MENU

5 Things You Should Know About ComfortDelGro Corporation Ltd’s Rail Services Business

ComfortDelgro Corporation Ltd (SGX: C52) is one of the world’s largest land transport companies. It has seven business segments and operations in seven countries (Singapore, China, the United Kingdom, Ireland, Australia, Vietnam, and Malaysia).

In this article, I want to highlight important information about ComfortDelGro’s largest business segment – Public Transport Services – that was shared in the company’s latest 2016 annual report. I’m going to focus specifically on the rail-related part of the Public Transport Services segment.

Here are the key pieces of information:

1. In Singapore, ComfortDelGro’s rail operations comes mainly from its Singapore-listed subsidiary, SBS Transit Ltd (SGX: S61). In 2016, demand for SBS Transit’s rail services continued to grow with over 329 million passenger trips made. This is a 27% increase over the previous year. The spike came from the Downtown Line (DTL), which added 12 more stations in December 2015. Ridership hit 7 million during the year, which is almost triple that of 2015’s.

2. Average daily ridership on the North East Line (NEL) grew by 2% to 564,701, while that of the Sengkang and Punggol Light Rail Transit systems (SPLRT) saw a double-digit growth of 15.3% to 114,094.

3. In 2016, SBS Transit took delivery of 12 new trains for NEL, bringing its total train fleet to 43. As for SPLRT, SBS Transit took delivery of 16 new Light Rail Vehicles (LRVs) during the year, bringing the fleet to 57 LRVs.

4. SBS Transit added more trips to the schedules of both its NEL and SPLRT to better cater to travel needs. On NEL, 200 more weekly trips were introduced, while 1,836 weekly trips were added to SPLRT.

5. To minimize disruptions or delays lasting more than five minutes, SBS Transit monitors the Mean Kilometre Between Failure (MKBF) – a measure used globally in the rail industry. The MKBF for NEL in the fourth quarter of 2016 improved to 328,000 train-KM compared to 174,000 train-KM for the whole of 2016.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore has a recommendation for SBS Transit Ltd.