Public bus operations have incurred “losses” amounting to $1 billion, as fares fall far below the cost of government contracts awarded to transport firms such as SBST and SMRT. In its latest annual report, LTA, which awards these contracts, posted a deficit of $1.013 billion for the 2018/19 financial year. Bus fare revenue came up to $834 million. Along with other income of $78 million, LTA collected $912 million in operating income. But expenditure came up to $1.925 billion, resulting in a shortfall of some $1 billion – about 50 per cent higher than five years ago. In the private sector, this shortfall would translate to losses. Bus contracts have been positive to operators. SBS Transit, the biggest bus firm here, posted a 70 per cent surge in net profit to a record $80.1 million for the year ended Dec 31, 2018. Meanwhile, subsidies for the rail sector here are just as sizeable. As at Mar 31, 2018, the Government had injected about $2.5 billion into the Rail Sinking Fund, of which about $1.3 billion has already been spent on upgrades.... Continue Reading