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Newcomers spice up bus industry as incumbents lose out to foreigners on tenders
Incumbents are up for long term challenges.
Singaporeans were abuzz when the first two tenders for bus packages, Bulim and Loyang, were awarded to two new foreign bus operators after a hotly contested bidding.
As a result, analysts from RHB Research think the newcomers are going to shake Singapore’s public bus industry up as the competitive pressure increases.
According to a report by RHB, the two tenders were also granted to the two lowest bidders both originating from the UK, with the Bulim bus package awarded to Tower Transit Group, while the Loyang bus package was awarded to Go Ahead group.
RHB also says the new players could generate long term challenges for incumbent bus operators, especially when their contracts for nine bus packages are up for renewal through tendering process.
Photo by imranahmedsg/Shutterstock.com
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