SRT GETS NOD TO MANAGE RED LINE AFTER REVIEW
The Transport Ministry has backed the State Railway of Thailand’s plan to manage the operations of the Red Line electric rail route linking Bang Sue with Rangsit.
Transport Minister Arkhom Termpittayapaisith said the ministry has informed the State Enterprises Policy Office, or the superboard, of its decision.
The SRT is expected to submit its proposal to the superboard for approval on March 15.
Originally, the superboard instructed the ministry to allow the private sector to compete for management of the Red Line’s Bang Sue-Rangsit link to ensure greater efficiency.
According to Mr Arkhom, the ministry has confidence in the SRT after reviewing its business rehabilitation plan.
Under the plan, 87 billion baht in debt will be transferred to the Finance Ministry in return for the ownership of land in prime areas.
The Red Line project requires a combined investment of 42.8 billion baht, of which 32.8 billion will be sponsored by foreign loans, mainly from the Japan International Cooperation Agency, and 10 billion from domestic borrowing.
“The next step is for the SRT to give assurances to the superboard that it can manage the rail route. And I think the SRT should operate the rail route longer than its proposed five years,” Mr Arkhom said.
Mr Arkhom said the SRT plans to hire a consultant to study whether it should set up a subsidiary or a separate business unit to manage the Red Line operations.
According to the minister, SRT Electrified Train Co, which operates the Airport Rail Link, will also submit a proposal to the superboard seeking to continue operating its original route.
The company expects an increase in revenue and predicts it will break even in two years.
However, the planned extension of the Airport Rail Link to Don Mueang airport will be undertaken under a public-private partnership scheme, he said.
He said the Public-Private Partnership Committee has agreed in principle with the Mass Rapid Transit Authority’s proposal to implement the 34.5km Pink Line (Khae Rai-Min Buri), costing 56.7 billion baht, and the 30km Yellow Line (Lat Phrao-Samrong), worth 54.7 billion baht.
However, the MRTA has been asked to clarify certain issues including the type of the system, he said, adding that it remains unclear if the MRTA will go for a monorail system or a light rail system.