ComfortDelgro to takeover SMRT Taxis
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SMRT taxis losing too much money .....
Very soon news will be announce .
Around by next year .
Then SBS Transist that operates NE line will be handover to SMRT .
In line with the authority proposal of one MRT operator and one mega taxi operator .
This news has been circulating inside our industry ........ lately .
No fire where got smoke ? -
Wasted then can't take anymore SMRT cabs & as for the NEL, if it is handed over to SMRT then it'll have to undergo "re-naming", remove the SBS Transit logos & up goes the SMRT logo...not only the trains but the various stations as well
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hohohoho
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Expected for NEL. Good for SMRT as it is technically similar to CCL and gives them more hands-on expertise in managing Alstom-type train systems.
However, I am still very mad at the snobbish attitude for wanting an offer she can't resist. Now it's only left for the Government to make it happen.
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This story was printed from TODAYonline
Of rail and retail
SMRT more than just about moving people, says CEO Saw Phaik Hwa
Weekend • January 8, 2005
Tor Ching Li
[email protected]
EYEBROWS were raised two years ago when the new president and CEO of train operator SMRT Corporation was named — an industry outsider was going to head the 6,000-strong company, and a woman to boot.
Straight-talking Saw Phaik Hwa was not fazed; she charged into the job, bringing to it what has proved to be her very useful experience with airport retail chain DFS Venture Singapore.
Last year, SMRT Corp, which is listed on the Singapore Exchange, reported a near trebling of its interim earnings, with profits of $81.3 million, for the six months ending Sept 30.
And she did it without raising fares.
Said Ms Saw: "Although fares are reviewed annually, we have not applied for an increase in fares over the last three years because of the weak economy. Our fares have actually come down as we have been absorbing the rise in GST.
"We have been going all out to make SMRT the customer's choice. We want to drive ridership to improve our profitability. At the end of the day, it's a bottom line thing."
Citing SMRT's ongoing Ride-For-Free Countdown as an "aggressive" and "out of the box" promotion tactic — where till April this year commuters of SMRT buses and trains stand to win prizes such as a Nissan March or a year's free travel — Ms Saw quipped: "Would you think of a train system having a lucky draw?
"In the old days, SMRT's mission was to be a reliable and safe train system. But if that's your mission in life, it's very uninspiring!
"So we want to be more than just reliable and safe because we do want customers to choose to use our system. Our mission is to be the customers' choice. Of course, a lot of people say 'no choice, must take train'. But if you take that as a fait accompli, then it's a non-starter — we're not going to get anywhere.
"We take it that we owe it to our customer — whether they have a choice or not, we shall be their choice."
SINGAPORE ICON
This guiding principal is now an integral part of SMRT's Vision, Mission and Core Values set out earlier this year, as part of SMRT Corp's brand building initiatives.
In May this year, the group launched a $2.5-million initiative to rename Tibs Taxis and Trans-Island Bus Services under the SMRT brand name and motto of "Moving People, Enhancing Lives".
Said Ms Saw: "We're not just about moving people, but enhancing lives as well."
The efficient MRT system, said Ms Saw, should be as much of a Singapore icon as Changi Airport.
"We want Singaporeans to know that SMRT can always be trusted to do the right thing, regardless of the situation," she added.
This means implementing a pay freeze during Sars, outsourcing and streamlining staff size for the new economy, offering its 2,400 SMRT taxi drivers a "comprehensive" $1-million relief package to cope with the rising price of diesel, reaching out to the community through charity work and spending $150 million upgrading its first batch of trains which are now 17 years old.
"We've got to be all things to all people at one go," said Ms Saw. "For shareholders, our added value comes from other non-fare related revenue."
The first "can do, must do" revamp that Ms Saw kick-started was the overhaul of the "horrible looking" retail outlets that used to occupy MRT stations.
"I come from not only a retail background but airport retail where every square metre costs thousands of dollars, and every square inch is so powerful and important!" she exclaimed.
FOREIGN TRAVEL
Ms Saw, 49, is also keen to develop SMRT's foreign business potential. There is "tacit agreement" that SMRT will be a partner in the operation and maintenance of Jakarta's ambitious $1-billion monorail system, which is due to be up and running by end 2007.
Said Ms Saw: "In the past, SMRT has not taken a very aggressive stance overseas, even though many countries know us and have come looking for us to partner them in projects. We are now positioned to do so."
According to Ms Saw, SMRT is also "keeping a close eye" on how things develop in China's and India's rail systems, which they are already "very involved in". More specifically, it will be bidding for Shanghai's urban rail project, where SMRT is already acting as a consultant.
Ms Saw also plans to grow her share of the local taxi market of 20,000 from just 10 per cent.
"In a free market, it is not realistic for the second largest player to remain at that level with just 2,000 licences. It's foreseeable to grow to 20 to 30 per cent eventually.
