The Land Transport Authority (LTA) of Singapore has announced that it will launch in the first quarter of next year a limited tender for a contract to operate the Thomson-East Coast Line (TEL).
For the initial period of the TEL operations, the Government will bear fare revenue risk and operate a model where it will simply pay the successful tenderer a service fee to run the line.
The first TEL licence will be awarded for 9 years, with a possible extension of 2 years. Under the contract, the Government will own and be responsible for expanding, upgrading and renewing the TEL’s rail assets, while the operator focuses on rail operations and maintenance.
As part of the tender, LTA will manage a new framework to incentivise as well as penalise the TEL operator based on its performance in the key areas of service reliability, customer satisfaction, and maintenance processes.
Currenlty, the TEL is Singapore’s most complex rail project. First, it will be developed in the same time with multiple other projects. On its northern end, it will have an interchange with the future Johor Bahru-Singapore Rapid Transit System Link. On its eastern end, feasibility studies are on-going for a connection with the future Changi Airport Terminal 5 and the existing Changi Airport MRT station. Second, the TEL will open in 5 stages.
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