the asean economic community transportation · the asean economic community transportation...

T h e S t u d y o f T o l l C o l l e c t i o n f o r E x e c u t i v e S u m m a r y R e p o r t

t h e A S E A N E c o n o m i c C o m m u n i t y T r a n s p o r t a t i o n

PPV/TR_G/RE6001/P04400/RE010 i TEAM/Strategy 1/DR

CONTENT

Page

CHAPTER 1 INTRODUCTION 1-1

1.1 PRINCIPLES AND RATIONALE 1-1

1.2 OBJECTIVES 1-2

1.3 SCOPE OF OPERATION 1-2

CHAPTER 2 A REVIEW OF ASSOCIATED POLICIES, PLANS AND 2-1

REGULATIONS

2.1 STUDY OF CURRENT SITUATION OF THAI BORDER 2-1

CROSSING CHECKPOINTS WITH NEIGHBOR COUNTRIES

2.2 REVIEW OF RELATED LAWS, REGULATIONS AND 2-3

MEASURES

2.3 REVIEW ON THE POLICY, STRATEGY, PLAN, AND 2-5

COOPERATION FRAMEWORK IN ECONOMIC AND

SOCIAL ASPECTS

2.4 REVIEW ON POLICIES, STRATEGIES, AND 2-8

DEVELOPMENT PLANS OF LOGISTICS SYSTEM AND

TRAFFIC AND TRANSPORTATION INFRASTRUCTURE

2.5 REVIEWS ON TRAFFIC AMD TRANSPORTATION 2-10

STUDIES AND OTHER PROJECTS ASSOCIATED

CHAPTER 3 SURVEY AND ANALYSIS CURRENT ISSUES AND DEMAND 3-1

FORECASTING OF ROAD USAGE CROSS BORDER

INTERMODAL

3.1 SOCIOECONOMIC STUDY 3-1

3.2 THE STUDY OF CURRENT TRAFFIC AND 3-3

TRANSPORTATION

3.2.1 Survey And Collect Traffic Volume Data At Border 3-3

Crossing Points (Enter And Depart)

3.2.2 Origin-Destination Survey (O-D Survey) 3-6

3.3 FORECASTING TRAFFIC AND TRANSPORTATION 3-11

IN THE FUTURE

CHAPTER 4 CASE STUDIES ON CROSS BORDER TOLL COLLECTION 4-1

SYSTEMS

4.1 CROSS BORDER TOLL COLLECTION SYSTEM 4-1

IN MALAYSIA


IN SINGAPORE


BETWEEN THE UNITED STATES OF AMERICA

AND MEXICO



PPV/TR_G/RE6001/P04400/RE010 ii TEAM/Strategy 1/DR

CONTENT (Cont’d) Page


BETWEEN THE UNITED STATES OF AMERICA

AND CANADA


BETWEEN COUNTRIES WITHIN THE EUROPEAN UNION

CHAPTER 5 IMPACT ANALYSIS OF TOLL COLLECTION 5-1

5.1 ANALYSIS ON THE IMPACT OF HAVING A TOLL 5-1

COLLECTION FOR CROSS-BORDER TRANSPORTATION

5.2 SUMMARY OF IN-DEPTH INTERVIEW 5-2

(CENTRAL REGION) 5.3 SUMMARY OF FOCUS GROUP DISCUSSION 5-4

5.4 RESULTS AND RECOMMENDATIONS 5-10

5.5 AN ANALYSIS OF RISK AND RISK MITIGATION 5-11

CHAPTER 6 FEE CALCULATION AND TOLL COMPOSITION 6-1

6.1 TOLL PRICING MODEL 6-1

6.2 TECHNOLOGY USED FOR MANAGEMENT OF TOLL 6-3

COLLECTION, MAN-POWER AND COST ANALYSIS

6.2.1 Suitable Technology For Toll Collection Manage 6-3

6.2.2 Preliminary Investment Budget Of 6-5

Toll Collection System

6.3 ANALYSIS OF VEP AND RC 6-7

6.3.1 Traffic Forecast 6-7

6.3.2 Operating Expenses 6-8

6.3.3 RFID Tag Cost and Smart Card Cost 6-9

6.3.4 Cost of VEP 6-11

6.4 ROAD CHARGE (RC) CALCULATION 6-12

6.4.1 Total Traveling Distance 6-13 6.4.2 RC Cost Estimation 6-14

6.5 TOTAL COSTS OF VEP AND RC 6-18

6.6 VEP AND RC PRICING 6-19

6.7 EXPECTED FINANCIAL RESULTS AND RETURN ON 6-20

INVESTMENT

6.7.1 Proforma Income Statement Of The Operator 6-20

6.7.2 Financial Analysis 6-21

6.7.3 Financial Result In The Case Of Applying 6-22

GPS Technology

6.8 OPTION IDENTIFICATION 6-24

6.8.1 Option 1 : Remain Current Status (Status Quo) 6-25

6.8.2 Option 2 : Authorizing Of A Legalized Division 6-25

To Collect Toll



PPV/TR_G/RE6001/P04400/RE010 iii TEAM/Strategy 1/DR


6.8.3 Option 3 : Department Of Land Transport Authorizes 6-26

Another Department The Rights To Collect Tolls

6.8.4 Option 4 : Establishment Of Integrated Service Center 6-27

(One Stop Services)