"We have to continue to seek opportunities to improve. There's always a better way to do something, technology-wise or organisational. We must grow the business successfully and I would like to continue to give my staff good bonuses and competitive salaries."
ALL ABOARD
SMRT is currently taking a "proactive" approach to encourage people to go out and take the trains, such as working closely with shopping centres and retailers along the MRT and LRT lines to publicise the happenings in various malls.
"I'm not forcing you to go out, the choice is yours, but I'm giving you a reason to travel and enjoy your leisure, you see," said Ms Saw, who stays along Coronation Road West where there is ironically "no bus or train" service to take to work.
And the plan must be working — according to statistics from the Land Transport Authority (LTA), the number of trips taken on the MRT and LRT every day has risen by 67.4 per cent, from 760,000 in 1995 to 1.27 million for the 12 months up to March this year.
Ms Saw herself takes the train "whenever possible" to get around town after driving to work in either her BMW 745i or Nissan 350Z sports car.
But even as Ms Saw encourages people to shop along her train lines, she is not indulging in shopping for train lines herself.
"The answer is no, I have not been made an offer I can't resist (to buy over the SBS Transit's North East Line)", said Ms Saw with a laugh. Since operations started late last year, the NEL has chalked up losses of $20 million — even with negligible maintenance and repair costs.
Said Ms Saw: "I'm very willing to run the NEL even if it doesn't make a lot of money, if it's for the 'greater good'. But a loss of $20 million a year will not be tenable for our shareholders."
Inevitably, talk of a rail deal has resurfaced following the recent media merger. But Ms Saw said: "Integration is tougher in our industry. I can't stop running the trains, increase the fares or cut the service. Costs savings and efficiency opportunities are limited. Revenue will not change unless the population in the area increases."
COME TOGETHER
"I always feel that for Singapore, it makes sense to integrate the whole transport system — buses, taxis and trains should be integrated for the greater good of Singapore. That's one area I feel Singapore can do better as a country. Otherwise, there will be duplication and waste."
"Unlike other countries where a monopoly may be viewed negatively, in Singapore there's the LTA and the PTC (Public Transport Council) to ensure efficiency and efficacy."
On the flipside, this inter-agency web currently contributes to a "lack of connectivity" between the MRT stations and nearby buildings.
Lamented Ms Saw: "Compared to Japan or Hong Kong, where train operators are given the land to develop, in Singapore there are more opportunities to improve in terms of connectivity and integrated shopping."
Overzealous enforcement of strict fire safety code has also resulted in Singapore having "the least exciting train stations compared to any other new areas in the world", according to Ms Saw.
For example, SMRT was only allowed to paste four A4 pieces of fire-resistant posters at each station to publicise their Ride-For-Free Countdown promotion.
"I'm fully sympathetic with the need to enforce safety, but it's just the incongruity of people walking in and out of stations wearing far more flammable material than our posters. Hopefully in time, we will become more open in how we do things."
Mention the spate of MRT suicide cases last year, and Ms Saw shrugs in incomprehension: "To me, there is more to live than to die for."
In other words, there's always light at the end of the tunnel.
Copyright MediaCorp Press Ltd. All rights reserved. -
But seriously I fear if it's under SMRT, freq would be like what's going on nowOriginally posted by ^tamago^:Expected for NEL. Good for SMRT as it is technically similar to CCL and gives them more hands-on expertise in managing Alstom-type train systems.
However, I am still very mad at the snobbish attitude for wanting an offer she can't resist. Now it's only left for the Government to make it happen.
6 mins becoming 10 - 12 mins
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how abt SMRT BUS?
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Similiar to CityCab , it will be unchanged in most things , including taxi operations ( independant operations ) , SMRT taxis will be more like independant , their taxis will be still be running on the road . No change of colours etc ...Originally posted by SMRT Buses:Wasted then can't take anymore SMRT cabs & as for the NEL, if it is handed over to SMRT then it'll have to undergo "re-naming", remove the SBS Transit logos & up goes the SMRT logo...not only the trains but the various stations as well
Only changes , their cab will be equip with a better GPRS calling system .
It will be good for commuters as well ..... there'll be 5000 extra taxis on the Comfort GPS frontline , thus easier to call for a cab .
Good for SMRT cabbies , they will enjoy cheaper diesel if they buy it from our diesel kiosk . The drivers also will enjoy more locations buying their diesel . Current SMRT can only buy their diesel from Geylang , Wlands and AMK .
Comfort Delgro has got more location , more than 8 of them around Spore .
No good for cabbies like me , i have more competitions getting a booking jobs .
Well .... a master always a master ..... i'll get no real threat from those new SMRT counterparts . What i master , they need to go thru at least 3 years . -
I hope SBS takesover everythingOriginally posted by Y_Shun:how abt SMRT BUS?
