COMMUTING AROUND SINGAPORE is set to become easier from Oct 8 as the latest underground MRT system becomes fully operational. The Circle Line, built at a cost of some $6.7 billion over a decade, expects to carry some 400,000 commuters daily through 28 stations stretching 33.3km, linking up the outskirts of the city centre from Marymount in the northeast to Harbourfront in the southwest.

But it’s less positive news for those who eschew public transport and would rather drive themselves around. The transport ministry says it’s cutting the growth of the number of vehicles in the country from next year, given limited land for road network expansion as well as the worsening traffic congestion. There are no details yet about just how far the curbs are; the annual growth rate now is about 1.5%, half of what it was in 2009.

Nevertheless, this just means there would be even more investment poured into the public transport systems. Kim Eng analysts point out in an Oct 7 note that commuters see trains as the more convenient mode of transport, and say that in addition to the Downtown Line still being constructed in a few phases, there are plans for more rail lines and extensions beyond 2020 as part of the 2011 Concept Plan Review.

 

“Notably, these plans are over and above the $20 billion investment in existing rail lines and $60 billion committed for new rail lines, which include the Thomson Line and the Eastern Region Line unveiled under the Land Transport Masterplan in 2008.”

 

What do these developments mean for the listed public transport operators – SMRT Corp, SBS Transit and ComfortDelgro?

 

SMRT Corp operates taxis, buses and the first rail networks in Singapore – the North-South, East-West MRT lines as well as the LRTs in suburban areas. It generates rental revenue from leasing commercial space at its train stations as well as advertising space in its stations, trains, buses and taxis.