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May 2013
Program Management Services: PMS
Common Ticketing Office (CTO) Establishment Report
Avantgarde Capital Co., Ltd
Korea Smart Card Co., Ltd.
PSK Consultants Co., Ltd.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page a
Common Ticketing Office (CTO)
Establishment Report
Condition
This document is prepared by consulting consortium including (1) Avantgarde Capital Co., Ltd. (2)
Korea Smart Card Co., Ltd. (3) PSK Consultants Co., Ltd., which are selected as the advisor for the Program
Management Service (PMS) for the Office of Transport and Traffic Policy and Planning (OTP). The objectives
of the project include (1) To set policy and operating plan for common ticketing system (2) To develop
common ticketing system and its associated standards and (3) To prepare readiness of Central Clearing
House (CCH). This document is under confidential privilege between OTP and the advisor, which will only be
used for the project’s objectives by OTP.
This document is prepared under considering information received from OTP and/or other
organizations, studies of other consultants, public information, and interview and questions made with
organizations associated with this project. To be used as basic information in making common ticketing
system and central clearing house development plan based on determined objectives of the project, the
advisor have examined sources of such information and use with care, but not including the certification
correctness of the information received by OTP, other consultants and/or other organizations. Therefore, use
of information from this document for publicizing or reference purposed must be decided with own
considerations.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page b
Common Ticketing Office (CTO)
Establishment Report
Table of Contents
Page
Chapter 1 Introduction .................................................................................................................................. 1–1
Chapter 2 The analysis of organization types ............................................................................................. 2–1
2.1 The study of organization’s structures in overseas ..................................................................................... 2–2
2.2 The common ticket related organization in Thailand ................................................................................. 2–17
2.2.1 Bangkok Smartcard System Co., Ltd. (BSS) .......................................................................................... 2–17
2.3 Organization types of Common Ticketing Office : CTO ............................................................................ 2–18
2.4 Defining organization type of CTO ............................................................................................................. 2–32
Chapter 3 CTO’s establishment guidelines .................................................................................................. 3–1
3.1 The guidelines of Common Ticketing Office (CTO) establishment ............................................................. 3–2
3.1.1 Option 1: Establish CTO as a government agency .................................................................................. 3–2
3.1.2 Option 2: Establish CTO as a state owned enterprise ........................................................................... 3–17
3.1.3 Option 3: CTO as a limited company ...................................................................................................... 3–29
3.1.4 Summary of the options for the establishment of CTO ........................................................................... 3–38
Chapter 4 CTO Organization’s Structure ..................................................................................................... 4–1
4.1 Common ticketing operation ........................................................................................................................ 4–2
4.2 Stakeholders’ roles and duties ..................................................................................................................... 4–2
4.3 CTO’s nature of operation ............................................................................................................................ 4–9
4.3.1 Sources of CTO revenue ......................................................................................................................... 4–10
4.3.2 Cost and operating expenses (Fixed cost) ............................................................................................ 4–12
4.4 CTO organization structure ........................................................................................................................ 4–12
Chapter 5 Operational Policies and Strategic Plan ..................................................................................... 5–1
5.1 Operational Policies ..................................................................................................................................... 5–2
5.1.1 CTO’s Operational Policies ....................................................................................................................... 5–2
5.1.2 Single-Standard and Multiple-Issuers Policy ............................................................................................ 5–3
5.1.3 Co-branded card....................................................................................................................................... 5–4
5.1.4 Card Management Policy and Fare Products .......................................................................................... 5–5
5.2 Strategic Plan ............................................................................................................................................. 5–10
5.2.1 Mission ……… ......................................................................................................................................... 5–10
5.2.2 Strategies of CTO .................................................................................................................................... 5–11
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
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5.2.3 Strategic Goals ........................................................................................................................................ 5–12
5.2.4 Strategic Evaluation and Monitoring ....................................................................................................... 5–12
Chapter 6 Risk Management ........................................................................................................................ 6–1
6.1 Risk Management......................................................................................................................................... 6–2
6.2 Risk Factors .................................................................................................................................................. 6–2
6.2.1 Internal Factors.......................................................................................................................................... 6–2
6.2.2 External Risk .............................................................................................................................................. 6–3
6.3 Types of Risk ................................................................................................................................................ 6–4
6.4 Risk Management......................................................................................................................................... 6–4
6.4.1 Risk Assessment ....................................................................................................................................... 6–4
6.4.2 Risk Assessment ....................................................................................................................................... 6–6
6.4.3 Risk Management Strategy ..................................................................................................................... 6–13
6.4.4 Risk Monitoring ........................................................................................................................................ 6–20
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Table of Figures
Page
Figure 2-1 Octopus’s market shares in Hong Kong .......................................................................................... 2–3
Figure 2-2 Octopus Holdings Limited ................................................................................................................ 2–4
Figure 2-3 The organization’s administrator ...................................................................................................... 2–5
Figure 2-4 Korea Smart Card Co., Ltd. organization’s structure ....................................................................... 2–7
Figure 2-5 KSCC’s structure .............................................................................................................................. 2–8
Figure 2-6 EZ-Link Pte. Ltd. Structure .............................................................................................................. 2–10
Figure 2-7 JR East Company organization’s structure .................................................................................... 2–12
Figure 2-8 JR East Company’s structure ......................................................................................................... 2–13
Figure 2-9 Transport for London organization’s structure ............................................................................... 2–15
Figure 2-10 Rabbit cards ................................................................................................................................. 2–17
Figure 2-11 BSS’s shareholders structure ....................................................................................................... 2–17
Figure 2-12 CTO’s structure in case of government body .............................................................................. 2–18
Figure 2-13 CTO’s structure as a state owned enterprise ............................................................................... 2–20
Figure 2-14 CTO’s Structure as public organization ....................................................................................... 2–22
Figure 2-15 CTO’s structure as an institute under foundation ......................................................................... 2–24
Figure 2-16 CTO’s Structure as a limited company ......................................................................................... 2–25
Figure 2-17 CTO’s Structure as a public company ......................................................................................... 2–27
Figure 3-1 Option 1 government agency ........................................................................................................... 3–2
Figure 3-2 overview of option 1.1 procedure ..................................................................................................... 3–3
Figure 3-3 Procedure of option 1.1 phase 1 ...................................................................................................... 3–4
Figure 3-4 Procedure of option 1.1 phase 2 ...................................................................................................... 3–5
Figure 3-5 Procedure of option 1.2 phase 1 .................................................................................................... 3–10
Figure 3-6 Steps to propose the establishment of a government agency ...................................................... 3–12
Figure 3-7 Steps to propose a department level government agency internal division ministry’s rule .......... 3–13
Figure 3-8 Procedure of option 1.2 phase 2 .................................................................................................... 3–14
Figure 3-9 Procedure of assets transfer from OTP to the office of CTO ......................................................... 3–16
Figure 3-10 Option 2 state owned enterprise .................................................................................................. 3–18
Figure 3-11 Overview of option 2.1 procedure ................................................................................................ 3–19
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Figure 3-12 Procedure of option 2.1 phase 1 .................................................................................................. 3–19
Figure 3-13 Procedure of option 2.1 phase 2 .................................................................................................. 3–20
Figure 3-14 Procedure of option 2.2 phase 1 .................................................................................................. 3–22
Figure 3-15 Steps to issue a rolyal decree ...................................................................................................... 3–25
Figure 3-16 Procedure of option 2.2 phase 2 .................................................................................................. 3–26
Figure 3-17 Option 2 Limited Company ........................................................................................................... 3–31
Figure 3-18 Procedure of option 3.1 phase 1 .................................................................................................. 3–32
Figure 3-19 Procedure of option 3.2 phase 1 .................................................................................................. 3–34
Figure 3-20 Procedure of option 3.2 phase 2 .................................................................................................. 3–34
Figure 3-21 Steps to work on as per PPP act. B.E. 2013 ................................................................................ 3–38
Figure 4-1 Common ticketing structure ............................................................................................................. 4–2
Figure 4-2 Common ticketing operation ............................................................................................................ 4–3
Figure 4-3 CCH System...................................................................................................................................... 4–5
Figure 4-4 Front-end modification ...................................................................................................................... 4–6
Figure 4-5 Topping-up Methods ........................................................................................................................ 4–7
Figure 4-6 Settlement system ............................................................................................................................. 4–8
Figure 4-7 Cash flow structure ......................................................................................................................... 4–10
Figure 4-8 CTO organization structure ............................................................................................................ 4–13
Figure 5-1 Uses of Common Ticket ................................................................................................................... 5–3
Figure 5-2 Single Standard – Multiple issuers ................................................................................................... 5–4
Figure 5-3 Example of Co-branding card issuance .......................................................................................... 5–5
Figure 5-4 Fare rates comparison ...................................................................................................................... 5–7
Figure 5-5 Example of recyclable single journey ticket ................................................................................... 5–10
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List of Tables
Page
Table 2-1 Summary of advantages and disadvantages of CTO as a government body ............................... 2–19
Table 2-2 Summary of advantages and disadvantages of CTO as state owned enterprise .......................... 2–21
Table 2-3 Summary of advantages and disadvantages of CTO as a public organization ............................. 2–23
Table 2-4 Summary of advantages and disadvantages of CTO as a limited company ................................ 2–26
Table 2-5 Summary of advantages and disadvantages of CTO as a public company .................................. 2–28
Table 2-6 Summary of advantages and disadvantages of CTO as a limited partnership .............................. 2–29
Table 2-7 the comparison of each organization types .................................................................................... 2–30
Table 5-1 Summarization of Strategic Plan ...................................................................................................... 5–14
Table 6-1 Criteria of assessing risk probability.................................................................................................. 6–7
Table 6-2 The Likelihood of occurrence analysis .............................................................................................. 6–7
Table 6-3 Criteria of evaluation the hazard severity of circumstances ............................................................. 6–9
Table 6-4 The risks’ severity analysis ................................................................................................................ 6–9
Table 6-5 Criteria of Risk Assessment Level ................................................................................................... 6–11
Table 6-6 Risk Level ......................................................................................................................................... 6–12
Table 6-7 Summarization of Risk Level ............................................................................................................ 6–12
Table 6-8 Risk Management Strategy .............................................................................................................. 6–15
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
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Chapter 1 Introduction
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 1–2
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The Common Ticketing Office (CTO) Establishment Report was created by the advisors to present
the appropriate alternatives to establish CTO according to the term of reference in session 3.5. The
alternatives are suitable to the current environments which are flexible in management, capable to develop
the common ticketing system in Thailand and simply to establish. Thus, in order to establish CTO within time
according to the public policy, the report’s topics are as follow:
(1) The analysis of organization types: The advisors have been consider the possible types of
organization which are government body, state owned enterprise, public agency, limited company,
public company and limited partnership. Moreover, the advisors also studied CTO to analyze
advantages, disadvantages and restriction to establish CTO in 5 countries which are Hong Kong,
Republic of Korea, Singapore, Japan and United Kingdom (London).
(2) CTO establishment alternatives to determine the most appropriate alternatives by compared
organization types, establishment process and procedure in each alternative. This report also
includes role and fee structure of CTO.
(3) The organization structure of CTO which define the necessary departments and their roles and
responsibilities and number of employees in the primary state.
(4) Operation policies to support the common ticketing management. Advisory teams present the
strategic plans regarding the achievement of objectives in effectiveness and efficiency of operations.
(5) Risk management: Determine the risks assessments that may occur and impact to the common
ticketing management and operations and also provide the recommendations to control those risks.
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Chapter 2 The analysis of organization types
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2.1 The study of organization’s structures in overseas
The advisors had studied the case studies of the common ticketing organization’s structure in
overseas, including 5 countries;
(1) Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong) (the
operator of “Octopus” card)
(2) Republic of Korea (the operator of “T-Money” card)
(3) Republic of Singapore (the oprator of “EZ-Link” card)
(4) Japan (the operator of “SUICA” card”
(5) United Kingdom (the operator of “Oyster” card)
In order to achieve the optimal structure which suitable to perform as an common ticketing operator
of Thailand.
2.1.1.1 Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong)
Hong Kong is the first place to implement the common ticketing system and smartcard, the card is
called “Octopus” launched in 1997 while it took 3 years to be implemented by Octopus Card Limited (OCL),
which operates the common ticketing system and smartcard as a card issuer and operate the clearing. OCL
was a subsidiary of Octopus Holdings Limited, established in 1997 by 5 major transportation service
providers, including MTR Corporation Limited (MTRC) (which has an agreement with the government to
manage KCRC’s asset for 50 years since 2007), Kowloon-Canton Railway Corporation (KCRC), KMB Public
Bus Services Holdings Limited (KMB), Citybus Limited (Citybus) and Hongkong and Yaumatei Ferry (which
transferred all of its shares to New World First Bus Services Limited).
The first phase of the Octopus Card’s implementation, the card was utilizable only within transit mode
and expand its market to non-transit mode in 2000, when Octopus Card are utilizable with most transit mode
which are buses, subways, rails, ferries, taxis, coaches including merchandise and service purchasing such
as department stores, restaurants, theaters, hospitals, gyms, parking lots and public services.
In 2002-2011, there were 5,200 transportation service providers and 1,200 retails participated with
the Octopus. It indicates that between 2002 and 2011, there were 6% and 41% increasing in transit and non-
transit mode respectively.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
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Figure 2-1 Octopus’s market shares in Hong Kong
Currently, 90% of transit payments are made by Octopus Card and only 10% using single journey
magnetic card or cash, while the fare is controlled by the government in the Fare Adjustment Mechanism.
In addition, Octopus developed the e-ticket system as well as the automatic fare collection system in
other countries such as Netherland, United Arab Emirate (Dubai) and New Zealand (Auckland).
Octopus Holdings Limited’s shares are owned by the transportation operators which are
(1) MTR Corporation Ltd. (A rail operator)
(2) Kowloon-Canton Railway Corp. (A rail construction operator)
(3) KMB Public Bus Services Holdings Ltd. (A Hong Kong public bus operator)
(4) Citybus Ltd. (A public bus operator)
(5) New World First Bus Services Ltd. (A public bus operator)
In addition, Octopus Holdings Ltd. has 5 subsidiaries working as support business units of Octopus Holdings
Ltd. which includes;
(1) Octopus Cards Ltd. who operates contactless smart card payment system
(2) Octopus International Projects Ltd. who provides an Automatic Fare Collection system in Hong Kong
and internationally
(3) Octopus Rewards Ltd. who develops and manages the customer loyalty platform
(4) Octopus Investments Ltd., which is an investment holding company
Octopus China Investments Ltd., which is an investment holding company involving with China’s
projects
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Figure 2-2 Octopus Holdings Limited
Source: Octopus Holdings Ltd.
Howver, the Octpus organization’s structure is formed of the top exsecutive which is the Chief
Exsecutive Officer (CEO), financial director, international business director, technical director, sales and
marketing director, general counsel, general manager china business, general manager corporate
communication department, general manager human resource and administration department, general
manager options department and general manager risk management and compliance department,
respectively, as demonstrated in the figure below.
MTR Corporation Ltd. Kowloon-Canton
Railway Corp. KMB Public Bus
Services Holdings Ltd. Citybus Ltd. New World First Bus
Services Ltd.
Octopus Holdings Ltd.
57.4% 22.1% 12.4% 5.0% 3.1%
Octopus Cards Ltd. Octopus International
Projects Ltd. Octopus Rewards Ltd. Octopus Investments
Ltd. Octopus China
Investments Ltd.
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Figure 2-3 The organization’s administrator
Source: Octopus Holdings Ltd.
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2.1.1.2 Republic of Korea (South Korea)
The common ticketing system firstly started from the implementation of the AFC system in the
subway and bus systems to solve the traffic problems, and then continue to expand into the non-transit
system. The bidding of common ticketing system implementation was held by the Seoul Metropolitan
Government, Korea Smart Card Co., Ltd. (KSCC) won the concession. KSCC is owned by LG CNS Co., Ltd,
equipment providers, 13 financial institutions and Seoul Metropolitan Government holds 26% of shares and
supervises the KSCC’s operation. KSCC modified the existing fare collection system to meet the standard set
by the government.
The common ticket called T-Money Card, which is a Microprocessor, was launched in 2003. The
cards were issued by the service providers of cash, credit card and banks while KSCC was the intermediary
between service providers and issuers. The T-Money Card originally uses the MIFARE Classic technology
which is an off-the-shelf-product to meet the card launching schedule, and then develop its own standard
afterward. The T-Money Card is now accepted by subways, taxis, buses, retails, theaters and restaurants.
However, both standard remain in the system of which about 60% are Type A.
Moreover, there is another major clearing house which is Cashbee of Lotte which also started from
using MIFARE Classic technology but with different cards data structure from KSCC’s. The Cashbee uses the
KSCC’s standard version 2.0 while the system is able to read many card standards.
However, the T-Money Card has market share as followed, 93% of buses, 100% of subways and
30% of taxis, and is usable in Seoul and other cities such as Incheon and Busan.
Korea Smart Card Co., Ltd. (KSCC) was established from the cooperation of Government and private
sectors who are the leaders of the information technology sector and has 3 major shareholders while the
government remains the hightes shares. The 3 major shareholders includes
(1) Seoul Metropolitan Government who manage the Seoul’s transportation, including the fare polices
and Seoul’s transportation routes.
(2) LG CNS Co., Ltd. which is an information technology service provider)
(3) Atec Co., Ltd which is an information technology service provider for transportation cards, screens
and system.
While KSCC issues cards and operates the clearing house system.
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Figure 2-4 Korea Smart Card Co., Ltd. organization’s structure
Source: Korea Smart Card Co., Ltd.
The organization’s structure of KSCC is devided into 2 units which are the business support unit
which consists of financial department, human resource department, legal department and policy support
department, the business unit which is devided into transit and no-transit sectors, each consists of customer
center, planning department, marketing department and technology center as demonstrated in the figure
below.
Seoul Metropolitan
Government LG CNS Co., Ltd. Atec Co., Ltd. Other
Korea Smart Card Co., Ltd.
Korea Smart Card CS Partner
35.0% 31.9% 10.2% 22.9%
100.0%
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
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Figure 2-5 KSCC’s structure
Source: Korea Smart Card Co., Ltd.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
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2.1.1.3 Republic of Singapore
The common ticket in Singapore was initiated by Transit Link Pte Ltd, which is a public sector. Transit
Link introduced Transit Link cards, funded by its government, in year 2000. The cards were a magnetic-stripe
type. The public bus fare rate was step-up-based, while electric train was distance-based.
In 2002, Land Transport Authority (LTA) established EZ Link, which is a private sector. EZ link was
responsible for issuing smart cards called EZ-Link. The cards were used in public buses and electric trains.
LTA holds 100 percent of EZ-Link shares. The company has a registered capital of SGD 14.51 Million, which
is equivalent to 340 Million Baht. The EZ-Link was responsible for selling and managing EZ-Link card as well
as managing the central clearing house for both transit and non-transit service providers who use the
technology of EZ-Link.
EZ-Link can be used to pay the fare for Light Rail Transit (LRT), Mass Rapid Transit (MRT), and taxi.
Moreover, it can perform payment transactions with convenient stores, restaurants, school canteens, and
other public services. EZ-Link has been further developed to replace national ID cards, student cards, and
military ID cards.
From 2002 to 2008, more than 10 million EZ-Link had been issued. EZ-Link introduced a new type of
card “CEPAS” (Contactless e-Purse Application, Prepaid Card) and Symphony for ePayment (SeP) system in
December 2008. The new technologies enabled EZ-Link to cover a wider range of its service. Presently, more
than 12 million EZ-Link cards are used in the system.
EZ-Link holds 100 percent shares; however, it is regulated by Monetary Authority of Singapore and
Public Transport Council. It is sole responsibilities of EZ-Link in selling the cards, as well as regulating transit
and non-transit payment systems.
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Figure 2-6 EZ-Link Pte. Ltd. Structure
Source: EZ Link
Land Transport
Authority (LTA)
EZ-Link Pte.Ltd.
100%
Monetary Authority
of Singapore Public Transport
Council
Transit
Operators
Non-Transit
Operators
Bus MRT LRT Other retails 7/11 Mcdonald
Allocate/ set the fare collection
system
Supervise Supervise
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2.1.1.4 Japan
There are several types of common tickets used in Japan. Each type offer services in different areas.
Table 2-1 Common ticket in Japan
Suica is, however, the most used type of card; and it covers most of the area. There are presently
40.74 million 1 Suica cards in the system. Suica is the most developed card, compared to other types.
