SUNDAY, February 25, 2024

BTS to benefit from MRT Yellow Line

BTS to benefit from MRT Yellow Line

Bangkok’s elevated MRT Yellow Line monorail service will today open 9 more stations from Hua Mak to Phawana along its route, with operating hours also extended until 9pm.

The official inauguration ceremony for the Yellow Line metro project will be held on June 19, followed by the full operation of all 23 stations. Commercial service is scheduled to commence on July 1.

The Yellow Line project is being implemented by BTS Group Holdings Plc (BTS), which has received concessions for construction and operation from the Mass Rapid Transit Authority of Thailand (MRTA).

The majority of the route runs through Bangkok's eastern side and the northern part of Samut Prakan Province. The Yellow Line connects with other major rail lines, namely the Blue Line at Lat Phrao station, the Airport Rail Link at Hua Mak Station, and the Green Line at Samrong station.

The new route is forecast to bring prosperity to the surrounding areas. According to real estate giant Colliers International Thailand, more than 19,229 new condominium units have become available along the Yellow Line route in the past 10 years.

This has caused a significant rise in land prices, with the highest increase occurring in the Sanam Luang Rama 9 station area, where land prices have risen by 7.3%. Around Samrong Station, the price of land has risen by an average of 6.8%.

BTS will certainly benefit from the increased number of passengers, both on the Yellow Line and from the transfer of passengers to the Green Line at Samrong Station.

VGI Global Media, meanwhile, will benefit from advertising sales at the stations and on the trains. BTS recently increased its stake in VGI by an additional 6.7367%, bringing its total shareholding to 60.33%.

Bangkok Expressway and Metro (BEM) will also enjoy gains from the increased number of users transferring to the underground Blue Line.

Krungsri Securities believes that in the first year of Yellow Line operation, the average daily passenger volume is expected to be around 130,000 trips, generating about 2 billion baht in revenue. The company expects to reach the breakeven point within the first year of operation. Another new monorail project, the Pink Line, is expected to be fully operational in early 2024.

The Green Line is projected to see an increase in passengers in the 2023/2024 fiscal year of 31% to reach pre-Covid levels of 700,000 to 750,000 trips per day. The Green Line (extended Northern section) is estimated to  feed passengers to the main lines, an average of 60,000 to 65,000 trips per day.