Purple and Red Lines Losing Bt7.4m a Day Since Bt20 Fare Imposed

[snoop1130]

 

Operators of the Purple Line and Red Line suburban train services suffered a combined loss of Bt7.4 million per day between October 16 and November 14, after fares were capped at Bt20, said Dr Samart Ratchapolsitte, deputy leader of the Democrat party and an expert in mass transit.

 

Writing in his Facebook post today, Dr Samart said that he was not surprised that Transport Minister Suriya Juangroongruangkit did not give a press conference a month after the 20-baht train fare was imposed, which is in sharp contrast to the start of the new fare structure on October 16th, when the smiling minister brandished a 20-baht banknote at a press conference.

 

During the first month of the capped fare, Dr. Samart says that the average gross revenue of the two train lines amounted to about 1.3 million baht per day (500,000 baht on the Red Line and 800,000 baht on the Purple Line), while the total operating costs amounted to 8.7 million baht per day, resulting in about 7.4 million baht of operating losses each day.

 

Full story: Thai PBS 2023-11-23

 

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[Celsius]

I am afraid that in the future we will see a bunch of lines closed..... similarly to what happened with Airport Link Express line.

 

It is going to be a wasteland of abandoned structures.

[LS24]

Was reading today that the mono rail lines are at about 11-13 baht per passenger break even costs.

Why are the other lines so much more expensive to run?

 

Let's do some back of an envelope math:

According to Wiki here a Thai news article put 2019 Purple Line figures at 70,000 people per day. Now, the Purple line has only got busier - much busier since 2019. Cheaper fare will increase that number, too. 14 baht was the previous cost for a single station trip.  But let's stay at 70,000 rides.

 

Let's assume 18 baht per passenger and we have 70,000 * 18 = 1,260,000 per day which is very close to the total figure of revenue per day for red and purple lines combined.

1,260,000/16 hours per day mean = 78,750. Even if there was a 50% jump in patronage due to the 20 baht price, you are still short.

 

(8,700,000 baht / 16 hours of usage per day)/2 lines = 271,875 baht per hour per line.

with revenue at

 

271,875 / 18 baht = 15,104 passengers and hour. To get a break even according to the report with 2019's patronage you are looking at 271,875/(70,000/16) = 62.15 baht average trip cost break even.

 

At 105,000 pax per day you are looking at 41.43 baht average per passenger.

 

 

Get more of the old red buses off the roads helps with pollution and better welfare for all citizens. Invest in less higher spec buses and get more people onto the mass transit systems. More capital expenditure for more rolling stock and meet in the middle at capped 30 baht. Let the MRT run with 16% margins and cap it.

Win win. I would like to understand the total gate numbers and the timing of them as well as total runs per day in each direction of each line.
 

Edited November 23, 2023 by LS24
added

[hotchilli]

So with fares capped at 20 baht people will use the line, at normal prices to make a profit people cannot afford the fares?
So what's the real issue,

To build the line at market prices the fares charged means people cannot afford them and it will never return a profit..

so does this mean peoples income is so low and out of sync that infrastructure like this needs to be nationalised?

[bamnutsak]

The 20 Baht cap on electric train fares is a policy of the Srettha government, and they need to fund the operating deficits. End of story.

 

Meanwhile, the BMA is looking to weasel out of the 23 BILLION Baht they owe the BTSC.

 

And the Srettha government is subsidizing fuel to the tune of 17 Billion baht.

 

 

Earlier in September, the Cabinet approved a 2.5 baht cut on excise tax of diesel and biodiesel fuels for three months, effective from September 20 to December 31.

 

This measure is expected to result in reduced state revenue of 5 billion baht per month, or 15 billion baht over the period, the department noted.

 

Combined revenue lost from the fuel tax cuts could therefore reach as much as 17.7 billion baht.

 

https://www.nationthailand.com/thailand/policies/40032433

 

 

 

[newnative]

     The government should be subsidizing the mass transportation systems and keeping the fares low to encourage the public to get out of their polluting cars and use them.   Send the losses to the government, and the profits, if any, from the other lines.

