B20 fare a 'short-term painkiller'
Samart Ratchapolsitte, who also ranks as a former deputy governor of Bangkok for Public Works and Traffic, described the policy as a "short-term painkiller" introduced ahead of upcoming elections.
He questioned how long the government could maintain the scheme amid budgetary and operational challenges.
The cabinet recently approved the policy, which will run from Oct 1 to Sept 30 next year. It aims to reduce living costs and encourage commuters to shift from private vehicles to public transport.
Registration will open next month via the state-developed Tang Rat app, while QR code payments via the app are planned for the future.
However, budgetary concerns loom large, he said.
The government allocated 5.6 billion baht for the first year, lower than earlier estimates of around 8 billion baht, which included subsidies for agencies such as the State Railway of Thailand, Mass Rapid Transit Authority, and Bangkok Metropolitan Administration (BMA), plus 156 million baht for a central revenue management system.
The BMA alone reports needing 11 billion baht in compensation, indicating a significant shortfall as the allocated budget covers less than a quarter of this requirement.
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BMA chief voices train fare compensation concerns
Bangkok governor Chadchart Sittipunt has urged the government to clarify compensation terms for the 20-baht electric train fare policy, warning unclear details could expose the Bangkok Metropolitan Administration (BMA) to potential legal risks. Mr Chadchart expressed support for the government's second phase of the 20-baht maximum fare policy for electric trains across the Bangkok Metropolitan Region (BMR), saying that this initiative will help ease financial burdens on commuters. However, he noted that the current concession agreements with private train operators involve average fares of around 34 baht per passenger. With roughly 700,000 passengers, a figure likely to increase, the concessionaires could face a substantial revenue loss as the Ministry of Transport's compensation estimate appears low. The BMA has also hired private firms to operate some train lines at an annual cost of around eight billion baht while collecting only about two billion baht in fare revenue. Mr Chadchart said the compensation must also be fair in this case as well. "What we're a little bit worried about is the contracts between the private concessionaires and the BMA. Clear discussions are needed because if they can't agree on a certain compensation, the BMA could be sued," Mr Chadchart said. Meanwhile, Gp Capt Anudith Nakornthap, the Kla Tham Party's strategic chairman, defended the policy against critics who argue it is unfair to taxpayers outside the capital. Gp Capt Anudith said that the 20-baht fare benefits all Thais, not just Bangkok residents, as anyone from across the country who works or visits the capital will also be able to enjoy lower fares. He said that Bangkok contributes nearly 48.3% of national tax revenue -- far more than other regions -- demonstrating the city's critical role in national financing. He warned against a view that public spending in Bangkok is designed to be regionally biased. "This isn't about favouring just Bangkok," he concluded. "It's about reducing transport costs for everyone, which is a way to stimulate the economy by increasing people's purchasing power."
Bangkok Post
6 days ago
- Bangkok Post
Flat fare a good start
The 20-baht flat fare for electric trains that will run from Oct 1 this year to Sept 30 next year is a welcome move to ease the cost of living for city commuters. It will apply to all eight Bangkok electric train lines with public registration starting in August via the "Tang Rat" mobile app, according to the Ministry of Transport. It's not yet in place, but the public and critics are already wondering how long this generous fare subsidy will last. The fare cap for electric trains and subways in the capital is one of Pheu Thai Party's election promises. While many of the party's bold visions such as the Land Bridge or the casino entertainment complex have fallen flat, the fare cap scheme is perhaps one singular visible achievement that Pheu Thai-led government can brag about. No doubt the party hopes that voters will reward it at the next election. The subsidy will require a budget of seven billion baht a year to keep all city train and subway routes capped at 20 baht. For this year, Deputy PM and Transport Minister Suriya Jungrungreangkit forked out the money from the State Railway of Thailand's budget. Some critics say the subsidy unfairly takes money that should go into improving the railway system overall. A bigger problem is that the subsidy could actually cost more than budgeted. The Bangkok Metropolitan Administration, which oversees the crowded Green Line, reports needing 11 billion baht in compensation for the line's operations every year. Mr Suriya last year floated the idea of collecting a congestion fee from private vehicles to fund the subsidy. This approach has been adopted in many cities around the world including London and Singapore but unfortunately did not pan out. His plan to pass a law to create a common ticketing system for electric trains also failed to gain traction. Consumers, of course, have been waiting for more than a decade for governments to develop a convenient ticketing system that works on subways and skytrains without incurring extra fees when they switch between the two. Yet the bigger question is whether the fare cap helps improve connectivity and convenience over the mass transport system, or is just a populist handout intended to appease voters? Unfortunately, the fare cap works like a short-term painkiller to ease the cost of living. There is no systematic or follow-up plan to improve connectivity and the quality of public bus services that will feed commuters to city trains and subways. Without better connectivity between city trains, subways and public buses, the fare cap will only encourage some people, perhaps not many, to leave their cars at home and use state-provided mass transit. The government deserves praise for trying to fulfil its pledge and help cut transport costs. But what the public want is a sustainable model that makes public transport accessible and ensures its quality. A fare cap subsidy which comes and goes at the will of elected politicians is not that.
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Waste sorting a money saver
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