The state-run bus and rail agencies urgently need to improve their financial positions but fare increases do not appear to be part of the solution.
That is the view of the State Enterprises Policy Commission, after it considered the rehabilitation plans proposed by the heavily indebted State Railway of Thailand (SRT) and the Bangkok Mass Transit Authority (BMTA).
Anont Lueangboriboon, the acting governor of the SRT, said the board chaired by Prime Minister Prayut Chan-o-cha on Friday acknowledged the agency's plan and its implementation, but did not discuss train fare increases.
The SRT reported its fares to the board and compared them with those of electric trains and passenger buses. The agency has not raised train fares for three decades, he said.
The rehabilitation plan includes new investments and methods to increase income and cut costs. The SRT proposes to set up a subsidiary with registered capital of 300 million baht to supervise the commercial development of its land nationwide. Many sites alongside its tracks have high development potential but currently lie unused.
The plan could be submitted to the cabinet for approval by March and the SRT should be able to call for bids to develop its property by early next year, Mr Anont said.
Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office, said the board told the BMTA, which operates passenger buses in Bangkok, to improve services in line with its planned route changes before it thinks about raising bus fares.
However, the board acknowledged that bus fares were much lower than operating costs.
Recently Deputy Transport Minister Pailin Chuchottaworn said bus and train fare increases were the key to improving the loss-ridden operations of the SRT and the BMTA.