The upcoming Jurong Region Line (JRL), Singapore’s seventh MRT line, will see a milestone collaboration between SBS Transit Rail and RATP Dev Asia Pacific, a subsidiary of the French public transport operator RATP Dev. Announced by the Land Transport Authority (LTA) on Nov 28, this marks the first time a foreign operator will participate in Singapore’s rail industry.
This joint venture, known as SRJV, beat SMRT Trains to win the operating contract, valued at S$750 million for an initial nine-year term, with an option for a two-year extension.
The Jurong Region Line: A Closer Look
The JRL is a 24km, fully above-ground MRT line connecting key areas in the western region of Singapore, including:
- Jurong Industrial Estate
- Jurong Innovation District
- Nanyang Technological University (NTU)
The line comprises 24 stations and will open in three phases from 2027 to 2029. It is expected to initially serve 200,000 daily commuters, a figure projected to grow to 500,000 as the region develops further.
Key Highlights of the Partnership
- French Expertise Meets Local Knowledge
With RATP Dev’s extensive experience in rail operations worldwide, the joint venture aims to enhance local capabilities in rail operations and maintenance. - Competitive Pricing
SRJV’s bid was 8% lower than that of SMRT Trains, showcasing its cost-effectiveness without compromising quality. - Focus on Service Excellence
The operator will be incentivized for exceeding expectations in areas like:- Service reliability
- Customer satisfaction
- Operational and maintenance processes
- Conversely, penalties will apply for underperformance, ensuring a high standard of service.
How the JRL Contract Was Awarded
The tender process, initiated in May 2023, followed a two-envelope evaluation system:
- The first phase focused on the quality of proposals.
- Only after quality assessments were completed did price considerations come into play.
This system ensures a fair evaluation of both the operational capability and cost-efficiency of bidders.
Foreign operators, including RATP Dev, were required to partner with local operators and hold less than 25% in shareholding.
Service Fee and Revenue Model
During the initial years of JRL’s operation, the government will bear fare revenue risks, ensuring stability as ridership builds. The operator will receive a service fee, with potential adjustments based on performance.
This approach mirrors the framework used for the Thomson-East Coast Line, prioritizing commuter satisfaction and operational reliability.
Impact on Commuters
For commuters, the JRL promises:
- Improved Connectivity: Seamless access to western regions, including industrial and educational hubs.
- Enhanced Capacity: Reduced travel time and better distribution of commuter traffic.
- Reliable Service: A robust performance-incentive model to ensure punctuality and comfort.
Beyond the JRL: Developments in Singapore’s Rail Network
While the JRL operator has been finalized, the contract for the Cross Island Line (CRL) remains unawarded. LTA cited a need for more robust bids, considering the uncertainties of operating a new line starting in 2030.
The CRL, Singapore’s eighth MRT line, will feature 12 stations in its first phase, followed by subsequent expansions. Its operator will be determined at a later stage.
What Makes This Partnership Unique?
The involvement of a foreign operator like RATP Dev introduces new expertise to Singapore’s rail industry. This collaboration could pave the way for:
- Enhanced innovation in train operations.
- Improved knowledge transfer to local teams.
- A competitive environment, raising standards across the board.
Looking Ahead
As Singapore continues to expand its rail network, the JRL stands out as a vital link for the western region. The SBS Transit-RATP Dev partnership signals a new era of collaboration in public transport, promising improved connectivity and service quality for commuters.
With the line set to open in phases from 2027, commuters can look forward to a more integrated and efficient transport experience.
