The government has defended its plan to cap electric train fares at 20 per trip, currently in effect on the Red and Purple Lines, saying revenues from the two lines are increasing amid a rise in passengers.
The two rail lines are therefore expected to start making profits soon, Transport Minister Suriya Jungrungreangkit said on Thursday.
He was responding to questions raised by MPs during the House budget debate, specifically regarding the feasibility of the cheap fares.
Before the 20-baht flat-rate fare was introduced, the two rail lines were losing about 6.9 million baht per day, said Mr Suriya. However, in less than three months after the launch of the programme, both lines have begun earning more revenues as there has been a significant rise in passengers, he said.
The lines are expected to start making a profit in the next six months, helped by the launch of a new air-conditioned feeder bus service to improve passenger transfers, he said.
Democrat Party list-MP Jurin Laksanawisit asked how the government would compensate operators for their losses, estimated at 7.4 million baht per day.
He said the government should not be using taxpayers’ money to finance the scheme while claiming that it helps cut people’s living costs.
Mr Jurin also asked exactly how the scheme would be expanded to cover all existing electric rail systems as the government has claimed.
The Red Line is operated by the State Railway of Thailand, which already has debts exceeding 200 billion baht. The Purple Line is owned by the Mass Rapid Transit Authority of Thailand (MRTA) and operated by SET-listed Bangkok Expressway and Metro Plc.
Fares on the 60-station Green Line operated by Bangkok Mass Transit System Plc, range from 16 to 59 baht, while those on the MRT Blue Line are between 16 and 43 baht. They are the two most heavily used rail lines in the capital.
Mr Suriya said a bill that would set up a fund to subsidise fares on all other service providers is now ready for cabinet submission.
If approved, the law would make it possible for the 20-baht scheme to be offered universally, he said.
However, the government has not proposed a budget for the scheme in the 2024 budget bill. Mr Suriya said this is because the government is confident that the revenue from both the MRTA and the SRT would increase in the coming months, making it sufficient to compensate for their losses.