Bangkok Subway News 2004

Suriya asking for a further reduction of subway ticket prices to 10-15 baht - translated and summarized from Manager Daily, December 30, 2004
Even though BMCL has cut ticket prices to 12-18 baht during non rush hour (12 baht for the first 7 stations and 18 baht for the rest), Minister Suriya said he was really not satisfied with BMCL. Minister Suriya wants 10 baht for the first 3 stations and 15 baht for the rest so as to boost the number of passengers to 180,000 a day while MRTA will have the revenue of 2.3 million baht a day--a loss of revenue by 0.4 million baht a day.
Currently, there are 135,000 Subway passengers a day on weekdays and 110,000-120,000 passengers a day on weekends with a daily revenue of 2.7 billion baht. Only during shows at Queen Sirikit National Convention Center boosts the number of passengers to 160,000 a day (3.2 million baht revenue a day).
Minister Suriya will ask the cabinet to approve his plan on Jan 4, 2005 which is likely to be approved as the way to gain more votes from Bangkokians .... However, it may not work if the poor feeder bus services have not been rectified. Same can be said about the poor patronage of Bangsue Park and Ride which has no convenient connections to the main roads such as Ratchadaphisek, Prachachuen, Kamphanegphet 2, Kamphaengphet 3, etc. They just make a rush to construct the park and ride to show that they have done something without making serious thought to make them a convenient. Same thing can be said to the plan to implement the Pink Monorail along Highway 304 and Yellow LRT.

Subway update: commercial deal delays sows seeds of discontent between BMCL and MRTA
- translated and summarized from Manager Daily, December 17, 2004
BMCL has complained to MRTA that they have not been granted permission for the commercial development around the stations since the MRTA board has not approved their new plan yet. It has already caused a 100 million baht loss to BMCL since they cannot post ads and get revenue from ATM machines.
BMCL said they will buy five more rolling stock sets from Siemens, but are still negotiating the price. It will offer IPO in 2005 for more cars.
The daily number of passengers: 140,000-150,000 passengers during weekdays and 100,000 passengers a day on weekends
Average revenue: 2.5 million baht a day--to become 4 million baht a day when the number of passenger reaches 200,000-210,000 a day
BMCL has ordered 150,000 additional smart cards since the existing 200,000 smart cards cannot cope with the increasing demand.
BMCL also talks with BTS to implement a jointed ticket system without meddling from the government since they know too well that they have to synergize their ticket system for their own survival. BMCL's Smart card is the model for the new BTS Smart card system.
BMCL is also going offer a 1-day pass (120 baht) and 3-day pass (300 baht) which the passengers can use without worrying about the rush hour/non rush hour period discount or even the distance after they have seen the successful implementation of BTS's 1-day pass and 3-day pass. The 1-day pass and 3-day pass will be introduced on December 20.

10,000 more student passengers on the Subway
- translated and summarized from Manager Daily, December 16, 2004
BMCL said they have 10,000 more students as passengers of the Subway (7%) after the introduction of student discount on smart card systems. Therefore, BMCL will have to introduce permanent student discounts after the discount period has expired.
However, there is no significant change even after the introduction of non-rush hour discount, so they may have to discontinue it after March 2005.
Nevertheless, BMCL will introduce a 24 hour service during new years eve after they have seen the busy Skytrain which runs around the clock during the new year period (December 31-January 1).

BMCL agreeing to pay 7% of revenue to MRTA - translated and summarized from Thai Post, November 9, 2004
MRTA agrees to accept 7% revenue sharing from BMCL. MRTA is asking BMCL to share 7% of profit after offering an IPO.
BMCL said the subsidiary will give 25% of revenue to BMCL from year 1 to 5 and 35% from year 6 to 10 and BMCL will give 7% of revenue to MRTA. The estimated of revenue of the subsidiaries will be 200 million baht each while the estimated revenue in the second 5 year will be 300 million baht each. If both subsidiaries gain more profits, BMCL will have to give 7% of dividends to MRTA. BMCL will also have to give MRTA 7% of profit after offering an IPO.

Complete details of 2 new subway lines and 2 new extensions - translated and summarized from Thaipost, November 11, 2004 and Prachachart Thurakij, November 15, 2004

Subway commercial deals
MRTA says the two new lines and two extensions of the subway with total distance of 71 km would not have new commercial development because of safety concerns. For the telecom deals, all the telecom providers must pay 7% of rent to MRTA. However there are some disputes since MRTA and BMCL could not agree on the definition of a 'telecom deal.' BMCL said it means 'services' while MRTA says 'leasing space."
For the How Come deal, revenue will gradually increase in the following fashion:

Raw revenue of How Come BMCL MRTA
First 100 million baht 10% 7%
second 100 million baht 15% 7%
Third 100 million baht 20% 7%
Forth 100 million baht 25% 7%
More than 400 million baht 35% 7%

The contract with How Come will last for 10 years.

