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The Singapore Land Transport Master Plan 2013 – A Review by PwC
The Singapore Land Transport Master Plan 2013 – A Review by PwC
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The Singapore Land Transport Master Plan 2013 – A Review by PwC 3
The Singapore Land Transport Authority (“LTA”) has published its new Land Transport Master Plan that sets out its vision for land transport in Singapore for the next 20 years. This vision is that by 2030, Singapore will have:
• 8in10householdslivingwithina10minutewalkfromatrainstation;
• 85%ofpublictransportjourneys(lessthan20km)completedwithin60minutes;and
• 75%ofalljourneysinpeakhoursundertakenonpublictransport.
In this paper PwC reviews the key features oftheMasterPlan,themajorinvestmentprojectswhichareplannedforthefutureandassesseswhichcompaniescanbenefitfromtheAuthority’s Plans.
Introduction
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The LTA has developed the Master Plan to respond to whatitdescribesasachangedenvironmentfromwhenthepreviousMasterPlanwaspublishedin2008. Threekeychangestotheenvironmentarelaidout:• Increasedexpectationsofabetterqualityoflifeand
correspondinglyanimprovedtravelexperience;• Anincreased‘demandfortransport’,drivenbya
largereconomyandgreaterpopulation;and• Tighterlandconstraints.
ThesethreefactorsshowthattheLTAcannotdevelop their Master Plan in isolation and they have complementedtheirownanalysisandpolicydevelopmentwithinputfromothersourcesincluding:• OthergovernmentpoliciessuchasPopulation
Policy(see Page 7), LandUsePolicyandgovernmentforecastsforeconomicgrowthfortheeconomyasawholeandgrowthwithinindividualsectors;and
• CitizensofSingapore–Buildingonthegovernment’sengagementwiththepeoplethroughthe‘OurSingapore Conversation’, the LTA established a websitetogatherviewsandopinionsfromthepeoplethatuseSingapore’spublictransportsystemeveryday. These views, and other ideas supplied through permanentfeedbackchannels,wereanalysed,reviewedandincorporatedintotheLTA’spolicyformulation.
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Better quality of life
Larger economy
and population
Tighter land constraints
Overview of the Master Plan
The Singapore Land Transport Master Plan 2013 – A Review by PwC 5
The2008MasterPlansetouttheLTA’soverallvisionofa‘people-centredlandtransportsystem’thatwouldbeachievedthroughmakingpublictransportachoicemode,managingroadusageandmeetingthediverseneedsofthe people.
The2013MasterPlanisnotamajordeparturefromthisvisionandbuildsfurtheronthesethemes,updatingthemtoberelevanttothechangedenvironment.
The2013themesare:• More Connections–Railwillremainthebackbone
ofthepublictransportsystemwithmoreconnectionsto the MRT network provided by bus, walkways and cycleroutes;
• Better service–Thiswillbeachievedthroughsupplysidemeasures,primarilyanexpandedandmorereliablepublictransportnetwork,aswellasdemandmanagementapproachessuchasencouragingtheshiftingofpeaktraveltoshoulderoroff-peakperiods;and
Strategic Themes
• Liveable and Inclusive community – Ensuring thatthepublictransportsystemmakesSingaporeamoreliveablecity.Thisencompassesmakingpublictransportaccessibletoallresidentsandensuringthetransportnetwork’simpactonthenaturalandbuiltenvironmentislimitedandmanagedeffectively.
Thesethemeswillbeunderpinnedbyacontinuingcommitmenttoacomplementarypolicyofreducingrelianceonprivatetransport.TheLTAisseenasaleaderamongstgovernmentsinconsideringtransportpolicyasawhole,andnotdevelopingpublicandprivatetransportpoliciesinisolation.ThustheLTAwillconsiderwaystoreducethedependencyondrivingthroughreviewingapotentialchangetothetargetvehiclegrowthrate(aleverthegovernmentusestocontrolcongestion)andseekingtodeliverastablesupplyofCertificatesofEntitlement(“COE”).OfconsiderableimpactwillbetheintroductionofnextgenerationElectronicRoadPricingSystem(“ERP”)usingsatellitenavigationsystems.ThishasmanypotentialbenefitsandgivestheLTAsignificantlymorepower and flexibilitytomanageroadusageandtravelpatterns.
