BMCL upbeat on profit after 2017

BMCL upbeat on profit after 2017

Subway operator puts hope on Purple Line

Bangkok Metro Plc (BMCL), the country's subway operator, expects its balance sheet to become profitable after 2017 as more new train services are added. 

Service on the Purple Line from Bang Sue in the capital to Bang Yai in Nonthaburi province is expected to start in December 2016. 

BMCL, a unit of Ch. Karnchang Plc, Thailand's second-largest construction firm by market capital, has accumulated losses of nearly 10 billion baht since its start in 2005.

BMCL managing director Sombat Kitjalaksana expects the Purple Line, which will connect with the Blue Line running from Hua Lamphong to Bang Sue, to carry about 200,000 commuters a day in addition to 270,000 who use the Blue Line daily. 

Construction of the 23-kilometre track is 98% done and the company is in the process of installing the operating system and equipment. A test run of the Purple Line electric train is scheduled for late next year. The company has been awarded a contract for the procurement, installation, operation and maintenance of the route.

Mr Sombat estimated after the Purple Line is in service, BMCL's revenue is likely to increase by 700 million baht a year. Last year the company posted 2.54 billion baht in revenue with 774 million in net losses.

BMCL also sought the right to operate an extension of the Blue Line from Hua Lamphong to Bang Khae, and Bang Sue to Tha Phra, connecting a route the company already operates, from the Mass Rapid Transit Authority of Thailand. The 28-km Blue Line extension is under construction and is scheduled to start service in 2017.

"If we combine the commuters from existing routes with those from the Purple Line and Blue Line extension, the number will rise to near 800,000 a day," said Mr Sombat.

Commuters have risen 6-8% annually the last several years due to growing urbanisation and people's preference to live near mass transit. Commuters pay 25 baht on average this year per subway journey, up from 23 baht last year. 

"This is a positive sign and ensures we should have the capability to pay a dividend to shareholders after 2017," said Mr Sombat. He said full operation of the Blue Line would be another backbone in Bangkok's mass transit system, in addition to the skytrain extensions to Samut Prakan and Rangsit. 

BMCL shares closed on Friday on the SET at 1.65 baht, unchanged, in trade worth 72.2 million baht. 

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