Finance

Major Opportunity: Bidding Opens for 27 Electric Bus Routes in Tampines Starting 2026!

2024-12-31

Author: John Tan

SINGAPORE – An exciting new chapter in public transport is set to unfold as the Land Transport Authority (LTA) invites bids from public transport operators to manage 27 bus routes in Tampines beginning in 2026.

This initiative reflects Singapore's commitment to modernize its transportation system with an emphasis on electric bus operations.

The tender was announced on December 19, with a goal to finalize the contract by the second half of 2025. The incumbent operator, SBS Transit (SBST), has successfully managed these routes since 2016, but with their current contract expiring in July 2026, they will face new competition.

Key Route Information

This bus package encompasses significant trunk routes, including bus services 10, 23, and 81, along with an upcoming service slated to debut in 2025 as part of the ambitious $900 million Bus Connectivity Enhancement Programme.

As the LTA has stated, more detailed announcements about this new service will be disclosed as plans evolve.

Integration with New Depot

Furthermore, the routes currently operated from the Bedok North Bus Depot will transition to the new East Coast Integrated Depot in 2026.

This advanced facility aims to accommodate over 500 buses, providing charging capabilities for more than 200 electric vehicles, while also integrating train depots that support three railway lines.

Focus on Electric Operations

For this bidding round, the LTA is placing considerable importance on electric bus operations, evaluating how prospective operators plan to optimize their fleet deployment, maintenance of the battery-powered buses, and the safety of their operations.

This is part of a broader effort to electrify Singapore's public bus fleet, with plans to acquire over 2,000 electric buses in the next five years.

By 2030, an ambitious target aims for half of Singapore's 5,800 public buses to run on electric power.

Current and Future Fleet?

Currently, 70 electric buses are already on the roads, with an additional 410 expected to hit the streets by the end of 2025.

To adequately support this transition, all future bus depots will be equipped with electric vehicle charging systems.

Infrastructure Development

Ongoing projects include the installation of 42 plug-in chargers at several existing depots, while two new depots—Sengkang West and Gali Batu—will add significant charging capabilities with a combined total of 480 high-powered chargers.

Promoting Competition

The tender process is structured to promote healthy competition in the sector.

Although the existing contracts have typically run for five years with options for extensions, recent trends show that certain contracts could see extensions of up to five years, depending on market conditions and operational considerations.

Interest from Operators

As new players gear up for the opportunity, both local operators like SBST, SMRT, Tower Transit Singapore, and Go-Ahead Singapore have expressed interest, alongside international contenders such as Spain’s Nex Continental Holdings and France’s Transdev Group.

Expert Opinions

Experts, such as Associate Professor Walter Theseira from the Singapore University of Social Sciences, suggest that local operators might need to leverage the expertise of international firms experienced in large-scale electric bus operations to strengthen their bids.

However, the feasibility of introducing a fifth operator remains uncertain, especially in the context of narrowing profit margins in recent tenders.

Conclusion

This crucial step toward electrifying Singapore’s public transport not only promises to enhance the commuter experience but also aligns with the nation's broader sustainability goals.

The LTA's ongoing commitment to improving public transport will surely set a standard for cities around the globe.

Keep your eyes peeled for updates on this transformative project!