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Rail
The2008MasterPlansetouttheraillinesthatwouldbe built or extended up to the year 2020. Those lines are eithersoontobeoperational(theDowntownLinewhichbeginsoperationsoveritsfirstphaseinDecember2013)orcurrentlybeingprocuredandbuilt.Thusthe2013Master Plan looks further ahead and details the lines that will be built or extended between 2020 and 2030. The lines are:
Cross Island Line – A line spanning the breadth of thecountry,runningfromChangiAirportandthedeveloping residential area of Punggol in the East to theindustrialparksofJurongintheWest.TheexactalignmentoftherouteisnotyetdeterminedbutitwillbroadlyrunthroughcentralareasofBukitTimahandrelievethepressureontheexistingEast-WestLine;
Jurong Region Line – This line will serve the Jurong area in the West of the island. It is designed for thediverseneedsofpassengersinthearea–fromstudentsatthelocaluniversity,residentsoflocalestates(currentlyindevelopment)andcommuterstoJurongIslandandmainlandindustrialestates;
Downtown Line, Circle Line and North East Line – All three lines will be extended to respond to land useplansandtofullyrealisethebenefits(networkeffects)fromthenewlinesthatwillbebuilt;
Singapore-Johor Bahru Rapid Transit Link – This linehaspreviouslybeenannouncedbytheleadersofSingapore and Malaysia and an engineering study is currentlyunderwaytodeterminethealignmentandchosenmethodtocrosstheCauseway.ThisLinkwillfurtherintegratetheeconomiesofSingaporeandtherapidly developing region of (Iskandar) Malaysia. Itwillalsoservetorelievecongestionatthetwocausewaylinks(TuasandWoodlands);and
Singapore-Kuala Lumpur High Speed Rail – Again previouslyannouncedbythetwoleaders,a“gamechanger”forbothcountries’citizensandeconomies,theinitialfeasibilitystudyhasbeencompletedbyS.P.A.D.inMalaysiaandtheyhaveindicatedtheyarelookingtotendertheprojectin2014.
Aswellasintroducingnewandextendedlines,theLTAislookingtoimprovetheperformanceoftheexistinginfrastructure.Intandemwithitsowninvestmentinupgradedsignallingsystemsandnewtrains,theLTAwillimposeonoperatorstighterOperatingPerformanceStandardsandenforcemorestringentmaintenanceandservicereliabilityrequirements.
Bus
TheLTAhaspreviouslyannouncedmajorinvestmentandimprovementstothedensityandreachofthebusnetworkthroughtheBusServiceEnhancementProgramme(“BSEP”).ThecommitmenttothisProgrammeisreaffirmedin the Master Plan.
InMarch2012,theLTAlaunchedtheBSEPtoquicklyincreasecapacityonexistingbusroutesandintroducenewroutestoalleviateovercrowdingontheMRT.TheProgrammeisapartnershipbetweenthetwoexistingPublicTransportOperators(“PTOs”)–SBSTransitLtdandSMRTBusesLtd.UndertheBSEP,theGovernmentpledgedtoprovidefundingofapproximately$1.1billionfor550newbuses.Fortheirpart,thePTOsagreedtofundtheadditionof250busestotheirfleets,overthenext5years.These800newbusesrepresentanincreaseof20%tothetotalbusfleet.
InSeptemberof2013,theLTAprovidedanupdateontheprogressoftheimplementationoftheBSEP1. As at thatdate,almost250ofthecommittedbuseshadbeenenteredintoservice.Thiswasdonethroughenhancing111existingbusservicesandintroducing14newbusservices.TheLTAstatedthattheseimprovementsenhancedtheconnectivityofthebusnetwork,shortenedwaitingtimesby3to5minutesforsomeexistingbusservices,andreducedthenumberofbusserviceswithpersistentcrowdingduringpeakperiodsfrom96servicesto56services,orbyabout40%.TheLTAalsoannouncedthattheywereacceleratingtheimplementationoftheProgrammeandthatthebulkoftheremainingBSEPbuseswillberolledoutbytheendof2014,insteadof2016.
