Thai Ministries eye concessions for Bangkok train lines
Goal is flat fare capped at B20
The Finance Ministry and Transport Ministry have begun exploring the idea of acquiring the concessions for seven electric train lines, valued at roughly 500 billion baht, to bring them under state ownership.
According to finance permanent secretary Lavaron Sangsnit, the proposal to acquire the urban and suburban electric train lines stems from a desire to keep fares for entire routes capped at 20 baht, which was a key campaign policy of the Pheu Thai Party.
He said the Finance Ministry was approached by the Transport Ministry through the State Enterprise Policy Office regarding this idea, with discussions planned to explore its potential.
The Finance Ministry believes the proposal can be accomplished by establishing a fund to buy the train concessions from private companies, making them state assets, though discussions on the details are needed, said Mr Lavaron.
A source from the Finance Ministry who requested anonymity said the funding to acquire the concessions could be raised through an infrastructure fund by offering investment units to retail investors and institutional investors.
The government could use the revenue and profits from the train lines to provide returns to unitholders, the source said.
If the government were to buy back all seven train concessions from private companies, the ministry estimates the cost at more than 500 billion baht.
The projects comprise: the Green Line skytrain (Mo Chit-On Nut and National Stadium-Saphan Taksin sections) valued at 50 billion baht; the Green Line extension (Mo Chit-Saphan Mai-Khu Khot) valued at 27 billion baht; the Blue Line MRT (Hua Lamphong-Bang Sue) valued at 115 billion; the Blue Line extensions (Bang Sue-Tha Phra and Hua Lamphong-Bang Khae) valued at 81 billion; the Yellow Line (Lat Phrao-Samrong) valued at 48 billion; the Pink Line valued at 51 billion; and the Orange Line (Bang Khun Non-Min Buri) valued at 140 billion.
In addition, the Transport Ministry is considering implementing fees for driving into Bangkok’s inner city to reduce traffic congestion and encourage more use of public transport.
The ministry tasked the Office of Transport and Traffic Policy and Planning with analysing the feasibility of implementing congestion fees, with the revenue generated from these fees contributed to the planned infrastructure fund.
For the 20-baht flat fare for electric trains, the Transport Ministry estimated the government would need to subsidise 17 baht per person, amounting to nearly 6 billion baht per year.
Former premier Thaksin Shinawatra expressed support for the 20-baht flat fare project, suggesting train concessions should be nationalised, with private firms managing the operations while the government sets the fares.
Source: https://www.bangkokpost.com/business/general/2866088/ministries-eye-concessions-for-bangkok-train-lines
