RAIL OPERATORS

RAIL OPERATORS

21.

Mr Inderjit Singh asked the Minister for Transport why (a) is it not viable for two rail operators to co-exist when co-existence will provide competition and ensure improved level of service; and (b) must his Ministry be involved in initiating the talks of a merger, when both the transport providers are listed companies and are not Government owned entities.

Mr Yeo Cheow Tong: The intention of having two rail operators was to provide a basis for comparison and benchmarking, and in so doing, help to spur service improvements between the operators. This concept also applies to our bus industry today. However, if the two rail operators feel that there is a strong commercial case to transfer the North-East Line (NEL), LTA is prepared to study their proposal with an open mind.

The decision on the transfer of NEL is one that will have to be made by the two operators based on their own business considerations, and the Government does not intend to get involved in the process, should the two companies decide to hold talks to explore this possibility. On the Government's part, our role is to ensure that commuters' interests are safeguarded in the process.

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