TocomplementtheBSEP,theLTAiscurrentlylookingtoimplementnewCityDirectserviceswhicharefocusedonhighdemandcorridorsduringpeakperiods.TheseservicesaredesignedtorelievetheMRTandexistingbusserviceswillbeprovidedbyprivatebusoperatorsratherthanthetwoexistingpublicbusoperators(SMRTandSBST).
The Singapore Land Transport Master Plan 2013 – A Review by PwC 7
Roads and Cars
AlthoughtheLTAislookingtoreducerelianceonprivatetransport,theyacknowledgethatmoreroadsarerequiredtoservenewdevelopmentsandsupportimprovementstothebusnetwork.NonewExpresswaysareannouncedbutanupdateisprovidedonthepreviouslyannouncedNorth-SouthExpresswayandthereistobeareviewofthefeasibilityofreversibleflowalongtheKranjiExpressway.Inaddition,theLTAwillreviewtheimplementationplansfortheSingaporeUndergroundRoadSystem(“SURS”).
InplaceofincreasingthesupplyofroadsinSingapore,theLTAlookstodemandmanagementtomanage(traffic)flowanddeliverafastandreliableroadsystem.TheLTAmanagesdemandforroadusagebytargetingthedemandforcars,throughsettingavehiclegrowthrateandmatchingthenumberofCOEstothisgrowthrate.Further,thedemandforusingthosecarsisreducedthroughtheElectronicRoadPricingSystem.Ofmajorsignificance,theLTAhasannounceditistriallingnextgeneration ERP that is based on global navigation satellite systemtechnology.
Responding to Singapore’s challengesAmajorchallengefacingtheSingaporegovernmentishowitmanagesthecountry’spopulationgiventhelandconstraintsthattheislandnationnaturallyfaces.Toeffectivelymanagethis,thegovernmentperiodicallyreviewsitspopulationandlookstoestablishalongtermpopulationforecastthatcanbeusedacrossgovernmentforpolicyplanningpurposes.Thelastreviewwascompletedthisyearandwaspublishedasthe2013PopulationWhitePaperbytheNationalPopulationandTalentDivision.ThisPaperconcludedthatinthesecondhalfofthelastdecade,bothSingapore’seconomyandpopulationgrewmorerapidlythananticipated,outpacinginfrastructuredevelopment.Asaresult,“Thedemandforpublictransportandpublichousing,whichhavelongleadtimes,wasunderestimated…andtheresultwascongestiononourpublictransportsystem.”2The2013MasterPlanlookstorespondtotheseissuesandincorporatestheupdatedestimateoftheSingaporepopulationofbetween5.8and6millionin2020,andbetween6.5and6.9millionby2030.
Walking and Cycling
TheMasterPlanisnotjustfocusedonmotorisedtransportbutalsocoverswalkingandcycling:
Walk2Ride–thisProgrammewillextendtheshelteredwalkwaynetworktoimproveconnectivityandpassengerexperience,especiallyfortransfersbetweentransportmodes;
Cycling Infrastructure–theLTAwillcontinuetoexpandthecyclenetworkandbuildonexistinginitiativessuchastheParkConnectNetworkandtheNationalCyclingPlan;and
Integrated Transport Hubs–morehubswillbedevelopedtofurtherimprovetransferbetweenmodesandcreateabetterpassengerexperience.
1 Bus Service Enhancement Programme One-year Report, 30 August 2013. 2 A Sustainable Population for a Dynamic Singapore – Population White Paper, January 2013.
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What does the Master Plan mean for transport operators?
