PTC To Raise Bus & Train Fares By 3.2% Overall From 6 Apr 2014 UPDATED 12 Feb 2014

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The Public Transport Council (PTC) has decided to grant an overall fare adjustment of 3.2% for the 2013 Fare Review Exercise.

This is about half of the combined 2012 and 2013 fare caps of 6.6%, with the remainder rolled over to the 2014 Fare Review Exercise, which would also have to take into consideration the 2014 fare adjustment quantum.

The PTC has also decided to implement in full all the recommendations proposed by the Fare Review Mechanism Committee (FRMC), noting that the Government has decided to likewise implement the two new Government-funded schemes for Persons with Disabilities (PWD) and Lower-wage Workers (LWWs). In total, about a million commuters are expected to benefit from these enhanced and new fare concessions.

With effect from 6 April 2014, adult card fares for buses and trains will increase by 4 to 6 cents per journey. Senior citizen concessionary fares will increase by 2 to 3 cents per journey, while student concessionary fares will increase by 2 cents per journey.

Cash fares for train and adult bus rides will increase by 20 cents per trip, while senior citizen and student concessionary cash fares for bus rides will increase by 10 cents per trip. Commuters are strongly encouraged to use contactless smartcards, instead of paying cash fares, to enjoy lower fares.

The PTC decided to implement the following concession enhancements from 6 April 2014 to mitigate the impact of the fare increase on commuters:

1. FREE travel for children below 7 years of age, before they enter primary school;
2. Polytechnic students will now enjoy the same monthly concession pass prices as Secondary, Junior College and ITE students, i.e. prices for Polytechnic monthly concession passes will be brought down by between 44% and 47%;
3. All other student hybrid monthly concession passes will also see price reductions, of between 3% and 12%;
4. Prices for NSF monthly concession passes will be lowered to be at the same price as University students, which is a reduction of between 10% and 23%;
5. A NEW monthly unlimited travel pass for adult Singaporean and permanent resident commuters (priced at $120) to help frequent public transport users cap their expenditures on public transport;
6. A NEW monthly unlimited travel concession pass for senior citizens (priced at $60, a 50% discount to the adult monthly travel pass) to provide additional help to senior citizens who are heavy users of public transport; and
7. Removal of the daily limit on train rides for all train and hybrid monthly passes. This will bring it in line with the current unlimited rides allowed in the bus monthly pass.

In addition, student concessions will also be extended to Singaporeans studying full-time in private institutions offering secondary level and higher education3 registered with the Council for Private Education (CPE). This will be implemented later in end 2014/early 2015, and more details will be released later.

Together, these concessions will benefit about half a million commuters.

In addition, the Government has informed PTC of its proposals to introduce two new Government-funded schemes for Lower-wage Workers (LWWs) and Persons Disability (PWD), which would benefit another about half a million commuters.

Sharing Gains with Needy Commuters

As part of the fare review exercise, public transport operators will be required to make a one-off contribution of a portion of the increased fare revenue to the Public Transport (PT) Fund, to help needy commuters cope with the fare increase.

Having considered the financial situation of the PTOs, the PTC decided that SMRT and SBST should contribute respectively 25% (i.e. $4.3 mil) and 20% (i.e. $7.2 mil) of the increased fare revenue to the PT Fund for this exercise, or a total of $11.5 mil.

The PTC notes that the Government will utilise the PT Fund to provide additional help to lower-income households to mitigate the increase in their travel expenditure.

Balancing Viability of Bus and Train Modes

In line with the FRMC’s recommendation to allow more fare revenue to benefit the more financially ailing bus mode as compared to the rail mode, the weightage for revenue allocation will be set at 1.1 in favour of the bus mode.

This translates to the bus mode receiving about $48 mil in fare increase and the rail mode $5.5 mil in this fare adjustment of 3.2%. This adjustment in relative weightage between the bus and rail modes does not affect commuters’ fares.

Mr Gerard Ee, Chairman of the PTC said, “In its deliberations, the Council took guidance from the new fare formula, fare review mechanism and other FRMC recommendations that were accepted by the Government recently. The approved fare adjustment of 3.2% is significantly less than the quantum of adjustment for which the operators had applied.”