JR EAST initiated the use of Suica in 2001. It was a microprocessor card, using RFID technology
which was developed by Sony, known as FeliCa. It was firstly used in mass rapid transit then, it was extended
to public buses and taxi, as well as other non-transit services. Suica covers the area of Kanto region, Sendai
area, and Nigata area
1 Source: FY2012.3 Financial Results Presentation,https://www.jreast.co.jp/e/investor/pdf/2012_presentation.pdf
Cards Operators Area Example
Suica JR East Greater Tokyo Area, Sendai and
Niigata
Toica JR Central Greater Nagoya and Shizuoka
Prefecture
Icoca JR West Greater Osaka, Okayama and
Hiroshima Prefectures
Kitaca JR Hokkaido Sapporo
Sugoca JR Kyushu Fukuoka Prefecture
Pasmo Pasmo Corporation Greater Tokyo Area
Manaca Nagoya City
Transportation Bureau
Nagoya
Pitapa Surutto Kansai
Association
Greater Osaka, Okayama and
Shizuoka
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JR Group has made a contract to create interoperability among all systems in Japan that use FeliCa.
The development has been expanded from the interoperability between Suica and Pasmo.
In 2008, JR Group cooperated with Central Japan Railway to create interoperability with TOICA, and
extended to Tokai, Kinki, Okaya, and Hiroshima area. JR group also cooperated with Hokkaido Railway
Company to create interoperability with Kitaca in 2009; then, with Kyushu Railway Company and Nishi-Nippon
to create interoperability with SUGOCA and Nimoca in 2010; then, with Fukuoka Transportation Bureau to
create interoperability with HAYAKAKEN in 2011.
East Japan Railway used to be a subsidiary of Japanese National Railways. In 1987, Japanese
government reformed the Japanese National Railways into seven public companies, each of which is
responsible for different areas. East Japan Railway services cover Tokyo, Yokohaya, Nagoya, Kyoto, and
Osaka.
In 2002, East Japan Railways registered in the Tokyo Stock Exchange. The top 10 stockholders are:
Figure 2-7 JR East Company organization’s structure
Source: JR East Company
Japan
Trustee
Services
The Master
Trust Bank of
Japan
The JR East
Employees
Shareholding
The Bank of
Tokyo-
Mitsubishi
JR East Company
5.06% 4.17% 3.29% 3.13% 2.63%
Sumitomo
Mitsui
Banking
Mizuho
Corporate
Bank Mizuho Bank
SSBT OD05
OMNIBUS
ACCOUNT Nippon Life Dai-ichi Life
2.50% 2.50% 2.32% 2.00% 2.00%
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JR East is a large organization. Since it is a public company , the organizationed is combined with
many departments and the administrative organization which is the board of director. The chairman and the
president are the top management exsecutives and has other departments and branch offices as
demonstrated in the figure below.
Figure 2-8 JR East Company’s structure
Source: JR East Company
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2.1.1.5 United Kingdom (London)
The common ticketing system in London started in 2003 and is administered by Transport for London
(TfL) which is an integrated body under the Mayor of London. TfL is responsible for capital’s transportation
and operates according to the Mayor’s policies which include London’s buses, London Underground,
Docklands Light Railway (DLR), London Overground, Tramlink, London River Services and Victoria Coach
Station. The common ticket called “Oyster” card which is accepted by most of the transit mode.
The TfL’s Management of Oyster is a good example for implementing the common ticketing system.
It emphasizes on the transit mode and the long run operation. TfL chose to use the MIFARE DESFire EV1
which is an off-the-shelf-product instead of implementing its own standard. It also planned to have banks
issue the cards with EMV (Europay, Master and Visa) standard, that way, TfL only emphasizes on improving,
its services and cost reduction. Moreover, TfL will change to Open Loop Account Base system, which
requires a stable infrastructure and communication network, which TfL has planned and studied for the
implementation in the future.
TfL planned to start using the EMV standard in 2014. However, it still has problem with the speed
(500 msec/transaction, currently) which needs improvement to meet the EMV standard’s requirement and also
in the process of testing the NFC technology.
TfL is a government body under the Mayor of London established in 2000, responsible for the
Capital’s transportation. TfL operates under the Mayor’s strategy in transportation. In addition to TfL’s
aforementioned responsibilities, TfL is also responsible for managing the Congestion Charge, maintaining the
580 km. roads and traffic lights, and promoting a range of walking and cycling.
In addition, TfL has 3 subsidiaries which are
(1) London Transport Insurance Guensey Ltd. which is an insurance company provides service to TfL
and its subsidiaries
(2) TfL Trustee Co., Ltd., a trustee of the TfL Pension Fund
(3) Transport Trading Ltd., a holding company for all transport operators, operates certain trading
activities
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Figure 2-9 Transport for London organization’s structure
Source: Transport for London
Mayor of London
Transport for London
London Transport Insurance
Guernsey Ltd. TfL Trustee Co., Ltd. Transport Trading Ltd.
TfL Board of Directors
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 2
–16
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Tabl
e 2-
2 Su
mm
ary
of th
e or
gani
zatio
n’s
stru
ctur
es in
ove
rsea
s
O
ctop
us H
oldi
ngs
Ltd.
Ko
rea
Smar
t Car
d C
o., L
td.
EZ-L
ink
JR E
ast C
ompa
ny
Land
Tra
nspo
rt Au
thor
ity
Car
d O
ctop
us
T-M
oney
EZ
-Lin
k SU
ICA
Oys
ter
Year
of f
ound
atio
n 25
37
2546
25
45
2545
25
46
Org
aniz
atio
n ty
pe
Lim
ited
com
pany
Li
mite
d co
mpa
ny
Stat
e-ow
ned
ente
rpris
e Pu
blic
com
pany
lim
ited
Gov
ernm
ent b
ody
Shar
ehol
ders
stru
ctur
e
The
trans
porta
tion
serv
ice
prov
ider
s ho
lds
the
shar
es
whi
le th
e M
TR h
olds
the
maj
or
porti
on o
f 57.
4% o
f the
sha
res
KSC
C
is
owne
d by
gove
rnm
ent,
the
com
mon
ticke
t de
velo
per
and
othe
r
priv
ate
sect
ors.
Th
e Se
oul
Met
ropo
litan
G
over
nmen
t
hold
s th
e bi
gges
t sh
ares
of
35.0
%
and
LG
CN
S ho
lds
31.9
% o
f the
sha
res
Land
Tr
ansp
ort
Auth
ority
hold
s 10
0% s
hare
s
The
top
10 m
ajor
sha
reho
lder
s
are
finan
cial
in
stitu
tions
an
d
insu
ranc
e co
mpa
nies
A G
over
nmen
t bo
dy u
nder
the
May
or o
f Lon
don
Reg
iste
red
capi
tal
n.a.
KR
W 6
1,65
4.79
or 1
,850
MB.
SG
D 1
4.54
or 3
40 M
B.
n.a.
n.
a.
Num
ber o
f em
ploy
ees
n.a.
15
0 em
ploy
ees
n.a.
59
,130
em
ploy
ees
n.a.
Car
ds is
sued
22
milli
on c
ards
45
milli
on c
ards
12
milli
on c
ards
60
milli
on c
ards
43
milli
on c
ards
Num
ber o
f tra
nsac
tion
per d
ay
12 m
illion
tran
sact
ions
35
milli
on tr
ansa
ctio
ns
20 m
illion
tran
sact
ions
70
milli
on tr
ansa
ctio
ns
6 m
illion
tran
sact
ions
Tran
sact
ion
(tran
sit :
non
-tran
sit)
59 :
41
n.a.
n.
a.
50 :
50
n.a.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–17
Common Ticketing Office (CTO)
Establishment Report
2.2 The common ticket related organization in Thailand
In 2007, there was a signing on the MOU on common ticketing initial implementation between
Bangkok Mass Transit System Plc., Ltd. (BTS), Bangkok Metro Plc., Ltd. (BMCL), The Office of Transport and
Traffic Policy and Planning (OTP), Bangkok Metropolitan Authority (BMA), State Railway of Thailand (SRT) and
Mass Rapid Transit Authority of Thailand (MRTA). The parties aimed to initially implement the common ticket
which includes the common ticket standardization, in order to allow the pulic transportation users to a single
card for transportation by implementing the transportation systems under BTS and BMCL as the pilot project
for the trial run at the beginning of the project under the terms and conditions of the aforementioned MOU.
2.2.1 Bangkok Smartcard System Co., Ltd. (BSS)
BSS is the service provider of “Rabbit” card which is valid for the transportation systems which are
under BTS and BMCL and retail stores, whereas BSS provides E-money service and common ticket for both
transit and non-transit systems.
Figure 2-10 Rabbit cards
2.2.1.1 BSS organization’s structure
BSS was founded in 2007 with BTS held 100% shares in BSS, then, in 2010, BTS sold 10% of the
BSS to Bangkok Bank Plc., Ltd.
Figure 2-11 BSS’s shareholders structure
Source: Bangkok Mass Transit System Plc., Ltd. 2010 annual report
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–18
Common Ticketing Office (CTO)
Establishment Report
2.3 Organization types of Common Ticketing Office : CTO
The advisors have been studied the characteristics of organization types, establishment’s process
and time frame to analyze advantages, disadvantages and restriction to establish CTO which can be
conclude in 6 organization types, which are government body, state owned enterprise, public agency, limited
company, public company and limited partnership.
2.3.1.1 Government Body
2.3.1.1.1 Common Characteristics
Government body means ministry, bureau, department that equivalent to government agency
exclude state owned enterprise or institutes in Budget Procedures Act, B.E. 2502. In this case, CTO may
establish under the Ministry of Transportation and Communications or government services under Ministry of
Transportation and Communications.
If CTO is under the Ministry of Transportation and Communications, government will has complete power and
authority in management such as quality control, fee policy and other standards, etc.
Figure 2-12 CTO’s structure in case of government body
2.3.1.1.2 The analysis of advantages and disadvantages
Advantages
(1) Standard Control: Government will has complete power and authority to control and integrate
transportation policy, set standards of common ticketing system, fee policy and other standard
efficiently.
(2) Government Support: Government can determine the policies to support and develop the
management system from Ministry of Transportation and Communications and CTO and also efficient
in subsidy distribution.
Ministry of Transport/ government
agency under MOT
CTO (CTO)
Establish
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–19
Common Ticketing Office (CTO)
Establishment Report
Disadvantages
(1) Take time in establishment procedure: According to legal and regulation, CTO’s establishment has to
write the bill and present the bill to ask for approval from the cabinet and be in process according to
session 5.1.1.3
(2) The Flexibility in Management: As a government body, CTO has to be under the government
regulations which may take time and less flexibility in operation process compare to be in form of
limited company or public company.
(3) Limitation of capital investment: As a government body, the main source of fund to development has
to come from the annual government statement of expenditure which may be the restriction in the
future. If CTO be structure as limited company or public company, it would be more alternatives find
sources of fund.
Table 2-1 Summary of advantages and disadvantages of CTO as a government body
Advantages Disadvantages
1. Government has power and authority to
control, and regulate CTO efficiently.
2. Directly support from government in
common ticketing system’s
development.
1. Inflexible in management
2. Take time in establishment
3. Limitation in innovation investment
4. Limitation in funding
2.3.1.2 State Owned Enterprise
2.3.1.2.1 Common Characteristics
State Owned Enterprise according to Budget Procedures Act, B.E. 2502 can be defining as follow:
(1) Government agency or organization owned by the government.
(2) Company or limited partnership having investment by an official agency in excess of 50 percent of its
capital amount.
(3) Company or limited partnership having capital investment by an official agency and/or state owned
enterprise as stated in (a) and/or (b) with the investment exceeding 50 percent.
(4) Company or limited partnership having capital investments made by government agency and/or
state owned enterprise as per (c) and/or (a) and (b) in excess of 50 percent.
(5) Company or limited partnership having capital investments made by government agency and/or
state owned enterprise as per (c) and/or (a) and (b) in excess of 50 percent.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–20
Common Ticketing Office (CTO)
Establishment Report
CTO’s establishment in structure as state owned enterprise can be settles in many ways such as
established by the act, royal act, royal decree, rules and regulations of Civil and Common Code. The
government or the government agency still holds the shares in excess of 50 percent. Thus, the government
still has authority to control and regulate CTO in many ways such as transportation policy, set standards of
common ticketing system, fee policy and other standards like Thai Airways International Public Company
Limited, The Transport Company Limited and Thailand Post Company Limited, etc. However, the organization
type as limited company or public company should be more flexibility to raise fund from private investors.
Figure 2-13 CTO’s structure as a state owned enterprise
2.3.1.2.2 The analysis of advantages and disadvantages
Advantages
(1) Standard Control: Government still has power and authority to control and integrate transportation
policy, determine standards of common ticketing system, fee policy and other standards. Although
less power than structure 1, the Government Body, but depends on term and condition between
shareholders, government and private investors.
(2) Transparency in Operation: As CTO as a state owned enterprise, it has to be examined by
government or parliament.
(3) Government Support: Government can determine the development policy through Ministry of
Transportation and Communications and government services as shareholder.
(4) Less time in establishment process: It can be establish in form of limited company.
Government
CTO
Other shareholders
More than 50% Less than 50%
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–21
Common Ticketing Office (CTO)
Establishment Report
Disadvantages
The disadvantages of state owned enterprise are less flexibility in management. Even through CTO
has a status as state owned enterprise in form of limited company or public company but the operation
management has to follow the law and regulations. Thus, CTO is less flexibility in management than limited
company or public company that does not be as state owned enterprise.
Table 2-2 Summary of advantages and disadvantages of CTO as state owned enterprise
Advantages Disadvantages
1. Government has power and authority
to control, and regulate CTO efficiently.
2. Received budget from government.
1. Limitation in innovation investment .
2. Inflexible in management.
2.3.1.3 Public Organization
2.3.1.3.1 Common Characteristics
Public Organization mean public organization that have status as government agency and legal
person which were established under the Public Organization Act B.E. 2542 to operate public services such
as Social Work, Natural Resources and Environmental Management, Art and Cultural preservation, Public
Health Service or other public services that are non-profit organization. These organizations have objectives
to be efficient resources and human resources utilization. Moreover, public organization have to determine
the scopes of operation and investment according to law, beside that they have to ask for approval case by
case.
According to Public Organization Act B.E. 2542, Ministry of Transportation and Communications has
to submit the establishment plan to receive the approval from council of minister and parliament. Then, it has
to publish in the Royal Thai Government Gazette to establish CTO as a public organization.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–22
Common Ticketing Office (CTO)
Establishment Report
Figure 2-14 CTO’s Structure as public organization
2.3.1.3.2 The analysis of advantages and disadvantages
Advantages
(1) Standard Control: Government still has power and authority to control and integrate transportation
policy, determine standards of common ticketing system, fee policy and other standards to be in the
single standard.
(2) Government Support: Government decides the development support’s policy for common ticketing
system through Ministry of Transportation and Communications and other government agencies.
(3) Capital Investment Capability: as a public organization, CTO can be funding from various channels
such as investors, financial institution or issue bond and sell both in domestic and aboard.
Disadvantages
(1) Take time in establishment procedure: The establishment has to get approval from the cabinet and
parliament to be as a public organization.
(2) Public organization is a non-profit organization. The objective of operation is to produce. Sell and
distribute common ticket and provide services which should be able to generate sufficient income
and be profitable in the future. Thus, it may be contrast to the structure’s objective.
(3) Flexibility in management: If CTO is a public organization, it will be more flexible in operation rather
than has a structure as government agency or state owned enterprise. However, CTO still has to ask
the permission from the government in case by case which will be less flexible than limited company
or public company.
Government Agency
CTO
Ministry of Transportation and Communications
submit the establishment plan to council of minister
and parliament
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–23
Common Ticketing Office (CTO)
Establishment Report
Table 2-3 Summary of advantages and disadvantages of CTO as a public organization
Advantages Disadvantages
1. Government has power and control to
regulate CTO efficiently.
2. More flexible to manage and control
like private sector.
3. Receive the subsidy from government,
private sector and other organization.
4. Capital funding
1. Non-profit Organization
2. It has to ask for permission from
government if it differ from the objectives
that define in the establishment.
2.3.1.4 Institute under a foundation
2.3.1.4.1 General aspect
An institute under a foundation is a type of organization which is not considered as a government
agency but it is required some government authority or act as the government’s tools to serve industrial and
commercial public services. It is established by the cabinet’s resolution aimed to strengten a specific industry
at the early period, while letting the private sector to take on the business once the industry is stable.
However, the institution is not a juristic person, therefore, the foundation is set up to support the juristic acts
involvement. The institute set up its own regulations for the human resource, budget, procurement
management which is different from the regulations of government agencies and state owned enterprises.
The revenue perceived from the service revenue and annually allocated national budget as general subsidy.
The organizational administration is under the Board of Directors or Board of administrative directors, who is
responsible for the policy making, supervising, controlling and performance evaluation, and consists of
representatives from the original affiliate, private sector, other related organizations, experts and specialists in
an appropriate proportion.
In case that CTO is established as an institute, which has an objective for a tempolary existence to
strengthen the specific industry. Since common ticketing management requires to contribute power to define
policy framework for service providing, fare policy and common ticketing development policy. Hence, CTO
should be an organization that the government is entitled to regurate and supervising at the level that it will
lead to a fairness and effective in services to the users. Moreover, CTO should be remained and stable so as
the common ticketing service shall be effective and is able to continuously provide services as well as
developed to be a stable system. However, the institute is not a juristic person, thus, it cannot invole in any
juristic acts which results in the operation manner of the business that may conflict to the objectives of the
foundation, whose objective is not for realization of profits, including the tardiness in operation which the
institute shall involve in juristic acts through the foundation which may effect to the operational flexibility.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–24
Common Ticketing Office (CTO)
Establishment Report
Figure 2-15 CTO’s structure as an institute under foundation
2.3.1.4.2 The analysis of advantages and disadvantages
Advantages
(1) Operational policy: the different operational regulations and policy from the ones of government
agencies and state owned enterprise which results in more flexibility in operation.
(2) Support from the government: ability to be subsidized by the government as well as gaining
revenue
(3) Less establishment procedure: established by the cabinet resolution but it might take time to seek
for board of directors in case that there are many board member
Disadvantages
(1) Business objectves to gain profit: an institution under foundation may effect the operation which
aimed to gain profit as the foundation has as objective not to gain profit for any person.
(2) The stability of the organization: institute is an organization that is tempolariry set up to strengthen
a specific industry in the initial period which might not suitable for the business which the
government should remain controlling and policy making authority.
(3) Disadvantage of government supervision: up to the proportion of the board of director members.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–25
Common Ticketing Office (CTO)
Establishment Report
Table 2-3 Summary of advantages and disadvantages as an institute under foundation
Advantages Disadvantages
1. Operational policy is different from the
government agency and state owned
enterprise
2. Government subsidy
3. Less establishment process
1. The operation may conflict to the
foundation objective
2. Tempolary set up objective
3. Limitation of government supervision
2.3.1.5 Limited Company
2.3.1.5.1 Common Characteristics
Limited Company is the company that was established under the Civil and Commercial Code.
Shareholders have limited liability responsibility. If the company is a limited liability company, the
shareholders' liability, should the company fail, is limited to the amount, if any, remaining unpaid on the shares
held by them.
It will be more flexibility in management than other types of organization if CTO established as a
limited company because of its independent. It will be fast in operation management, be efficiency and be
efficient in determine the strategy plan. It will be more efficient in common ticketing system’s development
from no restriction in funding. Even though company cannot sell its shares or issue bond to public as the
public company.
Figure 2-16 CTO’s Structure as a limited company
Government
CTO Co.,Ltd.
Transit Provider
Hold shares
Retailers Other
Shareholders Financial
Institution
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–26
Common Ticketing Office (CTO)
Establishment Report
2.3.1.5.2 The analysis of advantages and disadvantage
Advantages
(1) Flexibility in management: As a limited company, CTO will be more flexibility in management rather
than government agency and state owned enterprise. It will be flexible to adjust operation plan to
current situation or increase the competitiveness.
(2) Less time in establishment: It has less procedure to establish CTO when compare to other
organization types.
(3) Ability in funding: Limited company can raise fund from shareholders or loans from financial
institution for future investment. Although this type of organization cannot raise fund from public like
public company but it has more alternatives for funding rather than other organization types.
Disadvantages
(1) Standard Control: Government can set the common ticketing standard and other relevant system, fee
policy and others in the certain level.
(2) Even though CTO is a limited company, the major shareholder should be government or in the first
phase after establishment to be able to has power and authority to determine policies and support to
be successful project.
(3) Fee policy or revenue management still has to depend on government or depends on government’s
subsidy.
Table 2-4 Summary of advantages and disadvantages of CTO as a limited company
Advantages Disadvantages
1. Flexibility in management.
2. Less time for establishment compares
to public organization or state owned
enterprise process.
3. More alternatives for funding even if
less than public company.
1. It has government power and authority in
certain level.
