Loss-ridden Bangkok city bus service draws conflict of two ministries

[webfact]

Loss-ridden city bus service draws conflict of two ministries

BANGKOK: -- The loss-ridden Bangkok Mass Transit Authority (BMTA) now is locked in conflict with the Finance Ministry wanting to absorb all its debt and allowing the private sector to take control of operating city bus services.

But the Transport Ministry rejects the idea saying the BMTA should continue the city bus service operation but that it must transfer bus route concession authority to the Land Transport Department.

The Finance Ministry yesterday offered to clear all debts of BMTA if the BMTA agrees to allow the private sector to operate its city bus services.

Finance Minister Sommai Phasee said he was considering a possibility of granting concession for all city bus service operated by BMTA to private companies after the state enterprise has suffered 90 billion baht losses.

The minister said his ministry is ready to take all of the debts and noted that the move will not affect BMTA employees.

However, the proposal was countered by Transport Minister ACM Prajin Juntong who believes BMTA should remain the operator of the city bus service.

The minster said he supports the rehabilitation framework of the State Enterprise Policy Office, which requires BMTA to transfer its bus route concession authority to the Land Transport Department, making the state enterprise only an operator of city bus service.

He also said his ministry is now working out ways to clear all the BMTA debt.

In a another development, BMTA president Pol Gen Ake Angsananond said the company will next month reorganize an auction for its NGV-fuelled buses procurement project.

The new auction comes after three applicant candidates failed to submit required documents in the previous auction.

Source: http://englishnews.thaipbs.or.th/loss-ridden-city-bus-service-draws-conflict-two-ministries


-- Thai PBS 2015-01-29

[Katipo]

I would surmise that the debts came about to to mismanagement and corruption. On their own either is enough reason to privatise the company. I doubt however the BMTA will agree however as they won't want to lose this valuable source of kick-backs.

[BKKdreaming]

with bus prices so low I can see why they do not make money,

plus most of the diesel buses run so bad that they probably use 2x the fuel really needed

hopefully the new NGV-fuelled buses will help keep costs down.......

[maidee]

i have a solution

FREE BIKES in town for everybody

[BudRight]

A Tale of Two of Ministries.

Ineffeciency aside, it is the the most useful citywide bus service I have ever ridden.

[Halion]

The blind leading the blind and yet another government responsibility farmed our to friends and relatives with little regard for cost and efficiency.

This country will fail and the true reason behind failure is simple unadulterated greed.