For the case of MetroMall and advertising by Traid networks, there will be a committee to handle this matter before the December meeting and MRTA will receive 7% of revenue.

Subway investment plan
The investment plan for MRTA which is pending for approval by the cabinet this December. MRTA needs to invest 217.4 billion baht for two new lines and two extensions of the blue lines to be done by the end of 2009. The first source is a domestic loan to prevent FOREX fluctuations, but it needs assistance from MOF to find the source. MRTA has to increase the payment for the consultant on detailed designs from 300 million baht to 600 million baht to speed up the projects.

The details on the 217.412 billion baht investment on 71-km of subway lines can be described in details as follows:
1) Domestic loan is the first source which have to be done by the end of 2005 to ensure that all will be finished by the end of 2010. The investment form will be in the same way as the Bangsue-Bang Yai section.
2) The elevated section (Blue Ring, the elevated section of Southern Blue Line, Orange Line and Purple line) will be 'detailed design' while the underground section (through Rattanakosin Island) will be design and build.
3) No commercial development is allowed to prevent terrorist attacks. The stations would not be as deep as the initial phase of the Blue Line (not more than three underground floors) to cut costs and for safety. [No commercial development means less clutter in the stations, fewer people hanging around, and better security. Previous commercial deals in the subway were penned before 9/11.]

Three new subway lines
1) Blue Line - 2 sections 27 km
1.1) Hua Lamphong - Bang Khae (14 km - 5 underground and 9 elevated)
10 stations which pass through Charoen Krung, Wang Boorapha, Sala Chaloem Krung, Wat Po, Pakklong Talad, Bangkok Yai, Phetkasem - Bang Khae
Investment: 48.453 billion baht System Installation: 9.314 billion baht
Land Expropriation: 4.233 billion baht Consultant fee: 0.550 billion baht
Construction: 32.981 billion baht Contractor Managing: 1.375 billion baht
Opened: September 2010

1.2) Bangsue - Charansanitwongse - Tha Phra (13 km - all elevated)
7 stations from Bangsue to Bangpho, Charansanitwongse, Tha Phra
Investment: 24.063 billion baht System Installation: 9.477 billion baht
Land Expropriation: 0.437 billion baht Consultant fee: 0.119 billion baht
Construction: 13.697 billion baht Contractor Managing: 0.297 billion baht
Opened: September 2009

2) Orange Line Bang Kapi - Bang Bumru (24 km - 21 underground, 3 km elevated)
17 stations - The line will pass Bang Kapi, Ram Khamhaeng Dindaeng, Victory Monument, Dusit Zoo, Sanghee Bridge, and Bang Bumru
Investment: 80.915 billion baht System Installation: 17.615 billion baht
Land Expropriation: 5.357 billion baht Consultant fee: 4.458 billion baht
Construction: 56.339 billion baht Contractor Managing: 1.146 billion baht
Opened: September 2010

3) Purple Line - Bangsue - Rat Boorana (20 km - 2nd section of purple line - 14 km underground, 6 km elevated)
This section will pass Tao Poon, Kiakkai, Sri Yan, Samsen, National Library, Bang Lumphoo. Phan Fah, Wang Boorapha, Memorial Bridge, Wongwian Yai, Sam Reh, Mahaisawan, and Ratboorana
Investment: 63.381 billion baht System Installation: 14.836 billion baht
Land Expropriation: 3.450 billion baht Consultant: 0.366 billion baht
Construction: 43.815 billion baht Contractor Managing: 0.914 billion baht
Opened: September 2010

The schedule will be as follows:
Period Task
2005 Consultant submitting the final study results in detail (MRTA has to pay consultants 600 million baht to speed up the study--300 million baht from the budget and 300 million baht from loans.)
March 2005 - April 2007 Land expropriation
November 2005 - June 2006 Hiring the contractors
February 2006 - August 2010 Construction

The financial benefit from the lines is not much:
Blue Line: 3.67%
Orange Line: 0.07%
Purple Line: 0.43%
Economic benefit is 20.56%

The payment scheme will be as follows:
Year Amount of expenditure (billion baht)
2005 0.516
2006 35.835
2007 59.201
2008 69.923
2009 42.663
2010 9.274
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