Published on January 13, 2006

Bangkok Mass Transit System Plc (BTS) is likely to face more pressure from the government to lower the Skytrain fares, because the Transport Ministry has insisted on a reduction in fares before it opens bids for 10 new subway lines.

Transport Minister Pongsak Ruktapongpisal said a mediation committee would be set up soon to work out final fares with BTS. He insisted that the new lines would boost the number of commuters, which should benefit BTS. Anchalee Chavanit, chairman of the Mass Rapid Transit Authority of Thailand (MRTA), said the 10 lines would increase the number of commuters by 100 per cent.

The government hopes that once the extended lines are completed, commuters should pay only Bt15 to Bt20 per trip per person.

A source from the ministry noted that the fare negotiation should be done soon after BTS completes its debt restructuring. “Its debts have been sold to several other creditors, and on January 18 when the company hosts a shareholder meeting there could even be a change in the management team,” he said.

The source noted that BTS’s attraction should increase with the government’s plans to extend the subway network. Having management control of BTS means handsome benefits and advantages over other potential bidders. It already has a train depot while other bidders will have to build their own.

On January 26, the ministry expects to issue CD-ROMs to potential bidders for the 10 lines. Interested bidders must return their proposals by April 27 and the ministry will analyse and negotiate for the best deals in June.

Pongsak said the deals should be signed and the construction should start in July.

Watcharapong Thongrung

The Nation

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