2. The successful of project depends on
government support.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–27
Common Ticketing Office (CTO)
Establishment Report
2.3.1.6 Public Company Limited
2.3.1.6.1 Common Characteristics
Public company is the limited company that registered according to Public Limited Companies Act
B.E. 2535. A public limited company is a company established for the purpose of offering shares for sale to
the public and the shareholders shall have the liability limited up to the amount to be paid on shares. Publicly
traded companies are able to raise funds and capital through the sale of their securities in the stock
exchange. It has more flexibility in management and more efficient because many alternatives to raise fund. In
addition, as a public company, CTO has more opportunity to have strategic partner to increase the
development efficiency of business and technology. The management of common ticketing system will be
more efficiency.
Figure 2-17 CTO’s Structure as a public company
2.3.1.6.2 The analysis of advantages and disadvantage
Advantages
(1) Flexibility in management: As a limited company, CTO will be more flexibility in management rather
than government agency and state owned enterprise. It is a profitable organization which require
high level of flexibility in management i.e., adjustable the operation plan to current situation or
increase the competitiveness.
(2) Less time in establishment: Although it has more procedures in establishment rather than limited
company but it has less time in establishment when compare to other organization types.
(3) It has many alternatives to raise fund and many sources of funding when compare to other
organization types.
Government
CTO Public Company
Transit Provider
Hold shares
th 50%
Retailers Other
Shareholders
Financial
Institution
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–28
Common Ticketing Office (CTO)
Establishment Report
Disadvantages
(1) Standard Control: Government can set the common ticketing standard and other relevant system, fee
policy and others in the certain level.
(2) Although CTO is a public company, the major shareholder should be government or in the first phase
after establishment to be able to has power and authority to determine policies and support to be
successful project.
(3) Fee policy or revenue management still has to depend on government or depends on government’s
subsidy.
Table 2-5 Summary of advantages and disadvantages of CTO as a public company
Advantages Disadvantages
4. Flexibility in management.
5. Less time for establishment compares
to public organization or state owned
enterprise process.
6. More ability to raise fund.
4. It has government power and authority in
certain level and also has limitation from
many stakeholders.
5. Need government support for operation.
6. Need a government subsidy
2.3.1.7 Limited Partnership
2.3.1.7.1 Common Characteristics
Limited Partnership means register limited partnership according to Civil and Commercial Code
which can be divided into 2 types;
(1) One or more partners whose liability is limited to such amount as they may respectively undertake to
contribute to the partnership.
(2) One or more partners who are jointly and unlimitedly liable for all the obligations of the partnership.
2.3.1.7.2 The analysis of advantages and disadvantage
Advantages
(1) Less time for establishment because it has less procedures to register.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–29
Common Ticketing Office (CTO)
Establishment Report
Disadvantages
(1) Unable to do the electronic transaction: According to Royal Decree to Regulate Electronic Payment
Service Provider B.E.2551, Limited Partnership or Registered Ordinary Partnership cannot ask for
approval to do the electronic transaction i.e., Clearing accounts, Switching services for payment
system and the electronic transaction to buy or pay for goods/services.
(2) High risk for unlimited liability partner: There are two types of limited partnership which are limited
liability partner and unlimited liability partner. Unlimited liability partner has unlimited liability, not only
equal to capital investment amount.
(3) Limitation in funding because limited partnership has to raise funds only from partners.
(4) Inflexible in business operation: All partners have to do decision making together. Thus, it will take
time for decision making in business operation.
Table 2-6 Summary of advantages and disadvantages of CTO as a limited partnership
Advantages Disadvantages
1. Easy and take less time for
establishment process.
1. Unable to do the electronic transaction
which impact to the establishment of
CCH.
2. High risk for unlimited liability partner.
3. Limitation for funding.
4. Inflexible in business operation.
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 2
–30
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Tabl
e 2-
7 th
e co
mpa
rison
of e
ach
orga
niza
tion
type
s2
G
over
nmen
t Age
ncy
Stat
e O
wne
d En
terp
rise
Publ
ic O
rgan
izat
ion
Lim
ited
Com
pany
Pu
blic
Com
pany
Li
mite
d pa
rtner
ship
Gov
ernm
ent C
ontro
l
Gov
ernm
ent a
genc
y
unde
r the
Min
istry
of
Tran
spor
tatio
n an
d
com
mun
icat
ions
,
gove
rnm
ent h
as c
ompl
ete
pow
er a
nd a
utho
rity
to
regu
late
and
con
trol.
Stat
e ow
ned
ente
rpris
e in
form
of l
imite
d co
mpa
ny,
gove
rnm
ent h
as p
ower
and
auth
ority
to re
gula
te
and
cont
rol.
Gov
ernm
ent h
as p
ower
and
auth
ority
to re
gula
te
and
cont
rol i
n a
certa
in
leve
l bec
ause
it is
an
inde
pend
ent o
rgan
izat
ion.
It ha
s a
limite
d po
wer
as
a po
rtion
of a
mou
nt o
f
hare
s th
at g
over
nmen
t
hold
s an
d al
so a
s a
regu
lato
r.
It ha
s a
limite
d po
wer
as
a po
rtion
of a
mou
nt o
f
hare
s th
at g
over
nmen
t
hold
s an
d al
so a
s a
regu
lato
r.
It ha
s a
limite
d po
wer
as a
por
tion
of a
mou
nt
of h
ares
that
gove
rnm
ent h
olds
and
also
as
a re
gula
tor.
Cap
ital F
undi
ng
It ne
ed g
over
nmen
t
budg
et fo
r ope
ratio
n.
Stat
e ow
ned
ente
rpris
e
can
rais
e fu
nd fr
om
shar
ehol
ders
.
Publ
ic o
rgan
izat
ion
is a
n
inde
pend
ent o
rgan
izat
ion.
It ca
n ra
ise
fund
from
issu
ed b
ond
or lo
ans.
Man
y al
tern
ativ
es to
rais
e fu
nd b
ut c
anno
t
rais
e fu
nd fr
om p
ublic
.
Man
y al
tern
ativ
es to
rais
e fu
nd in
clud
e fro
m
publ
ic.
Lim
itatio
n to
ra
ise
fund
, on
ly
from
partn
ers.
Flex
ibilit
y in
Man
agem
ent
Take
tim
e in
ope
ratio
n
appr
oval
as
follo
w th
e
gove
rnm
ent r
egul
atio
ns.
Stat
e ow
ned
ente
rpris
e
has
to b
e st
rictly
to th
e
role
s an
d re
gula
tion
of th
e
Publ
ic o
rgan
izat
ion’
s
oper
atio
n ha
s to
be
oper
atin
g on
ly a
ccor
ding
Hig
h le
vel o
f fle
xibi
lity
in
oper
atio
n.
Flex
ible
in o
pera
tion
but
has
to d
o ac
cord
ing
to
gove
rnm
ent r
egul
atio
n.
All p
artn
ers
have
to
agre
e in
bus
ines
s
deci
sion
mak
ing.
2 H
ighe
st
Hig
h
Mod
erat
e
Low
Low
est
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 2
–31
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
G
over
nmen
t Age
ncy
Stat
e O
wne
d En
terp
rise
Publ
ic O
rgan
izat
ion
Lim
ited
Com
pany
Pu
blic
Com
pany
Li
mite
d pa
rtner
ship
go
vern
men
t. to
the
goal
s, o
bjec
tives
and
scop
es.
Diff
icul
t/ Ea
sy in
esta
blis
hmen
t
Gov
ernm
ent a
genc
y ha
s
to b
e as
a d
epar
tmen
t
and
has
to b
e es
tabl
ishe
d
by th
e ac
t whi
ch h
as
man
y pr
oces
ses
and
take
time.
Stat
e ow
ned
ente
rpris
e in
form
of l
imite
d co
mpa
ny
has
sam
e es
tabl
ishm
ent
proc
ess
as li
mite
d
com
pany
whi
ch
cons
umes
tim
e an
d ha
s to
be a
ppro
ved
by
gove
rnm
ent.
Publ
ic O
rgan
izat
ion
has
to
be e
stab
lishe
d by
the
act.
Less
est
ablis
hmen
t
proc
ess
and
less
tim
e in
esta
blis
hmen
t.
Man
y es
tabl
ishm
ents
proc
ess
and
take
tim
e in
esta
blis
hmen
t.
Less
est
ablis
hmen
t
proc
ess
and
less
tim
e
in e
stab
lishm
ent.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–32
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2.4 Defining organization type of CTO
The advisor analyzed the establishment of CTO in several methodologies such as government
agency, state owned agency, limited company and public company limited as demonstrated in the table of
comparison for 4 factors which are supervising authority, fundraising, operation flexibility and establishment
difficulty by defining suitable types of organizations as per the sequence of importance of those factors
including the analysis of CTOs’ types of organization in overseas such as Japan, Hongkong, Republic of
Korea, Singapore and United Kingdom which set up CTOs as government agency, state owned enterprise
and limited company.
However, as per the fundamental analysis, the advisor suggested 3 types of organization which are
(1) government agency under the Ministry of Transport which allows the government to absolutely control,
supervise and define common ticketing standards and support the common ticketing development (2) state
owned enterprise which allow the control and supervising from the government and is a stable organization
(3) limited company as a private company through a hire of work contract which allow the government to
regulate as the employer and policy maker while CTO still operate flexibly. The details are stated in the next
chapter.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 2–33
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Table 2-4 Comparisons of 3 options
Government agency State owned enterprise Limited company
(1) Relationship with the
government
(a) Establishment
(b) Status
(c) Executives
appointment
(d) Government control
Public laws
Juristic person (from
department level on)
Government
Yes
Public law/ company
registration
Juristic person
Government
Yes
Company registration
Juristic person
Board of Directors
Depends on terms and
conditions of contract and
policies
(2) Operational objectives Non-profit
Administrative public
services
Profit
Industrial and commercial
public services
Profit
Not public service
(3) Budget/ revenue Government budget Government budget/ revenue Revenue
(4) Employees’ status Government officers State owned enterprise
employees
Company employees
(5) Operation system As per the government
agency rules
As per the government
agency rules and specific
laws
As per the article of
association and applicable
laws
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–1
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Chapter 3 CTO’s establishment guidelines
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AgC / KSCC / PSK Page 3–2
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3.1 The guidelines of Common Ticketing Office (CTO) establishment
As per the analysis of organization types in chapter 2, the advisor had analyzed in order to seek for a
suitable type to operate as CTO by taking authority, duration of establishment, operational procedures and
related laws and regulations. Hence, the advisor suggested 3 options of establishment which are option 1
establish as a government agency, option 2 establish as a state owned enterprise and option 3 establish as a
provaite limited company.
3.1.1 Option 1: Establish CTO as a government agency
The option 1 determines that CTO is a government agency under the Ministry of Transport (MOT)
such as OTP or other agencies subjected to the MOT. However, the advisor suggests that such agency might
be OTP or a department under OTP who has authority in policy making and planning for the common ticketing
system, or a new government agency equivalent to department level to operate as CTO. Nevertheless, OTP is
the Program Management Servises (PMS) project owner, has officers keen on common ticket and is the
proprietor of CCH including common ticketing system and standards. Therefore, without engaging in the
process of request for permission to use asset such as rent or permission to use state owned assets which
may shorten the procedure process.
However, in the operation, CTO might seek for the systemand CCH developer through bidding while
CTO operates the system and form a revolving fund to revolve its revenue for the operational expenditure. The
option 1 can be divided into 2 sub-options which are;
(1) OTP acts as CTO
(2) Establish a new department level government agency to act as CTO
Details as follow:
Figure 3-1 Option 1 government agency
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–3
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3.1.1.1 Option 1.1: OTP act as CTO
Option 1.1 determines that OTP shall act as t CTO since OTP is the organization who responsible for
the regulation and supervision of the common ticketing development including being the employer of the
common ticketing system and CCH development project. Inaddition, OTP has officers (includes the advisor)
both Thais and foreigners keen on common ticketing system. Thus, OTP is the suitable agency to operate the
common ticketing system. However, in order to assign the responsibilities to OTP, it is required to form a
revolving fund as OTP is a government agency that has no objective to collect revenue to be used for
expense, whereas common ticketing operation requires to collect fees and allocate to the participated service
providers and also to be used as development and maintence of CCH system, so that CTO can consistently
provide effective service. Therefore, the process requires to authorize OTP to support CTO responsibilities,
hence, the advisor suggests to enact a revolving fund act which authorize OTP to perform as CTO, details as
follow;
Figure 3-2 overview of option 1.1 procedure
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–4
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3.1.1.1.1 Procedures
Procedure – Phase 1
Figure 3-3 Procedure of option 1.1 phase 1
(1) OTP as the employer of the common ticketing system and CCH developer (Developer) in the first
phase through an international bidding process, while the scope of work consists fof (a) detailed
design and build the CCH (b) design the common ticketing standards including National Card’s
standard, card reader and other related systems with THB 400 millions budget.
(2) Upon selection of the developer from the first contract, and shall be made on a design contract and
system development contract by OTP referred as “Employer” and selected bidder for common
system developer referred as “Contractor”.
(3) For selected bidder in clause (2) has OTP or a assigned department in OTP such as the Common
Ticketing Office (include the PMS advisor) as its regulators and supervisors subjected to conditions
of contract and upon completed operation, the design work of the common ticketing standard and
CCH hold as legal title of OTP or of government sector.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–5
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Procedure – Phase 2
Figure 3-4 Procedure of option 1.1 phase 2
(1) To establish the revolving fund by enacting the revolving fund act as follow: characteristic and
establishment of the revolving fund accordance with the Treasury Reserves Act, B.E. 2491 (“Treasury
Reserves Act”) Section 3; definition of revolving capital is “The capital that established for the affair
which allow to accumulate the revenue for disburse” and section 12; determine the approach to
disburse as capital or as revolving capital for any affair; allow to operation but it must operation by
legal from information enquiry by the Office of Off-Budgetary Management, the Comptroller General’s
Department, Finance Ministry had made on the revolving fund manual for government agency or
public agency use to guideline in the study, consideration and prepare the information for establish
the revolving fund and conclude that “revolving capital” meaning the fund or revolving capital,
finance or revolving finance which is a kind of the off-budgetary that establish by necessary of the
public agency or according to a policy of the government rely on the authorize accordance with the
Treasury Reserves Act.
To form the revolving capital; particular, allow to event that the activities that the government
agency or public agency must be operation according to duty for public benefits or for economic
benefits or for support the standard living or facilitate to the people and can’t use the procedures
accordance with regulations of public sector. The activities can establish the revolving fund; they
must be the activities that have explicitly objectives and it can take the revenue from operation return
to accumulation as the income source of the capital revolving which it must not came from only
budget by allow to take that revenue to accumulation for disburse by it must not deliver to the
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–6
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treasure which primary characteristic of revolving capital that establish; it must have the
characteristic as following:
• The operation formation must no duplicate with the revolving capital that exist operation or no
duplicate with key function of the other public agency or the operation of its same as the normal
affair of the government agency.
• Shall be operated in the way that it is not competitive with the private sector/state owned
enterprise or the activities that private sector/state owned enterprise can operate.
• Revolving capital that establish accordance with a policy of the government for benefits in any
operation that necessary and have important in any time period; must specified to operation time
and explicitly budget for operation.
The procedure for establish the revolving capital can divide as 3 main parts as follows:
(A) Offer to establish the revolving capital
• The agency that requires for establish the revolving capital shall consider to select the method of
establish the revolving capital as mentioned above.
• The agency that requires for establish the revolving capital must prepare the details according to
principle of establish the revolving capital and then deliver to the Comptroller General’s
Department for complete inspection of details.
• The Comptroller General’s Department shall deliver the revolving capital form information to the
revolving capital form scrutinize committee for suggestion.
• The Comptroller General’s Department informs the consequences of the committee to the
agency that require for establish the revolving capital acknowledge.
(B) Present to the Cabinet for approve.
• The Comptroller General’s Department presents the consequence of the committee to the
Secretariat of the Cabinet.
• In case that the agency requires the revolving capital subject the provision of the Expenditure
Budget Act, B.E…; given to the agency prepare the addition information with consequence of
the committee to the Secretariat of the Cabinet.
• The Secretariat of the Cabinet presents the revolving capital form information to the Cabinet for
approve of the revolving capital form principle.
• The Secretariat of the Cabinet informs the consequence to the agency that require for establish
the revolving capital acknowledge.
• In case that the Cabinet approves of the principle.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–7
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• If the agency requires for establish the revolving capital form by legislation the particular Act.
The Secretariat of the Cabinet shall deliver such bill to the Juridical Council for consider before
present to the House of Representatives and Senates for approve.
• If the agency requires for establish the revolving capital form subject the provision of the
Expenditure Budget Act, B.E… The agency must operation for obtain the budget allocation for
use to primary capital in the revolving capital by the Bureau of the Budget shall be determines as
one section in the Expenditure Budget Bill, B.E… for present to the House of Representatives
and Senates for approve.
(C) Operation after established the revolving capital
• After that the Act related with establish the revolving capital enter into force. Principal agency of
revolving capital must prepare the revolving capital administration regulation and other
regulations present to authorizer for approve before operation which it shall be divide as 2 cases
as following:
• In case that the agency that requires for establish the revolving capital by legislation the
particular Act; given to prepare the revolving capital administration regulation and other
regulations present to authorizer that specified in the particular Act such as the Finance Ministry
or Revolving Capital Committee (depend on each case) consider for approve before declare
such regulation.
• In case that the agency that requires for establish the revolving capital subject the provision of
the Expenditure Budget Act, B.E…; given to prepare the related revolving capital administration
regulation and other regulations present to the Finance Minister consider for approve before
declare such regulation.
• Upon the related revolving capital administration regulation and other regulations enter into
force; given the principal public agency of the revolving capital informs to the Finance Ministry
(Comptroller General’s Department) together with ask for permission to open an account bank of
the revolving capital with the Finance Ministry.
Upon the Bureau of the Budget already approves the installment finance or upon it receives the
money from other sources that specified to revenue of the revolving capital; given such public
agency take such money deliver to the revolving capital account for maintain in the Finance
Ministry.
(2) To increase the power of OTP for support to act as CTO by specified the duties of OTP in act as CTO
in the Revolving Fund Form Act for effect to addition and expand the power of OTP for support the
operation of CTO.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–8
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The duties of OTP according to specified in clause 2 of ministerial regulations divided the
government agency of OTP, the Ministry of Transport, B.E. 2552 (Ministerial Regulations Divided the
Government Agency, OTP) which specified that “given OTP, the Ministry of Transport has affair
related with suggestion the policy and main plan, master plan and transport and traffic development
strategic, safety and environment of the country transport system and it has duties as following:
1. To study, analysis and prepare the main plan, master plan, investment plan of the transport and
traffics in the country includes monitor and assessment the performance according to such plan.
2. To study, suggestion the policy and standard, traffic system management standard conformity
with the main plan of the transport and traffic, analysis and screen for suitable of plan and traffic
system management project presents to the Land Transport System Management Committee
includes operation accordance with Act related with the Land Transport System Management
Committee and related other Acts.
3. To study, analysis and prepare the report of the transport and traffic, safety and environment in
the transport system.
4. To study, analysis and research for prepare the report and tendency of the transport and traffic
either in economic and safety and environment and information system and data of the transport
and traffic includes the intellectual transport and traffic technologies development.
5. Other operations accordance with specified by law given to duties of the office or according to
assign from the Ministry or the Cabinet.
As per the consideration of the provision of the ministerial regulation divided the government
agency, OTP as mentioned above found that non-power in employ or regulate or supervise CTO.
According to clause 5, however, can issue a ministerial regulation or given the Cabinet has resolution
for assign the other duties of OTP other than main duties that specified in clause 1-4.
Therefore, can specified to OTP has power in employ or regulate or supervise CTO by given
the Ministry of Transport which is principal ministry presents to the Cabinet for amendment and
addition of the ministerial regulation divided the government agency, OTP or issue a new ministerial
regulation for increase the power of OTP for comprehensive to the power for employ or regulate or
supervise of CTO. For increase of the power of OTP, OTP argue that it should be increase for
comprehensive to power of OTP as follows:
1. Increasing the power of the common ticketing management and includes the power for employ or
regulate or supervise CTO and
2. Increasing the power for manage of income and receive the profit.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–9
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3.1.1.1.2 Advantages and disadvantages analysis
Advantages
(1) The public sector have power, regulate, supervise and set a policy includes fully inspection the
status of operation because OTP is the government agency must take the policies of the public
sector to operation.
(2) The public sector can control the operation expenditure includes monitor and supervise both
revenue and expense of the revolving fund.
(3) CTO receives support the budget from directly public sector because it is the government agency.
(4) The operation has transparency because operation of the government agency has inspection and
must make a report which more inspection processes than operation of the private sector.