Forthecurrentpublictransportoperatorsandtaxioperators,theMasterPlandoesnotresultinamajorshakeupoftheindustryorthewaytransportservicesaredelivered.However,itdoesimpacttheirbusinessesandrequirearenewedfocusonoperationalstandardsandmeetingofgovernmentperformancestandards.Acrossbus,railandtaxi,theLTAisregulatingperformancemoretightlytoensurepassengerneedsaremet.TheLTAisstrengtheningthemonitoringandperformanceframeworkswithgreaterpenaltiesifperformancestandardsarenotmet.
Toavoidsignificantpenalties,theoperatorswillhavetoreviewthewaytheymaintainandmanagetheirassetsanddeliverdailyoperationalexcellence.Theymustbeinapositiontominimisedelaysanddisruptionand,whentheyinevitablyoccur,ensurethattheyaremanagedefficientlysoservicecanresumetonormalasquicklyaspossible.Atthesametime,theseimprovementsmustbedeliveredwhilstkeepingclosecontrolovercostincreasesinanenvironmentwherethereareinflationarypressuresonmajoroperatingcostssuchasfuelandstaffcosts.
Finally,theoperatorsmustincreasetheircapacitytodelivermorebusandrailservices.Twokeyaspectsofthisaretherecruitmentofadditionalbuscaptainsandoperationalandmaintenancestafffortheprovisionoftheseservicesandthetimelyprocurementofthenecessaryassetssuchasbuses,maintenanceandothercapitalequipment.
The LTA for its part is taking greater responsibility for providingthesupportinginfrastructuretotransportoperators.Forexample,itisnowresponsiblefortheplanninganddeliveryofbusdepotsandparkingfacilitiesaswellastheprovisionofbusarrivaltimesatmore busstops.Thisaimstoensureongoingsupportfortransports operators.
The Singapore Land Transport Master Plan 2013 – A Review by PwC 9
More Connections
Better Service
Liveable and inclusive community
Reducing Reliance on Public Transport
Master Plan initiative
New and extended rail lines
Increasedcapacityofbussystem
EnvironmentalSustainability
SecondgenerationERP
Sector opportunities
-Routeplanningandtechnicalconsultancies
-Civilconstructioncompanies
- Tunnellingcompanies- RollingStockandsignallingcompanies
-MRToperators
- Privatesectorbusandcoachoperators
- Suppliersoffuelefficient/lowemissioncars
- Technology companies
Comments Thealmosttriplingoftherailnetworkfrom2008to 2030 provides great opportunityacrosstherailvaluechain
New routes are being tendered to private sectoroperatorswhocangrowtheirbusinessesiftheycandelivervalueformoneyservicestotheLTA
CarbonEmissions-basedvehicleschemeandotherpoliciesencouragecarbuyerstoconsidertheenvironmentalimpactofcarmodelswhenmakingtheirpurchase
ERPusingGNSSisnotaproventechnologyandthecompanythatcandevelopthedesiredsolutioncanbecomeamarketleader
Master Plan initiative
High Speed Rail (“HSR”) toKualaLumpur
Carsharing/better travelinformation
TransportOrientatedDevelopment
Sector opportunities
-HSRsystems,constructionandinfrastructuresuppliers
- Softwarecompanies -Urbandevelopersand planners
Comments HSR does not exist in SE Asia outside of China and Taiwan so there is opportunity for foreignfirmstoprovidetechnologyandknow-how to deliver the HSR line
Technologycancontributetogettingthemostoutofeachmodeoftransportandimprovingthecustomerexperience.Developers of applicationsandsystemsthatenablethiswillbenefit
Anumberofthemesplacetransportinfrastructureattheheartofdevelopment.Companiesthatrealisethisvisioncantargetbothsmallandlargescaledevelopments
Where do the opportunities lie?
Singapore’slandtransportsystemiswidelyregardedasaworld-classsystem.Inordertomaintainthisexcellence,theLTAmustnotonlyimplementeffectivepoliciesandrobustregulatoryframeworks,itmustalsosupportthese
withinvestmentinbothhardandsoftinfrastructure.ThelevelofinvestmentrequiredoftheLTAtodelivertheobjectivesoftheMasterPlanissignificantandprovidesopportunitiestofirmsacrossawidevarietyofsectors.
