SMRT

[cfa]

Shareholders have to bear for the responsibilities of the inability of the management. No head rolls ?

[Dividend Warrior]

Shareholders have to bear for the responsibilities of the inability of the management. No head rolls ?

Mdm Saw's head already rolled.....

[tonyking]

In today's news.

Train operators fined $1.1m for delays and lapses in safety


SMRT and SBS Transit have been fined a total of $1.1 million for a series of train delays and safety lapses in the last 10 months.

SMRT will have to shell out $860,000 for the following lapses: a trackside fire at Newton station on Feb 13; failing to launch the correct trains for service on the Bukit Panjang LRT network on July 4; failing to repair a corroded rail along the Circle Line on time; and exposing workers to the risk of electrocution at the Ulu Pandan depot between November and December last year.

The other public transport operator SBS Transit will be fined $250,000 for taking too long - 21/2 hours instead of 30 minutes - to evacuate 250 passengers stuck in a stalled train along the North-East Line (NEL) in June after the operator failed to move the stalled train to Hougang station for a detrainment process.

The Land Transport Authority (LTA) said it will not penalise SBS Transit for the Jan 11 NEL breakdown that was caused by corroded U-bolts that caused the overhead cantilever arm to sag. The regulator said the it may not have been possible to detect the defects visually and SBS Transit had maintained the U-bolts according to manufacturer's requirements. The fines will be donated to the Public Transport Fund to help needy families with their transport fares.

E fine seem like peanuts compared to its FY2013 Profit After Tax & Minority Interests (PATMI) of $83.3millions, e pain only goes to the shareholders who see their dividend cut, EPS drops to 5.5cent & PE rises to 23+.

Miss e old days when a break down is still a "major news", now it seem "parts of life", like a AGM or EGM, u probably see it few times a year...

[CityFarmer]

I chose to share the news here.

Over mid term, the general trend is more ridership on public transport over time...

Govt needs to convince S’poreans that public transport is convenient

SINGAPORE — Can the new master plan laid out by the Transport Ministry fuel the change it hopes to see in the general populace — a switch from private to public transport?

Experts yesterday weighed in on how the Land Transport Master Plan 2013 (LTMP) could achieve the goal of increasing the use of public transport over private transport: From demonstrating visibly the benefits of public over private transport, building air-conditioned bus stops, to changing the image of cars as desirable lifestyle objects.
...
http://www.todayonline.com/singapore/gov...convenient

[safetyfirst]

SMRT is getting interesting. Wisdom of the crowd is saying don't touch it. Well in investing staying with the crowd might not work.

have you started investing in it? And if yes, can share the reasons?

[brattzz]

"Govt needs to convince S’poreans that public transport is convenient"

Sure! we need more connectivity first, and of course, reliability now!!

[CityFarmer]

There is a story on SMRT on the Oct, 21 issue of The Edge. The story is quite bullish on SMRT, base on the impending shifts to cost-plus and asset-light models.

The cost-plus model will reverse the bus operation's losses, and becoming profitable. The change may happen in near term, by 2016. Assuming margin of 10%, SMRT will be able to fetch 20-30 mil, base on FY2013's costs, instead of -30 mil losses. It means 3-4 cents improvement in EPS, base on existing share base of 1.5 billion shares.

In FY2013, overall EPS dropped to 5.5 cents, from a stable 10+ cents before. Will the 3-4 cents improvement bring SMRT back to its good old days?

Asset-light model will take more time. It will serve as a growth story for SMRT, together with more future MRT ridership, with more MRT lines and stations.

What your opinion on the story?

(not vested)

[NTL]

There is a story on SMRT on the Oct, 21 issue of The Edge. The story is quite bullish on SMRT, base on the impending shifts to cost-plus and asset-light models.

The cost-plus model will reverse the bus operation's losses, and becoming profitable. The change may happen in near term, by 2016. Assuming margin of 10%, SMRT will be able to fetch 20-30 mil, base on FY2013's costs, instead of -30 mil losses. It means 3-4 cents improvement in EPS, base on existing share base of 1.5 billion shares.

In FY2013, overall EPS dropped to 5.5 cents, from a stable 10+ cents before. Will the 3-4 cents improvement bring SMRT back to its good old days?

Asset-light model will take more time. It will serve as a growth story for SMRT, together with more future MRT ridership, with more MRT lines and stations.

What your opinion on the story?

(not vested)

Will it result in higher fare for consumers? Or result in lower revenue for LTA, during the bidding exercise?

[CityFarmer]

There is a story on SMRT on the Oct, 21 issue of The Edge. The story is quite bullish on SMRT, base on the impending shifts to cost-plus and asset-light models.

The cost-plus model will reverse the bus operation's losses, and becoming profitable. The change may happen in near term, by 2016. Assuming margin of 10%, SMRT will be able to fetch 20-30 mil, base on FY2013's costs, instead of -30 mil losses. It means 3-4 cents improvement in EPS, base on existing share base of 1.5 billion shares.

In FY2013, overall EPS dropped to 5.5 cents, from a stable 10+ cents before. Will the 3-4 cents improvement bring SMRT back to its good old days?

Asset-light model will take more time. It will serve as a growth story for SMRT, together with more future MRT ridership, with more MRT lines and stations.

What your opinion on the story?

(not vested)

Will it result in higher fare for consumers? Or result in lower revenue for LTA, during the bidding exercise?

The "affordable" will likely remain as the theme for transportation policy. Revenue (fare) risk will be burdened by the LTA, or the gov in cost-plus model. So the fare will increase, but at a more moderated rate, IMO

Since commuters don't pay, "ah gong" has to pay, to ensure "affordable" and "sustainable" transportation service.

[NTL]

If they make too much, consumers will complain again...