Shares in taxi operator ComfortDelGro fell as much as 5 percent in a firm broader market after its unit SBS Transit lost the tender to operate the Thomson-East Coast (TEL) line to competitor SMRT.
Singapore's Land Transport Authority awarded SMRT Trains the contract to operate the TEL for an initial nine-year period, the statutory board said in a statement on its website.
"After much careful consideration, we have assessed that SMRT Trains will be able to offer a higher level of service, as it has committed to invest heavily in predictive maintenance and manpower training. Even with this commitment, it was able to offer a more competitive price," Land Transport Authority Chief Executive Ngien Hoon Ping said in a statement.
SBS Transit, a bus and rail operator in Singapore, quoted a service fee that was 30 percent higher than SMRT's offer of S$1.7 billion, the statement said.
SMRT Trains proposal included a strong staff development plan, including customer-oriented training, and tailored community engagement initiatives.
At 0714 GMT, shares in ComfortDelGro lost 2.8 percent to S$2.06 on the Singapore Exchange. About 11 million shares changed hands compared to average of 10 million.