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PwC View
TheLTAmustbecommendedforitscontinuedforwardthinkingindevelopingandpublishingtransportpoliciesandinvestmentsthatextendoutto2030.TheMasterPlanoutlinescleartargetsthattheLTAisworkingtowardsandtheprojectsandinitiativesthatwillenablethosetargetstobemet.However,nowthehardworkfortheLTAanditspartnersstarts.Deliveringtheprojectsontimeandonbudget will not be easy.
KeychallengesthattheLTAwillneedtoovercomeinclude:
Private sector capacity and capability – the LTA harnessestheskillsandexperienceoftheprivatesectortoconstructnewtransportinfrastructureandoperateandmaintaintheexistingnetwork.Thishasworked well for the LTA in the past and there is no reasontosuggestthatitwon’tremainthecaseinthefuture.However,theLTAmustworkwithitsprivatesectorpartnerstoenablethemtobeinapositiontodeliver.Indeed,thepublishedandcredibleprojectpipelinehelpstheprivatesectorplanandmakethenecessaryinvestmentstodelivertheseprojects.LTAmuststicktotheseprojectsandensurethattheyremainattractivetoexistingandnewsuppliers.TheremustberecognitionthattheLTA’sprogramiscompetingforsupplierswhohaveawealthofalternativeprojectstotargetinSouthEastAsia;
Supplier financial sustainability – Linked to this is theneedforsupplierstobefinanciallysustainable.Iftheyarenot,thenperformanceandstandardsmayfallandintheworstcasescenario,transportservicescouldbeinterrupted.Forexample,theimplementationofthenewRailFinancingFrameworkandthefindingsoftheFareReviewwillbeinstrumentalinprovidinganenvironmentwhereoperatorscanbesustainable;
Manage technological advances–Anumberoftheinitiatives,fromsecondgenerationERPtoWi-Fiontrainsorimprovedtravelinformation,requiretechnologytoenabletheirdelivery.TheLTAmust
workeffectivelywithtechnologycompaniestospecifytheprojectoutcomeswhilstnotlimitingorimpingingontheirinnovation;
Manage conflict between different road users – TheMasterPlanincludesmeasurestoencouragecyclingandincreaseduseofbusprioritylanes.Vehiclegrowthwillcontinuewhichcouldleadtoincreasedconflictbetweenroadusers.HowtheLTAmanagesthiswillbekeytomaintainingpublicsupportforitstransportpolicies;and
Maintaining service standards–Thebusmarkethasalready been opened up with new routes tendered to privateoperatorsandLTAaimingto“worktowardsgreatercontestabilityinthebusindustrytoimprovetheefficiencyofbusoperations.”TheLTAmustensurethatthisincreasedcompetitiondoesnotresultininconsistentservicestandardsacrossoperators,withpassengerssuffering.TheintroductionofthenewQualityIncentiveFrameworkisapositivefirststep in this regard.
IftheLTAcanovercomethesechallengesandcontinuestolistentocitizensandrespondtoexternalchangesthenSingaporecanmaintainitspositionasaleadingliveablecity.Thesuccessfulimplementationofthespecifiedprojectswillrealisesignificantbenefits.Forexample, asmoothtransitiontoasecondgenerationERPsystemwillgivetheLTAamuchgreaterabilitytomanagetrafficandcongestiononarealtimebasis.Dynamicpricingcouldbeimplementedtorespondtocongestionblackspotsorrespondtoaccidents.ItalsoenablestheLTAtobemoreflexibleandtargetedinitsoverallroadusepolicy.
Overall,thisMasterPlanreaffirmstheimportanceofeffectiveeconomicinfrastructuretothesuccessofSingaporeasadynamicandsuccessfulcity-state.Itsetsouttheprojectsthatmustbedeliveredandthedesiredoutcomesfromthoseprojects.Withitssuccessfulimplementationanddelivery,Singapore’scompetitivepositionintheworldeconomywillhavebeensafeguarded.
