SINGAPORE - The authorities aim to open the fourth stage of the Thomson-East Coast Line (TEL) in the first half of 2024, said Acting Transport Minister Chee Hong Tat.

“We will try our best to open it as soon as possible, but we want to make sure that it’s safe and reliable before we open it,” he said in an interview with Chinese-language daily Lianhe Zaobao published on Jan 9.

The Land Transport Authority (LTA) said in December 2023 that it was conducting train testing on TEL Stage 4 – comprising seven stations from Tanjong Rhu to Bayshore – before operator SMRT does further testing and staff familiarisation, as well as operation and maintenance training.

When contacted by The Straits Times, LTA was unable to confirm when the handover of stations to SMRT would take place, but said it would provide more details when available.

Mr Chee said the testing of trains would take at least three months, depending on issues that may crop up. For instance, he noted that signalling problems had delayed the launch of the second stage of the line in 2021.

Industry sources had told ST that train testing usually takes between three and six months to complete.

The three-station TEL Stage 1 from Woodlands North to Woodlands South opened in January 2020, the six-stop TEL Stage 2 from Springleaf to Caldecott became operational in August 2021, and the 11-station TEL Stage 3 from Stevens to Gardens by the Bay opened in November 2022.

Mr Chee also spoke about other issues such as the ongoing review of the point-to-point transport sector, public transport fares, and the decision to retain bus service 167 for now.

‘Not closed’ to new COE category for corporate-owned private-hire cars

As part of an ongoing review of the point-to-point transport sector, Mr Chee said he does not rule out the idea of having a separate certificate of entitlement (COE) category for private-hire vehicles owned by corporations, but the trade-offs would have to be studied carefully.

Some industry players said these vehicles have put upward pressure on COE prices.

Mr Chee stressed again that COE quotas from Categories A and B will need to be diverted to this new COE category, if it is created. Category A is for smaller, less powerful cars, while Category B is for larger, more powerful ones.

This is because there is not enough supply for private-hire cars to draw from Open category COEs, which is the current practice for taxis, added Mr Chee.

Open category COEs can be used for any vehicle type except motorcycles, but almost always end up being used for bigger cars.

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If this separate COE category is created, it will apply only to corporate-owned private-hire vehicles that are used for purely commercial purposes, said Mr Chee. This is because many owners of individually owned private-hire vehicles use them for private purposes, while providing ride-hailing services part-time.

He added that it is “not such a straightforward exercise” to divert more of the COE quota to corporate-owned private-hire vehicles, as it would depend on the assumed demand for such vehicles, which fluctuates every quarter.

The under- and over-provision of COE quotas for such vehicles could have “unintended knock-on effects”. An under-provision could cause an insufficient supply of private-hire vehicles to meet commuters’ needs, while an over-provision may result in a plunge in the COE supply for Categories A and B, driving COE prices up.

There have also been fewer taxi drivers in the industry, Mr Chee noted.

He said the age profile of taxi drivers is now older, as many younger drivers opt for private-hire vehicles instead. This will lead to a drop in the number of taxis and street-hail services, which are provided exclusively by taxis, he said.

This, in turn, will pose a problem to older commuters who prefer hailing a cab, as they do not feel comfortable using mobile apps to secure a private-hire car ride, added Mr Chee.

All new private-hire car and taxi drivers in Singapore must be aged at least 30.

The review, targeted to be completed by the first half of 2024, would thus need to bridge the gap between taxis and private-hire vehicles, by investigating the overlaps in their functions and operations, said Mr Chee.

The Government would hence need to ensure a “fair, level playing field” that takes care of drivers’ and the community’s needs while addressing the evolving nature of the industry. This will entail some trade-offs and compromises, he added.

Gradual public transport fare increases

Turning to public transport fares, Mr Chee said the Government recognises that public transport is a public good that it must continue subsidising. He does not foresee “full cost recovery” for bus and train rides even if ridership increases down the track.

From Dec 23, 2023, the overall cost of bus and train rides rose 7 per cent. Fares could have risen 22.6 per cent, if not for the remaining 15.6 per cent being postponed to future exercises.

This was possible because the Government provided extra subsidies, on top of what it already spends every year to keep services running.

“I’m quite clear that we will not be able to close the 15.6 per cent gap at one go, because it’s too big,” Mr Chee added.

He noted that the industry will not be commercially viable if left on its own, so subsidies are necessary to ensure its financial sustainability and guarantee the system’s connectivity and accessibility.

He said that it is not possible to “expunge”, or waive, the deferred 15.6 per cent fare increase, as some MPs suggested previously, and the Government will gradually narrow the gap over time.

Retaining bus service 167

Wading into the reversal of the Government’s decision to stop bus service 167, Mr Chee said the authorities acknowledged that people may need more time to adjust to using the TEL.

The authorities first said in November that service 167, which plies a route between Sembawang and Bukit Merah via Upper Thomson and the Orchard area, would be discontinued as part of changes to bus routes running parallel to segments of the TEL.

In an about-turn less than two weeks later, LTA said the service would run at 30-minute intervals, instead of the usual gaps of between 11 and 20 minutes.

As the MRT network grows, Mr Chee said adjustments must be made to some bus services running parallel to MRT lines by modifying, shortening or suspending these services.

This is to maintain the financial sustainability of the public transport system. Resources can then be reallocated to fund bus services in new Housing Board Build-To-Order estates, he added.

“Otherwise, if you grow and grow and grow, and you don’t take away some of the bus services that run parallel to the MRT lines, especially the longer trunk routes, you’ll have a problem because then the budget will only keep increasing and it’ll not be sustainable beyond some point,” he said.

According to the Ministry of Transport, the amount of annual subsidies needed to operate service 167 dropped to $3.6 million after its frequency was lowered, down from $6.2 million.

Separately, the second batch of towns to have pedestrian-friendly streets under LTA’s Friendly Streets initiative will be announced later in 2024, said Mr Chee.

The initiative, which is being piloted in Bukit Batok West, Ang Mo Kio, Tampines, Toa Payoh and West Coast, will cover all 24 towns in Singapore by 2030.

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This article was first published in The Straits Times. Permission required for reproduction.