Raise zombies to profit SRT breaks down the client company for 10 years, can it be cleared up a hundred billion losses?

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Manager of the weekend –   opening a new page of history, Thai trains will not lose any more. When the plan for establishing a subsidiary company became clear Laying down the timeline, study suitability, finish brewing onto the board, knocking early next year 2021, aiming to wipe out a loss of 1.7 billion in 10 years, sweet dreams, asset management, golden. location, earn 6 hundred billion in 30 years, awaken zombies to come back to life, otherwise die from Debt flooding with a loss of more than 5 billion per year, 

“the Uncle Tu government” that many people do not love. Grab what you do, it will not hurt the young people. But if looking at the work with a fair heart, at least the efforts to reform the Thai railway at  “Father Rama 5”   Left as an inheritance of the land It has been changed enough that it can be said to change the face of railway history. The whole railway project. High-speed train or high-speed train And several electric train lines in Bangkok and its vicinity Were born in the time of the Uncle Tu government Focusing on investment in rail infrastructure In harmony with the road construction project Multiple motorways

The transit point of the State Railway Which is the most important pin Is to shake the new management structure By breaking out the offspring company For flexibility in managing and earning money Because, say, go to the trainNot being poor as a poverty But was a grandfather Som guarding property Being a Land Lord, there is an enormous location of land waiting for development to make money all over the country. In the past, many governments had plans to add value to their existing assets, but no concrete action was taken. Until it came to the Lung Tu government, it was clear that setting up at least four subsidiaries that were working at this time The latest progress has been made

on November 23,   Mr. Jirut Wisarnchit, Chairman of the State Railway of Thailand (SRT) ,   chaired the meeting for brainstorming for the study and analysis of the suitability in part. Of the establishment of 3 subsidiary companies  Bus companies, infrastructure maintenance companies (Highway and telecommunication signal) and rail and wheel maintenance companies SRT  to collect data. Opinions on problems, obstacles and suggestions to be used in the study of the establishment of the said subsidiary

, State Railway of Thailand (SRT) organized a workshop to brainstorm the advantages and disadvantages from employees and related parties in the region. It has been 7 times and on this 27th Nov, there is another workshop in the region, one more time in Hat Yai, Songkhla Province to cover all parties and areas in order to use the data to be used for analysis and consideration for prudence.

 Counted as a forced fight at the State Railway Must continue to seriously reform That the state of the organization is in a completely rotten state See from the past year 2019 performance, accumulated loss of 177,486 million baht, with outsource expenses of 3,477 million baht / year. , there is a shortage of personnel. Maintenance problems The locomotive and wheels are incomplete. Resulting in a loss of 5,200 million baht per year, if not taking action, will make it in the year 2029 The accumulated loss will reach 308,335 million baht. Huge

debt of more than a hundred billion accumulated by the SRT has increased during the NCPO.  era from the double-track railway investment project Phase 1 totaling 993 kilometers. Which at this time the construction has completed all routes According to the plan, it will be able to open a full service by the year 2025 at about 100-120 kilometers per hour. In addition, there is also a red line project investment in Bangkok that SRT has invested quite a bit.

For the important mission of setting up that subsidiary SRT has hired  Prime Street Advisory Company Limited (Thailand)  is a feasibility study and analysis. By setting up three subsidiaries, consisting of a bus company, an infrastructure maintenance company (road and signaling telecommunication) and a rail and wheeler maintenance company. To solve administrative problems Staff shortage And increase the flexibility to generate income Increasing the utilization of rail to improve service quality and efficient operation is divided into 3 phases: With a registered capital of 200 million baht by the Ministry of Transport Presented to the cabinet that Company income

During the first 3-5 years, improve service quality. Solving the labor shortage problem by SRT, which is the parent company, still performs all operations and maintenance duties. The newly established subsidiary, the bus company, will take care of sales, service, passenger business and merchandise. And started doing business beside railways to generate income, locomotive and wheeled vehicle maintenance company Will take care of maintenance in the areas where SRT lacks personnel And spare parts management to increase efficiency in cost management As for the infrastructure maintenance company Take care of rail maintenance Signaling system runway And infrastructure In the part that SRT lacks efficiency in order to reduce expenses

Phase 2, Year 5-10, Expand the role of subsidiary to aim for profit generation By allowing the company to operate Join in commercial buses for both passenger and goods Increase revenue from business beside the rail Manage commercial areas in stations and add-on businesses such as linkage systems or feeders, freight cars, door-to-door freight forwarding, IC-CY bus station management, locomotive and wheeled vehicle maintenance companies. Expand repairs and add locomotive rental services, infrastructure maintenance companies. Expanding repairs throughout the country

Phase 3 from the 10th year onwards is the business expansion and the penetration of new businesses. In collaboration with expert private partners to generate sustainable additional income It is expected to increase non-core or non-operating income to 20% within five years, to 30% in 10 years and to 15% in the 15th year, reducing vehicle maintenance costs. Sewing machine and wheel Infrastructure of at least 15-20% is expected to generate positive EBITDA over 10 years,

while SRT continues to act as a supervisory, traffic control, and safety. The Subsidiary will manage marketing, sales, and business promotion together with SRT. To expand the rail transportation business with the private sector Including maintenance of locomotive and wheeled vehicle infrastructure To alleviate the burden of personnel shortages of SRT.