Disadvantages
(1) For amendment the power of OTP for more power in the operation of common ticketing system or
employ or regulate or supervise CTO; it may be over the power domain of OTP which it is the agency
which established for planning and set a traffic policy; not practices or regulate or supervise directly
in the different projects so that it must present to the Cabinet for consider.
(2) For establish the revolving fund by legislation the Act; it has restriction in time period of legislation
and procedure complexity.
(3) For operation of CTO; it has restriction such as liquidity of operation because OTP is the government
agency that must operation according to regulations and laws, other regulations that enforce to the
government agency which it may includes purchasing process which the common ticketing
administration is necessary to rely on liquidity for operation because the common ticketing system is
system that must rely on stability and efficiency technology so that OTP must continuously study the
technologies, development and update and maintenance which may be use high cost for investment.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–10
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3.1.1.2 Option 1.2: Establish a new department level government agency to act as CTO
In case that the power increase of OTP to act as CTO exceed its scope of work according to the
objectives in the establishment of OTP or there are any restrictions that OTP cannot act as CTO. In the second
way, specified to establish for new government agency for act as CTO by receive duties and properties that
must use and related with the operation of common ticketing system from OTP. The new government agency
should has status equality to the department as juristic person because the operation of common ticketing
system is necessary to sign on the different legal transactions such as purchasing process include financial
operations and for the agency has authorize to sign on the different legal transactions so that it has status as
the juristic person and establish to the agency at department level and can establish by legislation a act by
specify to establish the revolving fund for support the financial administration both the revenue and
expenditure of the new agency from the operation of common ticketing system and there are procedures as
follows:
3.1.1.2.1 Procedures
Procedure – Phase 1
Figure 3-5 Procedure of option 1.2 phase 1
To establish CTO by legislation an act since CTO shall be a government agency that is juristic person for
achieve of different operations of CTO such as purchasing process and sign on the different legal
transactions. Therefore, for establish the new government agency at department level by legislation the Act
which has objective for establish such as specify the power domain to the agency and for the agency can
sustain and cannot terminate and abolish because the status of the agency should be sustain and permanent
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–11
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because the operation of common ticketing system must rely on stability agency and can continue service
provide and development for good performance in the common ticketing administration. Therefore, it must
conduct as follows:
(A) Principal Ministry (Ministry of Transport in this case) permissions to establish the government
agency accordance with Act for improve the ministry, division, department or the Public
Administration Act3 by take the subject of establish the government agency presents to the
Committee Developed Bureaucratic Structures of the Ministry and the Office of Committee
Developed Bureaucratic Structures before presents to the Cabinet by conduct as follows:
o To made the elucidation according to inspection criteria by necessary for legislation.
o To made the summary of principles in the bill.
o To made the comparative table in case of addition and amendment or improve the
existing Act.
(B) Office of Committee Developed Bureaucratic Structures operates to given the Secretariat of the
Cabinet inspects the reason and necessary for legislation of Act of the government agency
according to different issues and if found that there is any issue that the government agency is
not answer; given the Secretariat of the Cabinet return the bill to the government agency
immediately.
(C) Council of State of Thailand inspects the bill by inspects the reason and necessary for legislation
of Act and if saw that the government agency is not answer in any issue; given the Council of
State of Thailand return that bill to the Secretariat of the Cabinet for answer such issue before.
The elucidation for establish the government agency have contents as follows:
1. Affair Analysis
2. Reasons and necessary for establishment.
3. Scop of work and authority of the government agency.
4. Policy, main plan of the government that responsible by the government agency.
3 Public Administration Act, B.E. 2534
“Section 7: Given arranges the central administration regulation as follows:
…
(4) Department or Government Agency that called as other and has status as department which is under the
jurisdiction of the Office of the Prime Minister, Ministry or Bureau…”
“Section 8: To establish, combination or transfer the government agency accordance with Section 7; given legislation
as Act…”
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AgC / KSCC / PSK Page 3–12
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5. Work load
6. Expenditure
7. Official workforce
8. Bill divides of the government agency.
9. Other elucidation. (if any)
Figure 3-6 Steps to propose the establishment of a government agency
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–13
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Figure 3-7 Steps to propose a department level government agency internal division ministry’s rule
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–14
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Procedure – Phase 2
Figure 3-8 Procedure of option 1.2 phase 2
(1) The new CTO shall receive of duties and power and properties such as common ticketing system
and common ticketing standard and CCH system from OTP by this transfer must carry out
accordance with regulations of the Office of the Prime Minister related with the parcels, B.E. 2535
and amendment as follows:
(A) Annual parcel inspection of the government agency before the end of September of every year,
accordance with regulations according to clause 155 of this regulation.4
4 The office of the prime minister regulations related with parcels, B.E. 2535 and amendment
Clause 155: Before the end of September of every year; given the head of the government agency or supervisor who
have parcels for disburse according to clause 153 depend on case; appointment the officer in the government agency or that
agency who not the parcels officer of 1 person or more by necessary for inspects receive and disburse the parcels from
October, 1 on previous year to September, 30 on current year and count the parcels at the day of that time.
In inspects accordance with paragraph 1; should be start inspects the parcels in first workday of October for correct
of receive and disburse. The existing parcels are correct to an account or register or not. The causes of deficit, damage parcels,
or lose or any parcels that not necessary for use in the government agency and presents the inspection report to appointee
within 30 workdays from the day that inspects.
Upon the appointee receive the report from inspector already; the appointee must deliver by order to the head of the
government agency of 1 set and deliver the report copy to the Office of the Auditor-General of Thailand or Regional Office
depend on each case of 1 set and for the Regional Administration Agency must deliver to principal government agency of 1 set.
Clause 156: Upon the head of the government agency receive such report accordance with clause 155 and
appearance that there are damage, deficit or lose of the parcels or not necessary to use in the government agency; given
appointment 1 enquiry committee by take the text in clause 35 and 36 to use mutatis mutandis…
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AgC / KSCC / PSK Page 3–15
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(B) After the inspection upon appearance that there are parcels that not necessary to use in the
government agency; given appointment the enquiry committee and such committee contains
with 1 committee chairman and at least 2 boards. Normally, appoint from civil official at least
level 3 or equality and in case that it is necessary or for benefits of the government; shall also
appoint the person who non civil official as board and if the committee chairman cannot perform
his duty; given the head of the government agency appoints the civil official that have such
features for act as the committee chairman and there are meeting regulations such as the
consult meeting of the board must have the committees not less than half of full board and given
the committee chairman and board has 1 vote for resolution which the resolution of the board
hold that is majority and if the equality vote; given the committee chairman can vote another 1
vote as judge vote.
(C) The head of the government agency orders to operation according to any process which upon
OTP have no power and duties for operation related with the operation of common ticketing
system, the properties were in the legal title of OTP such as the common ticketing system and
standard and CCH system which shall be use in the common ticketing operation, these
properties shall no necessary for OTP and should be transfer to the government agency
accordance with regulation; clause 157(3) herein that is CTO that new establish for use in the
operation of common ticketing system by the teamwork deliver the parcels to CTO.
(D) The agency that is supplier and the agency that is receiver must be register for deliver or receive
the parcels and inform to related agency next.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–16
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Figure 3-9 Procedure of assets transfer from OTP to the office of CTO
3.1.1.2.2 Advantages and disadvantages analysis
Advantages
(1) The new agency is the agency that has particular authority and duties to operate the common
ticketing system which shall have the special skill personnel related with the operation of common
ticketing system.
(2) The public sector has power for regulate, supervise and set a policy includes fully inspection the
operation status because OTP is the government agency that has responsible to take the policy of
the public sector to operation.
(3) The public sector can control the operation expense includes monitor and supervise both revenue
and expenditure of revolving fund.
(4) CTO can receive the budget from the public sector directly because it is an agency of the state.
(5) The operation has transparency because the operation of the government agency which must
inspection and make a report which there are more inspect procedures than of private sector.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 3–17
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Disadvantages
(1) The process of establishment of new government agency may be restricted by duration and
procedures in the establish which must legislation the establish the government agency Act which
including revolving fund which have complexity processes for presents the bill because the new
government agency must present the workforce amount, budget and other factors for establish.
Therefore, because the complexity processes for establish the government agency so that the time
period may not be conformity with a policy establish CTO within specified time period.
(2) For receive the properties from OTP; it have complexity processes and procedures for transfer and
may be use more time for transfer and may not be conformity with time period in the operation of
common ticketing system that accelerate for arise the common ticketing project.
(3) The operation of CTO may be restriction such as liquidity for operation because the government
agency must operate accordance with regulations and laws, other regulations that use to the
government agency which may be includes purchasing process which the operation of common
ticketing system is necessary rely on liquidity for operation because the common ticketing system is
system that must rely on stability and efficiency technology so that it must be study the technology,
development and improvement and maintenance that liquidity which may require high investment.
3.1.2 Option 2: Establish CTO as a state owned enterprise
To establish CTO as a state owned enterprise in the form of limited company which establish
accordance with the Commercial and Civil Code or a government’s business unit which established
accordance with the Emergency Decree or Decree to perform the operation of common ticketing system
under supervision of MOT. However, as OTP is the proprietor of the common ticketing system, standards and
CCH system shall transfer its proprietary to CTO. In addition, in case that CTO cannot perform any function in
operating the common ticketing system, CTO shall procure a Common Ticketing Company (CTC) to operate
such functions partially or wholly, while CTO perform the contract management to supervise CTC to perform
its tasks according to the government policies to create effective services to the cardholders. There are 2
sub-options which are;
(1) Existing state owned enterprise as CTO
(2) Establish a new state owned enterprise to act as CTO
Procedures as follow;
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Figure 3-10 Option 2 state owned enterprise
3.1.2.1 Option 2.1: Existing state owned enterprise as CTO
Option 2.1 determines that the government sector such as MOT, assign the responsibilities and
authority in the common ticketing system operation to the existing state owned enterprise to act as CTO which
shall be endorsed the proprietary of assets such as the common ticketing system and standard and CCH
system and may be adjest its internal structure by deviding a department to perform in the operation of
common ticketing system. However, in case that CTO cannot perform any function in operating the common
ticketing system, CTO shall procure a Common Ticketing Company (CTC) to operate such functions partially
or wholly.
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Figure 3-11 Overview of option 2.1 procedure
3.1.2.1.1 Procedures
Procedure – Phase 1
Figure 3-12 Procedure of option 2.1 phase 1
(1) The MOT assigns the existing state owned enterprise to act as CTO and may adjust or increase the
duties and authority in the operation of that state owned enterprise. In case that such state owned
enterprise has no power and duties in the operation of the operation of common ticketing system and
by increase such power may be increase according to resolution of the Cabinet, Emergency Decree
or Decree for such state owned enterprise is authorized to act as CTO.
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(2) Endorsed the proprietary from OTP for the use in the operation of CTO and there are methods and
procedures to transfer according to clause 3.1.1.2.1 Procedures, option 1.2, second phase
Procedure – Phase 2 (option)
Figure 3-13 Procedure of option 2.1 phase 2
(1) In case that CTO cannot partly perform or all in the operation of common ticketing system; it may be
use the purchase process through the bidding for provide the operation of common ticketing system
contractor (CTC) for partly perform or all in the operation of common ticketing system with the budget
of CTO.
(2) Upon already select the CTC from bidding and after that CTO make a operation of common ticketing
system contract and CTO is “Employer” and person who selected as CTC called as “Contractor”.
(3) Person who selected as CTC according to clause (2) has CTO or other agency subject CTO that
assign which includes the consulting firms group of the operation of common ticketing system act as
regulator under terms and conditions of such contract.
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3.1.2.1.2 Advantages and disadvantages analysis
Advantages
(1) The public sector in regulate and supervise of the operation of common ticketing system because
the state owned enterprise may be the government agency that must operation accordance with the
regulations and policy of the public.
(2) The public sector is still holder the legal title in the common ticketing system and standard so that the
operation of common ticketing system shall no monopoly with anyone private.
(3) To receive the budget from the government for use in the operation includes make the budget for
education, development and improvement the common ticketing system and standard and CCH
system.
(4) The operation has transparency because the agency of the public which have objectives in the
operation and must have inspection processes same as the other agency of the public sector.
(5) The organization has sustain because to establish the state owned enterprise may establish by
legislation the Public Act for clearly power domain, transparency and in the regulation and supervise
of the public sector closely and can terminate and abolish that state owned enterprise upon
legislation for terminate or abolish such state owned enterprise.
Disadvantages
(1) The operation of the existing state owned enterprise has clearly power domain includes specify the
proportion in the organization and specify the operation culture of the organization that has
characteristic of the organization and when such agency assigned for operation the new task either
budget, workforce and operation area so that it may be appear the obstacles in the common
ticketing system operation.
(2) The operation of CTO in the operation of common ticketing system; it may be appear the conflict of
interest with the existing state owned enterprise which act as the mass transit system entrepreneur
such as MRTA and SRT which if the operation of common ticketing system subject such state owned
enterprise so that appear the conflict of interest.
(3) The operation of the state owned enterprise must operation accordance with regulations and laws of
the state owned enterprise that may be appear non liquidity in the operation.
(4) Procedures in the establish and transfer the legal title in the properties from OTP may be use more
time which may not be conformity with time period for prepare a common ticketing system according
to a policy.
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3.1.2.2 Option 2.2: Establish a new state owned enterprise to act as CTO
Option 2.2 determines to establish a new state owned enterprise to act as CTO. In case that it cannot
assign the task to the existing state owned enterprise or the case that the government has a policy to
establish the new agency to act as CTO subjected to the Ministry of Transport, so that there is an organization
specializes and has responsibilities toward common ticket related field. and the new state owned enterprise
can partly perform or all of the operation of common ticketing system. However, in case that CTO could not
perform any function partially or wholly, outsourcing a CTC to operate the common ticketing system partially
or wholly. The procedures are as follow:
3.1.2.2.1 Procedures
Figure 3-14 Procedure of option 2.2 phase 1
Procedure – Phase 1
Establishment of the state owned enterprise as per the following forms:
(1) Established by acts i.e. state owned enterprises which has influence on Thailand’s economics, its
operation significantly affect people and concerns in the exercising of governmental power such as
expropriation, stake and placing wires, including its operation requires numbers of budget and
human resources and has a complex organization structure i.e. the Government Savings Bank, State
Railway of Thailand, Electricity Generating Authority of Thailand and Metropolitan Waterworks
Authority.
(2) Established by royal acts i.e. Secondary Mortgage Corporation and Bangkok Commercial Asset
Management Co., Ltd. etc.
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(3) Established by royal decrees being issued under the Act of Government Organization B.E. 2496 i.e.
state owned enterprises which its operation has less affect to people than those established by acts
and has less administrative power i.e. Market Organization, Zoo Organization, Mass Communication
Organization of Thailand and Bangkok Mass Transit Authority etc.
(4) Established by notices of the revolutionary council i.e. Expressway Authority of Thailand and National
Housing Authority etc.
(5) Established by approval resolutions of the cabinet i.e. state owned enterprise not as the juristic
person under supervision of the ministry, department, division as one unit under the commanding
organization and operating under the budget of the organization i.e. Tobacco Factory, Alcohol
Organization, Police Printing Bureau and Office of the Government Pawnshop etc.
(6) Established by the Civil and Commercial Code and pubic company laws as its establishment aims to
create more flexible and effective operation evaluated by the profit from the business operation of the
state owned enterprise each year. Shares may be held between the government and private sectors.
The government must hold shares more than 50 percent i.e. Transport Co., Ltd., Thai Airport Plc.,
Ltd. And Thailand Post Co., Ltd. etc.
CTO may be established by enacting a royal decree or an act. In addition, the state owned
enterprise could be incorporated in the form of limited company with shareholding structure of more than 50
percent shares held by the government according to the Civil and Commercial Code. The advisor had studied
and found that the state owned enterprises in the form of the limited company or public company limited are
originated from the privatization and were not directly esblished as limited company or public company
limited i.e. Airports of Thailand Plc., and Thai Airways International Plc., where the reasons of privatization are
to create more flexibility and fund raising from private sector. The establishment of the limited company as the
state owned enterprise is mostly the establishment of the limited company as the affiliate company of the state
owned enterprise to support its business function or operate business concerns to the parent company’s core
business or as a state owned enterprise operates the business not related to the exercise of government
power or affecting against the rights of the public or other organizations, but requires the flexibility. Therefore,
the state owned enterprise is incorporated in form of the company. However, on the common ticket service,
the organization must be sustainable under close control of the government. The work pattern of CTO may
affect against the rights and duties of other relevant authorities i.e. collection policy and rate fee and any
action relating to the income collection of the participating entrepreneur. Therefore, the advisor suggests that
the state owned enterprise CTO shall be established by enacting a royal decree or an act to become a
sustainable and efficient organization. The procedures of the establishment are as follows:
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Procedure to establish the state owned enterprise
The establishment of a state owned enterprise by enacting the royal decree being issued under the
Act of Government Organization B.E. 24965 includes the following procedures:
(1) Minister bills the royal decree. The bill of the royal decree for establishment of the state owned
enterprise shall include contents determined in the Act of Government Organization, Section 6
which are;
(a) Name of the state owned enterprise
(b) Location of the head office
(c) Purposes of the state owned enterprise
(d) Approved capital
(e) Allocation of benefits
(f) Control and management of the state owned enterprise and power of the committees,
directors or managers
(g) Accounting, examinations and audit
(h) Other requirements
(2) The Minister submits the royal decree for establishment of the state owned enterprise to the State
owned enterprise Policy Office.
(3) The Minister submits the bill of the royal decree to the cabinet for granting approval for the royal
decree according to the royal decree regarding the submission and meeting of the cabinet B.E. 2548
and rules regarding the criteria and methods of submission to the cabinet B.E. 2548.
5 Act of Government Organization B.E. 2496
“Section 3 When the government deems proper to establish the organization to operate the business as the public interest or for
economic use or living cost support or providing the public service by using the capital from the national budget, the royal
decree should be enacted. Section 6 in the royal decree for organization by virtue of Section 3 must include the following texts:
(1) Name of the organization
(2) Location of the head office
(3) Purposes of the organization
(4) Approved capital
(5) Allotment of benefits
(6) Control and management of the state owned enterprise and power of the committee, director or manager
(7) Accounting, test and audit
Other necessary requirements causing proper business operation of the organization”
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(4) The cabinet grants approval for the draft of the royal decree and submits to His Majesty for kindly
affixing the royal signature, and the relevant minister countersigns the Royal Command.
(5) Notice in the government gazette shall be effective according to the law.
Figure 3-15 Steps to issue a rolyal decree
The establishment of a new state owned enterprise by enacting the Act for establishment has the
same procedures as the establishment of a government agency, but the submission to the Office of Civil
Service Commission shall be changed to the submission to the State owned enterprise Policy Office (SEPO).
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Procedure – Phase 2 (option)
Figure 3-16 Procedure of option 2.2 phase 2
If CTO could not perform its functions partially or wholly on management of the common ticket, it may
procure a CTC to operate such functions wholly or partially through bidding with the same methodology as
stated in the topic 3.1.2.1.1: Procedure, Option 2.1, Phase 2.
3.1.2.2.2 Advantages and disadvantages analysis
Advantages
(1) The government is authorized to supervise and setup policy in relation to the common ticket
management since the state owned enterprise as the government organization most observe the
rules and government policies.
(2) The government still owns the common ticket system and standard. The management is not bound
by any private enterprise.
(3) The budget is granted from the government as expenditure for the operation as well as the
establishment of the budget for education, development and improvement of the common ticket
system and standard and CCH system.
(4) The actions are transparent because the government organization has the obvious purposes of
actions and must have the examination process same as the government organization of other
categories.
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(5) The organization is sustainable. Because the state owned enterprise may be established by enacting
the public law with an obvious scope of duties, be transparent and under the close control by the
government, the state owned enterprise could be dissolved when the law is enacted to dissolve the
state owned enterprise.
Disadvantages
(1) The establishment of the state owned enterprise is complicated and may require a long time
because the law must be enacted and the new state owned enterprise must be established about
the submission of the budget, recruitment of personnel and office location and must refer to the
government on the investment for the establishment.
(2) If CTO recruits CTC to manage the whole common ticket system, the power of CTO mainly relates to
the contract management. The established state owned enterprise may be unnecessarily too large,
which may cause the process and work procedure to lose the flexibility and may require the budget
from the public sector on the costs of actions.
(3) The procedures of establishment and ownership transfer for the property from the Office of Transport
and Traffic Policy and Planning (OTP) may take long time, which may be inconsistent with the
timeframe of preparation of the common ticket system based on the policy.
