Subway Fares Cut From Friday

[george]

Subway fares cut from Friday

Three-month trial to draw more passengers

BANGKOK: -- Subway fares will be cut to 10-15 baht from 12-31 baht during a three-month trial period beginning on Friday in a joint public and private sector campaign to attract more passengers to the mass transit system.

Prime Minister Thaksin Shinawatra announced the lower fares yesterday after the Mass Rapid Transit Authority of Thailand (MRTA) and Bangkok Metro Company Limited (BMCL), the subway operator, signed a contract for the trial project.

The new fares will start at 10 baht for the first three stations and 15 baht for longer trips. Students will pay seven baht and 11 baht.

Under the deal, 80% of the loss would be absorbed by the MRTA, an agency under the supervision of the Transport Ministry, and the remainder by BMCL, Mr Thaksin said.

The subway runs 20km from Hua Lamphong to Bang Sue passing through 18 stations.

Underground travellers peaked at 200,000 a day in the first month when the flat 10-baht rate was applied. But the number of users has fallen to 140,000 a day now after regular fares were introduced. The line was opened last April.

Transport Minister Suriya Jungrungreangkit said the fare cut was expected to raise the number of subway passengers by 30-50%.

The fare reduction would likely lead to the MRTA's monthly income dropping by 10 million baht, but the loss could be made up from concession fees and leasing out commercial space at subway stations.

``The major objective of the fare cut is to encourage more people to use mass transit systems, which will help save energy and ease traffic jams,'' the transport minister said.

BMCL president Plew Trivisvavet said the company was willing to cooperate with the government in lowering fares and was happy with the new rates of 10-15 baht because it wanted people to switch to the service. He estimated the firm's daily earnings could drop by as much as 400,000 baht.

The company now earns 2.7 million baht a day from the 140,000 passenger trips.

Yesterday, the cabinet also approved a plan by the MRTA to hire consultant firms to design the extensions of the existing line and for two new lines worth altogether almost 1.2 billion baht.

The design will cover the extended subway line from Bang Sue to Tha Phra and from Hua Lamphong to Bang Khae.

The other two new lines to be designed are from Bang Sue to Rat Burana and Bang Kapi to Bang Bamru.

Mr Suriya said the designs could be ready in eight months and tenders would be called afterwards.

Mr Plew, also chief executive of Ch Karnchang Plc, indicated that Bangkok Expressway Co Ltd (BECL), which operates the Don Muang Tollway, might consider a permanent flat toll of 20 baht if the government would consider extending the concession from 30 to 50 years.

The Transport Ministry launched a three-month trial period with a flat 20-baht toll for four-wheelers on Dec 22. If this entices more motorists onto the tollway, the ministry may make it permanent

But Mr Plew said BECL, of which Ch Karnchang is the major shareholder, has not been officially contacted by the ministry about the idea.

--Bangkok Post 2005-01-05