6.9 OPTION SELECTION CRITERIA AND ANALYSIS 6-28

6.9.1 Option Criteria 6-28

6.9.2 Options Analysis 6-29

CHAPTER 7 RECOMMENDATION ON CROSS-BORDER TOLL 7-1

COLLECTION, OPERATING MODEL, REVENUE

HANDLING AND SYSTEM CONTROLLING APPROACH

7.1 RECOMMENDATION ON TOLL COLLECTION METHOD 7-1

AND MODEL

7.1.1 Toll Rate and Time Frame 7-1

7.1.2 The Operating Model 7-2

7.2 RECOMMENDATIONS ON REVENUE MANAGEMENT 7-2

7.3 RECOMMENDATIONS 7-3

7.3.1 Policy Level 7-3

7.3.2 Regulatory Level 7-3

7.4 SUMMARY 7.3

CHAPTER 8 ACTION PLAN 8-1

8.1 THE SHORT-TERM PLAN (YEAR 1-3) 8-3

8.2 MEDIUM TERM PLAN (YEAR 4-7) 8-5

8.3 LONG-TERM PLAN (YEAR 8-10) 8-5

8.4 LONG-TIME VIEW 8-6

CHAPTER 9 SHORT-TERM PRACTICE WITH THE MALAYSIA CASE 9-1

9.1 SOURCE OF OPERATION IN MALAYSIA 9-1

9.2 RECOMMENDATIONS FOR THE IMPLEMENTATION 9-2

OF VEP AND RC COLLECTION POLICIES IN MALAYSIA

CHAPTER 10 OVERALL PERFORMANCE ON SEMINAR AND PUBLIC 10-1

PARTICIPATION

10.1 RESULTS OF THE SEMINAR TO INTRODUCE 10-1

THE PROJECT AND LISTEN TO COMMENTS FROM

RELEVANT AGENCIES (1ST SEMINAR)

10.2 RESULTS OF THE SEMINAR TO PRESENT 10-2

THE RESULTS AND LISTEN TO COMMENTS ON

THE DRAFT REPORT (2ND SEMINAR)



PPV/TR_G/RE6001/P04400/RE010 iv TEAM/Strategy 1/DR


CHAPTER 11 IMPORTANT INFORMATION AND SUMMARY 11-1

11.1 A SUMMARY INFORMATION FROM THE STUDY 11-1

11.1.1 Traffic Forecast For 4-Wheel Vehicles 11-1

11.1.2 The Average Distance Travel In And Out Of Thailand 11-2

11.1.3 Technology And Investment Cost 11-2

11.1.4 Operation And Maintenance Cost 11-3

11.1.5 VEP And RC Cost 11-3

11.1.6 Recommended Toll Rates 11-3

11.1.7 Operation Model 11-4

11.1.8 Summary Of Action Plans And Actions 11-4

11.2 SUMMARY TABLE OF THE STUDY 11-5



PPV/TR_G/RE6001/P04400/RE010 v TEAM/Strategy 1/DR

TABLE OF CONTENT Table Page

2.1-1 Current border crossing checkpoint between Thailand and neighbor 2-1

countries

2.2-1 A summary of law and regulation regarding the fees for entry and 2-5

use of foreign vehicle in Thailand

2.3-1 Linkage between Policy, Strategy and International Cooperation 2-6

to the Project

2.3-2 Linkage between Policy and Strategy Group of Thailand to the Project 2-7

2.4-1 The link between policy, strategy, development plan of logistics 2-8

system, and traffic and transportation infrastructure to the project

2.5-1 Information obtained from the literature review of relevant studies 2-10

3.1-1 The result of product value per person of Asian member countries 3-1

in 2017-2037

3.1-2 Population Projections of ASEAN Member Countries in 2017-2037 3-2

3.1-3 Average population density Of the ASEAN Member Countries in 2017-2037 3-2

3.2.1-1 Traffic Volume of inbound and outbound at the Thai border crossing 3-5

points in current year (trip/year)

3.2.2-1 Summarizes the average distance traveled of 4- wheel vehicle foreign 3-10

Of 28 fixed points

3.3-1 Result of commerce and crossing border trips value forecasting 3-12

of people

3.3-2 Traffic forecast of inbound and outbound at the Thai border crossing 3-14

points in 2022 (trip/year)







