ComfortDelGro posts 5.6% rise in full-year net profit

ComfortDelGro released its 2012 earnings results on Friday.

The taxi, bus and rail company saw its full-year net profit rise 5.6 per cent to S$248.9 million.

This came on the back of record revenue, which increased 3.9 per cent on-year to S$3.55 billion.

The taxi and bus businesses accounted for over 87 per cent of revenue growth during the year.

"Despite the significant challenges the Group faced in 2012, including weakened demand in some markets, we managed to seek out opportunities to expand and remain thankful that we were able to deliver another year of growth," said ComfortDelGro's managing director and group CEO Kua Hong Pak.

Bus revenue at SBS Transit increased by 6.1 per cent to S$600.9 million as average daily ridership grew by 3.1 per cent, more than compensating for a 0.5 per cent drop in average fares. For its core bus business, however, SBS fell further into the red, incurring an operating loss of S$14.7 million compared to S$6.0 million the year before.

Revenue from the taxi business was 10.1 per cent higher at S$824.5 million due to higher rental income from a larger fleet, new replacement taxis and a higher volume of cashless transactions.

Revenue from the rail system was also up 3 per cent to S$138.6 million as ridership grew.

Operating profit for the rail business fell 75 per cent to S$4.9 million due to higher staff costs from the start up of the Downtown Line.

The company's operating costs, however, were 4 per cent higher in 2012, topping out at S$121.1 million - mostly due to higher bus captains' salary and the foreign workers' levy.

Operating profits were up 3.3 per cent to S$412.3 million in 2012. Singapore accounted for 53.8 per cent of Group operating profit.

Mr Kua said he hopes 2013 will be a year of expansion.

He said: "We are always looking out for opportunities to expand, especially in the markets that we are in, and as you know, in the third quarter of last year, we were able to extend our presence in Australia to the acquisition of the Dean's bus line. We hope to do more of that this year and the years to come."

ComfortDelGro has proposed a final dividend of 3.5 cents per share.

This brings total dividend for the year to 6.4 cents a share, including the interim dividend of 2.9 cents a share.

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While it is important that private entities generate profits, it should not be done with a compromise in services. It is undesirable that the bus sector is still making losses. Ridership rose 3%, and LTA will have to do something to ensure that SBS is able to cope with the rise and not simply squeeze the public commuters further.

Transport system will have "enough buffer" for possible 6.9m people

Transport Minister Lui Tuck Yew has given the assurance that Singapore's transport infrastructure will have sufficient buffer to accommodate a possible 6.9 million population by 2030.

He told Parliament that commuters need not wait till then to find travelling more convenient.

Pointing to efforts to expand the rail and bus network, Mr Lui said commuters will begin to see improvements in the next five years.

The vision is to create a very convenient and high-quality public transport system by 2030, said the minister.

By then, the rail network will be doubled to 360 kilometres, with nine MRT lines to help spread the load from the current four.

But given issues like overcrowded trains and train disruptions in recent years,
Mr Lui said he understands why such a vision can be hard for Singaporeans to visualise.

"Seen through the prism of the current situation, I can appreciate how unthinkable it may seem that we can accommodate a population by 2030 that is 30% higher than today, even though we have firm plans to double the rail network over this same period. But I do believe we will begin to see a gradual but noticeable and perceptible improvement over the next five years," he said.

Mr Lui said that by 2017, the Downtown Line, for example, will add significant new capacity to the east-west corridor. The re-signalling project and additional new trains to be rolled out on existing lines will also help.

"During the busiest one hour in the morning, our assessment is that we will have the capacity to carry 70 percent more passengers into the CBD in five years' time compared to what we have today. And I do not expect such a sharp increase in ridership. Hence what this implies is that for most commuters taking the train into the city, the journey will be less crowded by then," he said.

Incentive schemes to encourage commuters to spread their travel outside the peak hours may also be improved, possibly later this year.

Mr Lui said: "Commuters who are able and willing to travel off-peak on the SMRT network today can save up to 50 cents off their rail fare if they exit at the designated stations in the CBD before 7:45am. The scheme has seen some initial success, with about 3% to 4% of commuters move their travel out of the peak period. We will continue to see how it can be made even more effective, and will consider further improvements, possibly later this year."

