Thursday, May 3, 2012

How will the $900 million be split?

I think everyone is trying to guess how LTA and SMRT will split the $900 million dollar bill. Look no further than the SMRT annual report.

Base on their annual report, LTA owns the infrastructure of all the lines, which includes tunnels, tracks, viaducts and station structures. Therefore, these collector shoes on the tracks will most probably be the responsibility of LTA.

For NSEW Line, SMRT owns the operating assets including the trains, power supply equipment, cabling, electrical services, signalling system, and communication system to name a few. Therefore it will seem that SMRT is responsible for almost all the other items, especially the big ticket items.

Moreover, a grant of $480 million was given to SMRT to help them to own the operating assets of NSEW line. Therefore, I strongly feel that SMRT should be made to pay for what they own. This will send a strong message to the other transport operator that they better maintain their assets well, or it will come back to bite them.

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