4-1 Summary of Cross Border Toll Collection Systems 4-3

4-2 Analysis of Characteristics and Key Observations in each Case Stud 4-4

5.3-1 A Summary of the Analysis of Impact in regional area From Focus 5-5

Group Discussion

6.2.1-1 Comparison Chart of Technology for Toll Collection 6-4

6.3.2-1 Summary of Operating Expenses 6-8

6.3.3-1 Estimates Vehicle Fitting Equipment Requirements and Related Expenses 6-10

6.3.4-1 Cost of VEP by Crossing Points 6-11

6.3.4-2 Average VEP Cost per Trip by Crossing Points (Unit : Baht/Trip) 6-12

6.4-1 Road maintenance costs for each type of vehicle 6-13

6.4.1-1 Average distance of four-wheel vehicle by countries 6-13

6.4.1-2 Expected Kilomater Travelling into Thailand from Projected Volume 6-14

and Average Traveling Distance (Unit : Kilomater)



PPV/TR_G/RE6001/P04400/RE010 vi TEAM/Strategy 1/DR

TABLE OF CONTENT (Cont’d) Table Page

6.4.2-1 Cost of RC (including expenses related to accident and environmental 6-15

issues) (Unit : Baht)

6.4.2-2 Cost of RC by Crossing Points (Unit : Baht) 6-16

6.4.2-3 Average RC Cost per Kilometer by Crossing points (Unit : Baht/Trip) 6-17

6.5-1 Total VEP and RC Costs by Crossing Points (Unit : Baht/Trip) 6-18

6.6-1 Expected Revenue from Cross-border Tool 6-19

6.7.1-1 Projected Income Statement of the Operator 6-20

6.7.1-2 Projected Cash Flows of the Project 6-20

6.7.2-1 Result of Financial Analysis 6-21

6.7.3-1 Fincial Results in the Case that GPS is Installed and Fees are Subsidised 6-23

6.7.3-2 Project Cash Flows: GPS Installed and Fees to be Subsidised (Unit : Baht) 6-23

7.4-1 Predict Financial Results and Return on Investment (In case of 7-5

toll collection (VEP) only at cost rate)

8-1 Key Objectives of Three-Phase Action Plan 8-1

8-2 Key Activties to be undertaken in the three-phase action plan 8-2

8.1-1 Short-term plan 8-4

9.2-1 The Number of Workers at Each Border Checkpoint of 9-4

the Thai-Malaysian Border

11.1.1-1 Predicts the Number of Four-Wheeled Vehicles Entering Thailand. 11-2

And the Annual Growth Rate of Traffic Volume from Each Country

in the First Phase of the Forecast

11.1.2-1 Average distance traveled by 4-wheel-drive vehicle 11-2

11.1.5-1 Road maintenance costs for each type of vehicle 11-3

11.2-1 Key points in the 3-phase action plan over the 10-year period 11-5



PPV/TR_G/RE6001/P04400/RE010 vii TEAM/Strategy 1/DR

FIGURE OF CONTENT

Figure Page

2.1-1 28-Locations of Permanent Border Crossing checkpoint 2-2

(Vehicles can cross)

3.2.1-1 Locations of 28 border crossing points that surveyed and collected data 3-4

3.2.2-1 Survey results from border crossing points. 4-wheel drive vehicle 3-7

(Thai vehicle)

3.2.2-2 Survey results from border crossing points More than 6 axles 3-7

vehicles (Thai vehicle)

3.2.2-3 Survey results from border crossing points. 4-wheel drive 3-9

vehicle (non-Thai vehicle)

3.2.2-4 Survey results from border crossing points More than 6 axles 3-9

vehicles (non-Thai vehicle)

6.1-1 Meaning of VEP and RC 6-1

6.1-2 Financial Model Structure for Cost Analysis and Toll Pricing 6-2

6.2.2-1 Components and Linkages of the Toll Collection System for 6-6

Cross-Border Transport

6.3.1-1 Forecast on Number of Foreign Four-Whell Vehicle trips to Thailand 6-8

B.E. 2560-2580

7.1.2-1 The toll collection scheme by the Department of Land Transport 7-2

employs some private operators

9.2-1 Legal Steps to Implement If Malaysia announces VEP and RC 9-3

Collection to Thailand

11.1.7-1 Recommended to Operation Model 11-4

CChhaapptteerr 11

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PPV/TR_G/RT6022/P04400/RT164 1-1 TEAM/Strategy 1/DR

CHAPTER 1

INTRODUCTION

1.1 PRINCIPLES AND RATIONALE

The 12th National Economic and Social Development Plan (2017-2021) targets

on international cooperation strategy for development consisting of (1) Thailand plays

a major role in the region in terms of logistics, trade, services and investment. (2) Thailand

is hub for regional prosperity in Asia, ASEAN and subregion. (3) Value chain systems

in the subregion and ASEAN are continuously linked to the ongoing economic development.

