Skytrain fares may rise

Skytrain fares may rise

Higher costs prompt first increase since 2005

Skytrain commuters face paying higher fares from May.

Passengers wait to board the skytrain at Pho Nimit station in Thon Buri. Opened last week, the station lies along the extension line from Wong Wian Yai. The fare increase has not yet been decided but the ceiling rate will be 51 baht. PAWAT LAOPAISARNTAKSIN

Bangkok Mass Transit System Plc (BTSC), the skytrain operator, is considering passing the cost of the minimum wage increase onto commuters by increasing fares.

Chief operating officer Surapong Laoha-Unya said the company expects to finalise the issue in April and to announce the new rates to the public one month ahead of the effective date.

He said it is critical for the company to raise fares due to higher costs of labour, electricity and maintenance.

These three core operating costs account for 70-80% of the company's expenses and have significantly increased in recent months.

"Rising costs are due mainly to the higher minimum wage and the fuel charge tariff, which has been rising all these years, while we've maintained our fares for a very long time," Mr Surapong said.

"We've not yet finalised the fare increase, but the ceiling rate will be 51 baht. This would be only the second time since the opening of the skytrain for fares to rise, the first being in 2005.

"We don't think the result of the Bangkok governor election will have any effect on the fare adjustment."

Mr Surapong said BTSC will delay offering an infrastructure fund aimed at raising 50-60 billion baht from this month, as it is still awaiting approval from the Securities and Exchange Commission (SEC).

The SEC itself is waiting for clarification from the Department of Special Investigation (DSI) regarding the fund's status.

The BTS Rail Mass Transit Growth Infrastructure Fund (BTS GIF) is associated with revenue from the remaining skytrain concession and the operating contract extension with the Bangkok Metropolitan Administration.

The DSI is investigating whether the contract extension was against the law, resulting in the fund being a fraudulent investment. However, the inquiry has been criticised as politically motivated.

BTSC expects the infrastructure fund to be approved under the government's policy after the Bangkok governor election is held.

It plans to hold roadshows for the infrastructure fund in the US, Britain, Hong Kong and Singapore.

However, the delay to the fund will not affect BTSC's business plan, and the company projects 196 million journeys on the skytrain this year, Mr Surapong said.

Meanwhile, Bangkok Smart Card System Co, a unit of BTSC, has joined with Bangkok Bank to launch the Smart Rabbit Card.

The plastic debit and credit card affords greater convenience by allowing cardholders to pay for goods and services besides skytrain fares.

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