BANGKOK, 19 April 2013 According to the Transport Ministry, the Airport Rail Link operator broke even for the first time during the last quarter after suffering revenue losses since the start of the train operation.
SRT Electrified Train Co Ltd (SRTET) has reportedly hit the 500-million-baht annual revenue mark, recording 50,000 passengers per day, or 115 percent of total passenger capacity. The operator expects the rail service to reap profits during the next 4-5 years.
SRTET earlier stated that despite the implementation of the 20-baht flat fare promotion in 2012, their revenue continued to drop and had previously sustained a monthly loss of 1.8 million baht.
The ministry made known that the SRTET is also set to borrow 420 million baht to boost the agency’s liquidity. The State Railway of Thailand will work on the masterplan to oversee methods to pay back the loans.
In addition, the SRTET’s proposal to purchase 7 trains with a price tag of 5.2 billion baht was flagged by the ministry as being overpriced. The agency was urged to procure cheaper alternatives as German Siemens trains, the preferred choice for Thailand’s rail services, had been priced more moderately.