The development approach is linkage of transport, logistics, and telecommunications

under subregional and ASEAN cooperation.

According to complete opening of The ASEAN Economic Community (AEC)

in 2015, Thailand contributes mainly to the logistics management strategy because it is

regionally geographical center of the region, having important routes connecting among

group of countries, Myanmar, Lao PDR, Vietnam and Cambodia to Malaysia, Singapore,

Indonesia, Brunei, the Philippines, and Timor Leste which land transport is major transport.

Thailand can rely on such spatial strategies in order to develop the country to become

the ASEAN logistics hub in cargo distribution to member countries and to the world market

in the future.

Due to the opening of the ASEAN Economic Community, increasing of highway

use in Thailand, especially international shipping, affects on roadways, often damaged.

Indirect effects occur such as loss of life and property from accidents. Environmental

problems such as air pollution, noise, waste, etc, happen as well. Thailand always bears

the cost of maintenance costs and environmental costs. At present, some of the ASEAN

members have been charged with entry and exit fees. Recently, Malaysia has introduced

the Vehicle Entry Permit (hereinafter referred to as “VEP”) incorporated with Road Charge

(hereinafter referred to as “RC”) with foreign vehicles arriving in Malaysia.

On 1 November 2 0 1 6 , Malaysia has used this system with Singapore applied only on

the RC, not VEP with cars from Singapore. RC is collected through the Touch'n Go card

(Malaysian Expressway Card). In addition to the RC, cars from Singapore must separately

pay for expressway fee when entering Malaysia.

In the year 2016, the Malaysian Government informally informs that the VEP

system will be used at all 7 border checkpoints between Thailand and Malaysia in mid-

2017. Then, VEP will be applied to border checkpoints between Malaysia - Brunei

and Malaysia – Indonesia, respectively.

At the National Transport Facility Committee (NTFC) meeting No. 2/2559

on 26 August 2016, the Transport Minister issued an order to the Office of Transport

and Traffic Policy and Planning (OTP) as a central agency, conducting studies

on toll collection for the ASEAN Economic Community transport into practice.



PPV/TR_G/RE6001/P04400/RE001 1-2 TEAM/Strategy 1/DR

1.2 OBJECTIVES

(1) to study behavior and predict of future cross-border transport volumes.

(2) To analyze the impact of cross-border transportation on Thailand, especially

on the transport sector. This includes maintenance, environmental impact

and safety issues.

(3) To study economic, social and environmental suitability for toll collection

and highway use for cross-border transportation.

(4) To analyze the options for management, approach and methodology to

regulatory control cross-border transportation and expected effects.

(5) To propose policies and action plans to bring the plan into action.

1.3 SCOPE OF OPERATION

The scope of work consists of six main tasks as follows:

Task 1 A review of associated policies, plans and regulations

In order to carry out the project, this section will review on associated policies and

related documents including Thailand’s Government Policy, the 20-year National

Strategy (2017-2036), the 12th National Economic and Social Development Plan

(2017-2021), Thailand 2nd Logistics Development Strategic Plan (2013-2017),

Freight Transportation Planning and Logistic under the framework of sub-regional

cooperation, Infrastructure Development Plan and Custom, Thailand’s Transport

Infrastructure Development Strategy 2015-2022 (8-year Plan), and also regulations

related to passenger and freight transport, for example: travel insurance, framework

agreement on the cross border transport, and so on. Furthermore, this study also

reviews the authority of relevant agencies such as Department of Land Transport,

Department of Highways, etc.

Task 2: Study, survey and analysis of problems at present. Forecast the use

of road and highways for cross-border transportation in the future.

Survey of traffic volume, behavior, and problems of cross-border transport issues

in bilateral and multilateral cooperation in the current situation. To know

the behavior and the trend of passenger and cargo transport affecting in the future

in economic, social and environmental dimensions. Taking into consideration

future infrastructure development plans; road, rail, water and air transport

and transportation pattern analysis. Highway maintenance cost. Cost of damage

due to accident. The cost of maintaining the environment. To complete an analysis

of appropriate toll collection.

Task 3: Case study of toll collection system in foreign countries

Study on approach, format, alternative and suitability for international toll collection

based on Best Practices, especially in the form and choice of Malaysia, introduced

the Vehicle Entry Permit (VEP) and Road Charge (RC) systems since November 1, 2016.




The Malaysian government started using the VEP system only for foreign cars

crossing the borders of Singapore at two checkpoints, the Johor Bahru-Causeway

(Woodlands) and Tanjung Kupang (Secong Link) –Tuas. Later, Malaysia plans

to expand the VEP system to the border between Thailand and Malaysia

in the year 2017 (mid-year). A case study, implementing VEP system between

Singapore and Malaysia, is raised as guideline for operation in Thailand.

