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A recent seminar on the State Railway of Thailand (SRT) showed a deep flaw in the operation of this state enterprise, which has been saddled with high debts and is running up heavy losses. It is unfortunate that in spite of its long history, the SRT has failed to improve its organisation to keep up with the changing world. The history of Thai railway goes back more than a 100 years. However, there has been no significant improvement since its early days. On the other hand, Japan, whose railway started at around the same time as Thailand, has seen its railway network develop into one of the most efficient transport systems.

The SRT's problems can be attributed to several factors. For instance, the state agency did not feel the need to improve its efficiency and service due to the monopolistic nature of the operation.

The SRT should have become the main agency in enabling Thailand improve its logistics system. But that has not been the case. It does not serve as a major cargo carrier because of insufficient network.

Most companies use trucks to carry their goods, which can be costly due to the fluctuation of world oil prices.

Besides, the SRT also failed to develop its network to offer an alternative mass transit system. People do not have much of a choice but to rely on buses or personal vehicles.

As a result, Thailand is one of the worst in oil inefficiency in the world.

The seminar's panellists agreed that the agency was also wrecked by political interference. The SRT executives did not run the agency with a business-oriented attitude but were often forced to serve political interests.

Neither the SRT executives nor the politicians were accountable for its performance as a result it became inefficient and debt-ridden.

Some laws governing the SRT were also outdated. And board members were selected according to their official capacity instead of their expertise and skill to turn around the performance of the state agency.

The recent oil crisis compelled policy-makers to place importance on how to improve the country's ageing railway system. For instance, there were plans to upgrade the country's rail network to a double-track system to facilitate carrying heavier loads and faster travel.

The recent drop in oil prices should not breed complacency again. Policy-makers must firmly focus on pushing through projects that would improve the |railway networks and give a boost to the strained logistics system.

The laws and regulations governing the SRT should be restructured to ensure the agency would be able to appoint the right persons to manage the agency. At present, the hierarchical system of the state enterprise prevents the effort to revamp the operation.

A majority of the Thai rail system is single-track and most of them are old and outdated. The SRT also controls land plots, which can be turned into lucrative commercial development projects such as the large plots in the Makkasan, Phahon Yothin and Chong Nonsi areas as well as the present location of Central Lat Phrao shopping mall.

The SRT must show determination to rehabilitate and improve the country's railway system.

With the right network, Thailand could even become a hub of railways in the region. The improvement of the railway system can contribute significantly towards promoting the country's economic development.