Bangkok train fare subsidies to cost up to B5.8 billion

Ministry of Transport aims to have reimbursement system for passengers ready by Jan 1

The Ministry of Transport will seek cabinet approval next month for a budget of between 5 billion and 5.8 billion baht to subsidise electric train fares ranging from 17 to 45 baht per trip.

The funds would be used to reimburse passengers for the difference between the full fare paid and the applicable capped rate, Deputy Transport Minister Siripong Angkasakulkiat said on Friday.

Under the proposal, passengers would initially pay the full fare, with the government refunding the difference through the Pao Tang app, which the ministry will work with Krungthai Bank to develop, he said.

The work would involve linking Europay, Mastercard and Visa (EMV) payment cards and Rabbit cards to the Pao Tang app.

The reimbursement system would follow a similar approach to that used on the Red and Purple electric train lines, he said. The subsidy would be available only to Thai nationals, excluding foreign passengers.

Fares on the two most widely used mass-transit systems vary by distance, ranging from 17 to 43 baht on the MRT routes and 15 to 62 baht on the BTS Skytrain system.

The government expects to introduce the uniform fare scheme across all electric train lines on Jan 1. The short-term measure aims to ease the cost of living and encourage wider use of public transport.

Mr Siripong said the transitional measures to link all the payment systems were expected to take six months to a year. In the longer term, the ministry aims to replace ticket readers across the electric train network so they fully support EMV payments.

He said the scheme would not affect existing concession agreements or contractual terms with private operators.

Private operators, including Bangkok Mass Transit System Plc (BTS) and Bangkok Expressway and Metro Plc (BEM), had raised no objections to the proposal because it would not change their existing fare structures. They would continue to receive revenue under their concession agreements, he said.

If passenger numbers increase after the scheme begins, the ministry will use actual ridership figures and prevailing business conditions as the basis for further discussions with concessionaires, he added.