Therefore, the best practices for analyzing strength and weakness in the legal

context, economy and society, are studied in order to adapt for appropriate

toll collection system in Thailand

Task 4: Impact analysis of the toll collection for cross-border transportation

Stakeholder opinion survey among public, private and people sectors. The feasibility

study on economic, social, and environmental. Data analyzed to set up guidelines

on toll collection for cross-border transportation. Potential impacts analyzed

on economic, social, security and international relations and all other relevants

to determine the potential risk reduction approach.

Task 5 Guidelines for the collection of road maintenance fees through cross-

border transportation.

Study and collect relevant information in order to analyze and prepare guidelines for

collection of road maintenance fee for cross-border transportation. The details are as

followlow:

(1) Fee calculation method including all related costs, directly and indirectly

cost: management cost of toll collection system, road maintenance cost,

environmental costs, economic, financial and social value, as well as

potential impacts on stakeholders in all sectors.

(2) Proposals for the toll collection and appropriate technology taking into

account relevant national and international regulations. Best practice

examples of countries that have successfully levied fees.

(3) Management model taking into account role and authority of both public

and private organizations.

(4) Proposals for revenue management derived from fee collection to make it

for maximum benefit. Also provide management guidelines for relevant

legislation in order to effectively manage revenue and in accordance with

the principle of financial operations and finance of the country.

(5) Recommendations/guidelines for the implementation of regulatory agency

such as enforcement guideline and other associated conditions.

(6) Recommendations, tracking measure, monitoring, control and supervision

cross-border transportation throughout Thailand's transportation routes

such as mandatory installation of GPS devices for tracking systems

to control speed, working hours and transportation routes, etc.




Task 6 Action plan for toll collection

To provide an action plan for toll collection based on the results of this study.

The details are covered from the investor, responsible person and administrators,

management rules/regulations for the operation, and allocated expenditure.

The plan is divided into three phases: short, medium, and long term, as well as

other suggestions for consideration.

CChhaapptteerr 22 AA RREEVVIIEEWW OOFF AASSSSOOCCIIAATTEEDD

PPOOLLIICCIIEESS,, PPLLAANNSS

AANNDD RREEGGUULLAATTIIOONNSS


CHAPTER 2

A REVIEW OF ASSOCIATED POLICIES,

PLANS AND REGULATIONS

This chapter is to study and review on current policy, legal, regularity, strategy,

plan and cooperation framework of Thailand. These are data used as a basis for analysis of

legal requirements, regulatory, and future growth trend of traffic volume. The presentation

is divided into 5 topics as follows:

2.1 STUDY OF CURRENT SITUATION OF THAI BORDER CROSSING

CHECKPOINTS WITH NEIGHBOR COUNTRIES

Thailand's current border crossing checkpoints can be classified into 2 main

categories: (1) permanent border crossing checkpoint and (2) temporary border crossing

checkpoint. The details are shown in Table 2.1-1, which currently has a permanent border

crossing checkpoint (car can go across) with four neighbor countries: Thai-Cambodian

border crossing checkpoint, Thai-Lao border border crossing checkpoint, Thai-Myanmar

border crossing checkpoint, and Thai-Malaysia border crossing checkpoint, total of 28

border crossings1 located as shown in Figure 2.1-1.

Table 2.1-1: Current border crossing checkpoint between Thailand and neighbor countries

Neighbor countries

Permanent border

crossing checkpoint

(Highway)

Permanent

border crossing

checkpoint

(Port)

Temporarily

permitted area Total

Thailand - Cambodia 6 - 11 17

Thailand - Laos 11 7 27 45

Thailand - Myanmar 4 1 15 20

Thailand - Malaysia 7 2 - 9

Total 28 10 53 91

Source: Databases of Border Crossing checkpoint between Thailand and neighboring countries. Foreign Affairs Division,

Office of the Permanent Secretary, Ministry of Interior, 2017.

1 There are 2 of 28 crossing checkpoints is a port checkpoint for trucks crossing the border, including the Ban Kokpai

Border and the Ban Pak Saeng Border.




Figure 2.1-1: 28-Locations of Permanent Border Crossing checkpoint

(Vehicles can cross)




2.2 REVIEW OF RELATED LAWS, REGULATIONS AND MEASURES

In general, a foreign-registered vehicle does not permit foreign vehicles to enter

and use in Thailand, unless otherwise specified by the law or regulation of Thailand.

Currently, there are certain regulations relating to a permission of the entry and the use of

the foreign-registered vehicle in Thailand, including the conventions and agreements which

Thailand has entered into with the other countries. In this regard, the entry of the foreign-

registered vehicle in Thailand has been classified into 2 categories, namely; 1) the entry

under the laws of Thailand; and 2) the entry under the international agreement between

Thailand and other countries.

