SRT told to form subsidiary for land use
Date：2017/10/12
By Chatrudee Theparat on 12 Oct 2017
[Bangkok Post] Loss-making State Railway of Thailand (SRT) has been ordered to accelerate the formation of a wholly owned subsidiary to manage and make the best commercial use of vast areas of plots nationwide, a move that should help tackle its massive outstanding debt of 100 billion baht.
State Enterprise Policy Office (Sepo) director-general Ekniti Nititanprapas said the Transport Ministry projects the SRT could fetch about 300 billion baht within 30 years if it can form an effective management system for its existing 39,000 rai of plots, including the 497-rai Makkasan plot.
The ministry reported that the SRT has already signed rental contracts with private companies on 15,000 rai, leaving the remainder undeveloped.
The State Enterprise Policy Commission, also known as the superboard, chaired by Prime Minister Prayut Chan-o-cha yesterday also ordered the SRT to establish another subsidiary to operate and maintain the Red Line electric route from Bang Sue to Rangsit and Bang Sue to Taling Chan.
"The Red Line is the vital backbone of infrastructure that links other routes, including the double-track rail network, the high-speed rail and 10 future mass transit lines in Greater Bangkok, so efficient management of it is essential," Mr Ekniti said.
Construction of two Red Line sections is expected to be completed over the next three years. Revenue from the Red Line is projected to help boost the SRT's finances.
Mr Ekniti said the SRT is also required to be open to more private participation to increase competitiveness. The SRT must also restructure its business and prioritise human resource development, he said.
"Gen Prayut said at the meeting that the SRT should pay its first attention to human resource development to cope with the country's rapidly changing rail development," Mr Ekniti said.
He said the committee also required seven state-owned enterprises to conduct their long-term reform plan to ensure sustainable development.
The SRT is among seven financially troubled state enterprises required by the State Enterprise Policy Commission to undertake a business rehabilitation plan.
The others are Thai Airways International, the Bangkok Mass Transit Authority, TOT Plc, CAT Telecom, Islamic Bank of Thailand (IBank) and the Small and Medium Enterprise Development Bank of Thailand (SME Bank).
The committee also yesterday agreed that SME Bank will remain in the State Enterprises Policy Commission's list of loss-making enterprises despite its improving operating performance.
Sepo said recently that it wanted all state enterprises, including the seven under the superboard, to become profitable within five years.
The goals set are part of a five-year plan through 2021. The plan also requires the earnings of each state enterprise to be on a par with those of other operators in their respective industries.
Among the seven state enterprises, BMTA has suffered the biggest losses, retaining a net loss of 102 billion baht as of the end of the first quarter last year, followed by IBank at 24.2 billion as of 2015 and SME Bank at 7.41 billion as of March 2016.