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Published on March 10, 2008

The project to provide efficient commuter links from the suburbs to central Bangkok via nine mass rapid-transit routes was given top priority by the new government, but achieving one of its key objectives -  energy reduction - could be a pipe dream without a proper management system.

The nine routes covering 311 kilometres as proposed by Prime Minister Samak Sundaravej differ from the 10 planned by the Office of Transport and Traffic Policy and Planning (OTP).

The Transport Ministry has had to instruct agencies to once again study Samak's proposal and revise the routing in an effort to integrate the two blueprints.

A complete revision and research study would be good news for several groups, notably the consulting firm that will be engaged to conduct it. About Bt1 billion has already been spent by the Mass Rapid Transit Authority and OTP on the feasibility study to determine the economic justification for the 10 new routes.

Pranote Suriya, deputy director-general of the OTP, pointed out recently that a revised feasibility study combined with a public hearing were needed because of the proposed extensions to the existing routes. Some data and findings from the previous study may be used to complement the new one. The route extensions will definitely change the forecast for subway ridership as well as the estimated return on investment of the project.

The second group to benefit are the construction firms. Some leading players - including Italian-Thai Development, Ch Karnchang and Sino-Thai - are preparing to bid. If the government invites quotes for all nine routes in the very near future, most of the contractors will get at least some of the business, as no single Thai company has the financial capability to execute the projects, which will need Bt500 billion.

At a recent shareholder's meeting, Premchai Karnasuta, CEO of Ital-Thai, said he had complete faith  in the government's mega-projects, particularly that of the MRTA. The company is prepared to participate in the tender and he is optimistic it will make money on this job.

The next group to benefit will be the companies holding rail concessions, namely Bangkok Mass Transit System (BTS), which operates the Skytrain, and Bangkok Metro (BMCL), which runs the subway.

The Skytrain carries 400,000 people per day and the subway 170,000. Both are located on prime routes spanning commercial, office and shopping districts in Bangkok. Extending the existing network out to the provinces will provide people with transportation into the city and increase riders on both systems. The operators are also implementing an integrated ticketing system for the greater convenience of commuters. Their combined experience in managing the existing networks gives them the upper hand in winning more concessions as no government organisation is qualified for this.

Sombat Kitjalaksana, managing director of BMCL, said the Purple Line, connecting Bang Sue and Bang Yai, is closest to implementation. A loan agreement with the Japan Bank for International Cooperation is due to be signed later this month, and if all goes as planned the bidding for operating the trains will also be opened later this year.

Manufacturers of the rolling stock and signalling systems are the next group to reap benefits. Both the Skytrain and the subway, along with the Makkasan-Suvarnnabhumi Airport Metro Express, depend on the technology of German company Siemens, making it a favoured company to supply technical support to operate the extensions.

Landowners and developers such as Land and Houses, who have property and projects along these extension routes, can expect a windfall as the value of real estate will rise. Residents will gravitate towards the routes to access the alternative mode of transportation, as the trains are safe and quick amid snarling jams.

If this planned extension is implemented and delivered promptly, politicians and the People Power Party (PPP) will emerge as victors, winning widespread appreciation from residents in greater Bangkok.

But the government may not be able to complete all nine routes within three years, as announced, a Transport Ministry source said. Instead, the project will be done in phases, with the first being the Purple and Red lines. The whole thing is a publicity stunt, apparently, to show to the people that if they want more routes, they must continue to support the PPP, the source said.

Sombat said the MRT projects would provide an economic boost to the country. The government has already spent money on construction materials, including steel and cement, that are locally made. More workers have been hired, providing employment to local people.

A competent management system coupled with good infrastructure will be paramount in convincing commuters to use public transport. This will not only reduce traffic on roads but also reduce energy consumption and oil imports while saving monetary reserves.

One analyst said the government should launch a campaign to promote the use of MRTA systems by the public. This may include a one-ticket system, pricing tickets in line with the cost of living, levying a surcharge on cars entering city centres or increasing parking fees. If no serious action is taken, the MRTA systems could be a burden on government.

Watcharapong Thongrung

The Nation