The Transport Ministry has instructed the State Railway of Thailand (SRT) to improve its income-generating capacity to pay off its more than 160-billion-baht debt, Transport Minister Saksayam Chidchob said on Thursday.
At a meeting on Tuesday to follow up on progress to establish an affiliate of the SRT to specifically manage the state enterprise's assets, particularly its land of about 40,000 rai, the minister said he told the SRT to learn from PTT Plc's model of asset management to ensure agility in the SRT's new affiliate.
Tuesday's meeting was the second one on establishing an SRT affiliate since the cabinet approved it, he said, adding that the affiliate will be called Rotfai Phatthana Sinsap Co.
Currently the SRT earns only about 2 billion baht a year, or less than 1% of the market value of its land, while its accumulated debt has already surpassed 160 billion baht, the minister said.
He said he has told SRT governor, Niruj Maneepun, to apply his previous work experience at Krungthai Bank to improve both efficiency and agility in the SRT so that the organisation begins making profits.
Several plots of SRT land are in locations with good potential to be successfully developed such by the Chao Phraya River, in Bang Sue, Makkasan and Ratchada, the minister said.
If the SRT becomes capable of managing its assets more professionally, as a private company does, Mr Saksayam said, he believes the state enterprise will eventually be able to reverse its losses and begin making a profit.
The SRT is now required to bring to the next meeting with the minister a plan to improve efficiency and agility in asset management.
At this point, the SRT is expected to earn no less than 4% in annual income, or about 10 billion baht a year, Mr Saksayam said.
The SRT is also recommended to take on board successful asset management models developed by other public and private organisations, he said.