LFIG
Transport Study Group
Seminar at the Singapore High Commission
On 6th November 2000, 14
members of the LFIG Transport Study Group attended a seminar at the Singapore
High Commission to learn more about transport policies and management in
Singapore. The High Commissioner, Pang Eng Fong, was generous, both with his
hospitality and his time. The two main topics, which generated lively
discussion, were the privatisation and regulation of public transport, and the
traffic restraint measures in place
in Singapore.
Public transport investment in the Mass
Rapid Transit railway and the Light Rapid Transit System has been undertaken by
the state. The companies are then privatised, with the infrastructure and the
first operating assets (principally rolling stock) being handed over.
Privatisation is by flotation on the Singapore Stock Exchange, with shares being
released for sale in tranches, and discounted shares also available to
interested parties, including trades union members. This progressive
privatisation prevents overloading the investment capacity of the stock
exchange, and also ensures, unlike the British Rail privatisation, that the
state receives market value for the assets as subsequent tranches of shares are
sold. The companies are regulated by the Public Transport Council, a Government
appointed body. The regulatory regime allows fares to be set to reflect the
costs of operating and maintaining the system, and for investment to replace the
first operating assets, ensuring that the track, signalling and rolling stock
can all be maintained and replaced to the highest standards. The next main rail
line, the North East Line, will be operated by a different company, an existing
bus operator, in order to be able to monitor performance on a competitive basis.
Unlike the London Underground PPP proposal, each company will operate a
vertically integrated railway.
Traffic restraint is designed to limit
the amount of car traffic to the capacity of the system, thus providing a good
level of service on the road network. Car ownership is limited by a Vehicle
Quota System, which only allows a vehicle to be registered to the holder of a
Certificate of Entitlement. The number of such certificates is controlled, and
the price fixed by the demand. The result is that to buy a small family saloon,
including the purchase price, import duty and Certificate of Entitlement, will
cost £40,000 to £50,000. Car use is charged through an electronic road pricing
system, which varies the charge according to time of day and location, in order
to reduce congestion.
Singapore therefore has a transport
system with high car ownership and operating costs, and low public transport
fares, compared with European cities. This allows 3.9 million people to live on
an island of only 200 square miles with freedom of movement and freedom from
congestion. This may not appeal to the British fuel protest lobby, but must have
some lessons for us.
The event was an interesting evening for
the group, and many thanks to the High Commissioner.
Hugh Collis
