Bangkok’s private electric train projects plan needs detail
Bangkok Post Editorial
Former prime minister Thaksin Shinawatra has floated an idea for the government to take over private electric train projects in the country and set a flat fare of 20 baht across all routes, a plan which aligns with a Pheu Thai Party campaign promise.
Thaksin also proposed charging motorists entering heavily congested areas of the capital so the money could be used to fund public transport projects.
Transport Minister Suriya Juangroongruangkit swiftly accepted the ideas. He indicated that he would commission a study on establishing an infrastructure fund to acquire private electric train projects and direct the Office of Transport and Traffic Policy and Planning to explore collecting traffic congestion charges.
While Thaksin’s ideas seem enticing, many questions remain unanswered, such as how much money is required to buy out private sector companies in mega transport projects across the country?
The public deserves clarity from Mr Suriya and the Paetongtarn Shinawatra government as a whole about where the funding will come from if the idea materialises. If the funds are drawn from the state budget, questions of appropriateness will undoubtedly arise.
Can the government justify using vast amounts of taxpayers’ money to purchase private electric train assets just to outsource their management back to private firms?
Can the government afford to set fares that do not reflect actual costs solely to fulfil a populist campaign promise? Wouldn’t it be better to provide a subsidy, if not collaborate with private concessionaires, to reduce ticket prices?
Imposing a congestion charge on motorists to subsidise electric train fares at 20 baht will raise questions by car owners who need to drive to work from the suburbs or areas where public transport is not widely available.
The benefits of such a policy are clear: the Pheu Thai government will gain political popularity, and private train operators will benefit from the state’s massive buyout and management contracts.
Investors in private train companies can also expect a significant rise in share prices following this move. Lastly, commuters may enjoy significantly reduced fares, which is undeniably a positive outcome.
The burden here falls on car owners, particularly low- and middle-income ones, who would have to pay the congestion charges to subsidise the populist policy, and taxpayers nationwide — many of whom do not use Bangkok’s electric trains.
Thaksin’s proposal sounds good on a pamphlet, but it needs more work to ensure fairness for all.
The use of public funds to fulfil an unreasonable populist policy where only certain groups will benefit is inappropriate.
The era of populism, in which politicians just make big promises without showing clear plans and a source of funding, should be over.
Populist policies must come with thorough explanations of where the money will come from, whether they are justifiable and who will benefit or lose, enabling citizens to make informed decisions on the matter.
The potential buyout of private electric trains to reduce fares, as part of a campaign promise, involves numerous stakeholders.
The government must proceed with caution, fairness and transparency, and if public funds and taxpayer money are to be used, there must be a thorough public consultation process first.
These editorials represent Bangkok Post thoughts about current issues and situations.
Source: https://www.bangkokpost.com/opinion/opinion/2853578/train-plan-needs-detail