Give SMRT a run for their money. Current situation makes SMRT to make ppl wait long long, cos it's a monopoly - buses can't run along w/ MRT -
What is more interesting is that it's now running like a retail biz... Lucky draw, credit card at the compromise of basic serviceOriginally posted by ^tamago^:Expected for NEL. Good for SMRT as it is technically similar to CCL and gives them more hands-on expertise in managing Alstom-type train systems.
However, I am still very mad at the snobbish attitude for wanting an offer she can't resist. Now it's only left for the Government to make it happen.
Even received an internal mail bef... It's disgusting -
fug smrt.
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i think it's exchanging a underperforming entity for another underperforming entity, but still NEL has more potential than SMRT Taxis.
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Not very likely to happen due to some issues. Firstly, SMRT taxis has been losing money consistently, if comfort were to take over the buisness, they may have to absorb some impairment charges.
Secondly, NEL has just broken even, it wouldnt make sense for comfort to let go of the NEL so fast without first enjoying the fruits of their labour.
Also, I spoke to Saw Phaik Hwa at the recent SMRT AGM regarding this issue, and she said its something very complex and not as simple as swapping buisness as the media portrays.
Hmm.... -
Her way is to make things complicatingOriginally posted by shade343:Not very likely to happen due to some issues. Firstly, SMRT taxis has been losing money consistently, if comfort were to take over the buisness, they may have to absorb some impairment charges.
Secondly, NEL has just broken even, it wouldnt make sense for comfort to let go of the NEL so fast without first enjoying the fruits of their labour.
Also, I spoke to Saw Phaik Hwa at the recent SMRT AGM regarding this issue, and she said its something very complex and not as simple as swapping buisness as the media portrays.
Hmm....
In fact all the losses came under SMRT, Tibs era was hardly heard
Meaning she can't even manage the co -
cry if u can... in monopoly market... more hikes, a lot more expected...
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Well, at least she made an effort to increase the revenue stream of the company by investing in advertisment and Retail space.Originally posted by sbst275:Her way is to make things complicating
In fact all the losses came under SMRT, Tibs era was hardly heard
Meaning she can't even manage the co
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agreed.... retail space making $$.... more to come~!!Originally posted by shade343:Well, at least she made an effort to increase the revenue stream of the company by investing in advertisment and Retail space. -
Yeah, to 'defray' fare increase pressureOriginally posted by shade343:Well, at least she made an effort to increase the revenue stream of the company by investing in advertisment and Retail space.
That's why I support PTC to reject SMRT's train application, now SMRT improving EWL freq... -
even if SMRT is earning tonnes of profit, they will always apply for fare increase if given the opportunity. its all about company/organisation politics. if its leader fails to do so, surely it will set tongues wagging why the leader is "so stupid" got money don't want (esp shareholders) and so on.
that's why PTC plays an important role as an independent body to limit/halt such fare increases in the interest of the general public.
In Australia, the govt doesn't even bother how much the rail operators are going to increase their fares annually! and its about 5-10% increase each year! And its rail operators need not come up with reasons and excuses to justify a fare increase! -
Yeah, and to think that train fares are supposedly subsidised.Originally posted by SBS3688Y:In Australia, the govt doesn't even bother how much the rail operators are going to increase their fares annually! and its about 5-10% increase each year! And its rail operators need not come up with reasons and excuses to justify a fare increase!
As for SMRT Buses, it is better to spin it off. Maybe Swan Transit can take over. -
Stop your Aussie facsination. You might as well ask Grenda Corporation to buy over since it has a share in the company which owns Swan Transit.Originally posted by iveco:Yeah, and to think that train fares are supposedly subsidised.
As for SMRT Buses, it is better to spin it off. Maybe Swan Transit can take over. -
Well, I know Volgren and Path Transit are linked. Swan Transit is another different grouping altogether.Originally posted by Scania:Stop your Aussie facsination. You might as well ask Grenda Corporation to buy over since it has a share in the company which owns Swan Transit.
Anyway, SG is better off having John Howard for PM. it is possible to call him a dictator to his face and still get away with it. -
if SBS Transit give SMRT North East Line...then
will SBS Transit still retain its name or back to SBS?
Since its a bus-operator only. -
Grenda Corp is not Volgren. Volgren is a fully owned subsidary owned by Grenda Corp. Difference bewteen Grenda Corp and Volgren is that one had its roots as a bus company and the other is a coach buiding company.Originally posted by iveco:Well, I know Volgren and Path Transit are linked. Swan Transit is another different grouping altogether.
Anyway, SG is better off having John Howard for PM. it is possible to call him a dictator to his face and still get away with it.
If we have John Howard as PM...I think Singapore will fall. I am not a PAP supporter, neither am I a supporter to a avid bootlicker who suck up to Bush more than LSL. -
It is still easier to vote him out unlike LHL.Originally posted by Scania:If we have John Howard as PM...I think Singapore will fall. I am not a PAP supporter, neither am I a supporter to a avid bootlicker who suck up to Bush more than LSL.
Go Kevin Rudd! Labor for Elections 07!