S Iswaran on ensuring contestability in rail system
Ensuring contestability in Singapore's rail system is an important consideration as it will help to spur operators to improve standards and put in more competitive tender bids, said Transport Minister S Iswaran. Speaking in reply to an MP's question in Parliament on Wednesday (Nov 30), he said one of the changes in the New Rail Financing Framework was to shorten the licence period for rail operators from over 30 years to 15 years. The Government also needs to consider the unique circumstances and characteristics of the rail industry. It involves a highly complex and large-scale system that delivers an essential service. Operators must be able to reap economies of scale, even as they maintain high reliability and service standards, he said. Mr Iswaran said any decision pertaining to current and new rail lines will have to continue to balance these key considerations.
Ensuring contestability in Singapore's rail system is an important consideration as it will help to spur operators to improve standards and put in more competitive tender bids, said Transport Minister S Iswaran. Speaking in reply to an MP's question in Parliament on Wednesday (Nov 30), he said one of the changes in the New Rail Financing Framework was to shorten the licence period for rail operators from over 30 years to 15 years. The Government also needs to consider the unique circumstances and characteristics of the rail industry. It involves a highly complex and large-scale system that delivers an essential service. Operators must be able to reap economies of scale, even as they maintain high reliability and service standards, he said. Mr Iswaran said any decision pertaining to current and new rail lines will have to continue to balance these key considerations.
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