BMA hammering out Skytrain deal

BMA hammering out Skytrain deal

BTS station in Bangkok. (Bangkok Post file photo)
BTS station in Bangkok. (Bangkok Post file photo)

The Bangkok Metropolitan Administration (BMA) is negotiating with BTS Group Holdings Plc over the granting proposed 40-year extensions to two concessions on the Green Line Skytrain service, according to a source at the Transport Ministry.

One concession -- the Mo Chit-On Nut and the National Stadium-Saphan Taksin sections -- is set to expire in 2029. Meanwhile, the other concession -- on the On Nut-Bearing and Saphan Taksin-Bang Wa sections -- will expire in 2042.

City Hall wants the concessions extended for another 40 years in order to make it convenient for commuters who will not need to switch trains along the route, the source said.

"If two private firms are asked to handle the same line, people may need to change trains since the rail systems could be different," the source said.

The source disclosed that City Hall is negotiating with the BTS about the concession extensions.

The 40-year extension of the concessions would be granted on the condition that BTS must invest in the construction of the Green Line extensions between Khu Khot and Lam Luk Ka and from Kheha to Bang Pu, the source said, while the company is obliged to allocate part of its revenue to the BMA.

Another condition is that BTS must agree to assume 100 billion baht worth of assets and debts incurred during the construction of Green Line extensions.

According to the source, the talks have been protracted for months since BTS disagreed with capping fares at 65 baht per ride throughout the line -- either from Khu Khot to Samut Prakan or between Khu Khot and Bang Wa. "The operator is not yielding on this point as it claims it is not commercially viable," the source said.

The source, however, said BTS appears to be happy not to collect entry fees when commuters change trains to other rail lines under a common ticketing system.

If BTS does not back the ceiling of a 65-baht fare, questions may be raised as to whether other operators should be sought or if it needs to wait for the new Bangkok governor to decide, the source said.

Candidates are likely to raise fares during the campaign for the Bangkok governor election, the source added.

Electric train fares in Thailand have been criticised by the Thailand Development Research Institute (TDRI), which indicated the rates are too high in comparison with Singapore, Hong Kong and London, using a purchasing power parity adjustment.

In foreign countries, revenue from other activities at train stations is taken into account when concession contracts are formulated. They include advertisements at train stations and commercial operations at terminals.

BTS executive director Surapong Laoha-unya said 80,000 people are expected to use the Green Line between Mo Chit and Ladphrao intersection -- one station -- every day when the section launches next month.

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