SRJV secures contract to operate Jurong Region Line, marking entry of foreign operator in Singapore’s rail sector

SINGAPORE: The Land Transport Authority (LTA) has awarded the operating contract for the upcoming Jurong Region Line (JRL) to SRJV, A joint venture between SBS Transit Rail and RATP Dev Asia Pacific, a subsidiary of the French public transport operator, RATP Dev. This decision marks the first time a foreign company will participate in Singapore’s rail operations.

In its announcement, LTA confirmed that the initial operating license for the JRL would span nine years, with an option for a two-year extension. The statutory board said in a statement, “During this time, they have committed to use the experience of RATP Dev to build local capabilities in rail operations and maintenance.”

Under the agreement, the government will retain all fare revenue and assume the associated financial risks. SRJV will instead be compensated through a service fee for its operations. The contract also includes a performance-based incentive system: operators demonstrating excellent service standards will receive bonuses, while those falling short will face deductions in their fees.

SRJV secured the contract with a competitive bid of approximately S$750 million, which LTA highlighted as being about 8% lower than the proposal submitted by local rail operator SMRT. This cost advantage, combined with SRJV’s operational proposal, positioned the joint venture as the preferred choice for the JRL.

The JRL contract was part of a broader tender exercise launched in May 2023, which also included the upcoming Cross Island Line (CRL). However, LTA decided not to award the CRL operating contract at this stage, citing concerns that the bids did not adequately address uncertainties tied to the line’s operations, which are expected to begin six years from now.

The JRL, Singapore’s seventh MRT line, is designed to improve connectivity in the western region, serving key hubs such as Jurong Industrial Estate, Jurong Innovation District, and Nanyang Technological University. It is scheduled to commence passenger services in 2027.