[Sydebolle]

As far as the Red Line is concerned, the THB 20 did not change a thing - me thinks. The trains run with 10%-20% load factor, if at all, as the head stations (Don Meuang and Bang Sue) are just too far to reach by foot. Passengers will not do this marathon with luggage and the entire concept shows, once more again, the absolute inability of planning. If you want to change trains (and Bang Sue is predestined for that) you need to be physically fit. The signage at Bang Sue could be improved when coming from the MRT; all of a sudden you have to turn 90 degrees right while the tunnel itself goes straight. 

[Hawaiian]

10 hours ago, newnative said:

     The government should be subsidizing the mass transportation systems and keeping the fares low to encourage the public to get out of their polluting cars and use them.   Send the losses to the government, and the profits, if any, from the other lines.

I don't know of any municipal system that is not subsidized to some extent.  Why does Bangkok think they can do it better?

[rovinman]

Allow the Railway companies to develop Retail at each Station stop as they do in Hong Kong and Singapore  !
Hong Kong and Singapore are the ONLY MRT that makes a Profit from Rail  !

[Eric Loh]

Most mass transportation in Asia have to be heavily subsidized. Singapore MRTC and Malaysia LRT are some of the heavily subsidized transport system. Governments believed that offering low cost transportation is a public service and hugely help to reduce the noise and pollution problems. It also improve work productivity by ensuring workers get to work on time. 

[bamnutsak]

57 minutes ago, Eric Loh said:

Most mass transportation in Asia have to be heavily subsidized.

 

Yeah, I think most understand this concept.

 

What escapes the Srettha government is, how do they pay for this subsidy?

 

They lowered the fares but forgot to fund the operating deficits.

 

Heck, they haven't even formed a committee to study this yet.

 

 

 

He said his ministry was still drafting the bill and would send it for Cabinet approval within this year, adding that it would take another year to be passed by the House of Representatives.

 

The bill will allow the Transport Ministry to set up a ticket fund to provide compensation for the loss of revenue to private operators, he added.

 

https://www.nationthailand.com/thailand/general/40031947

 

 

The Minister of Transport said he has ordered the Office of Transport and Traffic Policy and Planning (OTP) to expedite studies related to this project, while the investment feasibility study is expected to conclude early next year. The government has designed this project to be completely funded by private investors, with the government supporting only the expropriation process.

 

https://thainews.prd.go.th/en/news/detail/TCATG231010093138158

 

 

 

 

[Eric Loh]

42 minutes ago, bamnutsak said:

 

Yeah, I think most understand this concept.

 

What escapes the Srettha government is, how do they pay for this subsidy?

 

They lowered the fares but forgot to fund the operating deficits.

 

Heck, they haven't even formed a committee to study this yet.

 

 

 

He said his ministry was still drafting the bill and would send it for Cabinet approval within this year, adding that it would take another year to be passed by the House of Representatives.

 

The bill will allow the Transport Ministry to set up a ticket fund to provide compensation for the loss of revenue to private operators, he added.

 

https://www.nationthailand.com/thailand/general/40031947

 

 

The Minister of Transport said he has ordered the Office of Transport and Traffic Policy and Planning (OTP) to expedite studies related to this project, while the investment feasibility study is expected to conclude early next year. The government has designed this project to be completely funded by private investors, with the government supporting only the expropriation process.

 

https://thainews.prd.go.th/en/news/detail/TCATG231010093138158

 

 

 

 

According to news report, the deficit will be funded by budget allocation. The current budget allocated 8 B subsidy and the government is seeking to increase to 40B. 
 

https://www.nationthailand.com/thailand/general/40030694

[bamnutsak]

6 minutes ago, Eric Loh said:

the deficit will be funded by budget allocation

 

"will be".

 

'Nuff said.

 

 

from your linked article (Sep. 1, 2023)

 

 

"...would require a budget of 40 billion baht, along with an additional 8 billion baht annually from the regular budget allocation. "

 

 

"would require"

 

 

 

No one has any issue with subsidizing public transportation. Many would probably prefer the budget be allocated BEFORE dropping the fares.