Transport Minister says 20-baht train fare policy will generate profit
The 20-baht electric train fare policy will not trigger a massive loss but, on the contrary, stands to make a profit as it will draw more passengers, Transport Minister Suriya Jungrungreangkit told MPs on Wednesday.
Speaking during the deliberations on the 3.48 trillion baht budget for fiscal 2024, Suriya stressed that the policy is designed to develop transportation and logistics, as well as mitigate the expense burden for Thais.
"Once their expenses drop, people will be able to save more cash. The policy also creates equality,” he said, adding that fares for the SRT Red Line and the MRT Purple Line are now fixed at 20 baht.
Suriya also rallied against MPs’ accusations that the 20-baht electric train fare policy would cause a loss of more than 1 billion baht, pointing out that both the Red and Purple lines had been facing losses of 6.9 million baht per day and that the introduction of the 20-baht fare had significantly boosted passenger numbers, he explained.
He also pointed out that the revenue from the two train lines had increased within three months.
"I believe that in six months, once the feeder system at stations is in place, the two lines will generate enough revenue to cover expenses, and will make a profit," he said.
The ministry is accelerating the promotion of the joint ticket act, which will expand the 20-baht electric train fare policy and see the establishment of a fund to compensate losses for train operators. The act is waiting for the cabinet's consideration, he said.
Suriya added that no budget for supporting the policy has been included in the 3.48 trillion baht budget because the government will use revenue from the Mass Rapid Transit Authority of Thailand and the State Railway of Thailand.