“We understand that any fare increase, no matter how modest, will impact commuters. In approving the increase and deciding on the quantum, the Council ensured that fares would continue to remain affordable. The various concession enhancements, which will benefit approximately half a million commuters, together with the two new Government-funded schemes which will benefit another about half a million more, will go a long way to ensure continued fare affordability. In addition, those who need more assistance will be able to receive help from the Public Transport Fund.”

Public Transport Fares to Increase by 3.2% w.e.f. 6 April 2014

The Public Transport Council (PTC), in deciding the fare adjustment this year, has looked at the fare adjustment formulae for 2012 and 2013 that give a combined fare cap of 6.6%.

The fare adjustment formula protects the interests of commuters by capping the increase, rather than leaving it to the operators to decide what the market can bear. Commuters also benefit via a productivity extraction factor, through which the operators share their productivity gains with commuters.

The approved fare increase of 3.2% is less than the national mean wage increase in 2013. In accordance with the new fare review mechanism, the remaining 3.4% (i.e. 6.6% – 3.2%) will be rolled over to the 2014 fare review exercise and added to the 2014 fare adjustment quantum which would be finalised around April 2014.

Estimated Impact on Commuters Paying Card Fares

For adult commuters, their fares will increase by 4 – 6 cents per journey depending on the travel distance. This translates to an average increase in fare expenditure of $21 a year6. Concessionary fares for senior citizens will increase by 2 – 3 cents per journey.

On average, senior citizens will pay $10 more a year with the fare increase.

Student concessionary fares will increase by 2 cents across-the-board. For this group, their annual fare expenditure will increase by $7 on average.

Adults, senior citizens and students who are frequent travellers, may consider switching to monthly passes. Besides offering unlimited bus and train rides, these passes will help commuters to limit their monthly fare expenditures.

Estimated Impact on Commuters Paying Cash and Single Trip Ticket Fares

Adult cash-paying passengers will see an increase of 20 cents per trip, whereas the concessionary cash fares for senior citizens and students will increase by 10 cents per bus trip. Today, less than 3% of total daily trips are made using cash or single trip tickets on our buses and trains.

Cash-paying commuters may switch to contactless smartcards, instead of paying cash fares, to enjoy greater convenience and lower fares for public transport.

Enhancements to Existing Concessions

As part of the fare review exercise, the enhancements to existing concession schemes proposed by the Fare Review Mechanism Committee (FRMC) will be implemented with effect from 6 April 2014.

In total, about half a million commuters are expected to benefit from these enhancements, as summarised below.

Two new Government-Funded Schemes for Lower-wage Workers and Persons with Disabilities

In line with the FRMC’s recommendations, the Government will fund two new concession schemes for Lower-wage Workers (LWWs) and Persons with Disabilities (PWDs) to help ensure that fares remain affordable for disadvantaged groups that are most impacted by any fare increase.

The new concession schemes, which will start from 6 July 2014, is expected to benefit 400,000 LWWs and 50,000 PWDs.

Checks on Public Transport Fare Affordability

To ensure that fares remain affordable, the Fare Review Mechanism Committee (FRMC) recommended that the affordability of public transport fares should be tracked by the PTC in deciding fare adjustment. Fare affordability will be tracked for the second quintile income group households representing the average public transport user, as well as the lower income second decile income group households.

With the fare adjustment granted for this exercise, public transport fares continue to stay affordable on the back of general increase in wage levels. The indicators for the second quintile households and second decile households show the same downtrend trend from 2003 to 2012, that is, these households have been spending proportionately less of their monthly income on public transport fares in recent years, and hence, public transport fares have become more affordable for these groups.

Contributions to the Public Transport Fund

To ensure more resources are set aside to help those affected by fare increases, the FRMC had recommended mandatory contributions by the public transport operators (PTOs) to the Public Transport Fund as a form of sharing their gains with commuters. The amount of contribution, ranging from 20% to 50% of the fare adjustment granted, could vary depending on the PTOs’ profitability.

