Scope of Business Operations of Transport Co., Ltd.

Transport Co., Ltd. is a state enterprise under the Ministry of Transport, established under the Civil and Commercial Code. Its primary operations involve providing passenger transport services by buses between Bangkok and various provinces, between provinces, and within provinces. The company also permits private operators to participate through a joint-venture model, operating on routes licensed by Transport Co., Ltd. The government has assigned Transport Co., Ltd. to play a central role in organizing bus operations, both for its own buses and for joint-venture buses, ensuring proper regulation and management. Additionally, the company provides bus terminal services. The business operations are categorized into three main areas:

1. Company-Operated Buses
2. Private Joint-Venture Buses
3. Bus Terminals
   
   

1. Company-Operated Buses

Transport Co., Ltd. directly operates a small number of routes, focusing mainly on long-distance routes and routes aligned with government policies. In contrast, the company collaborates with joint-venture buses on nearly 100 routes. While Transport Co., Ltd. also operates on these routes, it sets an example for joint-venture buses to maintain service quality.

For routes that Transport Co., Ltd. allows private operators to run independently, most fall under category 3 and category 4 routes (inter-provincial and intra-provincial routes). These are often more challenging for Transport Co., Ltd. to operate effectively due to local-specific requirements. By granting operation rights to local private operators, the needs of passengers can be better met. Additionally, due to a shortage of company buses, private operators are allowed to run services, under the supervision and regulation of Transport Co., Ltd., which enforces rules and collects fees, including entry fees, annual fees, and per-trip fees.

2. Private Joint-Venture Buses

After consolidating private operators under its supervision in 1959, Transport Co., Ltd. successfully organized and regulated bus operations. This process ensured fairness for all parties involved and promoted the formation of partnerships or limited companies among smaller operators to improve service quality.

Currently, there are approximately 7,455 private joint-venture buses. The process for adding or managing buses on licensed routes includes:

1. Adjusting trips and vehicles based on operational needs, as approved by the management team and submitted to the Department of Land Transport.

2. Vehicle allocation policy:

   • Priority is given to the company’s vehicles for route expansions. If the company opts not to operate, private operators are considered under the following guidelines:
     • Rights are first given to private operators directly impacted by the new route.
     • If no operators are directly affected, the company evaluates whether to use its vehicles. If not, private operators are granted rights.
     • Rights may also be given to buses without prior rights but operating regularly on the route.
     • Operators must have no outstanding debts with the company and must comply with operational rules and contracts.

3. Contracts and Fees:
   Private operators must enter into contracts with Transport Co., Ltd. to operate on licensed routes. Contracts are valid for one year and can be renewed annually as long as no violations occur. Fees include per-trip charges, which cover the costs of maintaining bus stations and facilities provided for joint-venture buses.

3. Bus Terminals

Bus terminals are facilities where multiple bus routes converge, offering passenger services such as waiting areas, restrooms, and dining spaces. Terminal fees are charged based on bus types as per the regulations of the Department of Land Transport, which oversees bus terminals nationwide.

Currently, Transport Co., Ltd. operates seven licensed bus terminals:

• Bangkok Terminals:

  • Mochit 2
  • Ekkamai
  • Southern Bus Terminal (Borommaratchachonnani Road)

• Regional Terminals:

  • Suphanburi
  • Phu Khieo, Chaiyaphum
  • Lom Sak, Phetchabun
  • Surat Thani

Additionally, the company manages 113 regional bus station offices across the country.