SMRT to pay fine of $2.4m for EWL disruption, down from $3m

LTA says it has directed operator to invest at least $600k to improve reliability

- Lee Nian Tjoe

Rail operator SMRT will pay a lower fine of $2.4 million for a major six-day disruption on the East-West Line in September 2024, after it submitted representations to the Land Transport Authority (LTA).

This is down from the financial penalty of $3 million that LTA intended to hand out in June when the investigation findings into the incident were released.

Announcing the updated penalty in a statement on July 25, LTA said the penalty will go to the Public Transport Fund to help lower-income families with their public transport expenditures.

The authority added that it had directed SMRT to invest a minimum of $600,000 to strengthen its capabilities, and address areas for improvement from the incident, so as to improve service reliability.

"In reaching this decision, LTA took into consideration the considerable challenges SMRT had faced in planning and executing their overhaul regime for the Kawasaki Heavy Industries (KHI) trains, particularly in procuring the necessary spare parts for the overhaul due to global supply chain disruptions caused by the Covid-19 pandemic."

The incident, which involved a faulty part on a first-generation KHI train, downed MRT services between Jurong East and Buona Vista stations and affected about one in six train trips daily from Sept 25 to 30 in 2024.

An LTA spokesperson told The Straits Times that SMRT will need to channel $600,000 towards improving its capabilities within a year, and submit a declaration and documented proof of this.

In a Facebook post, SMRT Trains president Lam Sheau Kai said the operator will strengthen its direct engagement with original equipment manufacturers of trains and systems. The operator will also deepen its technical and engineering expertise through closer collaboration with these companies.