The Singapore Land Transport Master Plan 2013 – A Review by PwC 11
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Where PwC can help
PwC’sTransportation&Logisticspracticeprovidesassurance,taxandadvisoryservicestotransportation&logisticscompanies.OurT&Lpracticecomprisesaglobalnetworkofmorethan4,400industryprofessionalswhoarerecognisedfortheirinnovationinresolvingcomplexbusinessissuesthroughanalysis,andthedevelopmentandimplementationoftailoredsolutions.
TransportationisakeysectorinSingapore,withdemandforpublictransportgrowingasaresultofpopulationgrowth,landuseconstraintsandenvironmentalconcerns.PwCadvisesgovernmentandprivatesector
Key service offerings
Government Sector/PPPs
•Ourgovernmentsectoradvisoryserviceofferingprovidescomprehensiveassistancetogovernmentalagenciesfromtheoutsetofanyproject.Ourserviceofferingincludesconductingfeasibilitystudies,framework/policydevelopmentandtendering/procurementadvice.
•PwCalsoprovidesspecialistadviceforPPPsandprojectfinancing,havingpreviouslybeeninvolvedinkeyprojectssuchastheSingaporeSportsHubandITEWest.
Capital Projects Services/Project Management Office (“PMO”)
•CapitalprojectmanagementisaPwCapproachthatgovernmentsandbusinessescanusetoplan,manageanddelivercapitalprojectsinastructuredwayinordertomaximisepotentialbenefits.
• Itfocusesonriskateverystage,whether“upfront”duringappraisalandprocurementstagesor“downstream”duringconstructionorwhendisputesdevelop.Thisallowsustohelpclientsinthetransportindustrydeliverprojectsontimeandmoreimportantlyonbudget!
Market Entry/ Strategy Asssessment
•PwC’sdedicatedstrategyteamspecialisesinsupportingbothlocalandinternationalclientswithsuccessfulmarketentrydecisions.
•Wehelpanswerkeyquestionssuchas(i)Whatisthesizeofthemarket,whatarethekeytrendsdrivingitanditsgrowthpotential?(ii)Whatisthecompetitivelandscape(includinglocalandinternational players) and what would be your points of differentiation? (iii) What are the entry barriersandtherisksassociatedwiththem?
Bid Management
•Wehelpprivatesectorparticipantswithassessingtherightbusinessopportunitiesandpreparationofbidsforprojects.
•Thisincludesprojectmanagingtheentirebidsubmissionprocess,buildingoffinancialmodelstoassesspotentialreturns,draftingthebiddocumentsandprovidingcommercialsupportduringnegotiation.
M&A/Capital Raising (Equity & Debt Financing)
•Thetransportsectorischaracterisedbyagrowinglevelofprivatisation,finance-raisingandmergerandacquisitionactivity(M&A).Transactionsareoftencomplexandimpactedbytheregulatoryenvironment,competitionissues,orneedforcontractedsubsidiestosupportoperations.
•Withourindustryknow-howandspecialistskill-sets,PwCiswellplacedtoassisttransportationandlogisticscompaniesacrossthedealcontinuumthroughassessing,capitalraisingandmaximisingthereturnontransactions.
participantsinthetransportsector,reconcilinginvestors’needforprofitwiththepublicsector’srequirementsforfinancialtransparency.
Ourworkwithgovernmentalagenciesincludesshapingtheirpolicies,developingdeliveryframeworksandprocuringandtenderingprojects.Ontheprivatesectorsidewecanhelptransportoperators,constructioncompaniesandindustrysupplierstoassessandwintheseprojects.Ourkeyadvisoryserviceofferingsinthetransportsectoraresummarisedinthediagrambelow.
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PricewaterhouseCoopers” and “PwC” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers Inter national Limited, each member firm of which is a separate legal entity.
Contacts
Richard Abadie GlobalHead,CapitalProjects&Infrastructure +442072133225 [email protected]
Mark Rathbone AsiaPacificLeader,CapitalProjects&[email protected]
Oliver Redrup CapitalProjects&[email protected]
www.pwc.com/sg
