The Transport Ministry plans to relocate the Mor Chit northern and northeastern bus terminal despite concerns the move would decimate some state-run inter-provincial bus services.
However, it is also considering a proposal to retain a small parcel of land at the existing terminal to operate short-haul services.
Wutthichat Kalayanamit, president of Transport Co, a state enterprise operated by the ministry, insists the relocation is unavoidable.
He said he was in discussions with the State Railway of Thailand (SRT), which owns the 73-rai site. Transport Co leases the land in Chatuchak district from SRT to operate the bus terminal.
The ministry says the Mor Chit terminal no longer has the capacity to deal with the growing number of buses and passengers using the site.
The SRT, meanwhile, has also expressed a desire to reclaim the land and transform it into a train station and logistics hub.
Transport Minister Chadchat Sittipunt said the ministry needs to carry out the relocation plan with caution because shifting the terminal further from central Bangkok would cause a decline in passenger numbers.
Commuters on short-haul routes have the option of using privately run passenger vans, which depart from various places around the inner city, to make trips to provinces close to Bangkok.
"My concern is that state-run inter-provincial buses which travel within a distance of 300 kilometres will become extinct," Mr Chadchat said.
If the terminal is located further away, it would be more difficult for Transport Co to compete with private van operators.
In fact, he said, the company already finds it hard to attract passengers away from vans, which are generally faster than the larger buses and only slightly more expensive.
The ministry's initial study recommends using a 100-rai plot of land near Future Park Rangsit shopping complex as the new bus terminal.
The terminal must be located near an electric train route so commuters can easily connect to inner-city public transport, Deputy Transport Minister Prasert Chanruangthong said.
A final decision is yet to be made on the new location, he said.
The ministry expects to hold more talks after the Songkran festival, he added.
One solution proposed by the ministry is for the SRT to allocate part of its land in Mor Chit to Transport Co for short-haul inter-provincial bus services.
Long-haul buses would depart from other locations, including a proposed terminal near Bang Sue railway station.
SRT governor Prapat Chongsanguan said he would welcome Transport Co using some of the land at Mor Chit, though he stressed that he would need to study details of the plan before it was approved.
He said Transport Co also needs to be aware the company and SRT are competing for the same customer base.
If rail tracks are upgraded in the future according to government plans, Transport Co would be disadvantaged as travellers would most likely opt for cheaper train services.