SBS Transit retains Seletar Bus Package for a Second Tendered Term

SBS Transit has been awarded the second Tendered Package term for the Seletar Bus Package, as announced by the Land Transport Authority (LTA) on 19 July 2024.

The new contract, estimated at a total fee of $526 million over a 5-year period, will commence from 1Q 2025. LTA has the option to extend the contract by between two and five years at the end of the five-year term.

According to SBS Transit’s 1st Quarter 2024 Business Update report published in May 2024, the second tendered contract term for the Seletar Bus Package is scheduled to commence on 16 March 2025.

Tender Process

The second tendered term for Seletar Bus Package was tendered out under Contract PT219: Bus Contracting – Seletar Bus Package on 30 October 2023. The tender closed on 4 March 2024.

Five tenderers submitted bids, including three incumbent local Public Transport Operators (SBS Transit, SMRT Buses & Tower Transit Singapore) alongside foreign firms Bravo Transport Holdings Limited – Ascendal Group Limited Joint Venture and Nex Continental Holdings S. L.

Bravo Transport is a Hong Kong-based bus company which owns Citybus Limited, Hong Kong’s second-largest bus operator. It had submitted a joint bid with its consortium partner, British company Ascendal Group. Nex Continental, based in Spain, is a subsidiary of British public transport company Mobico Group. Mobico Group was formerly known as National Express, and it had also previously participated in several bids for local bus contracts.

Seletar Bus Package at a glance

Under the Bus Contracting Model, bus routes are bundled into bus packages, comprising 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 would contract out the bus package, select a bus operator (through a competitive tendering process), and lease these assets to the new operator. Bus interchanges and terminals allocated to each package will also be maintained by the operator.

Seletar Bus Package was first awarded to SBS Transit in April 2017 under Contract PT202 and commenced operations after the negotiated contract with SBS Transit & SMRT Buses (from 1 Sep 2016) expired in March 2018. SBS Transit later announced within its 1st Quarter 2022 Business Update report that it had accepted LTA’s offer for a two-year extension for the Seletar Bus Package commencing on 11 March 2023.

The most recent award will see SBS Transit being retained as the incumbent for a subsequent 5-year term.

Reasons for the award to SBS Transit were provided by LTA:

• Highest total score for their proposal after taking into account both quality and price factors
• Inclusion of initiatives that would help to raise standards for the public bus industry as a whole, such as:
  • Collaboration with Singapore Bus Academy to set up Singapore’s first electric bus satellite training centre at Seletar Bus Depot to better prepare the bus workforce for the transition towards the electrification of our public bus fleet.
    • Adoption of mixed reality technology for training
    • Supporting eBus deployments in Singapore, including optimising the use of electric batteries for buses
  • Installation of smart systems that track operational information and utilities usage in their premises, to improve productivity and contribute to sustainability.
  • A Sign Language Virtual Assistant and school-friendly bus service, which have since been piloted at Ang Mo Kio bus interchange to foster an inclusive transport experience.