As for buses, there are plans to speed up the five-year Bus Service Enhancement Programme (BSEP) launched last September.

Another 190 buses will be added this year.

This would mean that half of the 550 buses promised under the programme will be on the roads by the end of this year.

Private bus operators will be roped in to help run new routes.

And more City Direct-type bus services, which run along expressways, will be introduced.

To improve waiting times, there are plans to possibly introduce an incentive and penalty system based on commuters' expected waiting times.

Such a system is already introduced in cities like London and Seoul.

The Land Transport Authority will begin trying out the scheme on some services in the second half of this year.

In addition, nearly S$50 million will be spent over the next two years on measures like adding 30 kilometres of bus lanes.

The Mandatory Give-Way scheme will be extended to another 150 bus stops and the number of bus hubs will increase from 10 to 40.

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During the week of the by-election, they reveal all the good news on public transport, planning all the way ahead till 2030. Then a week later came the White Paper, which gave all citizens a shock with the 6.9million figure.

Suddenly all the good news have been wiped out clean by this figure. But then, I will still like to give the LTA a chance to prove themselves. Yes, they're definitely behind time with the infrastructures, but they're doing something about it now.

It awaits to be seen how much faster can they catch up with the rise in population. The verdict will come in 2016.

More covered linkways, elderly friendly bridges for commuters

 The government will spend some S$690 million to better connect commuters to transport nodes and reduce noise levels from passing trains.

Transport Minister Lui Tuck Yew on Thursday announced the initiatives mapped out under the latest Land Transport Master Plan.

One key project -- Walk2Ride -- will make it easier for more commuters to walk to MRT stations.

The Land Transport Authority (LTA) will build sheltered linkways within a 400-metre radius from all existing MRT stations, compared to the current radius of 200 metres.

Currently, sheltered linkways are built to link to schools, healthcare institutions and other transport nodes like bus stops and taxi stands.

But under Walk2Ride, developments within a 400-metre radius like shopping, leisure, commercial and residential areas will also be linked.

Mr Lui said walking experience has been a key point in discussions with residents.

He added: "We will improve the 'first and last mile experience' for commuters. One key feedback from our focus group discussions was that more people would take public transport if we improve the walking experience between their homes or the MRT station and bus stop.

"Many told us while our public transport system is well-connected, the walking experience was generally uncomfortable and inconvenient, given our tropical climate and sometimes unpredictable weather."

There are also plans to link up developments within a 200-metre radius of all bus interchanges, LRT stations and high-usage bus shelters.

In all, some 200 kilometres of linkways will be added islandwide by 2018, more than four times the existing 46 kilometres today. The project is expected to cost some S$330 million and will begin from 2014.

The Walk2Ride initiative is being rolled out, following a successful trial at Lakeside MRT.

Desmond Lee, MP for Jurong GRC, said: "Many of them (residents) are elderly residents as well as families with young children on strollers, and a significant number of them have requested for some form of lifts or pedestrian crossing or escalator to ... Lakeside MRT.

"So with this announcement, residents will find their access to Lakeside MRT that much more convenient for them."

Ang Wei Neng, a member of the Government Parliamentary Committee for Transport and MP for Jurong GRC, said the move will help reduce traffic congestion and the reliance on feeder bus services.

He said: "People prefer to walk because it is more reliable, more predictable than taking the bus which is subjected to traffic conditions."

Another S$60 million will be spent on making pedestrian overhead bridges more elderly and wheelchair-friendly.

LTA intends to install lifts at 40 of such bridges.

LTA will begin installing the lifts from 2014. Half of them will be completed by 2016 and the remaining by 2018.

Pedestrian overhead bridges located near MRT stations and integrated transport hubs will be given priority.

Beyond connectivity, residents living near elevated train tracks such as in Simei, Marsiling and Dover can expect the noise level from passing trains to drop.

S$300 million will be spent on installing some 20 kilometres of noise barriers along stretches where noise levels exceed the National Environment Agency's guideline of 67 decibels.

Since September, LTA has been measuring noise levels at 455 residential flats located close to such tracks.

With the noise barriers, Mr Lui said noise levels can be reduced by about five to 10 decibels.

Installations will start at the end of this year and be completed by 2020.

