Taxi operators seek clarity on new rank system

Taxi operators have raised concerns over unclear stand fees, facilities and permit renewals following the Land Transport Authority’s (LTA) removal of the Open Taxi Rank System and barrel draw process.

Regent Taxi PTE Limited managing director, Harish Chandra, said the changes could create confusion among operators unless the Ministry of Transport and LTA provided clear guidelines on how the new system would operate.

The LTA announced that the Open Taxi Rank System (OTRS) had been discontinued, with existing operators reverting to their original bases or stands. Zone permit holders will be given time to provide their base letters to the Authority.

Under the new system, taxi operators will be assigned specific bases and stands, while future stand allocations will follow the LTA’s standard assessment and allocation process.

The authority also confirmed that taxi permits would be issued exclusively to individuals, rather than companies, with applicants required to have a household annual income of $30,000 or below.

However, Mr Chandra said operators needed clarity on the costs of taxi stands, available facilities and how drivers would secure stands within their designated base areas.

“Apparently this will cause lots of confusion and misunderstandings as it has not been made clear how much will the taxi stands cost per month, what sort of facilities will be provided to accommodate the taxi operators reverting to their old taxi stands,” he said.

He said the reforms required greater awareness and consultation to ensure compliance and effective enforcement across municipal and rural taxi stands.

On the removal of the barrel draw system, Mr Chandra said the process should not have been used to determine taxi permit issuance, arguing that existing LTA vetting and compliance requirements should guide the process.

He supported the return to the base and stand system, saying it could improve accountability by ensuring registered taxis operated legally from designated stands.

However, he said the $30,000 household annual income threshold for new permit applicants could present financial challenges for individual operators seeking to purchase and maintain a vehicle.

Mr Chandra said vehicle costs, financing repayments, fuel, maintenance and depreciation could make taxi operations difficult for individuals without sufficient financial support.

He also called on the Ministry and LTA to clarify renewal requirements for the first 10-year taxi permits before September 27, 2027.

Mr Chandra urged greater consultation with taxi operators and agencies on the future of the industry, including taxi fares, which he said should remain unchanged until September 2027.