SRT mulls plan to incorporate cash-strapped Airport Rail Link

SRT mulls plan to incorporate cash-strapped Airport Rail Link

The State Railway of Thailand (SRT) is considering incorporating the operator of the cash-strapped Airport Rail Link into one of its business units.

SRT governor Prapas Chongsa-nguan said the plan is part of the effort to tackle the liquidity problem faced by its subsidiary SRT Electric Train Co, which runs the airport rail link.

He said the plan to turn the subsidiary into a business unit needs approval from the SRT board before it goes to the Transport Ministry and the cabinet for consideration.

Mr Prapas said the SRT is also in the process of amending the contract with SRT Electric Train Co to alleviate the cash crunch.

He admitted the nature of the current contract is not suitable for the company's operations.

Once the contract is amended, the SRT will be able to allocate a budget of 200 million baht to the company.

"The company will have the cash to pay its employees," he said.

A source at SRT Electric Train Co said the company has a serious liquidity problem and may not have the money to pay its staff. The company's expenses must be approved by the SRT, the source said.

Mr Prapas said his agency will ask the cabinet tomorrow to revoke a resolution prohibiting it from recruiting new employees.

He said that after the airport rail link operator becomes a unit of SRT, its employees will become SRT workers.

However, he said the company boss, Phirakan Kaeowongwattana, will face the termination of his contract.

Mr Prapas said he has a plan for the subsidiary after it becomes part of the SRT.

He said it will be assigned to manage the Red Line mass transit system which runs from Taling Chan to Rangsit via Bang Sue.

"It may also be assigned to operate the high-speed train system in the future," Mr Prapas said.

The Airport Rail Link started operating in August 2010. Its services comprise two lines _ non-stop express services between Suvarnabhumi airport and Makkasan station, and the City Line running between Suvarnabhumi airport and Phaya Thai in central Bangkok.

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