(4) Compliance with the official rules and specific law of the state owned enterprise may cause the
actions to lose the flexibility , and the limitations may exist on doing some activities about the
common ticket system management i.e. purchase / recruitment. The examples of laws and rules
relating to the state owned enterprise are as follows:
Table 3-1 Related laws to state owned enterprise
No. Laws, rules and regulation Important matters
1 Act of Official Information B.E. 2540
Determine the duties of the government to disclose the data to the
public and duties not to disclose some categories of data, which may
cause damage to the public.
2
Act of Standard Qualifications for directors
and employees of the state owned enterprise
B.E. 2518
Determine the qualifications and prohibitions of the persons acting as
the directors and officers of the state owned enterprise.
3 Act of Constitution of national budget audit
B.E. 2542
Determine the criteria of recruitment, qualifications as well as duties of
the national budget audit committee and determine the duties of audit
of the state owned enterprise.
4 Act of Constitution of anti-corruption and
suppression B.E. 2542
Directors and executives of highest level of the state owned enterprise
have the duties to submit the list of own assets and debts, of the
spouse and of the minor child to the Office of the Commission of
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No. Laws, rules and regulation Important matters
Counter-Corruption at all time to assume the position, every 3 years in
the position and upon leaving the position.
5 Act of Labor of State owned enterprise
Relation B.E. 2543
Determine the criteria of labor relation of the state owned enterprise of
all categories.
6
Act regarding the employee offense in the
organization or government authority B.E.
2502
Determine some criminal offenses of the employees performing the
duties in the state owned enterprise of all categories.
7
Act regarding the disciplinary penalty of the
government officer performing the duties in
the unit not as the government organization
B.E. 2534
Determine the disciplinary liability of the government officer
performing the duties in other units by considering that the duties in
other units as the official duties.
8 Act of Budgeting Method B.E. 2502 Determine the criteria regarding the budgeting of the government
authority and state owned enterprise
9
Act of Public Debt Management B.E. 2548
and rules of the Ministry of Finance regarding
the public debt management
Determine the loan criteria of the government authority, including the
state owned enterprise, excluding the loan debt of the state owned
enterprise without guarantee by the Ministry of Finance
10 Act of Anti-Launder & Suppression B.E. 2542
Provide the Office of Anti-Laundering and determine the offense
against the duties of the government officer, organization’s
employees, directors or employees of the state owned enterprise.
11 Civil\and Commercial Code only relating to
the limited company)
Establishment and management of the limited company, criteria and
procedures of the shareholders’ meeting, capital increase and
decrease etc.
12
Rules of the Prime Minister Bureau regarding
the investment budget of the state owned
enterprise B.E. 2550
Require the state owned enterprise to prepare the full project
investment budget and annual investment budget based on the model
and methods determined by the Office of National Social & Economic
Development as well as not allow the state owned enterprise to do
payment or to cause the debt binding upon the investment budget
other than being approved from the cabinet or committee except in
the emergency case.
13
Rules of the Ministry of Finance regarding the
distribution of shares and shares acquisition
of the official authority
Determine the criteria for shares acquisition or shares sale of the
government authorities.
14 Operation or shares owned by the official
authority or state owned enterprise B.E. 2504
Sale of the business or shares of the government authority or state
owned enterprise in some cases must be approved in principles from
the cabinet prior to further procedure.
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No. Laws, rules and regulation Important matters
15
Rules of the Prime Minister Bureau regarding
the financial support for the public service of
the state owned enterprise B.E. 2554
Provide the criteria for the state owned enterprise providing the public
services based on the specific policy of the government and suffering
the loss i.e. railway, mass transportation. Could obtain the financial
support from the government.
16
Rules of the Prime Minister Bureau regarding
the follow-up of the compliance with the state
owned enterprise development policy B.E.
2546
Determine the duties, qualifications, agenda and dismissal of the
policy supervision committee of the state owned enterprise.
17
Rules of the Prime Minister Bureau regarding
the state owned enterprise operation
assessment B.E. 2548
Determine the duties, qualifications, agenda and dismissal of the
assessment committee of the state owned enterprise.
18
Rules of the Ministry of Finance regarding the
accounting and finance of the state owned
enterprise B.E. 2548 (not effective for the
state owned enterprise in category of the
public company)
Require the state owned enterprise to provide the proper accounting
system to be used to record the financial transaction and provide
good internal control i.e. require the bad debt reserving, provide the
criteria for allotment of the annual net profit, preparation of the report
of financial status to be forwarded to the
Office of the Auditor-General of Thailand for review.
19
With the criteria for establishment and joint
venture and control of the affiliate company of
the state owned enterprise
Provide the criteria regarding the establishment, joint venture and
control of the affiliate company of the state owned enterprise,
procedures of establishment / joint venture and duties of the affiliate
company to send the data of the company to the Ministry of Finance.
3.1.3 Option 3: CTO as a limited company
To establish the office of the common ticket system management in Option 2, the procedures are that
the Office of Transport and Traffic Policy and Planning (OTP) provides the system developer and CTO (CTO)
as the limited company from the international bidding through the contract of employment by the Office of
Transport and Traffic Policy and Planning (OTP). The Office of Transport and Traffic Policy and Planning
(OTP) still acts as the government authority performing the duties to supervise and determine the policy and
standard for the common ticket while CTO applies the policy and standard with th2 options as follows:
(1) Private company acts as CTO.
(2) Private company acts as CTO by partially outsourcing.
The supervision and management of the contract may require the authority or personnel with
knowledge and expertise about the common ticket on technique and common ticket management i.e.. Office
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of Common Ticket Management being established according to the resolution of the cabinet on 3rd May 2011.
The power ad duties of CTO are determined as follows:
(1) Analysis of the related data
(a) Prepare the details of the policy and plan on management of the common ticket.
(b) Study and analyze the data of the fare rate structure in the transportation system.
(c) Propose the study result and data analysis relating to the common ticket management.
(2) Determining the policy ad standard
(a) Prepare the details of the policy and plan on management of the common ticket
(b) Determine the standard relating to the common ticket system operation.
(c) Propose the policies and standards and plans relating to the common ticket management.
(3) Supervision, follow-up and assessment
(a) Prepare the framework, standard and connection form between each entrepreneur.
(b) Determine the form, supervision mechanism and guideline for assessment of the common
ticket system management.
(c) Supervise, follow up and assess the operation of the office of common ticket management to
cause the efficient service.
(4) Coordination and operation support
(a) Coordinate and support the operation with the relevant authorities as the public and private
sector.
(b) Support the common ticket management to achieve the purposes and targets efficiently.
Therefore, the assignment for management of CTO belongs to the duties of CTO under the Office of
Transport and Traffic Policy and Planning (OTP) and may be the proper option. The actions must be subject
to the approval of the cabinet because the establishment of CTO under the resolution of the cabinet has the
initial purposes of temporary establishment only, but CTO should be the unit of common ticket management.
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Figure 3-17 Option 2 Limited Company
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3.1.3.1 Option 3.1: Private company acts as CTO
3.1.3.1.1 Procedures
Procedure – Phase 1
Figure 3-18 Procedure of option 3.1 phase 1
(1) OTP procures CTO (a the limited company) through the purchase / recruitment same as in the Phase
1, the bidder shall submit the offer of shareholding ratio in the company upon being selected.
(2) When CTO is selected in the Phase 2, CTO shall manage the common ticket system, which includes
the improvement of the front-end system of the current entrepreneur and manage and maintain CCH
System as the asset of the the Office of Transport and Traffic Policy and Planning. The the Office of
Transport and Traffic Policy and Planning allows CTO to use the assets of the the Office of Transport
and Traffic Policy and Planning i.e. system and standard of the common ticket system and CCH
System as the compensation for the management and maintenance of CCH System. CTO shall earn
an income from the management of the common ticket system.
(3) If CTO is not qualified for the management and maintenance of CCH System, CTO is allowed to
outsource for management and maintenance of the common ticket system. The procurement may be
done directly or in form of the bidding.
(4) OTP is in charge of supervising CTO as the unit providing the policy and determining the standard of
the common ticket system. The Common Ticket Office (CTO) as the office under the Office of
Transport and Traffic Policy and Planning may be directly in charge of CTO and proposes the policy
of common ticket management as well as does any action about the management and standard of
the common ticket system.
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3.1.3.1.2 Advantages and disadvantages analysis
Advantages
(1) The Office of Transport and Traffic Policy and Planning must not change the internal structure of the
Office of Transport and Traffic Policy and Planning because the Office of Transport and Traffic Policy
and Planning is in charge of and supports the common ticket management. The internal unit of the
Office of Transport and Traffic Policy and Planning i.e. Common Ticket Office (CTO) with the duties
as the purposes of establishment may be assigned to supervise as well as coordinate and take other
relevant actions.
(2) The action as the private company is more flexible than the government organization because the
private company has more flexible rules and regulations for supervision and determining the
direction.
(3) The wage of CTO from the business of CTO according to the employment contract does not increase
the financial burden for the public sector.
(4) The Office of Transport and Traffic Policy and Planning only supervises the operation of CTO to meet
the government policy. It does not increase the burden against the Office of Transport and Traffic
Policy and Planning because the Office of Transport and Traffic Policy and Planning is not the
operator.
(5) The outsourcing of the contractor to perform some duties, on which CTO may not be skillful, lessens
the burden of CTO and causes better efficiency of the common ticket service of CTO.
Disadvantages
(1) The power of supervision and control of the public sector is limited as the authority in charge and as
the party, but is not authorized for the management within the organization, except that the public
sector is required to send the personnel from the public sector to assume the position in the
committee of CTO.
(2) The management by CT only may lessen the work efficiency because CTO may not be skilful for all
aspects.
(3) If it may be subject to the Act of Joint Venture because the government assets are used i.e. common
ticket system and standard and CCH system and the operation by the private sector with the
required investment from the private sector may be considered as the joint venture between the
public and private sectors.
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3.1.3.2 Option 3: Private company acts as CTO by partially or wholly outsourcing
3.1.3.2.1 Procedures
Procedure – Phase 1
Figure 3-19 Procedure of option 3.2 phase 1
Recruit CTO by mean of bidding same as in the Topic 3.1.3.1.1 Procedure, Option 3.1, Phase 1
Procedure – Phase 2
Figure 3-20 Procedure of option 3.2 phase 2
If CTO could not take some actions regarding the management of the common ticket jointly with CTO
i.e. management and maintenance of CCH system, CTO could recruit the contractor providing the common
ticket service to perform the duties because CTO is the private limited company. Therefore, the recruitment
must not be done through bidding and could be done directly. On recruitment, the contractor could be
selected independently, and could consider the technical abilities of the contractor.
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3.1.3.2.2 Advantages and disadvantages analysis
Advantages
(1) OTP is not required to adjust its internal structure because the Office of Transport and Traffic Policy
and Planning is in charge of and supports the common ticket management. The internal unit of the
Office of Transport and Traffic Policy and Planning i.e. Common Ticket Office (CTO) with the duties
as the purposes of establishment may be assigned to supervise as well as coordinate and take other
relevant actions.
(2) The action as the private company is more flexible than the government organization because the
private company has more flexible rules and regulations for supervision and determining the
direction.
(3) The wage of CTO from the business of CTO according to the employment contract does not increase
the financial burden for the public sector.
(4) The Office of Transport and Traffic Policy and Planning only supervises the operation of CTO to meet
the government policy. It does not increase the burden against the Office of Transport and Traffic
Policy and Planning because the Office of Transport and Traffic Policy and Planning is not the
operator.
(5) The recruitment of the contractor to perform some duties, on which CTO may not be skillful, lessens
the burden of CTO and causes better efficiency of the common ticket service of CTO.
Disadvantages
The Minister as the commanding ministry submits the policy framework for the co-investment by the
private sector in the enterprise of the government under the ability of the ministry to the committee of co-
investment of the private sector in the enterprise of the government by showing the perspective, project and
importance of the government strategy y\under the liability of the ministry as being necessary or proper for co-
investment by th private sector to be consistent with the strategic plan of co-investment by the private sector
in the government enterprise.
(1) The unit as the project owner recruits the consultant to prepare the report of project study and
analysis. The consultant prepares the report in details required by the committee.
(2) The unit as the project owner submits the study and project analysis result with the details according
to the Act of Joint Venture to the minister for granting approval within 60 days.
(3) The unit as the project owner submits to the Office of State owned enterprise Policy Committee.
(a) In case of amendment within 30 days since the date of receipt of the project study and analysis
result. If the Office of State owned enterprise Policy Committee improves the details or asks for
furnishing additional documents, if the study result must be changed, the unit as the project
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owner should take action at the same time and submit to the Minister to grant approval for the
improvement.
(4) If the Office of State owned enterprise Policy Committee agrees with the project, should submit to the
commit to grant approval. In case of disagreement, should submit to the committee for further
consideration. He submission must include the opinions of the Office of National Social & Economic
Development and relevant authorities.
(5) If the committee agrees with the government authority proposing the project, should submit to the
cabinet for granting approval.
(6) When the committee agrees in principles or when the cabinet grants approval in case of expenditure
of the national budget or budget of the unit as the project owner, the unit as the project owner should
prepare the draft of the invitation notice, scope of the project and draft of the joint venture contract
relating to the project based on the model and methods and form under the criteria determined by
the Office of State owned enterprise Policy Committee by approval of the committee.
(7) The unit as the project owner nominates the selection committee with the composition as being
required in the Act of Joint Venture in order to grant approval for the draft of the invitation notice,
scope of the project and draft of the joint venture contract, securities and other duties provided by
the Act.
(8) On selection of the private sector for joint venture:
(a) If the unit as the project owner and selection committee agree consistently that the bidding
method should not be used, should submit to the Office of State owned enterprise Policy
Committee for consideration. If the Office of State owned enterprise Policy Committee agree,
should submit t the committee for granting approval.
(b) If the unit as the project owner and selection committee agree inconsistently that the bidding
method should not be used, should submit to the Office of State owned enterprise Policy
Committee for consideration. If the Office of State owned enterprise Policy Committee has the
opinions that the bidding method should be used, use the bidding method. However, if the
Office of State owned enterprise Policy Committee considers that the bidding method should not
be used, should submit to the settlement committee.
(9) Within 15 days since the receipt of the selection result of the private sector and upon negotiation and
entering into the joint venture contract with the selected private sector, the selection committee
should do the following acts:
(a) Submit the selection result of private sector, negotiation points about the government benefits,
draft of the joint venture contract being negotiated with the selected joint venture for joint venture
and financial burden of the public sector and send the opinions and related documents to the
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minister within 45 days since the date of receipt of the selection result of private sector from the
selection committee and
(b) Send the joint venture contract draft being negotiated with the selected private sector for joint
venture, the Office of Attorney-General should complete it and submit the joint venture contract
to the minister within 45 days since the date of receipt of the draft of the joint venture contract.
(10) When the minister receives the opinions and documents together with the draft of the joint venture
contract, should submit the whole supporting opinions to the cabinet for consideration within 30
days.
(11) When the cabinet considers the selection result of the private sector, financial burden of the public
sector, draft of the joint venture contract being approved by the Office of Attorney-General as well as
opinions of the minister. If the cabinet disagrees, return the matter to Minister to notify the selection
committee to do review. The cases according to Clauses 8 and 9 shall apply by mutatis mutandis.
Submit the result to the cabinet for final decision.
(12) When the cabinet grants approval for the selection result of the private sector and draft of the joint
venture contract, the unit as the project owner should sign name in the joint venture contract with the
selected private sector for joint venture.
(13) After signing name in the joint venture contract,, the minister should appoint a supervision committee
with the composition as being provided in the Act of Joint Venture to follow up and supervise the
project to comply with the contract as well as to perform other duties as being provided in the Act of
Joint Venture.
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Figure 3-21 Steps to work on as per PPP act. B.E. 2013
3.1.4 Summary of the options for the establishment of CTO
From the option analysis of establishment of CTO of all 3 options by analyzing the advantages,
disadvantages and guidelines for establishment by considering the process and period of establishment to
suggest the most suitable establishment form, the advisor proposes the establishment form in Option 3 i.e.
establishment of CTO as the limited company upon considering the period of establishment, flexibility on
operation as CTO, the Office of State owned enterprise Policy Committee supervises the operation of CTO
based on the policy from the public sector. As the reason, the common ticket management must require the
flexibility because the operation of CTO is deemed as the medium of connection between the systems. In
addition, the establishment should include the complicated procedures and takes less time in order to
respond to the time frame provided by the public sector.
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Chapter 4 CTO Organization’s Structure
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4.1 Common ticketing operation 4.2 Stakeholders’ roles and duties
Figure 4-1 Common ticketing structure
The common ticket system involves
(1) Common Ticket Office : CTO
(2) Central Clearing House : CCH
(3) Transit Services Providers : Transit SPs
(4) Non-transit Services Providers : Non-transit SPs
(5) Ticket Issuers
(6) Top-up Agents
(7) Settlement Banks
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Figure 4-2 Common ticketing operation
The roles and duties of each stakeholder are as follows;
4.2.1.1 CTO under OTP/ OTP as the regulators
OTP or CTO under OTP is responsible as a regulator, its duties include policy making and own the
common ticketing system and standards and CCH, and has responsibilities as follows;
(1) Propose related policies plans standards and measures suggested by CTO to government agencies
that OTP or CTO under OTP shall propose and report to.
(2) Supervise control and evaluate CTO’s performance and other related organizations by defining the
scope of works including mechanisms and supervising methodology approved and conform to the
common ticketing operational policies and contracts between OTP and CTO or other employees.
(3) Submit the results from studies and analysis of CTO to the related government agencies.
(4) Coordinate and support CTO/ CTC to achieve its objectives and targets with efficiency.
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4.2.1.2 Common Ticketing Office (CTO)
CTO is responsible for the control and management of common ticket used in all transactions,
including payment for both transit and non-transit sectors. CTO is also responsible for the control, regulation,
and modification of central standards of the common ticket system. The main duties of CTO are as follows:
(1) Provide or operate a common ticketing service according to the policies and operational plan
appointed by the government, wich may includes providing an AFC system, card issuing, card
certification and common ticketing public relation and promotion. As well as study and analyze the
common ticketing development methodology to modernize and develop the common ticketing
system
(2) Suggest common ticketing plans and policies for the flexible and effective operation as well as
develop aimed for the highest effective services.
(3) Control, regulate, and modify standards and details of equipment and apparatuses related to the
common ticket system; for example, card details, card readers, and interface protocols.
(4) Validate equipment standards, including tickets, readers, and machines. Issuers and operators must
be authorized by CTO.
(5) Gather Information from transit services; then, analyze and create reports for governmental sectors
(6) Specify directions; controls and investigate the operation of central clearing house, to ensure
correctness, reliability, verifiability, and maintenance
(7) Define policies and regulations regarding card usage, data, pre-paid payment, and card loss cases
However, the functions related to common ticketing system operation and maintenance, CTO can
outsourse such functions (stated in Option 1), while CTO acts as a supervisor via a contract.
4.2.1.3 Central Clearing House : CCH
Central Clearing House or CCH is another main component of a common ticket system. The house
deals with the gathering of transaction data, processing and calculating of data, as well as revenue
apportionment. Processes data will then be sent to a settlement bank. Duties of CCH are as follows:
(1) Gather all transaction data, including fare and other payment. The data are retrieved from data
reception (from front-end equipment). CCH is also responsible for data verification and data
transformation. If there are faults occur with the data, CCH is responsible for the correction. CCH’s
responsibilities also cover designing and selling tickets, as well as transaction verification.
(2) Collect and manage common ticket data. CCH is responsible for controlling and modifying ticket
database. Common ticket system must be correspond to defined policies.
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(3) Revenue apportionment. Calculated data would then be sent to settlement banks. CCH is
responsible for processing the collected data and apportioning revenue accordingly to defined
regulations.
Nevertheless, the pattern for the development of central clearing house can be made in to different
ways: 1) CTO cooperates in the development of CCH, and is also responsible for system management and
daily operation or 2) CTO recruits an outsourcing agent to be responsible for the aforementioned duties, while
CTO is responsible for monitoring CCH performance.
Figure 4-3 CCH System
4.2.1.4 Transit Services Providers : Transit SPs
There are four categories of transit services: rail, land transit, express ways, and water transit. Transit
service providers are responsible for collecting data to send to CCH, under the standards defined by CTO. To
perform such operation, transit providers require automatic fare collection (AFC) systems. The systems
represent require modification on front-end equipment, to make it compatible with a common ticket system.
For the providers which presently do not have an AFC system, they are required to invest on AFC equipment,
such as card readers, etc., that corresponds to the standards defined by CTO. CTO is responsible for
providing advices on the development of an AFC system, as well as participating in system testing. Directions
for front-end equipment modification are as follows:
(1) Renovating and modifying the existing equipment, including gates, readers, and central computer.
The system must ensure data interfacing with CCH. Transit systems that are currently in this process
are MRTA (purple line), local train (red line), as well as other electric trains.
