The Finance Ministry, in collaboration with the Transport Ministry, has initiated discussions on acquiring concessions for seven electric train lines, with a combined value of approximately 500 billion baht. The objective behind this move is to bring these lines under state control and fulfill a key campaign promise of the Pheu Thai Party to cap train fares at 20 baht across entire routes.
Lavaron Sangsnit, the finance permanent secretary, explained that the Transport Ministry, through the State Enterprise Policy Office, approached the Finance Ministry with the idea. The proposed acquisition aims to make these urban and suburban train lines state assets, with a fund potentially set up to finance the purchase of concessions from private companies. However, Lavaron noted that further discussions would be required to determine the specific details of the plan.
According to an anonymous source within the Finance Ministry, the funding could be raised through an infrastructure fund by offering investment units to both retail and institutional investors. The revenue generated from the train lines could then be used to provide returns to the fund’s investors. The estimated cost to buy back all seven train concessions exceeds 500 billion baht.
The key train projects under consideration include the Green Line Skytrain (Mo Chit-On Nut and National Stadium-Saphan Taksin sections) valued at 50 billion baht, the Green Line extension (Mo Chit-Saphan Mai-Khu Khot) worth 27 billion, the Blue Line MRT (Hua Lamphong-Bang Sue) at 115 billion, the Blue Line extensions (Bang Sue-Tha Phra and Hua Lamphong-Bang Khae) valued at 81 billion, the Yellow Line (Lat Phrao-Samrong) estimated at 48 billion, the Pink Line at 51 billion, and the Orange Line (Bang Khun Non-Min Buri) valued at 140 billion baht.
In a related effort to address traffic congestion in Bangkok, the Transport Ministry is considering the implementation of fees for driving into the city’s inner areas. The revenue from these congestion fees could also be directed into the proposed infrastructure fund. The Office of Transport and Traffic Policy and Planning has been tasked with evaluating the feasibility of this measure.
The ministry has also calculated that in order to maintain the 20-baht flat fare for electric trains, the government would need to subsidize 17 baht per person, resulting in an annual cost of nearly 6 billion baht.
Former Prime Minister Thaksin Shinawatra has voiced support for the 20-baht fare policy. He suggested that while train concessions should be brought under state control, private companies could still manage the operations, with the government setting fare prices. This approach, Thaksin believes, would help balance public accessibility and operational efficiency.