In view of the PTOs’ declining financials and the granted fare adjustment being less than the fare cap, the PTC decided that the contributions by the PTOs should be closer to the lower end of the range recommended by the FRMC. SBS Transit and SMRT will therefore set aside 20% (or $7.2 million) and 25% (or $4.3 million) of the additional fare revenue due to the fare increase, respectively.

Estimated Impact on Public Transport Operators

The overall 3.2% fare increase translates to a fare revenue increase of about $53.5 million a year for both public transport operators. The increase in revenue for SBS Transit and SMRT are $36.0 million and $17.5 million respectively.

The gain in revenue does not include money to be set aside by the operators for the Public Transport Fund as mentioned above (SBS Transit: $7.2 million; SMRT: $4.3 million).

Highlights of Public Transport Operators’ applications

SBS Transit had applied for a fare adjustment of 6.6%, i.e. the combined fare quantum for 2012 and 2013. The operator cited rising costs having a significant impact on bus and rail operations, resulting in their bus business going into the red in 2011 and continuing to be loss-making in 2012 and 2013.

Likewise, the financial performance for their rail business has also been declining and it went into the red for the first nine months of 2013 due to rising costs for the North-East Line and start-up costs for the new Downtown Line.

SMRT had likewise applied for a 6.6% fare adjustment. Between FY2010 and FY2012, SMRT had informed the PTC that it had incurred a 29% increase in operating costs particularly in the areas of manpower, energy, and repairs and maintenance.

The bus business has been loss-making for the past few years and losses may continue with more buses due for overhaul and replacement. The profit level of the train business has also been weighed down by rising costs, maintaining an ageing MRT network, and expenditure for mid-life refurbishment.

Approved Bus Fares (w.e.f. 6 April 2014)

a) Adult Fare Structure (Trunk Services)

b) Adult Fare Structure (Feeder Services)

c) Senior Citizen Fare Structure (Trunk Services)

d) Senior Citizen Fare Structure (Feeder Services)

e) Student Fare Structure (Trunk Services)

f) Student Fare Structure (Feeder Services)

g) Adult Fare Structure (Express Services)

h) Senior Citizen Fare Structure (Express Services)

i) Student Fare Structure (Express Services)

Approved Train Fares (w.e.f. 6 April 2014)

a) Adult Fare Structure (North-East Line, Circle Line and Downtown Line)

b) Adult Fare Structure (North-South and East-West Lines, Bukit Panjang LRT, Sengkang LRT and Punggol LRT)

c) Senior Citizen Fare Structure (North-East Line, Circle Line and Downtown Line)

d) Senior Citizen Fare Structure (North-South and East-West Lines, Bukit Panjang LRT, Sengkang LRT and Punggol LRT)

e) Student Fare Structure (MRT and LRT)

Monthly Concession Passes (w.e.f. 6 April 2014)

a) Bus Monthly Concession Passes (Unlimited bus rides)

b) Train Monthly Concession Passes (Unlimited train rides w.e.f. 6 April 2014)

c) Hybrid Monthly Concession Passes and Adult Monthly Travel Pass (Unlimited bus and train rides w.e.f. 6 April 2014)

Details on Enhancements to Current Concession Schemes

(A) Child Concession Card

The Child Concession Card is a travel card that currently allows concessionary travel on basic fare bus and train services for children. With effect from 6 April 2014, the Child Concession Card will allow holders to travel for free on basic fare bus and train services.

Eligibility Criteria

Children below 7 years old and not in Primary School may apply for a Child Concession Card. The card will be valid for use until 30 April of the year the child turns 7 years old, as the child would have already been issued the student concessionary card by then. Children below 0.9m in height need not apply for this card as they will continue to be entitled to free travel.

How to Apply

If the child is a Singapore Citizen or a Singapore Permanent Resident, simply complete and submit an application form to any TransitLink Ticket Office. The application form can be downloaded from: http://www.transitlink.com.sg/pdf/child_concession_card_application.pdf.

The parent or proxy making the purchase is required to produce his/her NRIC upon form submission at the TransitLink Ticket Office.

If the child is a non-Singapore Citizen or non-Singapore Permanent Resident, please present the child’s Passport (original or photocopy) upon form submission at the TransitLink Ticket Office.

