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Published on March 24, 2008

Deputy Prime Minister and Finance Minister Surapong Suebwonglee said in an interview last week that the restructuring plans for the State Rail-way of Thailand and Bangkok Mass Transit Authority, completed by the interim government, ignored the enterprises' self-improving capability.

The Surayud government believed that private sector participation would increase efficiency and reduce losses.

He said India was able to get its railway operations back into the black by itself. In many countries, though, public transport operations still suffered losses even with private partners.

"I have instructed the State Enterprise Policy Office to observe the operations in India so that they can get new ideas. Then, a joint committee of representatives from the ministries of finance and transport will be established to restructure the SRT and BMTA," Surapong said.

The large number of rail junctions contributes greatly to the budget deficits, as slow and fast-moving trains have to give way to one another. Laying double-rail tracks only at major junctions could help reduce the bottlenecks, while cutting down on investment, he said.

The Transport Ministry has come up with a Bt300 billion plan to install 2,000 kilometres of parallel tracks criss-crossing the country.

"I want the SRT people to come up with ideas like this. New ideas mean lower investment," he said.

Transport Minister Santi Prompat has said the double-track project would be completed in five years. In the plan yet to be submitted to Prime Minister Samak Sundaravej for approval, the ministry will grant 30-year concessions, renewable for 30 years, to companies to operate train services.

The SRT lost Bt6.57 billion in 2006. It is burdened with Bt2.4 billion in annual pen-sion payments and a workforce of 18,000, including 2,000 engineers, 1,872 signal controllers and 3,500 maintenance workers.

Watcharapong Thongrung

The Nation