Post by : Rohit Dhiman

Singapore’s rail operator SMRT Trains has reported a significant improvement in its financial performance, with its after-tax profit almost doubling to S$12.8 million in the latest financial year. The company said the growth was supported by increased passenger numbers and higher fare revenue. The operator’s profit after tax increased from S$6.9 million in the previous year, while earnings before interest and tax (EBIT) rose to S$16.2 million compared with S$4.9 million earlier. SMRT revealed that its overall revenue grew by S$51.5 million, representing a 5.6 per cent increase. However, the company noted that higher repair and maintenance expenses partly reduced the impact of the increased income as it continued investing in railway assets and strengthening engineering capabilities.

Improved Rail Reliability and Maintenance Investments

SMRT Trains said its profit margin improved to 1.3 per cent, compared with 0.75 per cent previously. The company attributed the improvement to careful cost management and energy agreements secured before recent global economic changes. The previous year’s financial results were affected by approximately S$10 million in one-time expenses linked to the September 2024 disruption on the East-West Line. SMRT Corporation chairman Seah Moon Ming said the company spent S$245 million on train maintenance and around S$125 million on energy costs. He highlighted that the railway network achieved an average of nearly two million mean kilometres between failures (MKBF) earlier this year. This reliability level is considered double the one-million MKBF benchmark associated with some of the world’s better-performing metro systems. MKBF measures the average distance a train travels before experiencing a delay of more than five minutes. Singapore’s Land Transport Authority publishes monthly reliability figures for train lines, excluding the Thomson-East Coast Line, which is still being introduced in phases.

Future Plans for Rail Licence Renewal

SMRT chairman Seah Moon Ming also discussed the upcoming renewal of the company’s rail operating licences. He said discussions with authorities usually require more than three years to complete. The licence for the Thomson-East Coast Line expires in 2029, while licences for the North-South Line, East-West Line, Circle Line and Bukit Panjang Light Rail Transit are due to expire in 2031. Seah said longer licence periods could support future investments, improve workforce stability and help operators focus on better services for commuters. He added that licence renewal is part of the normal regulatory process and SMRT will continue working closely with Singapore’s Ministry of Transport and the Land Transport Authority.

Partnership With Guangzhou Metro for Smart Transport Solutions

SMRT has also partnered with Guangzhou Metro to develop advanced transport technologies, including predictive crowd management and improved maintenance systems. One upcoming system will use real-time information from fare gates to estimate passenger density at stations and inside trains. This will allow SMRT to deploy additional staff or services before overcrowding occurs. The company said Guangzhou Metro, which serves around nine million passengers daily, has strong expertise in engineering and railway operations. SMRT and Guangzhou Metro are also working together to bid for the future Cross Island Line project, which will use an overhead conductor rail power system.

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Depot Upgrades and Future Transport Expansion

SMRT recently completed a S$7 million upgrade at Bishan Depot. Meanwhile, Mandai Depot, which supports the Thomson-East Coast Line, will receive a S$5.5 million upgrade expected to finish by mid-2027. The improvement project aims to double workshop overhaul capacity and reduce Thomson-East Coast Line train maintenance time from 24 days to 12 days. Regarding the Johor Bahru-Singapore Rapid Transit System (RTS) Link, scheduled to begin operations in January next year, SMRT said details about fares and the official opening timeline will be announced later.

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