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New airport makes a very slow take-offAlthough Nong Ngu Hao Airport has made some early progress, financial news was grim for all mass transit systems Amornrat Mahitthirook and Krissana Parnsoonthorn
Bangkok's planned second international airport, at Nong Ngu Hao, and commuter mass transport projects weathered a review of spending last May. Economic ministers considered 95 projects totalling 1.08 trillion baht due by 2006 and decided that 10 costing a total of 250 billion baht could be scrapped. The National Economic and Social Development Board (NESDB) was assigned to re-evaluate some projects and investment priorities. These projects include expressways, motorways, the Bangkok industrial ring road and railway expansion. Ô'We don't want to create more debt for the public at this critical time for the economy. Generally, investment for infrastructure projects accounts for 5% to 6% of the country's gross domestic product,'' a government spokesman said. However, the airport and subway projects would help the economy. The first stage of Bangkok's commuter network, an elevated skytrain, opened last Dec 5, although patronage has fallen well below expectation amid some complaints about the fares, the limited network pending completion of connected projects, and an ingrained cultural belief that using public transport is demeaning. Only 200,000 passenger trips are recorded daily, compared with the target of 600,000. Bangkok Mass Transit System Plc (BTSC) , which has a 30-year concession to run the system, has tried various promotions to boost patronage, including 25% discounts for senior citizens and 35% reductions for students. Problems with automatic ticket-vending machines have been partly resolved, although some stations still lacked escalators and lifts. Many people find the stairways daunting. Observers believe patronage will increase once the subway is in operation. The system is scheduled to open in 2003. As well, if the Hopewell project, which would link both systems with suburban areas, could be revived and completed, a significant dent would be made in Bangkok's traffic congestion. Tanayong's chief executive, Keeree Kanjanapas, the biggest shareholder of BTSC, has expressed interest in reviving the Hopewell project with Chinese investors and Siemens AG of Germany. However, there are hurdles, the main one being Tanayong's stake in BTSC. Ownership of Tanayong's 265 million BTSC shares auctioned by Schroder International Merchant Bankers last November remains in doubt. Credit Suisse First Boston claimed the proceeds to cover Tanayong's debts. BTSC is seeking to list on the Stock Exchange of Thailand to raise funds to resume the project. Meanwhile, tunnelling for the subway, which will cost 103 billion baht, is continuing. The project is overseen by the Metropolitan Rapid Transit Authority (MRTA), which expects the the 20-kilometre Blue Line connecting Hua Lampong with Bang Sue, via Huay Kwang, to be ready for use in 2003. It is expected to carry 400,000 commuters a day. The ION joint venture, led by Italian-Thai Development Plc, is constructing the northern half of the tunnel system and the southern half is being handled by BCKT, led by Ch Karnchang. Bangkok Metro Co Ltd (BMCL), led by Ch Karnchang, received cabinet approval in April to operate the subway 25 years in return for 10.273 billion baht. The concession includes fare collection, the supply of trains and the installation of platform doors. BMCL has resisted pressure to give the MRTA a bigger return and lower fares, citing economic grounds, and is waiting to sign a contract with the authority. The subway fares are expected to cost 15-38 baht for the Blue Line. The consortium of Ch Karnchang and SNC Lavalin of Canada won a three-billion-baht contract to lay the subway tracks. Siam/Nippon Consortium got a contract to build the 6.3-billion-baht depot on 300 rai in Huay Khwang. The MRTA proposed extending the Blue Line from Hua Lampong to Tha Phra and from Bang Sue to Phra Nang Klao Bridge. The authorities agreed with the 6.4-kilometre extension to Thra Phra in Thon Buri and sources of funds are under study. Nong Ngu Hao Airport
In April, the government decided that Nong Ngu Hao would be the capital's only international airport once it opens in 2004 to serve an estimated 30-45 million passengers a year. This ended confusion over the previous twin-airport policy _ at least for now or until a new government changes the plan. Don Muang Airport will be converted to other activities, not necessarily aviation-related. During a two-year transition period, Don Muang will be kept open. The Highways Department was awarded an urgent budget of four billion baht to build road links to Nong Ngu Hao. However, the government did not outline any mass transit systems to transfer passengers to the city. The existing 3.8-billion-baht plan to expand Don Muang Airport is likely to be scaled down. In April, five groups were short-listed to prepare the site for the new airport: Italian-Thai Development Plc, Ch Karnchang/Bilfinger & Berger joint venture, Rojsin/Obayashi joint venture, AS Associated Engineering, and Vichitphan/Krung Thon Group. In June, New Bangkok International Airport Co (NBIA), the operator of Nong Ngu Hao, invited bids for construction of the passenger terminal, a project estimated to cost 42 billion baht. Nine contractors have expressed interest. Bus services The talk of the town was the Bangkok Mass Transit Authority's launching of the women-only Ô'Lady Bus'' service on May 31. A trial service at peak evening hours on 10 routes was warmly welcomed. In another development, the BMTA said it would consider transferring more routes to private bus services this year in a bid to reduce its accumulated debt of 20 billion baht. Private operators now serve 27 routes. However, plans to transfer the bus agency to the Bangkok Metropolitan Administration (BMA) made little progress because of the BMTA's financial problems. BMTA staff fear loss of jobs and welfare benefits and have called for the transfer to be scrapped. Candidates in the Bangkok governor election in July vowed to improve the city bus service and ease traffic jams, but were short on specifics. Railways Financial problems continued to plague the State Railway of Thailand (SRT), which had difficulty obtaining funds from the government during the economic crisis. The SRT wanted to increase its fares to increase its revenue in 2001 to 7.27 billion baht, from 6.77 billion baht this year. The government agreed that if the SRT improves track maintenance, catering and station toilets, among other services, it can can increase third-class fares by 40% in October. It has bought new third-class carriages from JR-West Co of Japan. The SRT wants to contract out services in dining cars and other facilities. Other plans to raise revenue include private commercial development at nine more train stations. The SRT will soon set up three subsidiaries to run some of its operations such as track laying and maintenance for five years. It will also lay another connection from Hua Mark to Chachoengsao for 8.7 billion baht. Others Don Muang Tollway Co, the 25-year concessionaire for the Don Muang Tollway project, is negotiating to restructure debts totalling 12 billion baht with creditors. The number of vehicles using the Don Muang Tollway is averaging 130,00 compared with an estimate of 600,000 projected before the crisis. The company has asked for a longer concession and a contract to collect tolls on the Highway Department's expressways. |
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