Makeover a must for Thai state railway

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Makeover a must for Thai state railway  
Bangkok Post: 9 Oct 2009
www.bangkokpost.com/opinion/opinion/25287/makeover-a-must-for-srt

EDITORIAL
Makeover a must for SRT


The State Railway of Thailand has restored some lost confidence in the train service by reaffirming a decision on Wednesday to hire a German concern to run its newly-completed rail link to Suvarnabhumi Airport.

The SRT's long-suffering image of a state enterprise monolith saddled with poor service and low safety standards, has taken another beating with the latest train accident in Prachuap Khiri Khan province.

Wednesday's decision, which runs against the railway union's rigid stance against privatisation, shows the SRT management has finally realised a truth long since revealed to others: that its massive workforce notwithstanding, the state enterprise giant's capability to run a reliable and safe train service is questionable.

For a large number of rail employees, handing the operation of the airport link over to a private firm does not only represent a blow to the SRT's pride, but is also a threat to their job security. The railway's union members went on strike four months ago when the government revealed plans to restructure the state enterprise. The workers saw the plan as a direct threat to their jobs and welfare. The reason why rail unionists have not stirred up any trouble so far this time is probably because they have been assured that the service transfer would only be temporary, and because some union workers may still be busy clearing up the mess caused by the spate of train accidents these past two weeks.

Monday's train derailment in Prachuap Khiri Khan which killed seven and injured 88 others was actually the fifth train accident to occur in two weeks. Just a day before that tragic accident, a freight train loaded with cement derailed in Ayutthaya. That accident was preceded by three other minor derailments - two on the "Death Railway" in Kanchanaburi province and the other on Chua Phloeng Road in Bangkok's Klong Toey area.

As one of Asia's oldest railways, the SRT has lagged behind many others in the region. Much of the malaise contributing to its downfall can be traced to every government's lack of political will in modernising the organisation and the frequent interference in its affairs by corrupt politicians. Military generals and politicians are appointed to sit on the SRT's board as a post-retirement reward - at the agency's expense.

The SRT's generous welfare and employment protection for its staff are also to blame. The progeny of railway employees are granted automatic "inherited rights" to employment. Staff are entitled to a monthly pension payment for life, in addition to a lump sum reward upon retirement.

The result is a state enterprise which is operating with an annual loss of eight billion baht a year and accumulated debts of more than 70 billion baht.

As a business enterprise, the SRT is a failure; as a state enterprise provider of public transport, its safety record and service efficiency have been found wanting. The only reason justifying its existence up till now is that it provides a cheap travelling option for the poor.

Instead of trying to defy a necessary makeover, SRT's executives and their 13,000-strong work force must realise this sad state of affairs cannot be allowed to persist.

The proposal four months ago by the government to restructure the state enterprise - by separating the agency's vast land tracts from the loss-ridden train service for commercial development - needs to be taken up. The unionists seriously must start discussing the plan with the management and stop seeing any change as a threat to their job security and welfare.