Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport (MoT), stated that in tomorrow’s Cabinet meeting (December 9, 2025), MoT is preparing to propose to the Cabinet for approval in principle for the Single Ownership policy.
This policy would designate the Mass Rapid Transit Authority of Thailand (MRTA) as the sole agency responsible for overseeing and managing fare policies and the national common ticketing system. The goal is to unify all mass transit projects under a single policy framework, enabling the establishment of affordable rates to the public.
A key issue is that if the Cabinet approves this principle, it will pave the way for “buying back mass transit concessions” from private companies holding Public-Private Partnership Net Cost (PPP Net Cost) concession agreements, which is a necessary prerequisite for centralizing management authority and for implementing true “joint ticketing–joint fare” systems in the future.
Mr. Phiphat added that the government has initiated preliminary Single Ownership discussions with the two private sector operators, Bangkok Expressway and Metro PCL (SET: BEM) and BTS Group Holdings PCL (SET: BTS), both of whom do not object to selling back their concessions to the state, provided the price is right after negotiations.
Bangkok Metropolitan Administration (BMA) is also in agreement with the principle, willing to transfer all rail projects under MRTA’s supervision, though MRTA must reimburse BMA for previous subsidies provided to support the rail system—a sum to be mutually determined. Therefore, the transfer will only occur once financial terms for all lines are settled.
Mr. Phiphat acknowledged that the buyback of mass transit concessions would not happen under the current government. Consequently, during this government’s term, the public will only have access to a daily flat fare (THB 40) on two lines: the Purple Line (North) Tao Poon–Khlong Bang Phai and the Red Line Taling Chan–Bang Sue–Rangsit. For other lines, it will depend on whether the next government will continue the current administration’s Single Ownership policy.
Mr. Pichet Kunadhamraks, Director-General of the Department of Rail Transport, stated that at the meeting of the committee for date rate implementation, MRTA presented initially feasible results of a buyback study. Firstly, the state must negotiate with private operators to amend concession contracts from PPP Net Cost (revenue-sharing) to PPP Gross Cost (service-fee based).
Afterward, the state would grant a Gross Cost concession to the existing private operator for 30 years, with the state paying annual service fees, similar to the current model for the Purple Line North, in which MRTA hires BEM to operate the service at approximately THB 1.5 billion per year (fee calculated by route length). Other lines will also use a distance-based fee model.
As for the rate, it is planned to start at THB 40 (daily flat rate for all routes), increasing by THB 10 every two years, resulting in subsequent rates of THB 50, 60, and 70. Once the fare reaches THB 80 baht, further adjustments will be every year at THB 2 per year. Based on this principle, it is estimated that the state would see a positive cash flow in year 12th after contract amendments to PPP Gross Cost, enabling concession buyback payments to the private sector. Profitability for the state is projected in year 23rd.
However, the committee viewed the initial daily flat fare of THB 40 for all lines as too low. Keeping the rate at this level for two years before the first THB 10 increase would heavily burden the government budget due to annual payments to private operators for each line. Therefore, the MRTA was tasked to reconsider and propose a more appropriate fare structure.
The buyback of mass transit concessions would change the revenue structure of private operators, as they would no longer need to invest in or collect revenue from the mass transit system, especially the loss-making like the Yellow and Pink line. However, these operators would also not benefit from a potential increase in ridership that is expected to come from the daily flat fare.
It is worth noting that the daily flat fare would significantly stimulate the economy by reducing living costs, which could, in turn, be used to increase consumption.
