The Thai government expects to finalize the buyback of concessions for all electric train lines in Bangkok by 2026, as part of an initiative to make public transportation more affordable and centrally managed.
Currently, a 20-baht fare cap applies to select sections of the Red and Purple mass-transit lines. The Ministry of Transport has pledged to extend this cap to all train lines by September 2025. To achieve this, the government will need to subsidize operators in the short term, with a long-term restructuring to follow.
The State Enterprise Policy Office (Sepo) is leading the review of the fare policy. A committee chaired by Finance Minister Pichai Chunhavajira is scheduled to meet later this month to outline potential frameworks for repurchasing the lines from private operators.
Sepo director-general Tibordee Wattanakul indicated that proposals will address state ownership, financial valuation, and funding strategies. The agency is expected to recommend full state ownership post-buyback, citing international models from countries such as Singapore and Japan. However, private operators may still compete to run services under state ownership.
The cost of reacquiring the concessions is initially estimated at 200 billion baht. This amount could be raised via an infrastructure fund that sells investment units to the public, modeled after the Thailand Future Fund—a previous mechanism that supported state infrastructure development.
Sepo’s valuation accounts for the limited duration left on some contracts, such as the Green Line concession, which expires in 2029. Several routes, especially those on the outskirts of the city, have reportedly underperformed financially, making them more viable for state reacquisition.
Officials believe that if public financing mechanisms are approved and private stakeholders are amenable, the buyback could be completed within the next year, paving the way for lower fares and unified management of Bangkok’s rail system.
