NGV buses on their own 'cannot solve BMTA's woes'

The government should set up a committee chaired by Prime Minister Abhisit Vejjajiva to develop the BMTA's performance-improvement plan, including the tariff and route structure for public buses, said Pallapa Ruangrong, a member of the Energy Regulatory Commission, which initiated the BMTA rehabilitation plan in 2006.

The committee's establishment is part of the existing BMTA rehabilitation plan, which requires the committee to be chaired by the prime minister, a deputy premier or an assigned minister.

The committee, which will consist of representatives from various state agencies, is also in line with the draft transportation-management bill that is under review by the Council of State.

Pallapa was speaking at a public hearing on the bus system.

All of Bangkok's transportation problems must be taken into account and solved systematically, she said.

The BMTA runs 3,526 buses on 112 routes. The average age of its fleet is eight years, with the oldest bus 18 years old. It employees 17,000 workers.

The agency's retained losses since 1975 amount to Bt57 billion. Its losses have climbed from Bt4 billion in 2003 to Bt7 billion this year.

Without any overall performance improvement, it could bleed Bt18 billion in the next 10 years.

In December 2006, the BMTA posted revenue of Bt612 million against expenses of Bt1.12 billion, of which 33.5 per cent was for staff salaries and administrative costs, 22.5 per cent for oil and 19.2 per cent for interest.

Its air-conditioned buses cost Bt42.20 per kilometre to operate while generating revenue of Bt24 per kilometre, while its non-air conditioned buses cost Bt38.95 per kilometre against revenue of Bt18 per kilometre.

Pallapa said she personally preferred leasing to purchasing the NGV buses, because that would require less money. Besides, the BMTA should not add to its already-heavy financial burden.