March 9, 2017

Sepo urges more robust rail department

A train leaves Hua Lamphong station in Bangkok. Thailand's railway development needs a rail transport department to aggressively improve the system, experts suggest. JIRAPORN KUHAKAN

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Thailand's railway development will be hampered without the planned rail transport department having a role in the liberalisation of the industry, warns the head of the State Enterprise Policy Office (Sepo).

A department empowered to act as a regulator that allows the private sector to compete with the State Railway of Thailand (SRT) in providing train services would beef up competition and efficiency, said Ekniti Nitithanprapas, Sepo director-general.

The cabinet recently approved the establishment of a rail transport department to improve railroad management, as part of efforts to reform the SRT. But the proposed department is so far limited to setting safety standards, with no authority to liberalise the train industry, now monopolised by the loss-making SRT.

A source speaking on condition of anonymity said the idea of liberalising the railway system has long been floated, but is opposed by SRT employees.

Deputy transport minister Pichit Akrathit recently said the SRT's labour union had asked the agency to halt a plan to set up two subsidiaries -- one to operate the trains and the other to oversee train maintenance work -- over disagreement over whether they should be merged.

The union said it would make more economic and practical sense for the SRT to set up a single company responsible for the operation and maintenance of the trains, two pillar functions of the SRT. The union also demanded that it be included in the process to decide the matter.

Prime Minister Prayut Chan-o-cha last month invoked Section 44 of the interim charter to remove the governor and entire board of the SRT, citing the need to improve its management.

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