How can Bangkok's city
buses be made self-supporting?
Recent reports take a look at the problem
By Jon Fernquest 
The governments agency responsible for Bangkok's
city buses is called the BMTA
(Bangkok Metropolitan Transit Authority).The BMTA has never made a profit or even supported itself with revenue from the services it offers since its founding in 1976.
Granted, providing comprehensive and affordable transportation to city dwellers is the highest priority goal for the agency, not being self-supporting.
Nonetheless, the operations of BMTA could be more efficient and not having profit or self-support as a goal makes increasing efficiency difficult.
That is what today's article is about. Recent reports have investigated how to make the BMTA more efficient.
BMTA: Efficiency paves path to profit
By SARITDET MARUKATAT AND AMORNRAT MAHITTHIROOK8/07/2009
Adding a batch of new buses will not in itself help the Bangkok Mass Transit Authority turn around its fortunes.
Problems with routes
It still needs to refine routes and cost-cutting plans.
The authority operates 108 routes while a further
119 are handled by private firms under
concessions,
the BMTA reveals in a report. It also supervises some 271 minor routes that are the domain of mini-buses, passenger vans and songthaew.
With its limited fleet, the BMTA is unable to handle all of the main routes. But if the government eventually acquiesces to the plan for 4,000 new buses, it will be in a position to expand its service to 145 routes by ending the concessions of some private bus companies.
Operating more than 100 routes is not really indicative of the BMTA's ability to provide a comprehensive commuter service for Bangkok and neighbouring provinces. Rather, it hides problems at the agency.
For example, on Phahon Yothin Road alone it operates about 30 routes, according to Pallapa Ruangrong, who has studied reform plans for the BMTA. The Lat Phrao area has 20 bus service lines and there are 18 routes that go to the King Taksin monument, better known as Wongwian Yai, she said.
So a lot of the BMTA's problems arise from the system of bus routes, Ms Pallapa said in a forum organised by the Office of Transport and Traffic Policy and Planning which discussed the problems affecting the agency.
Redundant routes should be slashed to save costs and boost efficiency, suggested Ms Pallapa, now a member of the Energy Regulatory Commission.
But a revamping of the bus route system would not be easy as it was not within the BMTA's power to make the decision. The authority rests with the Land Transport Central Committee, chaired by the transport minister, which also decides the routes for all bus lines including those for inter-provincial and provincial buses.
Sakon Varanyuwatana of Thammasat University's economics faculty said this situation would have to be changed to allow the BMTA to have more flexibility in adjusting routes.
The BMTA has already explored route changes, including the setting up of transit centres around Bangkok to for passengers travelling from suburban areas to downtown Bangkok. The plans have been act as feedersput on the back burner.
Kunchit Phiu-nual, an adviser to Trans Consult which studies bus problems, cautioned that route adjustments should be made gradually. Abrupt changes would be chaotic for passengers who are used to the present systems.
Other areas that need improvement are management and the BMTA's accounting system.
Problems with labour costs
Each bus plying the streets of greater Bangkok now requires a staff of five people, from drivers and conductors to supervisors, according to a study by King Prajadhipok's Institute.The figure should be slashed to three or four at most, said Supaporn Chiniam from Chulalongkorn University's commerce and accountancy faculty, who conducted the research into the BMTA for the institute.
Such cost-cutting plans were inevitable as state enterprises such as the BMTA and State Railway of Thailand can no longer expect generous financial support from the government.
In the case of the BMTA, which has been in the red since its establishment in 1976, each government since has thrown money at it to cushion its financial burden and keep the buses running.
Cost-cutting for leaner operations
Now the government is forcing the BMTA's hand to transform itself into a leaner operation by insisting it will subsidise only loss-making routes instead of every route.The government will no longer support areas which are not related to bus services, such as managing expenses for people in the front office.
Not all bus routes can turn a profit. Some are crowded during morning and evening rush hours but are all but empty for the rest of the day. Only a handful of routes can make money throughout the day. Others are not well patronised, such as night buses, but they cannot be scrapped as the few people who use them are unable to afford a car.
Ms Supaporn said the BMTA would have to make clear which routes need financial support from the government in the future.
An official at the Finance Ministry said the BMTA and other state enterprises such as the SRT would be required to send all details - including operating costs - and explanations to the ministry on areas that need to be subsidised by the government.