In this connection, Thailand has entered into the conventions and agreements

in order to grant rights and duties of vehicle as well as permit the foreign-registered vehicle

to enter into Thailand as follows:

1) Agreement between the Government of the Kingdom of Thailand and

the Government of the Lao People’s Democratic Republic on Road Transport

and Subsidiary Agreement Specifying Road Transport Arrangement between

the Government of the Kingdom of Thailand and the Government of the

Lao People’s Democratic Republic;

2) Arrangement between and among the Governments of the Lao People’ s

Democratic Republic, the Kingdom of Thailand, and the Socialist Republic

of Vietnam on the Operation of the Tourism Road Transport;

3) Memorandum of Understanding between and among the Governments

of the Lao People’ s Democratic Republic, the Kingdom of Thailand, and

the Socialist Republic of Vietnam on the Initial Implementation for

the Facilitation of Cross- Border Transport of Goods and People ( IICBTA)

at Lao Bao, the Socialist Republic of Vietnam and Dansavanh, the Lao People’s

Democratic Republic, and at Savannakhet, the Lao People’ s Democratic

Republic and Mukdahan, the Kingdom of Thailand;

4) Memorandum of Understanding between the Government of the Kingdom

of Thailand and the Royal Government of Cambodia on the Exchange

of Traffic Rights for Cross- Border Transport through the Aranyaprathet-

Poipet Border Crossing Points No.1 and No.2;

5) Memorandum of Understanding between the Government of the Kingdom

of Thailand and the Government of Malaysia on the Movement in Transit

of Perishable goods by Road from Thailand through Malaysia to Singapore;

6) Convention on Road Traffic A.D. 1949 at Geneva, Switzerland;

7) Agreement between and among the Governments of the Kingdom

of Cambodia, the People’s Republic of China, the Lao People’s Democratic

Republic, the Union of Myanmar, the Kingdom of Thailand, and the

Socialist Republic of Vietnam for Facilitation of Cross- Border Transport

of Goods and People;

8) Asean Framework Agreement on the Facilitation of Goods in Transit;




9) Asean Framework Agreement on the Facilitation of Inter- State Transport;

and

10) Draft of Asean Framework on the Facilitation of Cross Border of Passenger

by Road Traffic.

The regulations of Thailand permitting foreign- registered vehicles to enter and

use in Thailand are as follows:

1) Notification of the Department of Land Transport No. 7/ 2558 on the entry

of the foreign-registered passenger car into Thailand without the restriction

on origin-registered country of the vehicle. The foreign-registered passenger

car could be entered into and used in Thailand at the southern border

crossing points and the routes as specified in the Notification.

2) Notification of the Department of Land Transport re Rule, Procedure

and Condition for Application for, Approval of, Validity Period and Mark

for temporary use of foreign vehicle entering the Kingdom of Thailand

for tourism purpose or other necessary activities B.E. 2559 (the Notification

of the DLT B.E. 2559) issued by virtue of Section 6/1 paragraph 3 of the Vehicle

Act B.E. 2522

At present, the fees for application for temporary use of the foreign- registered

vehicle entering into Thailand shall be in accordance with the Notification of the DLT B.E.

2559 specifying that the entry and use of the foreign- registered vehicle in Thailand shall

obtain a permission and pay the fees prior to entry.

According to the Ministerial Regulation on the fees under the law on vehicle

( No. 6) B. E. 2559 ( 2016) , the fee applied for temporary use of the vehicle for tourism

purpose is THB 500 per one entry or temporary use for non-tourism purpose is THB 2,000

per one entry, and the vehicle mark is THB 500 per each vehicle.

However, the above fees shall be only imposed on the vehicle being subject

to the permission to enter and use in Thailand. Malaysia-registered vehicle and Singapore-

registered vehicle have the right of traffic in Thailand under the Geneva Convention

on Road Traffic A. D. 1949, while Laos- registered vehicle is granted the right to traffic

and transport in Thailand according to the Agreement on Road Transport between Thailand

and Laos. Therefore, the Notification of the DLT B. E. 2559 shall not be applied for

the vehicle registered in Malaysia, Singapore and Lao. Moreover, the Notification of

the DLT B. E. 2559 also exempts to local vehicles which frequently travel among local

customs jurisdiction. Consequently, it can be concluded that the vehicle registered

in Malaysia, Singapore and Lao, and the local vehicles can enter and use in Thailand

without obtaining a permission and paying any fee.

