Bukit Merah Bus Package

The Bukit Merah Bus Package is one of fourteen bus packages under the Bus Contracting Model (BCM).

Under the BCM, bus routes are bundled into bus packages, consisting of a single bus depot, several bus interchanges/terminals, the bus routes and the buses themselves. With all bus infrastructure belonging to the Government, the Land Transport Authority (LTA) would contract out the bus package, select a bus operator (through a competitive tendering process), and lease these assets to the new operator.

The successful tenderer operates these bus routes and collects fares on behalf of LTA, while maintaining the associated bus infrastructure (buses & onboard equipment, depots, interchanges & terminals). In return, the operator is awarded an operating fee from LTA and potential bonuses via an incentive framework.

BCM Negotiated Contract:

Bus services under the Bukit Merah Bus Package were operated by SBS Transit as well. At the start of the Bus Contracting Model, the incumbent operator continued to operate these bus services under a Negotiated Contract basis from Sep 2016 – Nov 2018:

• Operated by SBS Transit (PT205)
  5, 16, 57, 93, 120, 121, 122, 123/123M, 131/131M, 145, 160, 170/170X, 195, 198, 272, 273, 400 & 402

The first tendered contract for Bukit Merah Bus Package was awarded to SBS Transit in 2018, who continued to operate the services when the Tendered Package contract started in Nov 2018.

SBS Transit will continue operating bus services for the second Tendered Package term for the Bukit Merah Bus Package as the awarded operator.

Refer to Page 3 for the Bukit Merah Bus Package – Negotiated Contract term (Sep 2016 – Nov 2018).

PT218A – Bukit Merah Bus Package (2nd Tendered Term: Apr 2024 to 2029):

The second term tendered contract for the Bukit Merah Bus Package was put up for tender on 23 November 2022 together with the Jurong West Bus Package under Contract PT218: Bus Contracting – Bukit Merah and Jurong West Bus Packages. Bukit Merah Bus Pacakge awarded to SBS Transit Ltd on 18 August 2023.

Contract Details (2nd Tendered Package Term):

Note: Bus Service 160M was renumbered to Service 993 in September 2023.

Bidding Procedures:

As part of the bidding requirements, bus operators had the option to bid for either bus package (Bukit Merah / Jurong West) or for both packages that were up for tender under this contract (PT218).

When the tender closed on 5 Apr 2023, 6 operators made their bid under the contract.

Contract Award:

Tender submissions were evaluated based on a two-envelope process looking at quality and price factors. The price submissions were only opened after the quality evaluation was completed, ensuring that the best value-for-money proposal was selected without compromising on quality.

On Friday, 18 August 2023, LTA announced SBS Transit Ltd‘s Alternative Bid as the awarded operator of the Bukit Merah Bus Package. The LTA press release cited its reasons for picking SBS Transit for the Bukit Merah Bus Package:

• Highest total score for Bukit Merah Bus Package, taking into account both price and quality factors
• Displayed an excellent understanding of the operational considerations for the Bukit Merah Bus Package
• Compelling value-added proposals to improve service delivery, environmental sustainability and promote public transport usage such as:
  • Proposal to deploy Minibot, a self-service mobile concierge, as part of its customer service enhancements
  • Aim to achieve zero carbon emissions as part of its sustainability efforts.

Alternative Proposal

SBS Transit submitted a base proposal and an alternative proposal for the Bukit Merah Bus Package. While both proposals are of the same quality, the alternative proposal offers better value for money with more efficient use of resources for the LTA.

No elaboration was provided by LTA on the alternative proposal. However, based on existing operations, SBS Transit is likely to garage buses for Bukit Merah Bus Package at other bus depots and also garage buses for other bus packages at Ulu Pandan Bus Depot to reduce dead mileage incurred by the operator.

Bus Services:

Short Trip & Supplementary Bus Services

These services do not add to the overall service count.

Bus Models:

SBS Transit currently operates a fleet of the following bus models under the Bukit Merah Bus Package (PT218A):

Single Deck Bus

• Scania K230UB
• MAN A22
• Mercedes-Benz Citaro
• Volvo B5LH

Double Deck Bus

• Volvo B9TL (Wright)
• MAN A95

Under the Bukit Merah Bus Package, SBS Transit operates part of the bus services using buses garaged at other bus depots apart from Ulu Pandan Bus Depot.

Buses from Ulu Pandan Bus Depot which are mainly deployed on other services which are not from the Bukit Merah Bus Package may also be deployed on Bukit Merah Bus Package services.

• Ulu Pandan Bus Depot for all bus services under the Bukit Merah Bus Package
• Ang Mo Kio Bus Depot for some Service 57, 131 & 145 buses
• Bedok North Bus Depot for some Service 5 & 16 buses
• Soon Lee Bus Park for some Service 198 buses

Transition Dates:

With SBS Transit already operating all the Bukit Merah Bus Package services under the 1st Tendered Package Term, all bus services transitioned to the 2nd Tendered Package Term contract with no change in operator on 28 Apr 2024.

Scope of Operations:

As part of the tender, the awarded operator would be required to fulfil responsibilities as such:

1. Operate bus services under the bus package in accordance with specified EWT performance standards
2. Operate and maintain the buses and their onboard equipment provided by LTA
3. Operate and maintain the allocated Anchor Bus Interchanges & Bus Depot, including all equipment and systems provided therein
4. Charge and collect the fares approved by the Public Transport Council, on behalf of the Government
5. Provide bus service information at all bus stops and bus interchanges served by the bus services under the package
6. Provide customer management services, such as lost and found service, and a hotline for commuter feedback and enquiries.

Bukit Merah Bus Package – Second Tendered Package Term (PT218A) Timeline

• 2023 (18 Aug): Contract awarded to SBS Transit Ltd
• 2024 (28 Apr): Commencement of Bukit Merah Bus Package (2nd Tendered Package Term)

See Also

• Bukit Merah and Jurong West Bus Packages put up for tender
• SBS Transit and SMRT Buses awarded Bukit Merah and Jurong West Bus Packages

References:

• LTA Awards Bukit Merah and Jurong West Bus Packages to SBS Transit and SMRT Buses – Land Transport Authority
• SBS Transit Wins Tender to Operate the Bukit Merah Bus Package for the Second Time – SBS Transit
• SBS Transit Facebook Post

Back to Bus Contracting Model

Page 2 – Bukit Merah Bus Package 1st Tendered Term (PT203) / 2018 – 2024
Page 3 – Bukit Merah Bus Package Negotiated Contract (PT205) / 2016 – 2018