New Bangkok bus service powered by CNG launched

With yesterday's launch of the first route for its Metrobus service, it intends to become Bangkok's largest private operator of compressed natural gas (CNG) air-conditioned minibuses.

The Premier Group's existing businesses cover consumer products, leasing, information technology and property, including Seri Centre. Its annual revenue is between Bt6 billion and Bt7 billion.

President and group CEO Vichien Phongsathorn said the new bus service would be operated by Premier Metrobus, a company with registered capital of Bt1 million.

Its registered capital will be raised to between Bt500 million and Bt1 billion this year for the provision of 1,050 CNG buses and to extend its services to cover 35 routes in Bangkok.

The first route will be from the Romklao Housing Community to Bangkok's new southern bus termi-nal. Next month, four new routes

- Rajworadit to Siam Park, Pak Kret to Pattanakarn Road, Bang Khunnont to Bang Kapi and Morchit bus terminal to Bang Kapi - will be added.

All of the buses will charge Bt30 per passenger regardless of route or distance.

In stepping into the business, the Premier Group has acquired loss-making Bangkok Microbus (BMC), which operates the Microbus service under licence from the Bangkok Mass Transit Authority (BMTA). In the acquisition, Premier Group has rented BMC's licence, which will expire in six years.

At present, the company's fleet has only 22 buses. However, Metrobus plans to operate with buses from Chinese manufacturer Heng Tong and is negotiating to purchase more buses from a Chinese operator.

The company estimates the cost of purchasing and leasing air-conditioned buses at about Bt3 billion.

Vichien said the company is negotiating to buy additional shares in BMC to lift its stake to more than 50 per cent and is planning to negotiate with the BMTA to adjust some of its routes to provide a feeder service for mass-transit stations.

He said if the Metrobus achieved its full services as planned, it would carry 300,000 passengers a day for revenue of about Bt3 billion a year.

"We expect to reach the break-even point after six years," Vichien said, adding that the BMTA usually extended its contracts with private operators another seven years.

Watcharapong Thongrung

The Nation