In Parliament
Oral Reply by Minister for Transport S Iswaran to Parliamentary Question on ensuring contestability in rail system
30 November 2022
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Mr Chua Kheng Wee Louis asked the Minister for Transport for upcoming rail lines, whether there are any plans to open the rail market to new operators beyond the two existing operators.
Reply by Minister for Transport S Iswaran:
1. Ensuring contestability in our rail system is an important consideration for us. Contestability will help spur operators to improve standards and put in more competitive tender bids. Therefore, when we introduced the New Rail Financing Framework in 2016, one of the changes was to shorten the licence period for rail operators from over 30 years to 15 years today.
2. However, we also need to consider the unique circumstances of the rail industry. The rail industry is a highly complex and large-scale system that delivers an essential service, and we must allow for operators to reap economies of scale while maintaining high reliability and service standards. In any decision pertaining to current and new rail lines, we will continue to balance these key considerations.