The card will be encoded with the child’s name, Birth Certificate/Passport number, date of birth and expiry date of the card. Each eligible child is entitled to one Child Concession Card. The card will be issued on the spot.

Individuals holding a valid Child Concession Card can continue to use the card. They do not need to apply for a new card.

As the Child Concession Card offers free travel with effect from 6 April 2014, individuals may wish to take this into consideration when topping up their Child Concession Cards.

For Enquiries

For any enquiries, please call the TransitLink hotline at 1800-2255 663 or refer to the TransitLink website (www.transitlink.com.sg) for more information.

(B) Polytechnic Student Concession Card

Full-time matriculated students from government or government-aided polytechnics may apply for a Polytechnic Student Concession Card to travel on buses and trains. Upon receiving their Concession Cards, students may enjoy travel concession by purchasing Monthly Concession Passes.

With effect from 6 April 2014, polytechnic students will be able to enjoy even lower concessionary prices on their concession passes.

Eligibility Criteria

Students must be matriculated full-time in government or government-aided polytechnics and cannot be sponsored by or receive allowances from any organisation to be eligible for the Polytechnic Student Concession Card.

How to Apply

Eligible polytechnic students can apply for the Concession Card during the bulk application exercise which is usually conducted every April to May and July to August at their respective campuses.

In the event that polytechnic students miss the exercise, they can apply for their first card at any TransitLink Concession Card Replacement Office located island-wide.

When applying for the concession card, the following items are required:

• Passport-size photograph (taken within the last 3 months);
• Matriculation Card; and
• One of the following documents:
  • Original NRIC/Passport for Singapore Citizens; or
  • Original NRIC/Re-entry Permit for Singapore Permanent Residents; or
  • Original Passport and Foreign Student Pass (FIN) for foreign students.

There will also be a $5 card cost (non-refundable) and $3 personalisation fee (non- refundable) payable upon the application for the Polytechnic Student Concession Card. Monthly Concession Passes can be purchased at any TransitLink Ticket Office, TransitLink AVM+, General Ticketing Machines and Passenger Services Centres. The concession passes can be encoded to start from any specified date up to 7 days in advance.

Individuals holding a valid Polytechnic Concession Card can continue to use the card. They do not need to apply for a new card.

Polytechnic students may wish to note that concession passes bought before 6 April 2014 will not be refunded. Therefore, they may wish to time when they buy the concession passes, taking into consideration the reduction of prices which will take effect from 6 April 2014.

For Enquiries

For any enquiries, please call the TransitLink hotline at 1800-2255 663 or refer to the TransitLink website (www.transitlink.com.sg) for more information.

(C) Adult Monthly Travel Pass

The Adult Monthly Travel Pass is a NEW travel pass that allows unlimited travel on Singapore’s basic bus services and rail services within the period of validity of the Monthly Travel Pass purchased.

Priced at $120, it is designed for Singapore residents and non-concession card holders who travel frequently on public transport. Individuals will be able buy the Adult Monthly Travel Pass with effect from 6 April 2014. To do so, you must first apply for the Adult Monthly Travel Card.

Eligibility Criteria

All Singapore citizens and permanent residents are eligible for the Adult Monthly Travel Pass.

How to Apply for the Adult Monthly Travel Card

You can apply for the card by logging on to the TransitLink website (www.transitlink.com.sg). Alternatively, you can visit any of TransitLink’s Ticket Office to apply for the travel card from 16 March 2014.

If you apply online before 16 March 2014, you will receive your travel card by 6 April. Application via TransitLink Ticket Offices may take up to six weeks of processing time.

When you apply for the Adult Monthly Travel Card, you will also need to make an upfront payment of $128 for a monthly pass as this includes the cost of the card ($5 non- refundable) and a personalization fee ($3 non-refundable).

How to Buy the Adult Monthly Travel Pass

Monthly Travel Passes can be purchased at any TransitLink Ticket Office, TransitLink AVM+, General Ticketing Machines and Passenger Services Centre.

For Enquiries

For any enquiries, please call the TransitLink hotline at 1800-2255 663 or refer to the
TransitLink website (www.transitlink.com.sg) for more information.

