Hold rating on SMRT,prefer Comfort

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12 years 7 months ago #7754 by yeng
UOB KH says: The train service breakdowns happened right after SMRT’s decision to follow ComfortDelgro and revise its taxi fares upwards. Negative sentiment towards public transport operators have been rising and the government may take a firmer stance against service disruptions. SMRT was fined S$400,000 for service disruptions in 2008. (FY2008 net profit: 149.9m) We maintain our HOLD recommendation and our DCF-derived target price of S$1.67. For exposure to the land transport sector, we prefer ComfortDelGro for its diversification of operations and cheaper valuations on a PE and P/B basis.

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12 years 7 months ago - 12 years 7 months ago #7756 by yeng
U can't blame the company, it's the individual who was at the keyboard in the messaging centre. Chances are, 'Income Opportunity' is a standard phrase that the centre uses for persuading drivers to go to locations where crowds of waiting passengers have been reported or noted. Sigh, don't be too quick to throw stones at SMRT, or any company for such matters. It's crude message but at the end of the day, it's a triviality. Agree?


SMRT says sorry for 'income opportunity' message to taxi drivers SMRT has apologised for a message it broadcast to its fleet of taxis on Thursday amid the chaos on the subway system. The message, which flashed on its taxi drivers' screens at about 8pm, read: 'Income opportunity. Dear partners, there is a breakdown in our MRT train services from Bishan MRT to Marina Bay MRT stretch of stations.' A photo of the screen - presumably taken by a taxi passenger - soon appeared on social networking site Twitter and spread online, drawing sharp criticism.
Last edit: 12 years 7 months ago by yeng.

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12 years 7 months ago - 12 years 7 months ago #7765 by pine
Replied by pine on topic SMRT: don't smash windows
from ST: If you are stuck inside a train, never smash the windows or force the doors open. Stay calm and wait for help. This was the advice from SMRT, a day after a massive service disruption led to about 4,000 commuters being stuck in trains that had stalled. One frustrated commuter used a fire extinguisher to smash the glass on the door. He should not have done so but considering the situation, he will not be penalised, SMRT officials said.

Senior vice-president for communications and services, Mr Goh Chee Kong, said that in the event of a power failure, there is a back-up system that will activate emergency lights within the carriages and provide ventilation. If commuters have to disembark from the trains onto the tracks, the power supply will be cut off and staff deployed to guide them, he said.
Last edit: 12 years 7 months ago by pine.

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12 years 7 months ago #7769 by Val
SMRT down 5 cents to $1.77 now. Negative sentiment and bad press pulling it down. But dividend yield goes up closer to 5%.

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12 years 7 months ago #7777 by Mel
published in ST Forum: A major disruption in 24 years is understandable - and forgivable


AS A Singaporean who has spent a good part of the past 10 years in Japan, and now in Spain, let me offer a different perspective to last week's train disruptions in Singapore ('Commuters delayed as Circle Line breaks down', last Thursday; 'MRT breakdown chaos', last Friday; 'PM orders inquiry as trains break down again', Sun-day) .

Japan has one of the most efficient transport systems in the world, yet it is also prone to the occasional disruption, whether it is caused technically or for other reasons.

In Barcelona where I live, the transport system is vulnerable to workers' strikes, which sometimes mean disrupted service for long periods.

Yet in both places, the public react calmly and do not point fingers at their government in anger.

By contrast, I read my friends in Singapore who rant online about operators, the Ministry of Transport and even the minister.

This reflects a population pampered by an efficient society who have grown intolerant.

A major breakdown in 24 years of operation is understandable - and forgivable.

We can improve the current systems by revising ways of communication so commuters can be better informed in an emergency.

For example, when a disruption occurs in the train network in Japan, information about the incident is immediately available on the website of the company, various news websites and a banner is displayed on Japanese tele-vision channels. This allows affected passengers to check the latest information online with their mobile phones, and lets them consider alternative routes before they travel.

This will allow us to maintain our world-class transport reputation.

Samson Guanglin Lee

Barcelona, Spain

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12 years 7 months ago #7778 by Mel
www.straitstimes.com/STForum/Story/...ory_746787.html

Cultural faults we must correct

TWO aspects of Singapore culture are relevant. First is the Government's practice of placing top people where they have no experience. Second is the reactive, rather than proactive, nature of organisations and citizens.

Over the years, the Government has placed people without industry experience at the highest levels of government-linked companies.

Singapore Armed Forces generals and government scholarship holders have parachuted into top positions in telecommunications, air travel and shipping government-linked companies. Some have been successful. Some others have not. Ms Saw Phaik Hwa, while not a government scholarship holder, was similarly selected as chief executive officer (CEO) of SMRT Corporation even though she lacked expertise in the specialised area of urban railway systems or indeed transport in general - her experience was in retail.

The job of managing this critical component of national transport should have been given to an experienced practitioner, perhaps someone with decades of experience in city train systems. For example, an experienced train company administrator from Tokyo could have been head-hunted for the top job because the Japanese capital probably runs the world's most efficient system.

This is where recruitment of foreign talent would have been justified.

Such a person would have known from experience the maintenance, risk management and crisis management systems to implement.

Perhaps with such expertise, the recent incidents might have been avoided.

On the second point, organisations and citizens tend to react only when problems blow up rather than to pro-actively address and nip issues in the bud. We lack a culture of risk management and attention to detail. Lapses like those affecting SMRT are not uncommon - they just usually do not attract as much attention.

Generally, we are not alert to problems and risky situations. Even for people who notice problem situations, most do not bother to do anything.

The attitude is one of 'everything should be fine', until something goes wrong.

A case in point was the brazen escape of Singaporean terrorist Mas Selamat Kastari who climbed out of an unsecured detention centre window. Many people must have noticed the window but simply did nothing, assuming that all would be well.

I venture that the committee of inquiry investigating the train disruptions will find they were caused by something that could and should have been noticed and addressed.

We must correct these two aspects of our national selves.

Tan Soon Meng

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