Despite efforts to improve service efficiency, the Airport Rail Link (ARL) in Thailand continues to face challenges, including declining ridership and significant financial losses. The ARL, operated by the State Railway of Thailand (SRT), has reported a staggering monthly loss of 70 million baht, primarily due to a drop in passenger numbers compared to pre-pandemic times.
In 2019, approximately 2.5 million commuters utilized the ARL each month. However, this number has plummeted by 25%, with only 1.87 million passengers per month currently. The decrease in ridership has been attributed to the ongoing Covid-19 pandemic, which has disrupted travel plans and activities around the world.
To address these challenges, the SRT decided to join forces with a private company, Asia Era One. In October 2021, the two parties signed a memorandum of understanding (MoU) that allowed Asia Era One, the concessionaire for the high-speed rail system linking the three airports, to take over ARL operations. Additionally, Asia Era One began managing the Red Line electric train service at the end of last year.
According to the initial agreement, Asia Era One was expected to pay 10.6 billion baht to the SRT for operational rights by October 24, 2021. However, Asia Era One proposed an installment-based payment plan, prompting a revision of the co-investment contract. While the executive rights transfer to ARL is still pending, the MoU is set to be renewed every three months until completion. For now, Asia Era One is only responsible for paying interest to the SRT.
Furthermore, the ARL has been marred by a variety of technical glitches that have caused interruptions in service and delays of 6-19 minutes. From January to April, multiple issues have occurred, including propulsion system and door malfunctions, as well as problems with the brake and signal systems. These frequent breakdowns have frustrated regular ARL users who rely on the service for their daily commutes.
A source familiar with the situation revealed that Asia Era One has incurred higher rail management costs than the SRT, mainly because staff-related expenses have doubled. Other costs, such as electricity and maintenance, have remained unchanged. Despite having the same number of trips, the income generated from ARL services remains insufficient due to the low number of passengers.
As the global pandemic continues to impact travel and transportation, the Airport Rail Link’s troubles are a prime example of the ongoing challenges faced by transit systems worldwide. Both public and private stakeholders must work together to find innovative solutions to improve operational efficiency, stabilize finances, and, most importantly, provide a reliable and comfortable experience for passengers.
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