Sky Train

A glimpse of positive sentiment for BTS Holdings Public Company Limited (BTS) is starting to get clearer regarding the negotiation for the concession of BTS Skytrain Green Line with Bangkok Metropolitan Administration (BMA). Primarily, BTS agrees on the train fare to be limited at 65 baht. However, there are about 100,000 million baht of debt from the expansion of Green Line after BMA took over the project from Mass Rapid Transit Authority of Thailand (MRTA) and they are considering to find help from BTS to pay the debt in exchange for the concession. Which is in line with the proposal from BTS for the extension of 30 years of BTS Green Line that is going to expire in 2029. There are many possibilities of the outcome, but it is certain that the deal must be completed within this month according to the enforcement of Article 44 while the possibility of granting concession in exchange for liquidating the debt has the highest chance as of now. The reason that the exchange has the highest possibility is mostly because of the 100,000 million baht of debt. The necessity for BMA to transfer this pile of debt to BTS or else it will be too much of a burden for BMA while the limit of the train fare to not exceed 65 baht is emphasizing the fact that it is hard to find a break even point. Meanwhile, the expiration of BTS’ concession in 2029 is something that is bothering BMA as the whole project will be the responsibility of BMA which raised the question of how well can BMA operate the train system? In BTS's perspective, the exchange along with the train fare seems to be quite brutal, but when looking at the business structure, BTS seems to have an even gain and loss at the same time. Assuming BMA grants 20-30 years of concession to BTS, the business under the brand could have a high growth such as the financial business of Rabbit Pay, real estate business and advertising business. The rapid train business will earn more income from the extension of the Green Line as well as the connection of Yellow Line and Pink Line which belongs to BTS as well. Thus, the Green Line is literally an aorta of BTS that Mr. Keeree Kanjanapas as a Chairman of BTS would not let it slip through his hand. Even if there are wounds, enduring is a must.