(2) Public buses currently do not have an AFC system. They require a whole system of AFC to be
installed. Public buses are different from railways. Thus, the installation is needed to consider the
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convenience of the passengers. A reader must be installed on the bus; and the data are stored in
bus driver console.
(3) Touch & Go should be used with the express ways; by installing the system at the fare booths.
Main advantage of transit providers for joining the common ticket system is that they do not have to
manage their own clearing houses. CTO would be responsible for entire processes
Figure 4-4 Front-end modification
4.2.1.5 Ticket Issuers
Ticket issuers link all secors of common tickets to the passengers. The issuers are responsible for
public relations, fare collection, and other types of payment. Major responsibilities of ticket issuers are:
(1) Supervising transactions which are related to bank cards, by issuing and selling tickets, giving
authorization for any related operations, such as operational application, load, install, delete,
extradition, personalization, or restrain the operation of third-person application.
(2) Issuers are responsible for ensuring security for the users, including pre-issuance production
processes, post-issuance processes, and final decommissioning.
(3) Issuers define the results of the application used in supporting ticket operation, and authorize the use
of application on the tickets.
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4.2.1.6 Top - up Agents
Top-up agents are responsible for topping up ticket balance. The agents can be either CTO or other
providers, such as convenience stores and counter service.
(1) Top – up Agents would add up the balance by an application, and/or define
personalization/customization. This would be done accordingly to security policies.
(2) Provide equipment for users to top up the balance.
(3) Loading Agent must support multiple-trip tickets, such as monthly tickets and round-trip tickets.
The methods for topping up should cover all range of users. The users can classified as: high-
income users (A, B groups), middle-income users (B,C groups), and low-income users (C,D groups).
For A and B groups, the topping up processes should be made via the Internet, as these groups of
users have demands for convenience and are familiar with online transactions. B and C groups typically are
office workers or civil officers. These groups are more familiar with top-up kiosks and ATMs. C and D user
groups are more familiar with topping up via convenience stores, such as 7-11 and MaxValue.
Topping up agents are a major key to the success of the common ticket system. The number of
available agents should be as high as possible. The advisor believe that there should be attractive
advantages offered for top-up agents, such as commission or some extra charges when the users using the
services.
Figure 4-5 Topping-up Methods
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4.2.1.7 Settlement Bank
Settlement bank is responsible for transferring money to the stakeholders, such as transit providers
and stores that join the common ticket system. The responsibilities of settlement bank are as follows:
(1) Ensure security, transparency, punctuality and reliability of the settlement. The settlement bank
should be legally authorized an licensed.
(2) Define risk management policies, as well as inform the stakeholders regarding the policies.
(3) The settlement should be made within the same day as the transaction.
(4) The settlement bank must issue a letter or a report for every settlement period.
(5) The settlement bank must have a reliable and secure settlement system. The settlement must be
transparent and acceptable by stakeholders.
Figure 4-6 Settlement system
4.2.1.8 Summary
Organization/Sector Responsibilities
Common Ticket Office (CTO) − Define common ticket equipment standards. Develop and modify
standards to ensure operation effectiveness
− Manage and regulate CCH
− Verify and authorize card issuers
− Modify front-end system
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− Issue and sell tickets
Central Clearing House (CCH) − Revenue apportionment
− Collect and manage transactions
− Monitor and manage common ticket
− Establish and regulate operations
Transit/Non-transit Services
Providers (SPs)
− Provide transit services
− Provide non-transit services
Top-up agents − Top up card balance (both balance and rounds)
Ticket Issuers − Issue tickets
− Collect transaction data for the settlement bank
4.3 CTO’s nature of operation
The nature of CTO operation involve a number of operating cost and expense necessary to operate
common ticket system. As such, CTO business is designed to generate several stream of revenue to offset
the operating cost and expense incurred. With this in mind, the advisor will develop CTO to be able to operate
in a sustainable manner and require least amount of government aid.
Anyhow, as CTO is required to conduct its business as public services, rather than business-oriented nature.
Thus the design of CTO’s business model shall has the following considerations,
(1) CTO’s business shall create fair competition among every stakeholder, and CTO’s policy must not
bias toward any specific operator.
(2) Transaction fee or any other related fees will be set at a reasonable level that does not result in
financial burden to involved parties.
(3) CTO’s top priority is to create maximum satisfaction to passengers and cardholders.
(4) CTO may generate revenue up to the level that just meet the operating cost and shall not view profit-
maximizing as its goal
Details of CTO may be described as follow,
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Figure 4-7 Cash flow structure
4.3.1 Sources of CTO revenue
4.3.1.1 Revenue from Clearing fee (or transaction fee)
Clearing fee will come from providing clearing services for any transaction resulted from using
common ticket, and may come from revenue apportionment services. The fee is paid by transit and non-
transit operators to CTO for the amount of transaction rendered to that operator. The clearing fee is calculated
as a percentage of the total fares value apportioned by CTO, whereby the percentage may vary base on the
size of transaction.
4.3.1.2 Revenue from Card test and certification fee
Apart from roles in transaction clearing, CTO also take roles in card testing and certification fees.
Under the ‘single standard, multiple-issuers’ scheme, any party is allowed to issue the common card. Anyhow
each party who wishes to issue their own card needs to have their cards tested and certified by CTO to
ensure that each common card issued will follow the same national card standard and specification set by
CTO. Rendering such service may result in certain expense and cost, namely card testing expenses, cost of
personnel required for card testing and certification and cost of equipment required for such operation. As a
result CTO may need to charge certain fees from ticket issuer for services of card test and certification. The
final fees may be calculated as a one-time fee basis, or base on the number of card issued basis. The final
solution is yet to be determined by the governing bodies.
4.3.1.3 Revenue from co-branded card
Similar to multiple ticket issuer schemes, CTO business also allows for co-branded card issuance,
whereby any transit or non-transit operator may partner with CTO to issue co-branded card. Co-branded card
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still retain all transit products and it may also has additional features that are tailored specify to each co-
branded card issuer. Some financial institution may wish to partner with CTO to issue co-branded card that
can be used for both typical fare payment and debit/credit card payment. For rendering such services, CTO
may charge the co-branded card issuers for some amount of fee. The co-branding fee may have similar
nature to those of royalty fee, whereby the fee is calculated as a percentage of total transaction value.
4.3.1.4 Revenue from card sales
Apart from generate revenue from charging services fee, CTO also has revenue from sales of
common card. However, since CTO is established to serve public rather than to maximize its profit, thus the
card pricing will be at the level that cover the cost of card production only. In any case, CTO also distribute
the common card to certain groups of passenger without any charge for card, the group include seniors,
veterans, student, children, handicap and low-income group.
4.3.1.5 Cost and operating expenses (Variable cost)
4.3.1.5.1 Cost of card production
Cost of card production incur for every card produced, the cost include cost of chip procurement,
cost of COS (Chip operating system) development, cost of printing and other related cost such as card
transportation, card inventory management. This cost is varied to the number of card produced, whereby
currently the cost is approximately THB 31- THB 33 per card.
4.3.1.5.2 Settlement fee
The role of transaction settling is assigned by CTO to financial intuition (or settlement bank), this roles
cover transfer of money as instructed by CTO’s transaction clearing function. This action associate with the
cost of settlement, where the settlement bank may charge CTO for the service render as a percentage of total
transaction value. The fee is known as settlement fee, and the fee rate may vary depends on business
negotiation between CTO and the settlement bank.
4.3.1.5.3 Top-up fee
The transaction fee is the commission fee paid by ticket issuers to top-up agent, whereby the top-up agent
may include convenient stores, ATM and internet banking services. The fee rate charged of every top-up
depends on business negotiation with the top-up agent. The commission fee scheme is designed to
incentivize the top-up agent to expand their top – up channels and expected to result in increase
convenience to passenger as a whole. Under the case that CTO issues the common card, CTO will bear this
expense as well.
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4.3.2 Cost and operating expenses (Fixed cost)
4.3.2.1 Personal expenses
The personal expenses include salary, employee benefits and compensation expenses incurred to
employing staff to operate and maintain the common ticket system. CTO is expected to employ up to 45-50
staffs in four different functions consist of Technology function, Business development functions, Marketing
and customer relationship function and Business development function, and the management level. Anyhow
the number of staff may vary base on size of CTO business, given that CTO is planned to expand its business
in the future.
4.3.2.2 System Maintenance
The operation of common ticket system involve installation and maintaining a number of sophisticate
system include central clearing house system, card management system, back-up and recovery system and
top-up system. There system, both hardware and software requires constant maintenance by system
specialists and may incur system maintenance cost to CTO
4.3.2.3 Telecommunication
The common ticket system involve with large amount of important data communication from front-end
equipment to back-end system, the transfer of data include transfer of transaction data, top-up data and
apportionment data. To ensure that the transfer of data is done in very secure and timely manner, CTO need
to lease telecommunication line and related facility to uses exclusively in transferring common ticket data.
4.3.2.4 Rental expenses
CTO operations also involve with renting of office space to house operating staff and other related
equipment, and thus may incur related rental expenses.
4.3.2.5 Other expenses
Other miscellaneous expenses related to operation of CTO may include office supply,
lighting and power expense depreciation and travel expenses
4.4 CTO organization structure
CTO’s organization is designed to consist of 4 main functions include, Technology function, Business
development functions, Marketing and customer relationship function and Business development function.
The advisor estimated that the number of employee required for operation is 50 persons as show in Error!
Reference source not found. , and the required office space is approximately 600 sq.m. to 800 sq.m.
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Figure 4-8 CTO organization structure
The details of each function can be described as follow
Table 4-1 Roles and responsibilities of each function under CTO
Functions Roles and responsibilities
Supporting functions
− General administrative functions include, accounting and
finance function, human resource management, legal
function and other supportive function
− Public relation management to ensure passengers’
awareness on common ticket usage. PR function is also
responsible for informing the public about benefits of
common ticket
− General affair function is mainly responsible for supporting
function, include documentation, meeting arrange
Technology function
− Technology function is responsible for system management,
hardware and software maintenance, key &card system
management and to provide technological support.
− The function is also responsible for maintain and update
card standard.
CEO
Supporting functions
Accounting/Finance
HR
Legal
Policy Support
GeneralAffair
PublicRelation
Technology function
Card management
Equipmenttest lab
Card test &certification
Data Center
Settlement &Clearing
System maintenance
Marketing and sales function
Card Warehouse
Business development functions
Marketing and Sales
StakeholderManagement
Call Center
Website
Planning
New business development
Technology planning
CTO Space Space
Card certification center 150 sq.m.
Card warehouse 155 sq.m.
Test lab 115 sq.m.
Admin. Office 200 - 400 sq.m.
Total 600 - 800 sq.m.
Common Ticket Board
Govern CTO operation
Card manufacturing
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− Assist other ticket issuers in card development, and also
responsible for certify the card issuance by other parties
Marketing and sales
function
− Marketing and sales function is assigned to carry out key
marketing activities including campaigning product
launching and advertisement. This aims to increase number
of cardholders.
Business development
function
− Business development function has its roles in development
of common ticket system expansion plan. The common
ticket system has goal in maximizing uses of common card,
and to ensure that common ticket system is coped with most
recent technology.
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Chapter 5 Operational Policies and Strategic Plan
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5.1 Operational Policies
5.1.1 CTO’s Operational Policies
5.1.1.1 Overview of CTO’s Operational Policies
The current automatic fare collection (AFC) system is stand-alone. Each service provider has to
manage the collection system by itself. Such system has barrier in connecting the revenue collection systems
from each provider and therefore impede the development of common ticket system, which allows the use of
one ticket to travel through various public transportations (e.g., bus, sky train, and express way). The ticket
also can be developed to support other commercial transactions.
Additionally, as the coordination of revenue collection systems of each service provider have not
been viably implemented, the common ticket system is hard to be developed. Therefore, the Government has
to establish the Common Ticket Office: CTO to become the main agency who is responsible to supervise and
regulate the system effectively. Moreover, the Government also need to develop Central Clearing House: CCH
to support collection and clearing of both transit and non-transit transaction,
According to CTO’s operating structure, CTO is accountable for collecting and apportioning the
transaction, in accordance with the initial principal, of service providers in both transit and non-transit sectors.
CCH will collect and evaluate the information regarding the transaction from each provider and then submit
the result to the settlement bank.
For the success of development, the important factors are as follows;
1. The universal application of the ticket
2. The support to non-transportation sectors
3. Single standard with different card issuers
4. Multiple-flexibility and scalability of the system
5. Ability to make the transaction accurate, reliable, transparent, and timely
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Figure 5-1 Uses of Common Ticket
5.1.2 Single-Standard and Multiple-Issuers Policy
To implement the common ticketing system effectively and fair to every party, the advisor believe that the
single-standard and multiple-issuers scheme is the most suitable policy for the system implementation. Such
policy specifies that there can be many card issuers, whose qualifications are in accordance with the
guideline set by CTO, and the issued cards have to comply with single standard for the fare collection
process both in transit and non-transit sectors
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Figure 5-2 Single Standard – Multiple issuers
5.1.3 Co-branded card
To make common ticketing system available for various uses, the advisor suggest that the policy should allow
other service providers in both transit and non-transit to issue the card. This will support the use of common
ticket and thus enhance its varieties.
The coordination of card issuance with financial institutions and other commercial sectors will allow customers
to deduct the payment directly from debit/credit file and support other marketing activities such as reward
points or any discount promotion.
One successful example is the case of Taipei Smart Card Corporation (TSCC), which is responsible for
common ticketing system management in Taipei. The company cooperated with the commercial banks in
designing the system to function transit file and debit/credit file in single card. Moreover, cardholders can
easily top up money in the card by deducting automatically from credit card. The fee for such service is USD
15, or THB 450, per one user and charged at first time only. TSCC expects to issue 2.2 million tickets within 3
years6.
6 Sources: Co-branded Multiplication contactless smart card
NC
Rail System BUS System Ferry System Toll System
All MRTA lines
Airport rail link
and future SRT
lines
BTS System
Air-con BMTA
Bus
Regular BMTA
Bus
Private-owned
Bus
Chaopraya
Express Boat
River-Crossing
Boat
EXAT Toll system
DOH Toll System
Don Muang Toll Way
Ticket Issuers
“Single Common Card cover all transportation mode”
“Multiple-Issuers issue
card under same standard”
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Figure 5-3 Example of Co-branding card issuance
5.1.4 Card Management Policy and Fare Products
Topics Details
Card Usage
Card personalization Include details of cardholder such as name, address, age, and
contract number.
The card personalization benefit in contacting cardholders if they loss
their cards and assigning the right to other people.
Card activation Card will be activated upon first top-up.
Card lost condition The conditions of card lost have to be clearly indicated.
Principally, the card is lost by the following conditions;
- The cards have not been used or topped-up for 5 years.
- Cardholders report the card lost.
After 5 years, the system will delete the information of the card and
transfer the remaining money to the specific cash account for card lost
condition.
Once card is lost, the system will terminate the availability of card
within 30 minutes for misuse and fraudulent protection.
Claim of card lost Cardholders can reimburse the remaining money in their card only in
case of personalized card.
The process will be completed within 14 days.
Such conditions aims to prevent the excess of unessential information
in the system.
Max. card balance The maximum balance is THB 10,000.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–6
Common Ticketing Office (CTO)
Establishment Report
Topics Details
The amount can be adjusted according to cardholders’ needs, e.g. the
maximum balance can be reduced in case of youth.
Max. top-up per time Max top-up per time is THB 1,000. The top-up limit is 10 times per day.
Max. negative balance Maximum negative balance is the payment of current travel route.
Card Issuing
Ticket issuer The system supports multiple issuers who have the qualifications in
accordance with the standard proposed by CTO.
The issuance has to conform with the standard proposed by CTO who
is responsible for testing and issuing the certification.
Co-branded The system allows non-transit operators to participate in card design,
enhancing the use of card beyond the transportation sector.
Post-paid/ Pre - paid Card issued by CTO will be pre-paid and stored value but the system
also supports the post-paid card if other parties issue such card.
Fare Product
Fare Product Apart from storing value, the card also supports fares of other
products in accordance with the riders’ needs.
Unlimited Trip Product
(Period pass)
The product includes unlimited one-day trip card.
The card type can be either multi-sector or single-sector
transportation.
The price depends on types of card.
Trip-based product Trip-based feature such as travelling up to 40 trips within 30 days.
The price depends on a number of trip and types of transportation.
Fixed - Journey Limit the route of travel such as from home to office
The price will be lower from that of normal card.
1) Type of Common Fare Product
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–7
Common Ticketing Office (CTO)
Establishment Report
Figure 5-4 Fare rates comparison
2) Type of Common Fare Product
Figure 5-4, shows that these tickets are provided with a wide range of fare products and covers all forms of
money. Initially, it is expected that the products consist of single-trip card, stored-value card with a discount
or exemption of transit fee (Free or discount-transfer), daily tickets (Day pass) which passengers able to use
unlimited public transport within a specified period.
3) Policy on Single Journey Ticket
The policy on single journey ticket (SJT) is required when there is ‘common paid area’ exist between two
different public transportation modes, as the SJT system need to accommodate transaction clearing between
these modes. In addition, the fare media used in SJT system is needed to be identical in both form factor and
interfacing standard to enable interoperability between two different public transportation modes. For
example, magnetic single journey ticket is not applicable for token-based reader. Thus there is need to
determine the common single journey fare media to be used across all single journey ticket system.
Fare Product
SJT/ Cash
SVT
Day Pass(1-day
unlimited trip)
Limited time/Limited trip
Concession Card
Intermodal(Discount upon
transfer)
Services Providers
NC
Current Fare Product NC Fare Product
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–8
Common Ticketing Office (CTO)
Establishment Report
Table 5-1 Comparison of Available SJT Fare Media
Magnetic
FeliCa MIFARE Type B
Lite Lite S Ultralight Ultralight C Ultralight EV1
Low Cost
Contactless
Ticket
Card Standard ISO/IEC
7810, ISO/IEC
7811, ISO/IEC
7812, ISO/IEC
7813, ISO 8583,
and ISO/IEC 4909
ISO/IEC
18092
ISO/IEC
18092
ISO/IEC 14443-
A,
ISO 7816
ISO/IEC 14443-
A,
ISO 7816
ISO/IEC
14443-A,
ISO 7816
ISO 14443B,
ISO 15693
Chip (Hi-Core) RC-S965 RC-S966 Ultralight Ultralight C Ultralight EV1 Inside (Pico
Pass),
Samsung,
Infineon
RF Protocol N/A Type C Type C Type A Type A Type A Type B
Security N/A 3DES 3DES N/A 3DES ECC DES/3DES
Speed N/A
∼202
kbits/sec
∼202
kbits/sec ∼106 kbits/sec ∼106 kbits/sec ∼106 kbits/sec
∼106
kbits/sec
Card Price
Lowest
High
∼THB
28/0.5M
Medium
∼THB
14/0.5M
Low
∼THB 7.5/1M
Low
∼THB 9/1M
Low
∼THB 7.5/1M High
Life Cycle ∼5 yrs ∼7 yrs or
50,000
cycles
∼7 yrs or
50,000
cycles
∼5 yrs or
10,000 cycles
∼5 yrs or
10,000 cycles
∼5 yrs or
10,000 cycles
∼10 yrs or
100,000
cycles
Deployment Bangkok, Japan India,
Bangkok
Expected
launch
2013
Singapore
(2012), Atlanta,
Bangkok,
Miami, San
Francisco,
Dubai, Oslo,
Amsterdam,
and Moscow
Hong Kong Expected
launch 2013
Singapore
(2007-2012),
Korea
Currently, there are different types and forms of products used as fare media in public transport system. Each
of which has different characteristics and functions, which can be summarized as follow
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–9
Common Ticketing Office (CTO)
Establishment Report
Table 5-2 The Single Journey Ticket Fare Media in Existing Transportation System
Modes Fare Media Technology
BMCL (MRTA) Contactless Smart Token (CST)
Product: Sony FeliCa
RF Protocol: Type C
Reader type :A, B, C
Suvarnabhumi Airport Rail
Link
Contactless Smart Token (CST)
Product: MIFARE Ultralight
RF Protocol: Type A
Reader type :A, B, C
BTS Magnatic Stripe Card
Product: Magnetic
RF Protocol: N/A
Reader type :A, B, C
BRT Contactless Smart Ticket (CST)
Product: MIFARE Ultralight
RF Protocol: Type A
Reader type :A, B, C
To determine the common fare media for all single journey ticket system, it is needed to consider the
technology, and the form factor of single journey ticket currently in use. For the case of BMCL (MRTA-Blue
line), the token form media is used, thus the other line that may linked to MRT blue line is needed to accept
token based fare media as well. There are 4 options in choosing appropriate fare media for common single
journey ticket system as follow,
1. Uses the fare media currently in use (FeliCa Lite; RC-890)
PROs Do not require to modify the current single journey ticket reader.