In addition to the vehicle entry fee, Thailand also imposes the road charge

on the vehicle used on the highway and bridge under the Act on Fee for Use of Vehicle

on Highway and Bridge B. E. 2497. The purpose of this Act is that the construction

and maintenance of highway and bridge are more necessary but the government budget

is not sufficient to these costs. Therefore, it is necessary to impose a particular fee for use

of the vehicle on highway and bridge. Such fee shall be charged from a driver when his/her

vehicle is used on the specified route with the rates depended upon the types of vehicle




such as a car having more than 7 seats, a truck and a passenger car. Currently, Thailand has

charged the said fee on the following tollways and bridges governing by the Department

of Highways of Thailand as the authorised government agency, in accordance with

the ministerial regulations;

1) The First Thai-Lao Friendship Bridge (Nong Khai – Vientiane)

2) The Second Thai-Lao Friendship Bridge (Mukdahan – Savannakhet)

3) The third Thai-Lao Friendship Bridge (Nakhon Phanom – Khammouane)

4) The forth Thai-Lao Friendship Bridge (Chiang Khong – Houeisai)

5) Motorway No. 7 and No. 9

The regulations regarding the fees for entry and use of foreign vehicle in Thailand

are summarized in a table 2.2-1.

Table No.2.2-1: A summary of law and regulation regarding the fees for entry and

use of foreign vehicle in Thailand

Fee Law and regulation Country Remark

1. Fee for temporary

use of foreign-

registered vehicle

in Thailand

Notification of the Department

of Land Transport re Rule,

Procedure and Condition for

Application for, Approval of,

Validity Period and Mark for

temporary use of foreign

vehicle entering the Kingdom

of Thailand for tourism or other

necessary activities B.E. 2559

All countries,

except Lao,

Malaysia and

Singapore

2. Fee for use of

vehicle on

highway and

bridge

Act on Fee for Use of Vehicle

on Highway and Bridge B.E.

2497.

All countries This Act is applied

for both foreign –

registered vehicle

and Thai vehicle.

2.3 REVIEW ON THE POLICY, STRATEGY, PLAN, AND COOPERATION

FRAMEWORK IN ECONOMIC AND SOCIAL ASPECTS

The present study examines the current policy, strategy, and cooperation

framework for economic and social aspect, related to the study of toll collection for

The ASEAN Economic Community transport comprising of: (1) Policy, Strategy and

International Cooperation and (2) Thailand Policies and Strategies. The details are shown

in Table 2.3-1 to Table 2.3-2.




TAble 2 . 3 - 1 : Linkage between Policy, Strategy and International Cooperation to the Project

Policy / Strategy / Plans Briefly summary the importance and linkages to the project

Policy, Strategy and Framework for International Cooperation

ASEAN Economic

Community : AEC

Important target aims to be single market and production base for

the movement of goods, services, investment, skilled labor and

capital. It has been used as a framework for the direction of the

implementation of the project in accordance with the ASEAN

Economic Community.

Economic Cooperation in

the Mekong River Sub-

region (GMS)

The push for the Asian Economic Community of Cambodia, Laos,

Myanmar, Thailand, Vietnam and Yunnan, integrating their

economies into part of the sub region, develops of goods and

people to cross-over the border smoothly. The project is consistent

and supports mentioned development.

Strategic Economic

Cooperation Irrawaddy -

Chao Phraya - Mae Khong

(ACMECS)

ACMECS is a framework for economic cooperation between the

five countries, namely Cambodia, Laos, Myanmar, Thailand and

Vietnam, to be promoted and facilitated at regional level through

the development of motorways between the cities of Thailand. As

Thailand is strategically positioned as a regional transportation

hub, the project will increase the capacity of the intercity

motorways in Thailand.

Development Plan for

the Three-Party Economic

Zone Indonesia - Malaysia

- Thailand (IMT-GT)

The economic cooperation between the three countries, Indonesia,

Malaysia and Thailand, with the main objective to promote

economic relations among the three countries. To utilize

economic resources together effectively and maximally. The

focus is on the development of infrastructure linkage, in

particular, international transportation and infrastructure network.

This project will increase the capacity of the road network in

Thailand.

Source: Compiled by consultants, April 2017.

If the framework is fully enforced, it will allow the transport of goods and people

travel among the countries with more convenience, increasing trade opportunities,

investment as well as logistics business in the expansion as Thailand is a hub for ASEAN

countries.




Table 2.3-2: Linkage between Policy and Strategy Group of Thailand to the project


Policy and Strategy Group of Thailand

20-years National Strategy

(2017-2036)

The main strategy for the project is Strategy 2, Growth &

Competitiveness Strategy, focusing on improving economic

performance, development of manufacturing and service sectors,

entrepreneurial development and community economy, special

economic area and city, development of infrastructure investment,

and the link with the region and the world economy. The project

will increase the capacity of Thailand's road transport network.

National Economic and

Social Development Plan

No.12 (2017-2021)

The main strategies involved in this study are: Strategy 7,

Infrastructure and Logistics Development focusing on

infrastructure development, transportation and trade facility;

Strategy, 10 International Cooperation

for development focusing on utilizing the location of Thailand as

a key link between the economic corridors. . The project will

increase the capacity of Thailand's road transport network.

