atans1

SMRT: only now meh?

In Infrastructure on 04/03/2014 at 4:55 am

I’ve only recovered from this piece of news on SMRT: on 16th Feb it was reported that “Singapore’s two train operators will adopt a “predict and prevent” approach to their maintenance regimes from now on.

‘Transport Minister Lui Tuck Yew said … this new approach will see operators actively monitoring the condition of the rail system to prevent breakdowns and delays.”* Seems they were using a find and fix” approach. Easiest way to “find” problems is sit back, drink kopi and wait for news of train delays, breakdowns?

Maybe taz why a CEO who is a scholar and ex-SAF chief is needed, not a Ferrari-driving FT retailer? Horses for courses?

Anyway now that SMRT is adopting state-of-the-art, cutting edge management techniques, time to buy stock? Stock set a new 52-week low during yesterday’s trading session when it touched 1.02. 36.7% down from a 52 weeks ago. That it yields 1.95% is a reflection that the price has collapsed.

DBS wrote this in 2012: SMRT has a dividend payout policy of at least 60% of net profit. In fact, in the past few years, it has paid over 70%, hence providing a reasonable yield.

ComfortDelGro, on the other hand, has paid only 50%of earnings as dividends. – See more at: http://sbr.com.sg/transport-logistics/markets-investing/smrt%E2%80%99s-dividends-risky-in-2012-dbs#sthash.k1ywpunr.dpuf

(Comfort yields 3.63%)

Surely after GE (next yr after August,  is my prediction), fares will be increased? Time to buy and wait now that mgt is better?

60% dividend policy. SMRT has a dividend payout policy of at least 60% of net profit. In fact, in the past few years, it has paid over 70%, hence providing a reasonable yield.
ComfortDelGro, on the other hand, has paid only 50%of earnings as dividends. – See more at: http://sbr.com.sg/transport-logistics/markets-investing/smrt%E2%80%99s-dividends-risky-in-2012-dbs#sthash.k1ywpunr.dpuf
60% dividend policy. SMRT has a dividend payout policy of at least 60% of net profit. In fact, in the past few years, it has paid over 70%, hence providing a reasonable yield.
ComfortDelGro, on the other hand, has paid only 50%of earnings as dividends. – See more at: http://sbr.com.sg/transport-logistics/markets-investing/smrt%E2%80%99s-dividends-risky-in-2012-dbs#sthash.k1ywpunr.dpuf

But then think again as NOL is run by another general and scholar and NOL recently lost serious money. Here’s analysis from last yr after an earlier set of results https://atans1.wordpress.com/2013/11/19/scholar-cant-repair-nol-maersk-steams-ahead/

——-

*Mr Lui was responding to questions from Members of Parliament on the reliability of train services, in the wake of several disruptions last month, including a delay on the North-South Line that affected some 19,000 peak-hour commuters.

So far, operators SMRT and SBS Transit have been using the “find and fix” approach to correct existing issues with their rail systems.

Mr Lui said he had called up SMRT’s senior management to convey his concerns after the recent spate of incidents.

He said: “They take it seriously, and as the CEO told me himself… the team was actually very disappointed themselves with the series of incidents, as well as with how the staff on the ground had handled it.”

SMRT will be reviewing its contingency plans on a station-by-station basis to better support its ground staff, rather than rely on a generic plan that covers stretches of the network.

Mr Lui said: “SMRT’s management has already committed to review its contingency plans on a station-by-station basis, and refine its command and control structure in times of disruption to better support ground staff.”

Both SMRT and SBS Transit have also switched to a “predict and prevent” strategy for their maintenance regimes.

For instance, some trains on the North-South and East-West lines are already equipped to collect real-time data and detect problems as they run.

Several MPs had asked why train disruptions continue despite efforts in recent years to improve the train services.

Mr Lui said: “Service disruptions do happen from time to time, especially as our rail network further expands and ages, and as we run more and more train trips.

“But in the case of the January incidents, SMRT could have done much better in service recovery, especially to provide timely information to affected commuters.”

Both train operators, however, have put in hard work to improve train reliability since 2011, Mr Lui added.

Government estimates showed that SMRT has increased its yearly repair and maintenance expenses by over 65 per cent from S$38.3 million in 2011 to S$64.6 million last year.

Both train operators have also hired more engineers and expanded their maintenance teams.

The Land Transport Authority is also upgrading the rail infrastructure.

The North-South, East-West lines’ third rail system will undergo a full, system-wide change-out this year, Mr Lui said, and the North-East Line’s overhead power system will also be improved with new corrosion-resistant materials to minimise cracking in its components.

In a separate statement, SMRT said it takes responsibility for the recent incidents, and will leave no stone unturned to improve the reliability of its train services. (CNA report)

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  1. Presumably Kuek and his happy band can predict what will happen when the made-in-china trains start to operate? By the way, have they checked to see if asbestos was used in their manufacture?

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