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[News Article] Deal reached for Govt to take over SMRT’s rail assets
#1
Deal reached for Govt to take over SMRT’s rail assets
From: TODAY
By:  ALFRED CHUA
Date: 15/07/16

SINGAPORE — After years of negotiations, the Land Transport Authority on Friday (July 15) announced that it will be taking over the operating assets of SMRT Trains, under the New Rail Financing Framework.

Under the transition, all ownership of SMRT rail assets — like trains and signalling system — will be transferred to LTA. The new framework will cover the North-South, East-West Lines, the Circle Line and the Bukit Panjang LRT line.

The statutory board will also shorten operating licences from 30 to 40 years under the previous model, to 15 years. This is the result of operators becoming more asset-light, and will allow the operation of rail lines to be re-tendered more frequently, making it more competitive, it added.

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#2
(15 July 2016, 02:52 PM)A380Lover Wrote:   Show/Hide

heh... so now NSEWL trains will be in the disgusting LTA livery?
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#3
SMRT Trains and SMRT Light Rail to Transit to New Rail Financing Framework
Press Release 15/07/16

The Land Transport Authority (LTA) and SMRT Trains Limited (SMRT Trains) have concluded discussions on the transition of the North-South and East-West Lines (NSEWL), the Circle Line (CCL) and the Bukit Panjang LRT (BPLRT) to the New Rail Financing Framework (NRFF), which had been announced by the Government in 2008 and implemented for the Downtown Line (DTL) in 2011. The transition will benefit commuters by bringing about five changes.

First, SMRT Trains and SMRT Light Rail will transfer ownership of their respective operating assets, such as the trains and signalling system, to LTA. This will put LTA in the driving seat to make timely investments in capacity expansion and the replacement and upgrading of operating assets.

Second, SMRT Trains, relieved of ownership responsibility over the rail operating assets, will be able to better focus on the operations and maintenance of the rail network.

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LTA to buy $1b of SMRT assets under new rail financing framework
From: Straits Times
By: Christoper Tan
Date: 16/07/16

SINGAPORE - After more than four years of intense negotiations, the Government and rail operator SMRT Corp have reached an agreement to switch to a dramatically different arrangement that is designed to improve service.

The Transport Ministry announced on Friday (July 15) that the Land Transport Authority will take over all operating assets of the North-South, East-West and Circle lines as well as the Bukit Panjang LRT Line, from SMRT for $1.06 billion. This is the the net book value – or current value – of the assets, plus GST.

In turn, SMRT will run the trains on these lines and retain a share of the earnings. But it will have to pay a licence charge to LTA annually. The fee, which varies according to SMRT’s profitability, will go into a sinking fund for asset replacement.

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Transport minister Khaw Boon Wan lists benefits of LTA’s $1b take over of SMRT’s rail assets
From: Straits Times
By: Christoper Tan
Date: 16/07/16

Transport Minister Khaw Boon Wan believes the new rail financing framework will benefit commuters.

"It will allow the Land Transport Authority (LTA) to add trains to respond more quickly to demand, and to replace and upgrade existing rail assets in a more timely manner," he said.

"This should achieve the twin objectives of raising rail reliability and reducing crowdedness."

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LTA to take over rail assets in move to improve service
From: Straits Times
By: Christoper Tan
Date: 16/07/16

After more than four years of intense negotiations, the Government and rail operator SMRT Corp have reached an agreement to switch to a dramatically different arrangement that is designed to improve service standards.

The Ministry of Transport (MOT) said yesterday that the Land Transport Authority will take over all operating assets of the North-South, East-West and Circle lines, as well as the Bukit Panjang LRT Line, from SMRT for $1.06 billion. This is the net book value - or current value - of the assets, plus GST.

In turn, SMRT will run the trains on these lines and retain a share of the earnings. But it will have to pay a licence charge to LTA annually. The fee, which varies according to SMRT's profitability, will go into a sinking fund for asset replacement.

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An equitable deal with focus on commuter welfare
From: Straits Times
By: Christoper Tan
Date: 16/07/16

That the creation of a new rail financing framework spanned the tenure of three transport ministers underscores the complexity of arriving at a deal that is equitable to both operator and state.

But the real focus of the deal has always been the welfare of the commuter, as it should be.

Mooted in 2008 when Mr Raymond Lim helmed the transport portfolio, and passed in Parliament in 2010, the new framework allows the state to assume a more direct and active role in funding operating assets such as trains and engineering equipment.

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#4
S’pore’s rail industry reinvents itself with new financing scheme
From: TODAY
By: Jean Chia
Date: 18/07/16

The Land Transport Authority’s (LTA) announcement on Friday, in which it said it had concluded negotiations with SMRT Trains on its transition to the new rail financing framework (NRFF), is only the latest development in an ongoing process of finding the right business model for public transport operators in Singapore.

The move has brought most of the older MRT lines in line with that of the Downtown Line, which was the first to come under the NRFF in 2011. The LTA is now in discussions with SBS Transit, which operates the North-East Line and the Sengkang-Punggol LRT, on the transition of its operations to the NRFF.

Would the NRFF create the right environment for private-sector participation in the rail industry?

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#5
Two operators, different tracks
From: Straits Times
By: Christoper Tan
Date: 23/07/16

Shifting our rail operations to a completely new financing framework and delisting our main rail operator is not something we see every day.

It has taken us 16 years to realise that having an entity juggling the interests of shareholders and commuters is just too daunting.

Not that it is impossible, as shown by Hong Kong's MTR Corp, which listed in the same year as SMRT.

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#6
SMRT shareholders vote in favour of NRFF sale, Temasek's privatisation offer
From: The Business Times
Soon Weilun
Date: 29/09/16

SHAREHOLDERS of transport operator SMRT Corporation have voted on Thursday - after struggling with a frustrating 40-minute delay caused by technical glitches - to allow state investor Temasek Holdings to take it private, after they agreed to transfer SMRT rail assets to the government.

The vote on Temasek's buyout via a scheme of arrangement took place on Thursday afternoon, following an extraordinary general meeting (EGM) on the proposed sale of assets. More than 4,000 shareholders have gathered at Star Theatre.

At S$1.68 per share, Temasek's buyout will value its purchase at about S$1.2 billion. Temasek, a majority shareholder of 54 per cent, did not vote.

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