Mr Lui said: "They are just some of the key initiatives that we plan to roll out over the next few years to improve our living environment, and enhance our quality of life, and core to the goal of the Land Transport Master Plan 2013 -- which is to build a people-centred land transport system that supports an inclusive and liveable community."

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Good initiative by the minister of transportation. After last week's announcement of doubling Singapore's rail network, this piece of news further emphasize that more work is in the pipeline to beef up the viability of public transport in the midst of Singapore's population boom.

Food for thought though, all these good news always start to pop up whenever the ruling party is participating in an election. Nevertheless, Singaporeans will welcome improvements to infrastructure, to make our society more pleasant to live in.

S'pore to have two new MRT lines by 2030

Singapore will have two new MRT lines, while three existing lines will be extended. These will double the rail network stretch to 360 kilometres, compared with the current 178 kilometres.

By then, eight in 10 households will have a train station within a 10-minute walk, compared with about six in 10 currently.

These plans for the rail network followed a review of the Land Transport Master Plan by the Land Transport Authority (LTA).

Transport Minister Lui Tuck Yew announced the new developments when he visited Chinatown Station of the Downtown Line on Thursday.

The new lines are the Cross Island Line (CRL) and Jurong Region Line (JRL).

The CRL will run from Jurong Industrial Estate and pass through areas such as West Coast, Bukit Timah, Ang Mo Kio, Punggol and Pasir Ris before ending in Changi. The 50-kilometre line, which is expected to be completed by 2030, will be connected to all existing lines.

It is expected to relieve the load of the existing East-West and North-East lines and shorten journey times significantly.

Mr Lui said: "The eastern leg of the CRL will also include a segment that extends into the centre of Punggol. Residents in Punggol will be able to take a short cut to Pasir Ris, which is a popular and much demanded travel route, in only 10 to 15 minutes, compared to a 40 minute bus journey that they experience today."

The other new line -- Jurong Region Line -- will be completed in 2025. The 20-kilometre line will pass through areas such as Jurong West, Jurong Industrial District, West Coast, Choa Chu Kang and potential new developments in Tengah.

Those travelling from the North to Jurong, like students of Nanyang Technological University, can skip Jurong East Station on the East-West Line.

Three existing lines -- the Circle Line (CCL), Downtown Line (DTL) and North-East Line (NEL) -- will be extended.

The CCL will be four kilometres longer -- to close the link between HarbourFront and Marina Bay stations and save commuters the hassle of making multiple transfers. The extension, which will also pass through Keppel, is expected to be completed by 2025.

The DTL will be two kilometres longer by 2025 -- to run through the East Coast area. It will be connected to the East West Line and the Eastern Region Line, which will be ready by 2020, so that commuters can transfer between the Downtown Line and Eastern Region Line in the east.

As for the NEL, two kilometres will be added by 2030 -- in tandem with new developments in Punggol -- to serve Punggol North, including the new Punggol Downtown.

Mr Lui said all these changes promise not just faster and more convenient travel.

He said: "We will also have a more resilient network that can better mitigate disruptions in our MRT system and also allow us to shut down parts of the network for longer durations to carry out improvement works without causing too much inconvenience to commuters."

The LTA is also exploring the possibility of an additional station between Sembawang and Yishun stations on the North-South Line, in anticipation of future developments in the area.

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Good initiative by the LTA and government to help cope with the massive population boom in Singapore. But all these will only be ready in 2030, which is 17years from now. It is so far away it makes everyone roll their eyes. Haha, hopefully the old people by then will still be able to walk to the MRT stations to make use of them.

 

Fare increase not just to raise salaries of bus drivers: Lui Tuck Yew

It's not just driver salaries, but the need to improve and maintain public transport systems for the long-term that necessitates fare revisions, said Transport Minister Lui Tuck Yew in a message posted to his Facebook page today.

He was writing in response to the discussion generated over his comments made on the 6th of December. Then, he had said that increased salaries for bus drivers would be taken into account in future fare revisions for buses.

However, he said his comments were made in view of a "wider perspective".

"We need to go well beyond the one-time increase earlier this year which raised salaries by up to a few hundred dollars a month," Minister Lui wrote in the Facebook post. He cited the need to attract more local drivers as a reason for sustained increases of wages for bus drivers.