CONs The fare media currently in used is slightly outdated, and there is newer version of
technology to replace them. To continue to use their fare media may incurred unnecessary
cost, as the supply of current fare media may be reduce.
2. FeliCa (FeliCa Lite S) - Token
PROs The newer version of FeliCa token can supplied with much lower cost, and it is capable of
higher processing power, and has better security.
CONs FeliCa Lite S fare media is not backward compatible with existing or earlier version of
firmware. Thus it is required to modify readers’ firmware and hardware to accept FeliCa
Lite S
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–10
Common Ticketing Office (CTO)
Establishment Report
3. Mifare (Mifare Ultralight, Mifare Ultralight C)
PROs Mifare Ultralight C is capable of data processing with higher security compare to the single
journey ticket in used today. Also Mifare Ultralight C has considerably lower cost compare to
FeliCa Lite S.
CONs Mifare Ultralight C has lower processing power, and there is also need to modify current
reader to accept Mifare Ultralight C. Anyhow, the scale of hardware modification is much
smaller comparing to the case of adopting FeliCa Lite S.
4. Type B Fare media
PROs Type B Fare media generally has lower cost, and high security than the existing single
journey fare media. However the Type B Fare media still has higher cost than Mifare
Ultraligh C.
CONs Type B fare media has lower processing power compare to the current fare media. Also, it is
required to modify the existing firmware and hardware (readers) to be compatible with Type
B fare media
Figure 5-5 Example of recyclable single journey ticket
5.2 Strategic Plan
In order to achieve the mission and goals and be successful in common ticketing management
policy, it has to determine the strategic plan, operation strategy and also the strategic aim to set
organization’s operation direction. The strategic plan is the master plan to determine the targets and growth
direction of organization in overall perspective to be efficient in common ticketing management system.
Thus, the advisors define the primary strategic plan to apply for common ticketing system
management as follow;
5.2.1 Mission
Mission of CTO is to be the intermediary between government and other transit providers to operate
based on related government policies. Government policy aims CTO is the main department to manage the
common ticketing system. Thus, CTO’s mission can be defining as follow;
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–11
Common Ticketing Office (CTO)
Establishment Report
(1) Provide policies, standards and create the development plans of common ticketing system.
(2) Study, analyze and develop technology and innovation in common ticketing system.
(3) Control, regulate, monitor and evaluate to be efficient common ticketing system management.
(4) Provide the development plan and disseminate information and news of common ticketing system.
(5) Coordinate and support the operation that relevant organization or according to the laws or the jobs
that have been assigned.
5.2.2 Strategies of CTO
To satisfy the stated missions, CTO will follow these strategies,
Strategy 1 Provide suitable policies, standards, development plan of common ticketing system.
Strategy 2 Constantly research and develop the common ticketing system and adopt innovative
technic.
Strategy 3 Coordinate, monitor, regulate and evaluate common ticketing system to achieve the
efficiency in common ticketing management.
5.2.2.1 Strategy 1 Provide suitable policies, standards, development plan of common ticketing system
5.2.2.1.1 Strategy 1 Develop common ticketing policies and plans
Objective is to provide the master plan of common ticketing system and to be used as the guidelines
for efficient operation.
5.2.2.1.2 Strategy 2 Public Relation
Objective is to publicly create motivation and understanding on common ticket. The means of public
relation may include mass media i.e. television, magazine, boothlet or social media i.e. facebook and twitter.
5.2.2.2 Strategy 2 Constantly research and develop the common ticketing system and adopt
innovative technic.
5.2.2.2.1 Strategy 1 Research and develop innovative technic for safety and efficient operation in common
ticketing system
Common ticketing system’s development plan has to be reliable and productive, be able to provide
proper services to customers. Moreover, development has to be up-to-date to the global standard.
5.2.2.2.2 Strategy 2 Provide a pilot project according to the study and analysis.
Objective is to apply technology and innovation of common ticketing system suitable to Thailand’s
environment. The development of common ticketing system is to achieve efficiency and effectiveness of
operation and be in line with the global development of common ticketing system as well.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–12
Common Ticketing Office (CTO)
Establishment Report
5.2.2.3 Strategy 3 Coordination, regulation and evaluation of common ticketing system to achieve the
efficiency in common ticketing management
5.2.2.3.1 Strategy1 Standardize employee’s performance measurement
In order to be efficient performance organization, the assessment and evaluation of employee’s
performance is needed. One of strategy is to develop appropriate performance measurement tools to
consistanntly gauge and improve the employee’s performance.
5.2.2.3.2 Strategy 2 Develope employees potential
Developeand improve employees’ potential within the organization and relevant organizations like
subcontractors though trainings and technology transfer are vital to increase the understanding of system and
operation process.
5.2.2.3.3 Strategy 3 Creating corporate culture, good governance and ethics in organization
Corporate culture, good governance and ethics in operation help to develop employees’
performance and create good working environment to impel operation efficiency and finally accomplish
organization’s objectives. The organization will also adopt internally recognizable corporate governance to
implement in CTO.
5.2.3 Strategic Goals
(1) Provide development policies, operation plan, and common ticketing system standards.
(2) Provide research and study in technology development and innovation of common ticketing system
to prepare the development plan of common ticketing system.
(3) To be efficient and effectiveness in common ticketing services and be able to provide quality
services to customers.
5.2.4 Strategic Evaluation and Monitoring
Organization’s strategic plan has to been evaluated and consistantly monitored to indentify
company’s problems and obstacles. Strategic Plan sets direction for organization’s future. Thus, the advisors
recommend the evaluation and monitoring methods to measure effectiveness of strategic plan as follow;
5.2.4.1 Monitor and Evaluation
It should be present monitoring report to management teams in order to know the status of
company’s operation and also the obstacles in operation. This information will be useful to improve the
strategic plan.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 5–13
Common Ticketing Office (CTO)
Establishment Report
5.2.4.2 Progress Report
In order to present the status and proceed of strategic plan, CTO should provide a progress report
and the possibility of operation to be obtained the organization objectives according to strategic plan. The
progress of operation should include the indicators.
5.2.4.3 Measurement and Evaluation
It determines the evaluation criteria for strategic plan such as percentage of successful, customers’
satisfactions, and numbers of projects according to strategic plan. These will present the quality of strategic
plan and predict the goal achievement or not and use these information to review and adjust strategic plan.
5.2.4.4 Strategic Goals, Objectives, Indicators and Goals of Common Ticketing Office
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 5
–14
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Tabl
e 5-
1 Su
mm
ariz
atio
n of
Stra
tegi
c Pl
an
Stra
tegi
c O
bjec
tives
In
dica
tors
G
oals
St
rate
gy
2557
25
58
2559
25
60
Stra
tegy
1 P
rovi
de s
uita
ble
polic
ies,
stan
dard
s, d
evel
opm
ent p
lan
of
com
mon
tick
etin
g sy
stem
.
1. P
rovi
de th
e
deve
lopm
ent p
atte
rn,
polic
ies,
pla
ns, s
tand
ards
and
stan
dard
of c
omm
on
ticke
ting
syst
em.
The
perc
enta
ge o
f
succ
ess
of p
ropo
sal a
nd
reco
mm
enda
tion
of
polic
ies,
sta
ndar
ds a
nd
com
mon
tick
etin
g
deve
lopm
ent p
lan.
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
1. De
velo
p po
licie
s an
d pr
ovid
e
deve
lopm
ent
plan
of
co
mm
on
ticke
ting
syst
em.
2. Cr
eate
a p
ilot p
roje
ct a
ccor
ding
to
the
stud
y an
d an
alys
is.
Stra
tegy
2 C
onst
antly
rese
arch
and
deve
lop
the
com
mon
tick
etin
g sy
stem
and
adop
t inn
ovat
ive
tech
nic.
2. T
o pr
ovid
e st
udy,
anal
ysis
, te
chno
logy
deve
lopm
ent
and
inno
vatio
n in
co
mm
on
ticke
ting
syst
em.
Num
bers
of s
tudy
and
com
mon
tick
etin
g sy
stem
’s
anal
ysis
.
[1] T
opic
[1
] Top
ic
[1]
Topi
c [1
] To
pic
1. St
udy,
ana
lyze
and
dev
elop
tech
nolo
gy a
nd in
nova
tion
of
com
mon
tick
etin
g sy
stem
.
2. Pr
ovid
e a
pilo
t pro
ject
of s
tudy
and
anal
ysis
.
Stra
tegy
3 C
oord
inat
e, m
onito
r,
regu
late
and
eva
luat
e co
mm
on
ticke
ting
syst
em to
ach
ieve
the
effic
ienc
y in
com
mon
tick
etin
g
man
agem
ent.
3. T
o ha
s th
e ef
ficie
ncy
and
effe
ctiv
enes
s of
com
mon
tick
etin
g se
rvic
es
to b
e ab
le to
pro
vide
qual
ity s
ervi
ces
to
cust
omer
s.
The
perc
enta
ge o
f
succ
ess
of m
anag
emen
t’s
eval
uatio
n to
incr
ease
the
capa
city
of m
anag
emen
t.
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
Perc
enta
ge
[100
%]
1. Cr
eate
rile
s of
ope
ratio
n’s
eval
uatio
n of
inte
rnal
em
ploy
ees
and
outs
ourc
e em
ploy
ees.
2. Re
info
rce
the
capa
bilit
y of
inte
rnal
empl
oyee
s an
d ou
tsou
rce
empl
oyee
s.
3. St
reng
then
the
cultu
re, g
ood
gove
rnm
ent a
nd e
thic
of o
pera
tion.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–1
Common Ticketing Office (CTO)
Establishment Report
Chapter 6 Risk Management
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–2
Common Ticketing Office (CTO)
Establishment Report
6.1 Risk Management
Risk is the potential that a chosen action or activity will lead to a loss or an undesirable outcome to
company or an obstacle to achieve organization’s goals.
Risk management is vital to drive an organization to growth and achieve its goals. It also pushes on
the organization management to be efficient. It can reduce or eliminate risk in proper ways by identify,
evaluate, and determine the risk management strategy that suitable for each risks.
6.2 Risk Factors
The risks of each organization can be difference due to the organization characteristic, organization
process and organization culture. The operation management of common ticketing system has risks as follow;
6.2.1 Internal Factors
(1) Size of organization
The high growth of the company can increase the operational risk i.e. human error which the human
resources development could be less efficient due to incorrect in information transfer or unable to
create the corporate culture and ethics. With the increasing size of business and operation, the
management needs proper preparation for such circumstances.
(2) Capability of Top management teams
The operational risk may caused by the internal organization management which depends on the
capability of top management teams. The ability in determine strategic plan to be successful and
achieve the organization’s goals.
(3) Quality control and internal control system
The efficiency of company internal processes and internal control system are the risk factors that has
impact to human resource management’s risk. Internal control and internal audit are the mechanism
to regulate and monitor the company operation. These will reduce human error or fraud and help to
sustainable business success.
(4) System Standard
Common ticketing system development has to be admired from stakeholders. The system operation
has to be fast, accurate and safety which reflect the creditability and efficiency of system. It could be
defined as technical risk i.e. operation system and customers’ satisfaction in common ticketing
system.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–3
Common Ticketing Office (CTO)
Establishment Report
6.2.2 External Risk
(1) Government Risk
It is the impact of prospective changes in legislation, policies, rules and regulations to the common ticketing
operation process. These are factors to operational risk.They have to change their operation process which
finally it will affect to CTO as well. CTO may have to change its service system.
(2) Regulatory Change
Regulatory change can be one factor of operational risk. New government policies will impact CTO
operation. CTO may have higher cost of operation i.e. hire subcontract, research cost to adopt its
nature of operation to be inline with changes in regulatory environment. Furthermore, CTO may have
to prepare new strategic plan to be in line with government policies.
(3) Technical Changes
The change in technology can causes technical risk. Common ticketing system has to improve
according to new innovation and development. Moreover, it need huge amount of investment for that
development which may cause high expenses.
(4) Risk from Stakeholders
Stakeholders that include transit providers, issuers and Settlement banks that change their policies
or operation will affect CTO’s operation. Common ticketing system has to support the stakeholders
system. In addition, the change in settlement fee and policies can rise CTO’s expenditures.
(5) Risk from Change in Numbers of Cardholders
The change in numbers of passengers is the main factor influencing CTO’s revenue. If there is less
cardholders, the revenue of CTO will be reduced and result in it to operate at least. On the other
hand, CTO also face the risk of opportunity loss, whereby CTO could not improve itself to cope with
increasing in number of cardholders.
(6) Risk from Unexpected Circumstances
Unexpected circumstances and natural disaster are uncontrollable factors and unpredictable events
however they can cause lots to impact to CTO. They are operational risk and financial risk. Thus, the
appropriate risk management such as insurance, disaster recovery center is vital for organization
because CTO may loss lots from these unexpected circumstances.
(7) Computer Hacker
Computer hacker may have access to critical information and use it without permission is one factor
to technical risk. If information can be hacked, company may loss sensitive. CTO has to prepare plan
to provide information safety efficiency and prevent hacker to access to system.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–4
Common Ticketing Office (CTO)
Establishment Report
6.3 Types of Risk
(1) Operational Risk
Operational risk is the risk that can affect organization’s performance and organization operation’s
efficiency. Moreover, it also includes the loss that caused by less efficiency in regulatory and control,
operation discontinuity, human error and improper management. The primary causes are operation
procedures, employees, system and external factors i.e. delay operation, human resources
management, complaints and dissatisfaction in common ticketing services. It also include the
subcontractors management and risk of improper operation management or strategies that are not
suitable or conform to organization’s vision, mission and objectives.
(2) Technical Risk
Technical risk is the risk of computer system, hardware, software, technological system, operation
system and system interfacing which may disrupt the normal operation. In addition, it also includes
information safety because it may damage CTO and other service providers from information
leakage. Thus, information protaction system is very vital, thus, preparation to prevent damage and
loss of information leakage or use information is neccessary .
(3) Financial Risk
Financial risk is risk associated with company’s budget control. It includes financial liquidity such as
the cash management and inadequate budget for operation or not be in line with current situation.
Furthermore, it also includes the default risk both from account receivables and counterparty. These
may affect to revenues and budget of company. Cost of operation may exceed revenues which result
in liquidity problem.
6.4 Risk Management
Every business has various types if risks to confront. The risk management is important to business
plan. Risk management is a process to prevent and control the impact from various risks that may obstruct
organization to achieve objectives and goals. Risk management depends on probability of events and degree
of loss exposure. In case of the risk that has high level of risk, company has to reduce, control and prev and
set risk management standard to prevent the impact affecting the operation. It can be divided into 3
processes which are risk assessment, risk evaluation and risk management methods.
6.4.1 Risk Assessment
Risk assessment is the identification of risks that may affect to organization. It considers the business
environment of common ticketing system. There are 3 types of common ticketing system; operational risk,
technical risk and financial risk which can be identify as follow;
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–5
Common Ticketing Office (CTO)
Establishment Report
6.4.1.1 Operational Risk
An operational risk is defined as a risk incurred by an organization's internal activities. Operational
risk is the broad discipline focusing on the risks arising from the people, systems and processes operating
under normal circumstance. It can also include other classes of risk, such as fraud, legal risks, physical or
environmental risks. Operational risk can be identified as follow;
(1) Regulatory changes that relevant to transit system are front-end applications, fare rate which
may include transit fare and other fees. These will reflect to operation procedures, systems and
strategic plan that have to adjust and improve to be consistent with current environment.
(2) Operational risk related to changes in laws, and regulations will affect to CTO operation
because CTO has to operate under many laws and regulations. If there is any change in related
laws, CTO may need to revise its operation to cope with the changes.
(3) Some service providers are under concession agreements which will be impact to common
ticketing system management. They have to follow the government rules or concession
agreements which may affect CTO operation i.e. changing the procedures, improvement or
changing in equipments and systems to be in line with those service providers.
(4) The Urgent Government Projects affects the efficiency of project operation because it has limit
time to implement. Finally, it may inefficient in operation when compare to project that has more
flexible period of time in operation.
(5) Delay in people or system operation communication may cause damage to organization such
as system error, report mistake or mistake. Customers may be dissatisfied and could effect the
organization image.
(6) Error in human resource management includes wrong decision of top management, incapability
or unskilled of employees in common ticketing system management.
(7) Risk from subcontractors i.e. an adjustment in term of conditions, subcontractors could not be
operate or could not operate on time which impact to CTO operation.
(8) Risk from unexpected circumstances includes natural disasters. These are uncontrollable
factors which could not be predicted and may cause huge impact to business operation and
performance. Thus, it should be prevent and control immediately when it occurs in order to
minimize loss or damage of organization.
6.4.1.2 Technical Risk
(1) Technological change can occur all the time and would reflect to development system because
common ticketing system and mass transit have to develop system and new innovation to
provide convenient services to passengers. Thus, the system development consistent to new
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–6
Common Ticketing Office (CTO)
Establishment Report
innovation and technology is vital to CTO operation. Moreover, common ticketing system has to
be capable connect to other systems. It needs skilled employees and technologies to develop
the system.
(2) Computer and technology error i.e. system connection error, error in connection to central
clearing house, error of computer devices and operating system, etc.
(3) Continuity in common ticketing service is important to CTO because common ticketing system
has to be connecting to other system in batch in order to transfer information between service
providers, CTO, CCH, Settlement Bank and other departments. Discontinuity in common
ticketing service may cause financial loss and information report. These will affect to payment
clearing between service providers and also transit report.
(4) Poor information security may be a risk to CTO from exposting its sensitive data to public. These
are severe problem for organization both from decrease creditability and information leakage
especially the government confidential information. Thus, information management is vital to this
kind of business.
6.4.1.3 Financial Risk
(1) High investment and expenditures in common ticketing system management which CTO’s
revenues may not cover the cost of operation. Finally, CTO performance can be lose and affect
to organization’s reliability.
(2) System development of common ticketing system needs lots of investment. Common ticketing
system has to improve according to new innovation and technology to provide quality services
which needs lots of funds and can impact to CTO’s financial status.
(3) The increasing in transit fare may decrease the transit system usage which may affect CTO’s
revenues. Thus, if the fare rate is increased, it may result in decrease in number of passengers
and finally lower CTO’s revenues.
6.4.2 Risk Assessment
The risks of common ticketing system management from 6.3.1 can affect to CTO differently. The risk
evaluation can indicate the liklihood and severity of impact from each risk. These will help CTO to manage
and prepare risk management plans to meet acceptable standard. It also includes the risk monitoring and
controlling by determining criteria to measure risk levels i.e. Probability or frequency of events and harm
severity levels of those risks. These evaluations will help organization to set strategies to cope with risks. The
risk assessment can defy as follow;
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–7
Common Ticketing Office (CTO)
Establishment Report
6.4.2.1 Probability or frequency of events
It is the assessing risk probability or frequency of events to be occurring. It can be categorized into 5
levels which are 5) Highest 4) High 3) Moderate 2) Low and 1) Lowest.
Table 6-1 Criteria of assessing risk probability
Opportunity Level
Likelihood of occurrence Definition
5 Highest Can occur every day
4 High Can occur every month
3 Moderate Can occur every year
2 Low Can occur every 5 year
1 Lowest Least possibility to occur
Table 6-2 The Likelihood of occurrence analysis
Types of Risk Likelihood of
occurrence Definition
Operational Risk
1.1 Regulatory Change [3]
Regulatory that relevant to CTO can be changed annually depends
on the policies of government and should be able to adopt with
current environment.
1.2 Operational risk result from changes
in laws, and regulations. [3]
Laws and regulations may changes to government policy and may
lead to significant changes in CTO’s operation in both good and
bad.
1.3 Some service providers operate
under the concession contract. [3]
Service providers operate under concession contracts are
subjected requirement as stated in the contract which may obstruct
CTO’s operation.
1.4 Urgent Government Projects [4] CTO may need to operate under time constraint as passed by
agreement’s urgent policy.
1.5 Delay operation [5] Systems or human error delay operation process.
1.6 Error in human resource
management [5]
Human error due to inefficient training or wrong decision of
management can be happen every day from normal operation.
1.7 Risk from Subcontractors [2]
Contractors may not be able to perform according to term of
agreement or delaed in operation. However, this risk has less
possibility to occur because contractors have passed selection
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–8
Common Ticketing Office (CTO)
Establishment Report
Types of Risk Likelihood of
occurrence Definition
process and required to follow the agrement.
1.8 Risk from Unexpected
Circumstances [5]
Risks from unexpected circumstances are uncontrollable factors i.e.
sabotage and natural disasters.
