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Singapore's train services operator SMRT faces $37.1 million fine

Staff writer |
Singapore's train services operator SMRT may face a 50 million Singapore dollars ($37.1 million) fine for Tuesday's unprecedented train service disruption, Maybank Kim Eng Securities said in a report.

On how the estimated amount came out, the report said that the Bill, passed by the parliament on February 17, 2014, increased the maximum fine for every rail disruption to 10 percent of an operator's annual fare revenue for the relevant rail line.

SMRT's FY3/15 rail revenue was 644 million Singapore dollars ($477.5 million) for its North-South, East-West, and Circle Line, which suggests a maximum fine of 64.4 million Singapore dollars ($47.75 millio) for its entire rail network.

As disruptions occurred during evening peak on Tuesday didn't affect the Circle Line, the maximum fine could be closer to 50 million Singapore dollars, said the broker.

Singapore's two main Mass Rapid Transport (MRT) lines came to a complete halt simultaneously during the evening peak on Tuesday, resulting in approximately 250,000 stranded passengers along the two lines. The disruption last about three hours, which was possibly the worst public transport disruption Singapore has experienced.

The cause of the disruption has not been identified yet, according to a statement by Singapore's Land Transport Authority released on Thursday.

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