(D) Senior Citizen Concession Card

Designed for senior Singapore citizens and permanent residents, the Senior Citizen Concession Card allows concession travel on public transport services.

With effect from 6
April 2014, Senior Citizen Concession Card holders will be able to purchase monthly concession passes priced at $60 which allows for unlimited travel on basic fare buses and trains.

Eligibility Criteria

Singapore citizens and permanent residents aged 60 years and above are eligible to apply for the Senior Citizen Concession Card.

How to Apply

Eligible senior citizens will be able to apply for their concession cards two weeks prior to their birthdays.

Application for the Senior Citizen Concession Card can been done online via: http://www.transitlink.com.sg/eservice/econcession/app_form1.php?app_type=1

Alternatively, eligible senior citizens can also apply for the concession card by completing and mailing an application form to the TransitLink Head Office located at: 9 Maxwell Road, Annexe A MND Complex, #03-02, Singapore 069112.

A photocopy of their NRIC (both the front and reverse sides) and a coloured passport sized photograph that was taken within the last 3 months must be attached to the completed application form.

The application form can be obtained from any TransitLink Ticket Office, or downloaded from http://www.transitlink.com.sg/imgs/file/Senior%20Citizen%20Application%20Form.pdf

Once ready, the concession card will be mailed to the applicant with further instructions for use.

How to Buy Senior Citizen Monthly Concession Passes

The Senior Citizen Monthly Concession Pass can be purchased at any TransitLink Ticket Office, TransitLink AVM+, General Ticketing Machines and Passenger Services Centre with effect from 6 April 2014. The concession pass can be encoded to start from any specified date up to 7 days in advance.

Individuals holding a valid Senior Citizen Concession Card can continue to use the card. They do not need to apply for a new card.

For Enquiries

For any enquiries, please call the TransitLink hotline at 1800-2255 663 or refer to the TransitLink website (www.transitlink.com.sg) for more information.

(E) Monthly Concession Passes

With effect from 6 April 2014, the 4-train trip limit will be removed from all Train Concession Passes and Hybrid Concession Passes. All Hybrid Concession Pass prices will be reduced..

How to Apply for a Concession Card

Individuals holding a valid concession card can continue to use the card. They do not need to apply for a new card.

How to Buy Monthly Concession Passes

Monthly Concession Passes can be purchased at any TransitLink Ticket Office, TransitLink AVM+, General Ticketing Machines and Passenger Services Centres. The concession passes can be encoded to start from any specified date up to 7 days in advance.

Monthly Concession Passes bought before 6 April 2014 will not be refunded. Therefore, concession card holders may wish to time when they buy their concession passes, taking into consideration the reduction of prices which will take effect from 6 April 2014.

For Enquiries

For any enquiries, please call the TransitLink hotline at 1800-2255 663 or refer to the TransitLink website (www.transitlink.com.sg) for more information.

Concessionary Fare Structures for LWWs and PWDs

Bus Fares (w.e.f. 6 July 2014)

a) Lower -wage Worker (LWWs) Fare Structure (Trunk Services*)

* Include Industrial Estate Services.

b) Lower-wage Workers (LWWs) Fare Structure (Feeder Services)

c) Persons with Disability (PWDs) Fare Structure (Trunk Services)

d) Persons with Disability (PWDs) Fare Structure (Feeder Services)

e) Lower-wage Workers (LWWs) (Express Services)

f) Persons with Disability (PWDs) Fare Structure (Express Services)

Train Fares (w.e.f. 6 July 2014)

Lower-wage Workers (LWWs) Fare Structure (North-East Line, Circle Line and Downtown Line)

b) Lower-wage Workers (LWWs) Fare Structure (North-South and East-West Lines, Bukit Panjang LRT, Sengkang LRT and Punggol LRT)

c) Persons with Disability (PWDs) Fare Structure (North-East Line, Circle Line and Downtown Line)

d) Persons with Disability (PWDs) Fare Structure (North-South and East-West Lines, Bukit Panjang LRT, Sengkang LRT and Punggol LRT)

For full information, download the press release here.

(Updated 7 Feb with “7 Feb New Fare Concession Schemes, Public Transport Vouchers PTVs” image)

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