Monthly Archives: July 2019

Should Bangkok subsidise public transport costs?

The idea of a flat fare for Bangkok public transport has recently resurfaced. Since the operation of the BTS and MRT is contracted out to private companies (BTS Group, and Bangkok Expressway and Metro PCL respectively), this would likely only be possible if the government agreed to subsidize the private operators for the loss of farebox revenue.

Let’s do some back of the envelope calculations on how much this would cost based on publically available information from the BTS and MRT.

The BTS Skytrain carries around 240 million trips per year, with farebox revenue of THB 7 billion, an average fare of fare THB 29 per trip.

The MRT carries around 115 million trips per year, with farebox revenue of about THB 3 billion and an average fare of about THB 25.

If there was a flat fare of 15 baht, and the government to fully reimburse the private operators for the cost of each trip, then each journey would need to be subsidised by about 14 baht on the BTS and 10 baht on the MRT, a total subsidy of about 4.5 billion baht. About 75% of the subsidy would be for the BTS, due to higher ridership and higher fares.

However this assumes that lower fares would have no effect on ridership numbers. In practice, we could realistically assume a 10-20% increase in ridership after a fare cut, bringing the subsidy above 5 billion per annum. The opening of future lines like the Yellow and Pink lines will further increase ridership.

How could the cost of the subsidy be limited? There are two obvious ways. First it’s likely the government could agree a lower subsidy per ride in exchange for the future increase of passenger numbers. Second, the flat fare could be slightly higher. A flat fare of 20 baht instead of 15 baht would only require a subsidy of 2.7 billion baht instead of 4.5 billion baht.

Is this worth it? The pros and cons of subsidised public transportation have been debated at length. It’s clear that Bangkok suffers from heavy negative externalities from excessive motorbike and car use in the form of heavy pollution and congestion, so if the fare cut could bring commuters off the roads and onto public transport, perhaps. A 2016 study found the economic costs of Bangkok’s traffic was 11 billion baht per year.

New extensions to MRT Blue Line and BTS Sukhumvit Line

In August 2019 two of Bangkok’s mass transit lines will receive extensions.

First, the MRT Blue Line will be extended by 5 stations to the west of its current terminus at Hua Lampong: calling at Wat Mangkon, Sam Yot and Sanam Chai, before crossing the river with further stops at Itsaraphap and Tha Phra.

It will be free to take rides on the MRT between Wat Mangkon and Tha Phra during the test runs.

Several of the new stations have impressive designs, such as the Wat Mangkon station (in Bangkok’s Chinatown) which is modelled after a Chinese temple.

Photo from BKKTrains Facebook group

This is just the first phase of ambitious expansion plans for the MRT Blue Line in the next 12 months. In September, it’s planned to open a further 6-station extension west from Tha Phra to Lak Song. This extension will interchange with the BTS Silom Line at Bang Wa.

Additionally, in March 2020, another branch will run north from Tha Phra to Tao Poon, finally completing the Blue Line’s circular loop.

Separately this August, the BTS Sukhumvit Line will be extended by one station north of the current terminus at Mo Chit, to Ha Yaek Lat Phrao (Lat Phrao Interchange). This station will provide an additional interchange with the MRT Blue Line at Phahon Yothin station.

It’s nice to see Bangkok’s metro lines finally extending, and more importantly interchanging with each other! Look out for updates to our Bangkok BTS/MRT map online, on iOS and Android soon!