SMRT takes over $599.5 million LTA bus contract from SBS Transit

SINGAPORE: The Land Transport Authority (LTA) has awarded the Serangoon-Eunos bus package to SMRT Buses under a contract worth an estimated S$599.5 million, with operations set to commence in June 2027.

The contract will run for five years from June 13, 2027. LTA also retains the option to extend the agreement between two and five years after the initial term.

Under the new contract, SMRT will operate the bus services from the upcoming Kim Chuan Bus Depot. It will also take over the management of Eunos Bus Interchange, Serangoon Bus Interchange, Woodleigh Bus Interchange and Sims Place Bus Terminal.

The Serangoon-Eunos bus package is currently operated by SBS Transit, with services running from Hougang Bus Depot. The package comprises 26 bus routes.

According to LTA, SMRT emerged as the top-ranked bidder after receiving the highest overall score in the evaluation process. The authority said the company’s proposal would deliver cost savings compared with the existing contract, while also outlining plans for electric bus operations and maintenance as well as initiatives to develop its workforce.

LTA said employees currently working under the SBS Transit-operated package will be protected under industry employment guidelines during the transition.

As part of the handover, SMRT will be required to offer affected employees employment terms that are no less favourable than their existing conditions. Workers who are impacted by the change will have the option of joining SMRT, while those who do not make the switch may be redeployed by SBS Transit where possible.

The tender for the bus package was called on 19 December 2025. LTA said it adopted a two-envelope evaluation process, under which quality submissions were assessed first before the corresponding price bids were opened.