PUBLIC TRANSPORT COSTS AND PORT OF SINGAPORE AUTHORITY TARIFF

Mr Chuang Shaw Peng asked the Minister forCommunications if he will furnish statistics on the rates of increases/decreases in respect of public transport costs and tariff by the Port of Singapore Authority from 1988 to 1997.

Mr Mah Bow Tan: Public Transport

From 1988 to 1997, two major revisions were made to bus and MRT fares. The first revision took place in 1990 when fares were revised after remaining unchanged for more than 6 years. The second fare revision was 7 years later in 1997.There were also two minor adjustments, in 1994 and 1995, when the maximum fare was raised by one fare stage.

Increase in bus and MRT fares over this period kept pace with the general increase in consumer prices, and were way below the increase in wage levels. (See Table 1 below).

Taxi fares have increased faster than MRT and bus fares. However, although taxi fare increases exceeded that of the increases in the CPI, taxis remain affordable because the increase in taxi fare is significantly lower than the increase in average wage levels.

PSA

For PSA terminals, local stevedorage is the single largest charge paid by container shipping lines for the handling of local containers, forming up to 70% of total port charges. From 1988 to 1997, PSA has reduced local stevedorage charges from $160 to $150 for a 20 ft. container, and from $228 to $215 for a 40 ft. container. Discounts on local stevedorage have also been given by PSA through customised agreements.

Our local importers and exporters do not pay local stevedorage; they pay freight rates and terminal handling charges which are charged by shipping lines. Both charges bear little correlation to PSA's local charges and are determined primarily by the supply and demand of shipping capacity calling at the port. Importers and exporters currently enjoy more competitive freight rates than regional shippers because Singapore offers a wider choice of shipping lines.