"Locals currently make up slightly more than half (57 per cent) of our 7,500 bus drivers, a sharp decline from almost 80 per cent just 6 years ago. Most local drivers are already in their 50s and 60s. Clearly we should continue to welcome foreign bus drivers within limits. But we also need to attract more locals to take up bus driving if we do not want to rely overly on foreigners." he wrote.

He also stressed that fare increases were not to boost the short term profits of public transport operators. Instead, they should be used "not just to improve salaries of bus drivers but to improve service to commuters while keeping public transport operations commercially viable." This includes the upgrading and maintainance of fleets, as well staff salaries.

PROPER BALANCE NEEDED

Minister Lui acknowledged that as fares increased, the Government would have an increasing role to keep public transport affordable. Examples he cited of Govenrment help included expanding the rail network, as well as the S$1.1 billion Bus Service Enhancement Programme introduced earlier in the year.

However, he said that even with Government help, improving public transport would be a costly endeavour. He wrote: "Somebody has to pay for these costs, either commuters in fares, or taxpayers in government subsidies, or the PTOs.

"The proper balance is something we have to study very carefully. But we should not simply take the populist approach of avoiding any fare increases completely, and just push it onto the PTOs or rely on more and more government subsidies. Not only would this require additional public money, but it would give operators no incentive to be efficient, or to provide good services to commuters."

Minister Lui emphasised that the Government is "fully committed to an affordable public transport system" for vulnerable groups, and he wants PTOs to consider what more can be done for such groups as part of the next fare adjustment.

He also said that there would be a fuller debate in Parliament about fare revisions, once the fare review committee completes its work early next year.

"It is a matter of all the stakeholders - the PTOs, the Government, and yes, commuters too - coming together to ensure we enjoy a reliable, high-quality and affordable public transport system," he wrote.

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Singaporeans have come to a stage where whatever the minister say, we will rebut, especially so in the public transport factors. And who can blame them? Fare increment has become almost a yearly affair for the past decade and while the PTOs continue to make handsome profits, they continue to cry for help when it comes to providing better services and salaries.

However, there isn't much we can do once they have decided to raise fares. We can make all the noises we want but we still have to use the public transport and continue paying.

Who wants to be a bus driver?

Driving a bus may be among the things young boys dream of doing, but everyone soon wakes up to the bleak reality.

Bus drivers are among the lowest-paid workers in Singapore, making more than cleaners but a bit less than factory operators - two of the lowest-paid groups of people here.

After this year's round of adjustments, the average Singaporean driver takes home between $2,000 and $2,500 monthly after overtime and allowance.

Drivers from Malaysia and China make even less.

Salaries aside, working hours can be daunting. They wake up as early as 4am if they are on the morning shift, and knock off after 1am on the late shift.

A split-shift system also means they can be rostered to drive during the morning and evening peak hours on the same day; and days off are not as predictable as those of, say, office workers.

It is no wonder then that SBS Transit and SMRT find it increasingly difficult to hire Singaporean drivers.

In the 1990s, they started sourcing from Malaysia.

Soon, with rising education levels and growing affluence, even Malaysians were hard to come by.

In 2008, the two operators started hiring drivers from China.

There are currently about 7,300 bus drivers between the two operators.

About half are Singaporeans or permanent residents, followed by Malaysians and Chinese.

Chinese drivers make up 11 per cent and 22 per cent of SBS' and SMRT's drivers respectively.

According to the two firms, drivers typically have secondary school education and are between 21 and 65 years old.

Prior to joining, they must have held a Class 3 (car) driving licence for at least a year.

An understanding of simple English is about the only other criterion needed for application.

Successful applicants undergo training of between 31 and 60 days, depending on their familiarity with Singapore roads.

On average, 15 per cent of the 7,300 drivers leave each year.

But some make a long-term career of it. SBS says its longest-serving Singaporean driver has been on the job for 44 years, while a Malaysian has been at it for 38.

While some used to be drivers in previous occupations, others have held various jobs, such as being cooks and policemen.

The Straits Times understands that those who leave usually go on to drive trucks.

Demand for truck drivers - who typically earn 60 to 70 per cent more - has soared with the construction boom.

Malaysians typically start their own businesses back home.

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As a Singaporean, do you want to be a public transport bus driver? Or would you rather be a cabbie?