Nature of Business

 

Business Overview of the Company

The Company is committed to becoming a leading, fully-integrated transportation service provider, which builds up convenient, rapid, reliable and safe journeys for a better living. The Company’s businesses are composed of the expressway and metro system services, including commercial development business directly related to the main businesses. The Company’s overall businesses are divided into three main sectors, as follows:

Expressway Business

The Company and one of its subsidiaries, i.e., Northern Bangkok Expressway Company Limited (“NECL”), have been granted concessions for construction and operation of a total of three expressways, namely, the Si Rat Expressway (Sector AB, C and D), the Si Rat - Outer Ring Road Expressway, and the Udon Ratthaya Expressway, as per the following details:

1. The Si Rat Expressway (Sector AB, C and D)  

The Si Rat Expressway (Second Stage Expressway) is under the Second Stage Expressway Agreement (Amendment) with the Expressway Authority of Thailand (“EXAT”), with the expiration of the concession period on October 31, 2035, while the Si Rat Expressway (Sector D) may extended for another

11 years and six months from the expiration date of the existing Agreement, namely, April 22, 2027. The Si Rat Expressway is the first large-scale construction project in Thailand on the basis of public private partnership.  This project is implemented on a BTO (Build Transfer Operate) basis, namely, the Company (formerly BECL) invested in the design, construction and operation of the Si Rat Expressway.  In this regard, the title to various permanent constructions pertaining to or use of the Si Rat Expressway shall be vested in EXAT.  The Si Rat Expressway is comprised of three Sectors, covering a total distance of 38.5 kilometers, namely:

  • Sector AB (from Ratchadapisek Road southward to Payathai Interchange eastward to Rama 9 Road and from Phayathai Interchange heading southward to Bangkhlo Interchange;
  • Sector C (from Ratchadapisek Road northward up to Chaeng Watthana Road); and
  • Sector D (from Rama 9 Road eastward to end at Srinakharindra Road).

As for tolls, EXAT has authorized the Company to collect tolls for the Si Rat Expressway, with the Company having the right to receive toll revenue sharing of the Chalerm Mahanakorn Expressway and the Si Rat Expressway (Sector AB) and receive all toll revenues of the Si Rat Expressway (Sector C and D).  The revenue sharing between the Company and EXAT shall be specified in the Agreement, i.e., the Company and EXAT shall receive the revenue sharing from the Chalerm Mahanakorn Expressway and the Si Rat Expressway (Sector AB) at 40 percent and 60 percent, respectively, and meanwhile, all toll revenues of the Si Rat Expressway (Sector C and D) shall belong to the Company.


2. The Si Rat - Outer Ring Road Expressway Project

The Si Rat-Outer Ring Road Expressway is under the Concession Agreement for Investment, Design, Construction, Operation, Service, and Maintenance of the Si Rat-Outer Ring Road Expressway Project, with EXAT, with its concession period is 3 years, ending on December 14, 2042.

The Company has the duties to carry out design and construction, supply and installation of various relevant equipment and systems, together with operation and maintenance of the expressway, including toll collection, in consideration of the right to receive toll revenue and other revenues (if any).  The project is an elevated six-traffic lane expressway, for a distance of 16.7 kilometers, with 9 toll plazas.  The project’s route starts from the Outer Ring Road (Kanjanapisek Road around Mahasawat Water Treatment Plant) heading eastbound along the right of way of the existing Southern railway, crossing the Chao Phraya River around the Rama VII Bridge, ending around Bang Sue Grand Station (Chatuchak), connecting with the Si Rat Expressway to the north of the Mo Chit 2 Bus Terminal, and running down to at-grade level around Kamphaeng Phet 2 Road.  Moreover, the Company opened the connection of the Si Rat - Outer Ring Road Expressway with the northern part of the Si Rat Expressway (heading to Chaeng Watthana) for service on September 30, 2018, in order to ensure the greater convenience in travelling to Chaeng Watthana and continuing along the Udon Ratthaya Expressway. In this regard, the Company is responsible for investment and all operating expenses, as well as sharing returns with or providing benefits to EXAT as specified in the Agreement.

