The latest public transport fare adjustment exercise is in motion. While fare revisions are annual, routine affairs, this year’s exercise is somewhat different. Primarily, this has to do with a well-publicised preamble from various quarters, including Transport Minister Khaw Boon Wan, which shines the spotlight on losses incurred by operators. On separate occasions in Parliament this year, Mr Khaw talked about the long-term financial sustainability of the public transport system, in particular the rail network, given recent rail losses incurred by SMRT and SBST. In July, he noted that previous fare adjustments were not implemented to the full extent of what the formula had allowed. This, he indicated, was part of the reason why operators were in the red. While insufficient fare revenue is an obvious contributor to the recent red ink, it is useful to note that very few public transport operations in the world hinge their viability on fares alone. In the case of SMRT, there are indeed reasons other than fares that are a drag on its bottom line.... Continue Reading