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4/15/2008

More trains running

MRT has increased the number of trains running and reduced the waiting time for the next train. This must have brought some relief for commuters as the trains should be relatively less jam packed and there will be more air to breathe. With the increase in frequency and the same number of commuters travelling, the cost will definitely go up relative to revenue. And if MRT cannot generate more revenue from its other sources of income, eg rentals and advertisements, the profit will definitely go down, or may not rise as much in percentage term. And if the company must register growth in profit to satisfy the shareholders, and to pay more bonuses to its staff, what is the next logical development? Commuters must be prepared for higher fares for sure. There is no magic formula when the trains are operated for the primacy of profit first and national service second. It is not like national service pay where a NS men can be paid a few hundred bucks and if not enough, go back to parents for more pocket money. The public transport is a private business organisations and does not have a duty to perform national service, just like restructured hospitals. Soon schools too will not be doing national service. And many ministries may go along the same concept. Sit tight and enjoy the ride while you can. I am also being proactive, looking ahead.

4 comments:

Anonymous said...

i hope there will be more air. it certainly is geting hot in there. are you sure they are not cutting back on the frills, i am sweating in my pants already, hullo?

redbean said...

i don't think so. they are building a case to raise fare. higher frequency, higher cost. higher maintenance and need to improve the comfort of the commuters.

Anonymous said...

Is it possible that nobody wanted those upgraded frills and the MobTvs except the companies themselves, for their own agendas? The resultant cost savings without the added frills and the huge profits that they made from rental and advertisements should translate into lower fares.

Anonymous said...

smrt profits are probably into hundred millions. higher revenues translate into higher salaries, bonuses, gst takings.

if fares are reduced, it wud be difficult to justify higher salaries and promotions.

therefore whether profitable or not, the fares wud be raised, if nothing else, to accumulate a billion dollars buffer or two, to cover any potential drought.