In management of this project, the Company is responsible for collecting tolls and shall have the right to receive all toll revenue and other revenues (if any) throughout the concession period, whereby the toll rates and revisions shall be agreed upon in the Agreement.

3. The Udon Ratthaya Expressway 

The Udon Ratthaya Expressway (Bang Pa-in - Pak Kret Expressway) is operated by NECL under the Bang Pa-in - Pak Kret Expressway Agreement (Amendment) with EXAT, with its concession period ending on October 31, 2035, whereby such Agreement may be extended for another 10 years and 11 months from the expiration date of the existing Agreement, namely, September 27, 2026.

The Udon Ratthaya Expressway is implemented on a BTO (Build Transfer Operate) basis like the Si Rat Expressway, namely, NECL invested in the design, construction, and operation of the Udon Ratthaya Expressway, whereby the title to various permanent constructions pertaining to or use of the expressway shall be vested in EXAT, and EXAT is responsible for collecting and delivering all tolls to NECL as specified in the Agreement. The Udon Ratthaya Expressway comprises 2 Stages, namely, Stage 1, Chaeng Watthana - Chiang Rak, and Stage 2, Chiang Rak - Bang Sai, connecting to the Si Rat Expressway around Chaeng Watthana Road, covering a total distance of 32 kilometers.  As for the inbound route, expressway users shall pay tolls at the booths around the on-ramps of the expressway while in respect of the outbound route, expressway users shall pay tolls at the off-ramps of the expressway.  EXAT is responsible for collecting and delivering all tolls to NECL. All toll revenues in respect of the Udon Ratthaya Expressway shall belong to NECL.

The details of the expressway linking networks are as follows:


Expressway System
 
Length (km.) Constructed and Operated by
  1. Chalerm Mahanakorn Expressway (First Stage Expressway)
    (Bang Na - Din Daeng - Dao Khanong)

27.1

EXAT

  1. Si Rat Expressway (Second Stage Expressway)  

2.1 Urban Network (Sector AB)
     
(Prachachuen - Phayathai - Bangkhlo - Asoke)

2.2 Suburban Network (Sector C)
     (Prachachuen - Chaeng Watthana)

2.3 Suburban Network (Sector D) 
     (Rama - Srinagarindra)

38.5

Company

  1. Udon Ratthaya Expressway (Bang Pa-in - Pak Kret)

32.0

NECL 

  1. Si Rat - Outer Ring Road Expressway

16.7

Company

  1. Uttaraphimuk Elevated Way (Don Muang Tollway)

28.0

Don Muang Tollway Public Company Limited

  1. Chalong Rat Expressway including its Extension
    (Ramindra - At Narong and Ramindra - Outer Ring Road)

32.9

EXAT

  1. Burapha Withi Expressway (Bang Na - Chonburi)

55

EXAT

  1. Kanjanapisek Expressway (Bang Pli - Suksawad) and Highway No. 37 (Suksawad - Bang Khun Thien Section) including a connecting road to Bhumibol Bridge 1 and Bhumibol Bridge 2

37.8

EXAT

Total Length 268.0 

 

 

Toll Revenue Sharing

The Company and EXAT have received the toll revenue sharing in respect of the urban expressways (the Chalerm Mahanakorn Expressway and the Si Rat Expressway (Sector AB)) at 40 percent and 60 percent, respectively.
While the Company has received all toll revenues for the suburban expressways (the Si Rat Expressway (Sector C and D), the Si Rat - Outer Ring Road Expressway, and the Udon Ratthaya Expressway), in accordance with the terms of the respective Agreements.
 

Expressway
 
Length (km.) Revenue Revenue Sharing
Company : EXAT
Chalerm Mahanakorn Expressway
   Din Daeng - Port
   Bang Na - Port
   Port - Dao Khanong

 

8.9
7.9
10.3

 


Company and EXAT

 


40 : 60

Si Rat Expressway 
   Sector AB:
     (Rama 9 - Ratchadapisek)
     (Phayathai - Bangkhlo)


 

21.8

 


Company and EXAT

 


40 : 60

   Sector C: (Ratchadapisek - Chaeng Watthana) 8.0 Company 100 : 0
   Sector D: (Rama 9 - Srinagarindra) 8.7 Company 100 : 0
Si Rat - Outer Ring Road Expressway 16.7 Company 100 : 0
Udon Ratthaya Expressway 
   Chaeng Watthana - Chiang Rak
   Chiang Rak - Bang Sai    


