Flat fare a good start
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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