SRT board gives green light to adjust business rehabilitation plan, prepares to propose to school staff for approval, starting next year, going through 6 new strategies Overhaul to earn money in addition to driving Property and land management Towards a rail platform provider Confident in supporting EBIDA goals Be positive by 2033
3 Oct. 2022 – Mr. Awirut Thongnet, Deputy Governor of the State Railway of Thailand (SRT) revealed that the SRT Board of Directors (Board) meeting on 29 Sept. Has considered and approved the State Railway of Thailand Plan 2023 – 2027 or the business rehabilitation plan. After the original plan has been approved by the State Enterprise Policy Committee (Students) the railway system has already implemented the successful implementation, such as the investment in the double-track railway line. including the establishment of a subsidiary company such as SRT Asset Company Limited (SRTA), a subsidiary to manage assets of the railway
For this new business rehabilitation plan It focuses on business planning to generate income from existing assets. especially the use of the double track system to be effective Under this plan, there are 6 strategies, namely Strategy 1: Developing competitiveness such as procuring locomotives to replace and expanding transportation capacity. Including reducing the cost of maintenance of the rail system by outsourcing, increasing the proportion of outsource the private maintenance work.
Strategy 2: Revitalize the core business, such as expanding transportation of goods in potential industries, providing bus services to reduce losses, developing tourist trains to increase income, expanding the customer base to be more diversified, expanding business alliances transport of packages Increase customers in large package groups and expand more private partnerships. Support the expansion of the transport sector, improving the quality of passenger services and goods. including the efficient service of the Red Line and high-speed trains
Strategy 3 Develop and generate revenues that are not related to rail transport. by accelerating revenue from lease management property and land Accelerate the implementation of large-scale contract potential conversions, support subsidiary companies in the development of large-scale projects and expand new businesses to generate revenue. and develop a model for generating additional income (Non-core), such as food and beverage services sell products or join hands with partners to create travel packages Sold with train tickets to increase convenience for more passengers, etc.
Strategy 4: Transforming the business model to a rail platform provider by expanding the infrastructure The dual-way system that SRT has developed according to the first rehabilitation plan. The model is currently being studied to allow the private sector to rent the rail system for efficient use of this infrastructure while the SRT is in the process of procuring additional locomotives. and is also preparing to support Rail Transport Act that will allow the private sector to rent and operate in the government’s rail infrastructure
“Right now, the Railway Still in the locomotive procurement and maintenance process To bring the rail system to its fullest potential, but according to the plan, more than 100 cars will have to be procured. Currently, 50 cars have been approved for purchase, 20 have been inspected, and the remaining 30 will be gradually delivered. It is expected to be completed. Within February 2023, if assessing the full potential of the rail system Personally, I think it will take up to a thousand locomotives. Therefore, Thailand’s rail system still has the potential to support more traffic,” said Mr. Awiruth.
Strategy 5: Reform the organization in accordance with the revival By this section, the Railway will increase the direct marketing work in the passenger and goods business to analyze the market demand more In addition, the cost of personnel for overtime, OT and holiday work will be reduced. as well as developing an accounting system to be able to clearly identify and show the efficiency of each business group
And Strategy 6 Develop rail system with BCG Model Develop rail system with green innovation. which is a trend that the whole world is paying attention to And entrepreneurs in all sectors are important to push this issue. As for the railway sector, it aims to shift some train services from diesel fuel to clean energy. or electric system (EV)
Mr. Awiruth also said that after the board approved the new rehabilitation plan, the railway will prepare a report to the Ministry of Transport soon, after which it will be proposed to school people to consider before submitting to the Cabinet (Cabinet) for approval which is expected to be completed within this year to start implementing the rehabilitation plan scheduled in 2023 with the goals of this rehabilitation plan will push the Railway Have a positive earnings before interest, taxes, depreciation and amortization (EBITDA) by 2033.