22.0
10.0

 

Subsidiary (NECL)

 

100 : 0


Remarks : The Second Stage Expressway Agreement (Amendment) and the Bang Pa-in - Pak Kret Expressway Agreement (Amendment), with its concession period ending on 2035 and the Si Rat-Outer Ring Road Expressway Project, with its concession period ending on 2042
 

Toll Rates

Expressway/Toll Plaza
Toll Rates (Baht/Trip)
 
4 wheels 6-10 wheels More than 10 wheels
Chalerm Mahanakorn Expressway (First Stage Expressway) 50 75 110
Except:            
At Narong 1 Toll Plaza (to Bang Na)

   25 (1)

   50 (1)

   85 (1)
       
ทางพิเศษศรีรัช (ทางด่วนขั้นที่ 2) (ส่วนเอบี)Si Rat Expressway (Sector AB)(Second Stage Expressway) 50 75 110
Except:      
Prachachuen Toll Plaza (inbound)    60 (2)    90 (2)    140 (2)
Prachachuen Toll Plaza (outbound)    10 (2)    15 (2)    30 (2)
Si Rat Expressway (Sector C) (Second Stage Expressway) 15 20 35
Prachachuen 1 Toll Plaza (from Prachachuen Road) 15
 
20
 
35
 
Prachachuen 2 Toll Plaza (to Prachachuen Road)
Ngam Wong Wan 1 Toll Plaza (outbound)
Ngam Wong Wan 2 Toll Plaza (inbound)
Si Rat Expressway (Sector D) 25 55 75
Si Rat - Outer Ring Road Expressway 65 105 150
Udon Ratthaya Expressway 45 100 150
Except:      
Bang Pa-in Toll Plaza 55 120 180

Remarks :       (1)    These rates are after deduction of Baht 25 discount for all types of vehicles (from July 1, 2020 to June 30, 2021).
                 (2)    In case of the motorists’ service use of the Second Stage Expressway continuing from Sector AB to Sector C at Prachachuen Toll Plaza (outbound) or from Sector C to Sector AB at Prachachuen Toll Plaza (inbound), the tolls of the Second Stage Expressway for all types of vehicles will be at a discount of Baht 5 throughout the contract period.
                 
 

Revisions to Toll Rates under the Agreements

  • The Chalerm Mahanakorn Expressway and the Si Rat Expressway are subject to a revision to their respective toll rates every 10 years, with their next revision taking place on September 1, 2028;
  • The Si Rat - Outer Ring Road Expressway is subject to a revision to its toll rates every 5 years from the date of service operation of the project at the rates of Baht 15, Baht 25 and Baht 35 for four-wheeled vehicles, six-wheeled to ten-wheeled vehicles; and more than ten-wheeled vehicles, respectively, as specified in the Agreement, with the first revision taking place on December 15, 2021; and
  • The Udon Ratthaya Expressway is subject to a revision to its toll rates on the 1st day of November every 10 years, with the next revision taking place on November 1, 2028
 

Rail Business

The Company has been granted concessions for two mass rapid transit rail system projects by the Mass Rapid Transit Authority of Thailand (“MRTA”), as per the following details:
 

1. The M.R.T. Chaloem Ratchamongkhon Line Project (“MRT Blue Line Project”): the Company executed the Concession Agreement with MRTA on March 31, 2017, for a concession period of 33 years from MRTA’s Notice to Proceed (NTP), under which the Company shall be responsible for supply, installation, testing and commissioning of M&E Equipment, provision of services to ensure a continuous operation as a single network (Through Operation), and the Company is entitled to farebox revenue as well as undertaking activities and commercial development, including advertising,

leasing space and telecommunications services in the metro stations and trains throughout the concession period of 30 years from the date of the service opening of the entire route.  In this regard, the M.R.T. Chaloem Ratchamongkhon Line Project is consisted of Hua Lamphong-Bang Sue Section (the existing MRT Blue Line), and Hua Lamphong-Bang Khae Section, Bang Sue-Tha Phra Section (the MRT Blue Line Extension), per the details below:
 