Technical Risk
2.1 Technological Change [3] Common ticketing technology may change rapidly, thus, CTO
needs to be make proper preparation.
2.2 Computer and technology error [5] Computer and technology error can occur daily according to
machine usage.
2.3 Continuity in common ticketing
service [5]
Common ticketing system involve numbers of data transfer. Thus,
the system disruption may cause severe damages to shareholders.
2.4 Information Security [5]
Information transfer and data report has to be secured. The risk of
unauthorized access to information can occur daily i.e. public
information without permission or use data for personal interest.
Financial Risk
3.1 Operation investment and
expenditure [4]
CTO needs to constantly invest in its infrastructure. Low cost
recovery investment may pass risk to the organization.
3.2 High amount of investment for
required development [2]
Common ticketing system has to improve according to new
innovation and technology to provide quality services and increase
operation efficiency which actually has to develop every 5 year.
3.3 An adjustment of fare rate [3]
An adjustment of fare rate can occur annually depends on the
change in government policies and concessions agreement and
also the services providers’ policies.
3.4 Financial Institutions that have
electronic payment services go
bankrupt.
[1]
It is less likely for financial institutions that have electronic payment
services to go bankrupt because in order to join this project,
financial institutions have to be qualify and have financial stability
and also provide a good financial plan for business opportunity.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–9
Common Ticketing Office (CTO)
Establishment Report
6.4.2.2 Severity of Risk
The evaluation of risks’ severity can be identifed into 5 levels which are
5) Severe 4) Major 3) Moderate 2) Minor and 1) Insignificant.
Table 6-3 Criteria of evaluation the hazard severity of circumstances
Level Consequences Definition
5 Severe Most effect to customers’ satisfaction
4 Major High affect to customers’ satisfaction
3 Moderate Moderate effect to customers’ satisfaction
2 Minor Less effect to customers’ satisfaction
1 Insignificant Less likely effect to customers’ satisfaction.
Table 6-4 The risks’ severity analysis
Types of Risk Risks’
Severity Definition
Operational Risk
1.1 Regulatory Change [4]
Regulatory changes that relevant to transit affect to
operation procedures and impact to revenues and
expenses of CTO. Thus, this risk has major impact to
CTO.
1.2 Operational risk according to change
in laws, rules and regulations. [4]
Changing in laws and regulations will be impact to CTO
operation and procedures. Thus, this risk has major
impact to CTO.
1.3 Some entrepreneurs are under
government control or have the
concession agreements.
[2]
Some entrepreneurs are under government control or
have the concession agreements which will be impact to
common ticketing system management. However, the
common ticketing system is the government policy, so
most of the policies will be benefits to this project. Thus,
this risk has minor impact to CTO.
1.4 Urgent Government Projects [3]
The Urgent Government Projects have a moderate
impact to CTO because the urgent project will limit time
in operation that may affect to operation and human
resources management.
1.5 Delay operation [4] Delayed operation may impact critical process such as
data clearing or revenue appormention and may result
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–10
Common Ticketing Office (CTO)
Establishment Report
Types of Risk Risks’
Severity Definition
in harming overall business operation.
1.6 Error in human resource management [3]
Error in human resource management has a moderate
impact to CTO because it has a minor affects to
operation process. Moreover, CTO already has
evaluation and monitoring the performance of human
resource management.
1.7 Risk from contractors [2] Contractors may not perform as required in the contract
and may present moderate risk to CTO.
1.8 Risk from unexpected circumstances [5]
Risk from unexpected circumstances likes natural
disasters can cause a huge impact to business
operation and performance. It may be lose in human
resources, assets and system.
Technical Risk
2.1 Technological Change [3] Technical changes have moderate impact to CTO as
such changes can be easily mitigated.
2.2 Computer and technology error [5]
CTO’s operation is highly depending on stability of
computer system. Therefore, system failure can cause
severe damage to the business.
2.3 Continuity in common ticketing
service [4]
Discontinuity in common ticketing service may decrease
passengers’ satisfaction and also the reliability of
organization, and might lead to inaccurate calculation
and result in financial losses.
2.4 Information Security [4]
Information security risk has a major impact to CTO
because it will reflect the company’s creditability and ,
CTO may be sued for damage from public information
without permission and information leakage especially
the government’s confidential information.
Financial Risk
3.1 Operation’s investment and
expenditure [5]
The mismatch between investment and operation
expenses and revenues will impact to operation stability.
CTO operation has to rely on financial stability. This risk
can be viewed as high severity risk.
3.2 High amount of investment for [4] System development of common ticketing system needs
lots of investment. Common ticketing system has to
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–11
Common Ticketing Office (CTO)
Establishment Report
Types of Risk Risks’
Severity Definition
development
improve according to new innovation and technology.
The research and development investment has a major
impact to CTO’s financial status.
3.3 An adjustment of fare rate [3]
The decreasing fare rate has a moderate impact to CTO
because it will increase the numbers of transit system
usage.
3.4 Financial Institutions that have
electronic payment services go bankrupt. [5]
Common ticketing system management has to deposit
huge amount of money to financial Institutions. In the
case of a financial institution go bankruptcy, the deposit
insured coverage is limited to THB one million per
depositor per bank will be inadequate to pay service
providers. CTO may have to pay the residual.
6.4.2.3 Risk Level
Risk Level is determined by the probability of risks occurring and the hazard severity of that risk
which has criteria as follow;
Table 6-5 Criteria of Risk Assessment Level
Risk Level
Points
(Probability x risks’
severity)
Definition
Very High 17-25 Unacceptable level, it has to be improving to be acceptable level
immediately.
High 10-16 Unacceptable level, it has to be improving to be acceptable level.
Moderate 4-9 Acceptable level but should have risk control.
Low 1-3 Acceptable level, no need for risk control or other addition
regulation.
According to risk analysis which analyze from the possibility or frequency of risk, the hazard severity
can be summarize as follow;
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–12
Common Ticketing Office (CTO)
Establishment Report
Table 6-6 Risk Level
Risks’
severity
5 3.4 1.5, 2.4 1.8, 2.2
4 3.2 1.1 1.2 2.3, 3.1
3 2.1 3.3 1.4 1.6
2 1.7 1.3
1
1 2 3 4 5
Probability/Frequency
Table 6-7 Summarization of Risk Level
Types of risk Probability
Level
Risks’
severity
Total
(Probability x
Hazard
severity)
Risk
Level
Operational Risk
1.1 Change in relevant policies [3] [4] [12] High
1.2 Operational risk according to change in laws,
rules and regulations. [3] [4] [12] High
1.3 Some entrepreneurs are under government
control or have the concession agreements. [3] [2] [6] Moderate
1.4 Urgent Government Projects [4] [3] [12] High
1.5 Delay operation [5] [4] [20] Very
High
1.6 Error in human resource management [5] [3] [15] High
1.7 Risk from contractors [2] [2] [4] Moderate
1.8 Risk from Unexpected Circumstances [5] [5] [25] Very
High
Technical Risk
2.1 Technological Change [3] [3] [9] Moderate
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–13
Common Ticketing Office (CTO)
Establishment Report
Types of risk Probability
Level
Risks’
severity
Total
(Probability x
Hazard
severity)
Risk
Level
2.2 Computer and technology error [5] [5] [25] Very
High
2.3 Continuity in common ticketing service [5] [4] [20] Very
High
2.4 Information Security [5] [4] [20] Very
High
Financial Risk
3.1 Operational investment and expenditure [4] [5] [20] Very
High
3.2 High investment for development [2] [4] [8] Moderate
3.3 An adjustment of fare rate [3] [3] [9] Moderate
3.4 Financial Institutions that have electronic
payment services go bankrupt. [1] [5] [5] Moderate
6.4.3 Risk Management Strategy
One of the key factors to be success in business is the efficient in risk management to eliminate or
reduce the impact or loss exposure to be in acceptable level. There are 4 risk management strategies which
are risk acceptance strategy, risk avoidance strategy, risk control strategy and risk transfer strategy.
6.4.3.1 Risk Acceptance Strategy
Risk acceptance strategy usually is the acceptable level or the cost of eliminating risk or control risk
is greater than loss exposures. Thus, company will do nothing to manage that risk.
6.4.3.2 Risk Avoidance Strategy
Risk avoidance strategy is to defined acceptable level of risk, whereby the risks lower, then, this level
is not worth the mitigation.
6.4.3.3 Risk control strategy
Risk control strategy is to set appropriate risk management protocols and procedures to reduce the
severity and likelihood of such risk.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–14
Common Ticketing Office (CTO)
Establishment Report
6.4.3.4 Risk Transfer Strategy
Risk transfer strategy applies in the case of unpredictable of risk or event and hardly to prevent that
risk. Moreover, this risk can cause high exposure because an organization has limitation in human resource
and resources i.e. natural disaster. Thus, an organization can transfer risk by do insurance or outsource to
diversify risk that may occur from less competency in that area.
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 6
–15
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Tabl
e 6-
8 R
isk
Man
agem
ent S
trate
gy
Type
s of
Ris
k Pr
obab
ility
Leve
l
Haz
ard
seve
rity
Ris
k le
vel
Stra
tegi
es
Def
initi
on
Ope
ratio
nal R
isk
1.1
Cha
nge
in re
leva
nt p
olic
ies
[3]
[4]
Hig
h Ri
sk A
ccep
tanc
e
Regu
lato
ry c
hang
es t
hat
rele
vant
to
trans
it sy
stem
can
be
man
age
by r
isk
acce
ptan
ce b
ecau
se t
he d
uty
of C
TO i
s to
oper
ate
follo
w t
he g
over
nmen
t po
licy.
Thu
s, i
f th
ere
are
any
regu
lato
ry c
hang
es, C
TO h
as to
adm
ire th
at r
isk.
It c
ould
not
deny
thos
e po
licie
s.
1.2
Ope
ratio
nal
risk
acco
rdin
g to
cha
nge
in l
aws,
rule
s an
d re
gula
tions
. [3
] [4
] M
oder
ate
Risk
Acc
epta
nce
CTO
has
to fo
llow
the
law
s, ru
les
and
regu
latio
ns. C
TO s
houl
d
acce
pt t
hat
risk.
It
cann
ot a
void
the
ope
ratio
n ac
cord
ing
to
law
s an
d re
gula
tions
.
1.3
Som
e en
trepr
eneu
rs
are
unde
r go
vern
men
t
cont
rol o
r hav
e th
e co
nces
sion
agr
eem
ents
. [3
] [2
] M
oder
ate
Risk
Tra
nsfe
r
Som
e en
trepr
eneu
rs a
re u
nder
gov
ernm
ent c
ontro
l or h
ave
the
conc
essi
on
agre
emen
ts
whi
ch
will
be
impa
ct
to
com
mon
ticke
ting
syst
em m
anag
emen
t. C
TO c
ould
tran
sfer
that
ris
k by
aske
d fo
r the
add
ition
bud
get t
o be
abl
e to
impr
ove
syst
em in
orde
r to
su
ppor
t th
e ch
ange
in
te
rms
and
cond
ition
s or
polic
ies.
1.4
Urg
ent G
over
nmen
t Pro
ject
s [4
] [3
] H
igh
Risk
con
trol
It co
uld
be a
ble
to c
ontro
l thi
s ris
k by
det
erm
ined
the
hum
an
reso
urce
s m
anag
emen
t pl
an a
nd b
udge
ts t
o do
the
urg
ent
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 6
–16
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Type
s of
Ris
k Pr
obab
ility
Leve
l
Haz
ard
seve
rity
Ris
k le
vel
Stra
tegi
es
Def
initi
on
gove
rnm
ent p
roje
cts
to b
e ef
ficie
nt a
nd e
ffect
ive
proj
ects
.
1.5
Del
ay o
pera
tion
[5]
[4]
Hig
h Ri
sk c
ontro
l
It ca
n m
anag
e th
e pr
ojec
t del
ay b
y co
ntro
l tha
t ris
k. C
TO c
an
outs
ourc
e th
at o
pera
tion.
1.6
Erro
r in
hum
an re
sour
ce m
anag
emen
t [5
] [3
] H
igh
Risk
con
trol/
Risk
Tra
nsfe
r
This
typ
e of
ris
k ca
n m
anag
e by
ris
k co
ntro
l st
rate
gy i
.e.
train
ing,
info
rmat
ion
trans
fer
to s
taff
or e
stab
lish
inte
rnal
aud
it
depa
rtmen
t to
redu
ce th
e m
ista
ke fr
om o
pera
tions
. Mor
eove
r,
CTO
can
tra
nsfe
r th
is r
isk
by o
utso
urce
thi
s de
partm
ent
to
min
imiz
e th
e er
ror
from
uns
kille
d em
ploy
ees
or i
ncap
able
empl
oyee
s.
1.7
Risk
from
con
tract
ors
[2]
[2]
Mod
erat
e Ri
sk T
rans
fer/
Risk
con
trol
Risk
from
Sub
cont
ract
ors
can
be re
duce
by
trans
fer t
his
risk
to
thos
e su
bcon
tract
ors.
C
TO
can
dete
rmin
e pe
rform
ance
war
rant
ee i
n th
e co
ntra
ct.
It m
ay d
educ
t re
tent
ion
mon
ey t
o
cove
r th
e da
mag
e th
at
subc
ontra
ctor
m
ake
mis
take
.
Furth
erm
ore,
CTO
can
con
trol t
his
risk
by c
ontro
l, re
gula
te a
nd
eval
uate
the
perfo
rman
ce a
nd a
lso
prov
ide
train
ing
or tr
ansf
er
the
oper
atio
n pr
oces
s to
sub
cont
ract
ors.
1.8
Risk
from
Une
xpec
ted
Circ
umst
ance
s [5
] [5
] Ve
ry h
igh
Risk
Tra
nsfe
r C
TO c
an d
o in
sura
nce
to t
rans
fer
the
risk
from
une
xpec
ted
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 6
–17
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Type
s of
Ris
k Pr
obab
ility
Leve
l
Haz
ard
seve
rity
Ris
k le
vel
Stra
tegi
es
Def
initi
on
circ
umst
ance
s lik
e na
tura
l di
sast
ers,
or
terro
rists
. Th
ese
are
unco
ntro
llabl
e fa
ctor
s w
hich
cau
se h
uge
impa
ct t
o bu
sine
ss
oper
atio
n an
d hi
gh c
ost o
f dam
age.
Tech
nica
l Ris
k
2.1
Tech
nolo
gica
l Cha
nge
[3]
[3]
Mod
erat
e Ri
sk T
rans
fer
To d
ecre
ase
the
rese
arch
cos
t and
dec
reas
e m
ista
ke o
f stu
dy,
rese
arch
and
dev
elop
men
t, C
TO c
an o
utso
urce
the
res
earc
h
and
tech
nolo
gy d
evel
opm
ent a
nd in
nova
tion
whi
ch r
elev
ant t
o
com
mon
tic
ketin
g sy
stem
to
be a
pply
in
Thai
land
. It
need
s
know
ledg
e an
d sk
ill to
stu
dy a
nd d
evel
op te
chno
logy
.
2.2
Com
pute
r and
tech
nolo
gy e
rror
[5]
[5]
Very
hig
h Ri
sk c
ontro
l/
Risk
Tra
nsfe
r
Com
pute
r an
d te
chno
logy
erro
r ca
n m
anag
e by
ris
k co
ntro
l
stra
tegy
. It
can
redu
ced
by p
rovi
de t
he b
acku
p sy
stem
to
supp
ort a
nd a
men
d er
ror.
Mor
eove
r, C
TO c
an tr
ansf
er th
is ri
sk
to c
ompu
ter s
yste
m p
rovi
der b
y as
ked
for t
he w
arra
ntee
.
2.3
Con
tinui
ty in
com
mon
tick
etin
g se
rvic
e [5
] [4
] Ve
ry h
igh
Risk
Avo
idan
ce/
Risk
con
trol
CTO
can
man
age
the
disc
ontin
uity
in c
omm
on ti
cket
ing
serv
ice
prob
lem
by
risk
avoi
danc
e st
rate
gy. C
TO c
an a
void
or c
hang
e
the
oper
atio
n pr
oced
ures
whi
ch a
re th
e fa
ctor
s to
be
dela
y in
oper
atio
n.
2.4
Info
rmat
ion
Secu
rity
[5]
[4]
Very
hig
h Ri
sk c
ontro
l/ Th
is t
ype
of r
isk
can
redu
ce t
he p
roba
bilit
y to
occ
ur b
y ris
k
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 6
–18
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Type
s of
Ris
k Pr
obab
ility
Leve
l
Haz
ard
seve
rity
Ris
k le
vel
Stra
tegi
es
Def
initi
on
Risk
Tra
nsfe
r co
ntro
l stra
tegy
i.e.
trai
ning
, edu
cate
the
corp
orat
e cu
lture
and
ethi
cs i
n op
erat
ion
to i
nter
nal
empl
oyee
s. T
his
will
help
to
redu
ce fr
aud
that
rel
evan
t to
info
rmat
ion
secu
rity.
In
addi
tion,
CTO
ca
n si
gn
the
conf
iden
tialit
y ag
reem
ents
w
ith
subc
ontra
ctor
s or
int
erna
l em
ploy
ees
to p
reve
nt i
nfor
mat
ion
leak
age
whi
ch is
the
risk
trans
fer s
trate
gy.
Fina
ncia
l Ris
k
3.1
Ope
ratio
nal i
nves
tmen
t and
exp
endi
ture
[4
] [5
] Ve
ry h
igh
Risk
con
trol
Risk
con
trol
stra
tegy
can
app
ly t
o m
anag
e th
is r
isk.
CTO
shou
ld s
et th
e in
vest
men
t pla
n an
d ex
pens
es c
ontro
l to
redu
ce
the
risk
of d
efic
it or
loss
from
hig
h co
st o
f ope
ratio
n.
3.2
Hig
h in
vest
men
t for
dev
elop
men
t [2
] [4
] M
oder
ate
Risk
Tra
nsfe
r
Syst
em d
evel
opm
ent o
f com
mon
tick
etin
g sy
stem
nee
ds lo
ts o
f
inve
stm
ent.
Com
mon
tic
ketin
g sy
stem
ha
s to
im
prov
e
acco
rdin
g to
new
inn
ovat
ion.
CTO
can
tra
nsfe
r th
is r
isk
to
gove
rnm
ent.
Gov
ernm
ent s
houl
d de
term
ine
budg
ets
to s
uppo
rt
the
rese
arch
and
dev
elop
men
t.
3.3
An a
djus
tmen
t of f
are
rate
[3
] [3
] M
oder
ate
Risk
Tra
nsfe
r
CTO
sho
uld
mak
e ag
reem
ent
with
the
gov
ernm
ent
to r
ecei
ve
the
subs
idy
from
the
chan
ge in
gov
ernm
ent p
olic
y th
at im
pact
to t
he f
are
rate
. If
the
fare
rat
e is
incr
ease
, pa
ssen
gers
may
Prog
ram
Man
agem
ent S
ervi
ces:
PM
S
Th
e O
ffice
of T
rans
port
and
Traf
fic P
olic
y an
d Pl
anni
ng
AgC
/ KS
CC
/ PS
K Pa
ge 6
–19
Com
mon
Tic
ketin
g O
ffice
(CTO
)
Esta
blis
hmen
t Rep
ort
Type
s of
Ris
k Pr
obab
ility
Leve
l
Haz
ard
seve
rity
Ris
k le
vel
Stra
tegi
es
Def
initi
on
decr
ease
and
CTO
may
be
loss
.
3.4
Fina
ncia
l In
stitu
tions
th
at
have
el
ectro
nic
paym
ent s
ervi
ces
go b
ankr
upt.
[1]
[5]
Mod
erat
e Ri
sk A
void
ance
/
Risk
con
trol
The
loss
exp
osur
e fro
m t
he b
ankr
uptc
y of
fin
anci
al in
stitu
tion
can
man
age
by
risk
avoi
danc
e st
rate
gy
and
risk
cont
rol
stra
tegy
. C
TO h
as t
o do
tra
nsac
tion
with
sta
bilit
y ba
nks
or
depo
sit m
oney
to m
any
bank
s to
red
uce
the
loss
exp
osur
e. It
will
be a
larg
e da
mag
e if
CTO
dep
osit
to o
nly
one
bank
and
that
ban
k go
ban
krup
tcy.
Program Management Services: PMS The Office of Transport and Traffic Policy and Planning
AgC / KSCC / PSK Page 6–20
Common Ticketing Office (CTO)
Establishment Report
6.4.4 Risk Monitoring
Risk monitoring must continue for the life of the project. CTO should consider the possibility of events
that could be occur and will impact to company operation and performance by provide monitoring report ,
review the risk management plan and evaluate the performance of risk management plan. Then, it can be
use this information to improve the risk management plan to increase the efficiency of risk management
operation and determine the risk management strategy.
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