TDRI: 20-baht mass transit train fare not cost-effective
The Thailand Development Research Institute (TDRI) has warned that the government's policy of implementing a 20-baht mass transit train fare is neither cost-effective nor sustainable.
The Institute instead suggests adjusting the fare system for long-term sustainability according to the situation and budget.
During the government's economic policy announcement, Transport Minister, Suriya Jungrungreangkit highlighted the 20-baht mass transit train, stating that a study would be conducted, which would take about 6 months, after which residents of Bangkok could benefit from the 20-baht mass transit train fare.
He also said that within 3 months, the fare for the Red and Purple mass transit trains line operated by the state would be adjusted to 20 baht along the entire route as a New Year's gift for the public,.
Dr Sumet Ongkittikul, TDRI's research director for transport and logistics policy, said that while the 20-baht fare is a good starting point as it addresses the issue of passenger fares, it should be more of a promotional price to encourage the use of mass transit than a sustainable long-term cost that covers the operating costs. Dr Sumet suggested that the current fare structure should be improved further, possibly increasing the price to 50 baht for crossing lines to address the long-term issue of fares.
He also pointed out that another significant challenge is the ticketing system, as each line of the mass transit system currently has its own ticketing system. If a 20-baht fare across all lines were to be implemented, a unified ticketing system would be needed. This would inevitably take time and money, thus raising the question of who would bear the cost of implementing such a system.
Dr Sumet emphasised that the most important issue to consider is the fare structure, which is currently higher than 20 baht for most routes due to existing concession agreements. The government will have to compensate for the difference in fare revenue, estimated to cost between 6-9 billion baht per year.
In conclusion, Dr Sumet suggested that the use of public funds for the 20-baht mass transit train fare policy should be limited and other state revenues used instead. This could include raising gasoline taxes and allocating funds to subsidise the mass transit system. However, using central excise tax revenue directly to subsidise the policy could gradually reduce its cost-effectiveness over time, he warned.