  • Hua Lamphong - Bang Sue Section (the existing MRT Blue Line), the first underground metro system of Thailand, covering the distance of 20 kilometers, with 18 stations, which was opened for service on July 3, 2004.  The Company is entitled to farebox revenue as well as undertaking activities and commercial development, including advertising, leasing space and telecommunications services in the metro stations and trains.
  • Hua Lamphong - Bang Khae Section and Bang Sue - Tha Phra Section (the MRT Blue Line Extension), the underground and elevated route, with a total of 20 stations, divided into 4 underground stations and 16 elevated stations, having a connection with the M.R.T. Chaloem Ratchamongkhon Line Project (the existing MRT Blue Line) at Hua Lamphong Station and Bang Sue Station, as well as connecting with the M.R.T. Chalong Ratchadham Line Project (MRT Purple Line) at Tao Poon Station.  The Company is responsible for investment, supply, installation, testing and commissioning of the M&E Equipment, and trial running, including the O&M Services by ensuring the continuous train operation (Through Operation).  The supply and installation of the M&E Equipment
  • Section 1: Bang Sue Station - Tao Poon Station, opened for service on August 11, 2017;
  • Section 2: Hua Lamphong Station - Lak Song Station, opened for service on September 29, 2019;
  • Section 3: Tao Poon Station - Tha Phra Station, opened for service on March 30, 2020 thereby ensuring the train operation in the MRT Blue Line Project as a single network (Through Operation), by having Tha Phra Station as the main common and interchange station, which would enable the passengers to change their destinations from Tha Phra Station to travel to the suburban area westward via Bang Phai Station to Lak Song Station or travel to the urban area via Itsaraphap Station to Hua Lamphong Station, as well as travelling to Tao Poon Station connecting with the M.R.T. Chalong Ratchadham Line Project (MRT Purple Line).
In this regard, the M.R.T. Chaloem Ratchamongkhon Line Project (MRT Blue Line) was opened for full service, covering the total distance of 48 kilometers, with 38 stations and a total of 54 trains available for service every day from 06.00 - 24.00 hours. 

2. The M.R.T. Chalong Ratchadham Line Project (“MRT Purple Line Project”), Bang Yai - Bang Sue Section (Khlong Bang Phai Station - Tao Poon Station), covering a distance of 23 kilometers, with a total of 16 elevated stations, where Tao Poon Station is located as an interchange station with Bang Sue Station of the M.R.T. Chaloem Ratchamongkhon Line (MRT Blue Line), which would make it possible for passengers’ interchange from the MRT Purple Line to the MRT Blue Line at Tao Poon Station, which in the future, would be connected with the MRT Purple Line (Tao Poon - Rat Burana Section). 

The Company has been granted the concession for investment, the supply of M&E Systems and O&M Services, on a PPP Gross Cost basis.  That is, MRTA invests in all civil works and the Company invests in the M&E Systems and the rolling stocks, including provision of the O&M Services in accordance with the service standards defined in the conditions of the Agreement.  MRTA is entitled to all farebox revenue and commercial development revenue from the utilization of the civil infrastructure and the railway systems and MRTA shall make gradual repayment for the M&E Systems to the Company on a monthly basis for a period of 10 years, and engage the Company to conduct the operation and maintenance throughout the concession period of 30 years from September 4, 2013.There is a total of 21 trains available every day without holiday, from 5.30 - 24.00 hours on Mondays - Fridays, and from 6.00 - 24.00 hours on Saturdays - Sundays and public holidays.
 

Commercial Development Business

The Company has carried out commercial development in relation to the expressway system by allowing the private entities and individuals to use the space for commercial operations in the vicinity of the expressway system for installing Intelligent Traffic Signs and advertising boards in various forms and for installing shops in the areas of toll plazas and engaging in other business, such as, use of the areas in the expressway system for installing 3G signal distribution devices, etc.  In respect of commercial development of the M.R.T. Chaloem Ratchamongkhon Line Project (MRT Blue Line), the Company also has operated and appointed its subsidiary, namely, Bangkok Metro Networks Limited (“BMN”), as the management representative in the commercial development of such MRT project.

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