(Source: Bangkok Post, general news, BMTA: Efficiency paves path to profit, SARITDET MARUKATAT AND AMORNRAT MAHITTHIROOK, 8/07/2009, link)
BMTA (Bangkok Metropolitan
Transit Authority) - the government agency in
charge of public buses in Bangkok
self-supporting - pays for itself, operates perhaps at a profit but not at a loss
comprehensive - covering all possible aspects or dimensions
affordable - does not cost too much, so people have enough money to use or buy it
city dwellers - people who live in the city
highest priority - the most important (the first goal in line to be achieved)
Granted, X. Nonetheless, Y. - X is true, but Y is also true (concede or give in on point X, to prove point Y)
efficiency - getting a lot done with limited resources
a batch of - a group of
turn around its fortunes - stop losing money and make a profit
refine - improve by small changes
refine routes - improve routes by making small changes
domain - an area that someone has control over
acquiesces to - agrees to
be in a position to... - be able to do...
concessions - permission from the government to allow a limited number of people to do a business
under concessions - run a business with government permission
is not really indicative of... - does not really show...
commuter - a person who travels from their home to work and back everyday
revamping - changing and improving
within their power - they have enough power to do it
X chaired by Y - meeting X led by person Y
transit centres - places where all the buses in the area stop, where people change buses
act as X - do function X, perform function X
feeders - small roads that lead to bigger roads
put on the back burner - delay a project for a period of time
route adjustments - changes in routes that the buses travel along
chaotic - without any organisation
ply - travel regularly along a route
greater Bangkok - the city of Bangkok and its neighbors such as Nonthaburi and Samut Songkram
plying the streets of greater Bangkok - traveling regularly along the streets of greater Bangkok
conductors - the people who sell tickets to people on buses or trains
a figure - a number
slashed - reduced
inevitable - will happen for certain in the future
generous - gives more than they need to, more than is expected
expect generous financial support - believe that they will receive a lot of money
in the red - losing money
thrown money at - give a lot of money to without a clear plan
cushion - soften
a burden - something that makes life difficult
cushion its financial burden -
transform - change
leaner operation - doing the activity spending less money (with less expenses, less workers, less expensive machines)
subsidise - pay part of the costs of some activity
loss-making routes - routes that the bus travels on that don't make money
turn a profit - make a profit
well patronised - has many customers
scrapped - ended, thrown away
self-supporting - pays for itself, operates perhaps at a profit but not at a loss
comprehensive - covering all possible aspects or dimensions
affordable - does not cost too much, so people have enough money to use or buy it
city dwellers - people who live in the city
highest priority - the most important (the first goal in line to be achieved)
Granted, X. Nonetheless, Y. - X is true, but Y is also true (concede or give in on point X, to prove point Y)
efficiency - getting a lot done with limited resources
a batch of - a group of
turn around its fortunes - stop losing money and make a profit
refine - improve by small changes
refine routes - improve routes by making small changes
domain - an area that someone has control over
acquiesces to - agrees to
be in a position to... - be able to do...
concessions - permission from the government to allow a limited number of people to do a business
under concessions - run a business with government permission
is not really indicative of... - does not really show...
commuter - a person who travels from their home to work and back everyday
revamping - changing and improving
within their power - they have enough power to do it
X chaired by Y - meeting X led by person Y
transit centres - places where all the buses in the area stop, where people change buses
act as X - do function X, perform function X
feeders - small roads that lead to bigger roads
put on the back burner - delay a project for a period of time
route adjustments - changes in routes that the buses travel along
chaotic - without any organisation
ply - travel regularly along a route
greater Bangkok - the city of Bangkok and its neighbors such as Nonthaburi and Samut Songkram
plying the streets of greater Bangkok - traveling regularly along the streets of greater Bangkok
conductors - the people who sell tickets to people on buses or trains
a figure - a number
slashed - reduced
inevitable - will happen for certain in the future
generous - gives more than they need to, more than is expected
expect generous financial support - believe that they will receive a lot of money
in the red - losing money
thrown money at - give a lot of money to without a clear plan
cushion - soften
a burden - something that makes life difficult
cushion its financial burden -
transform - change
leaner operation - doing the activity spending less money (with less expenses, less workers, less expensive machines)
subsidise - pay part of the costs of some activity
loss-making routes - routes that the bus travels on that don't make money
turn a profit - make a profit
well patronised - has many customers
scrapped - ended, thrown away
