Transport Minister Phiphat Ratchakitprakarn says buying back all private mass transit lines is necessary to maintain affordable travel fares for the public, though the Finance Ministry insists there are no plans for such a purchase.
The government established a committee on Oct 15, chaired by Mr Phiphat with Finance Minister Ekniti Nitithanprapas as vice-chair, to drive implementation of the electric train fare policy to reduce living costs for the public.
According to Mr Phiphat, the committee is scheduled to meet for the first time on Oct 29 to discuss the direction for integrated transport management.
He said the government wants to issue common tickets for all electric trains, with the fare capped at a maximum of 40 baht.
Mr Phiphat said this rate is more practical and doesn’t require an additional state subsidy, unlike the previous government’s policy for a 20-baht flat fare. This rate is due to end on Nov 30.
If this common ticket model is approved, the state would buy back all of the electric train lines, he said.
In turn, the government would grant concessions to operate services back to the private sector based on a contracted duration.
However, this policy still requires the Finance Ministry’s consideration, as the investment should not exceed the public debt ceiling.
State ownership would help define a more affordable fare system in the long run, said Mr Phiphat.
In the future, the rail and bus systems should be able to use the same common ticket for rides, he said, adding implementation might be impractical during the four-month term of the administration.
Meanwhile, a source from the Finance Ministry who requested anonymity said the policy for determining fares on electric trains in Bangkok and surrounding areas is being considered by the Transport Ministry.
Representatives from the Finance Ministry are serving as members of the joint committee, but a working group meeting has not been scheduled.
Regarding the proposal the government should repurchase the electric train lines from the private sector, the source said there is no such plan at the moment.
The previous government led by Paetongtarn Shinawatra set a policy to reduce electric train fares in Bangkok and adjacent areas to a flat rate of 20 baht a trip on the Red and Purple lines.
To support this policy, three major bills were proposed: the Rail Transport Act, the Common Ticketing System Management Act, and the Mass Rapid Transit Authority Act.
All three bills passed Senate consideration and are awaiting official promulgation.
The previous government also considered buying back the train operation concessions from the private sector through an infrastructure fund, which was estimated to require more than 100 billion baht.
However, following the change in administration the 20-baht flat fare project was abandoned.