and benefits for drivers, as well as our plans for the maintenance of buses.”
RDTA’s bid director Mark Harbridge said: “Our participation in the tender has only increased our conviction that we can bring new ideas to the market and quality services to the passenger.” He added that the group is currently studying the Loyang bus package in detail, and intends to submit “another competitive bid”.
Similarly, transport operators Go-Ahead London and Keolis — a French company — said they would draw on the experience gained from the first bidding exercise as they mull over the tender for the next bus service package. Both foreign operators, however, stopped short of confirming if they would bid again.
Three bids failed to make the Land Transport Authority’s (LTA) shortlist earlier, as they did not pass the quality evaluation. They belonged to Singapore’s Aedge Holdings, China-based Jinan Public Transportation Corporation and Jiaoyun Group-Travel GSH.
Aedge Holdings, whose fleet size of 50-odd buses had fallen short of the LTA’s requirements, said it would have to join forces with other operators to participate in the next bid.
Likewise, local bus operator Tong Tar Transport Services, which had backed out of the bid for the first package due to a lack of resources, said it would have to pool resources to qualify. The firm, which owns 100 buses, is mulling over joining the second tender.
Incumbent operator SBS Transit, which submitted the third highest tender price of S$600 million, said it was disappointed to lose the bid.
“We will work with the LTA, National Transport Workers’ Union and Tower Transit for a smooth transition of the Bulim package under the Public Transport Tripartite Committee guidelines,” said Ms Tammy Tan, SBS Transit’s senior vice-president of corporate communications.
Echoing similar sentiments was the other incumbent operator SMRT, which submitted the lowest tender price of S$453 million.
“SMRT is disappointed that we were not awarded the Bulim Package tender, despite our strong bid and despite being the lowest tender. We will study the results of this tender carefully,” said Mr Patrick Nathan, its vice-president of corporate information and communications.” We will work with the regulator and the National Transport Workers’ Union for a smooth transition to the new operator.”