According to the timeline, the Railway Company aims to set up a operating company, an infrastructure maintenance company. (Highway and signaling telecommunication) and rail and wheel maintenance companies and open for service. Get it in 2024 The feasibility study will be concluded in 2020. It will then present to the SRT Committee (Board) in 2021 and to the Cabinet (Cabinet) in 2022

for the Asset Management of the Railway. Previously, the Cabinet passed a resolution on 29 September. 2020 agrees that the Railway Establish a subsidiary to manage assets Using the name of   Railway Asset Development Co., Ltd. The limited asset development train will come from 3 parts, namely revenue from management fee, original lease 15,270 contracts, all assets still belong to the SRT, income from joint-venture sublease or existing land development contracts expired. And income from private investment projects and other land plots development And in the future there could be income from the sale of future cash flows to real estate investment trust.

As for the benefits that will be received, the Railway will have revenue from the company. Asset Development Railway To reduce the debt. The estimated return that the Railway will receive in the period of 30 years will be 631,628 million baht, enough to solve the current debt burden of 177,611 million baht.

 As for the Railway, there are 38,469 rai of land that are not used for driving, worth about 300,000 million baht, but have a return on asset management of approximately 2,400 million baht per year or equivalent to 1% of the asset value. Because the train has specific expertise This makes it impossible to use the existing assets to manage them efficiently. It is therefore necessary to establish a new organization. To manage assets is the main mission. 

Initially, the project was the goal of the company. The Asset Development Railway Co., Ltd. is a large land development project in Bangkok, consisting of 2,325 rai of Phahon Yothin Transport Center, 423 rai of Makkasan Station (the rest outside the train connecting 3 airports) and 277 rai of Maenam Station.

The projects in the northern region consist of the Phitsanulok station area 31 rai, the Uttaradit station area 30 rai, the Nakhon Lampang station area 24 rai, the Chiang Mai station area 50 rai, the Sila At station area 124 rai and the Nakhon Sawan station area 92 rai. Hat Yai station area, 30 rai, projects in the northeast Khon Kaen station area of ​​108 rai.

Various plans have been drawn up recently. Mr. Sak Siam Chidchob, Minister of Transport  Disclose the progress of setting up a subsidiary to manage the assets of the Railway that will complete the registration within one month. Which means that by the end of 2020, the face of the company will be seen by using the name   SRT Asset Co., Ltd.  From the original name that the cabinet proposed to use the company name Railway Asset Development Co., Ltd. There are 3 initial founders. SRT holds 100% shares, thus has the status of a state-owned enterprise. As for the Board of Directors, there will be representatives of SRT, Ministry of Finance representatives. And experts, etc., including about 9 people

after the establishment of the subsidiary is completed. There will be split up to set up 3 subsidiary companies, such as land encroachment problem companies, land management companies with potential for development, etc., where SRT will hold less than 50% of the shares in subsidiaries. There are partners holding 47-48%, about 3% of preferred shares.

According to the said shareholding structure Will cause the broken grandchildren to break away from being a state enterprise The advantage is that it brings flexibility in management. Earn more By performing the duties of land development instead of SRT and managing the contract for maximum benefit, SRT still owns all the assets and land as before. At the same time, there are areas of concern. With voices protesting that it would clear the benefits of the Railway As a state enterprise to private hands or not

 However, the model broke off the offspring companies to earn money. Create wealth for the organization This is a story that has been done in many large state-owned enterprises. Mr. Sak Siam Accept that I have given SRT studied the method and pattern of establishing a subsidiary company from successful state-owned enterprises such as Airports of Thailand Public Company Limited or AOT and PTT Public Company Limited. Set up another subsidiary 

Mr. Sak Siam Chitchob, Minister of Transport | Mr. Jirut Wisanchit, Chairman of the State Railway of Thailand (SRT) | Mr. Nirut Maneepun, Governor of the State Railway of Thailand (SRT)

As for the management model Look at the guidelines of the government, such as property management of the Treasury Department. Administration of Chulalongkorn University And applied the management experience of Krung Thai Bank to improve efficiency and speed of work And management to have a worthwhile return according to the expected value in order to make the Railway Revenue by the land that Mr. Sak Siam There are many plots for asset management companies such as Bangsue River Station, Makkasan, Ratchada, and RCA entertainment areas, which are potential locations in the future.

 If counting the age of the Thai train 124 years from the date of King Chulalongkorn His Majesty opened a 71-kilometer train journey between Bangkok-Ayutthaya Station on March 26, 1896, and you can see that over a century, Thai trains rarely develop. Currently, the distance is only 4,070 kilometers, if counting the time and distance increases, the railway increases by more than 30 kilometers per year only. And it is the only way that is the main waste of time avoiding the time of the train convoy, making it a waste of time and is not popular for the public services and the cargo business.  

Memories of the past are changing faces. And change the status of the train From the poor to wealth But above all, it is necessary for the public to use the service at a fair fare. Including commercial asset management for income Must be distributed to little people have the opportunity to use the land of the Railway. Available throughout the country as well

Reiterating the issue that must not be forgotten again is the demeaning of state enterprises for private use in business. Whether it is real estate Real rights or specific public property rights can be transferred to a descendant company. Has there been always objection that it will become a hidden issue of state enterprise privatization or not?

Not long ago,   Mr. Teerachai Phuwanatnaranubal Former Minister of Finance   Once argued that To take the land on both sides of the railway that King Rama 5 bestowed for the benefit of the civil servants To the private sector to use for business benefit without any rules in the statute that can control enforcing the validity at all.Will it be considered as a detriment of the benefits of all citizens or not?

 However, the current opposition to the railway reform. With the split of the subsidiary With concerns that it will hide the image or not. This kind of protest is hardly heard again in this year. Especially from the side of the State Enterprise Labor Union Railway From what had been stubbornly opposed, it fell until it seemed to disappear. Probably because he succumbed to the ravine in front of the overwhelming debt If change is not allowed, it has the right to die in one place. 

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