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Concession for Operating Trains

Regulations and Guidelines for Joint-Venture Buses with Transport Co., Ltd., 2004

Overview of Concessions in Thai State Enterprises (Joint-Venture Buses with TCL.)

Transport Co., Ltd. (BorKorSor) was established on July 13, 1930, initially under the name Thai Airways Company, Ltd. The company pioneered commercial aviation in Thailand and provided bus services between Bangkok–Lopburi and Bangkok–Prachinburi. In 1938, it became a state enterprise under the Ministry of Transport.

In 1957, Field Marshal Sarit Thanarat ordered the reorganization of bus transportation, granting BorKorSor exclusive concessions for Category 2 interprovincial routes (Bangkok to other provinces). The Department of Land Transport set the concession period (renewable every seven years), along with fares, schedules, vehicle types, routes, and stops. BorKorSor ensured fair management and opened opportunities for private operators to participate. As of today, there are over 7,000 joint-venture buses operating on 309 routes, and BorKorSor manages 119 bus terminals nationwide.

 


Key Features of the Joint-Venture Contract

  1. Contract Type: Build-Transfer-Operate

    • Private operators procure buses but must transfer ownership to BorKorSor before operations.
    • Operators are responsible for vehicle preparation, including body painting (BorKorSor branding, route details, and vehicle number), seating arrangements, and other specifications.
  2. Responsibilities of Private Operators

    • Hiring staff and maintenance personnel.
    • Maintaining the transferred buses in good condition.
    • Paying all fees, taxes, penalties, and third-party liability insurance.
    • Providing a security deposit based on vehicle type, with a minimum of 100,000 THB per bus.
  3. Vehicle Standards and Licensing

    • Buses must meet the standards specified by the Department of Land Transport.
    • Requirements include structural stability, safety equipment, and proper licensing.
    • For premium buses (e.g., First-Class Air-Conditioned Buses), additional services such as restrooms, food and drink service, baggage storage, and onboard announcements are mandatory.


Revenue Sharing and Penalties

  1. Revenue Sharing

    • Private operators pay BorKorSor a daily fee equal to the fare for one passenger per trip on the designated route.
  2. Operational Rules

    • Operators cannot involve unauthorized buses on the route.
    • Fines and penalties:
      • 100 THB/day for failing to operate without prior notice.
      • 200 THB/day for suspending service for more than seven days.
      • Unauthorized usage for other activities incurs a fine of 500 THB/day unless prior permission is obtained.
  3. Damage Liability

    • If accidents or damages occur, private operators are liable for compensation. BorKorSor may withhold or sell the bus to cover damages.
  4. Employee Conduct

    • Operators must ensure staff follow regulations. Misconduct requires immediate replacement of personnel, or BorKorSor may assign its staff at the operator’s expense.


Contract Renewal and Termination

  • Operators must notify BorKorSor 60 days before contract expiration to renew the contract.
  • Upon contract termination, operators must remove all BorKorSor branding, vehicle numbers, and other identifiers at their expense before reclaiming ownership.

 


Interprovincial Bus Categories

  1. Category 2: Bangkok to other provinces (operated by BorKorSor and joint-venture buses).
  2. Category 3: Interprovincial routes not passing through Bangkok (operated by private operators).
  3. Category 4: Intradistrict or intra-provincial routes (operated by private operators).

BorKorSor ensures fairness, service quality, and compliance with government policies while enabling private sector participation to meet public demand efficiently.

Let me know if you’d like further clarification or additional details!

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