Border trade strategy The government continues to support transportation infrastructure

construction linking Thailand and neighbor countries to promote

border trade, one of the major income sources for the country. The

project will increase the capacity of Thailand's road transport

network.

Establishment of Special

Economic Zones

Focusing on responding to development goals in both economic

and national security. Increasing competitiveness. Increasing

employment and create good living for the people. Solving the

problem of migrant workers smuggled into the area. Illegal

agricultural products smuggling, and congestion problem at the

border checkpoint. The project will be part of the response to the

goal of establishing a special economic zone for employment and

supervision of international travel and cargo transport through

border checkpoints.

Eastern Economic Corridor

(EEC)

Consider guidelines to determine direction of the project in

accordance with the Eastern Economic Corridor Project. The

project area is divided into industrial zones and infrastructure

development zone. Investment in road infrastructure including

inter-city motorways, Bangkok - Chon Buri, Pattaya - Map Ta

Phut, and Laem Chabang - Nakhon Ratchasima.


Based on a mentioned studies, Thailand's regional development strategies,

the future direction of the country's development will focus on the distribution of prosperity

to the major cities and link all of the regions in the country with efficient and fast

transportation system. The study of toll collection for the ASEAN Economic Community

transport will help to connect international travel more efficiently.




2.4 REVIEW ON POLICIES, STRATEGIES, AND DEVELOPMENT PLANS

OF LOGISTICS SYSTEM AND TRAFFIC AND TRANSPORTATION

INFRASTRUCTURE

In this study, policies, strategies and development plans of logistics system and

transport and transportation infrastructure are reviewed. This is related to the study

on toll collection for the ASEAN Economic Community transport. The summary of key

policies, strategies and plans can be summarized as shown in Table 2.4-1.

Table 2.4-1: The link between policy, strategy, development plan of logistics system,

and traffic and transportation infrastructure to the project.


Strategic Plan for Logistics

Development of Thailand

No.2 (2013-2017)

Strengthening Thai Firms to have benefit on value added from

supply chain by promoting trade and service in border cities.

The study of toll collection for AEC transport will be part

of pushing forward strategic plan accomplished.

Strategic Plan for Logistics

Development of Thailand

No.3 (2017-2021)

Develop transport infrastructure and logistic networks along

strategic routes to connect the suburbs and trade gateways. Develop

the NSW system. Develop logistics processes in electronic form.

And fix international trade barriers. The study of toll collection

for AEC transport will help develop infrastructure and transport

networks.

The Ministry of Transport’s

strategic plan to support

the development of Thai

logistics system No.2

(2013-2017)

Development of integrated logistics network in the country is

the development of infrastructure and transport network to support

logistics development in Thailand. The study of toll collection

for AEC transport will help develop infrastructure and transport

networks.

Draft Ministry of

Transport’s Strategic Plan

to Support Thailand’s

Logistics System

Development No.3

(2017-2021)

Consider business change and pattern of transport requirements at

present and future trend from various factors in the New fashioned

logistic model driven by the Thailand 4.0 policy. The study of toll

collection for AEC transport will enhance infrastructure

development around commercial gateway and promote the use of

technology in logistics management systems such as RFID and

GPS. It will also facilitate travel and transportation between

neighbor countries.

Strategic Plan for Transport

Infrastructure Development

of Thailand, 2015-2022

Increasing highway ability to connect key production bases

in Thailand and neighbor countries. The study of toll collection

for AEC transport will help promote the strategic plan to increase

highway ability.

Strategic Development of

Thailand’s Transportation

System for 20 years

(2017-2036)

Integrated Transport Systems. The study of toll collection for AEC

transport will help promote the strategy of infrastructure

development and legal, regulation and enforcement for

transportation services.

Strategic Plan of

the Ministry of Transport,

2017-2021

Improve and develop a standard system and supervise safety and

security of transportation. Improve and develop legal, rule, and

regulatory systems in consistent with changing circumstance.

The study of toll collection for AEC transport will increase





supervise the safety and security of people and goods transportation

through the border trade.

Strategic Plan for Land

Transport Department,

2016-2020

Develop and promote the road transport system efficiently and

competitively. The study of toll collection for AEC transport will

help the plan and support the efficient and competitive road

transportation.

Transport and Traffic

Development Master Plan

2011-2020

Toward Sustainable Transport make creating Thailand as a Hubs

for Connectivity. The study of toll collection for AEC transport will

promote the plan increasing transportation network ability and

competitiveness with measures to regulate the management and

control of international road use.

Transport Network

Development Plan

Connecting to the Region

International cooperation at the particle level with neighbor

countries (GMS, ACMECS, IMT-GT and BIMS-TEC) is aimed to

connect economy and society constructing mutual benefit

partnership, regional development, and reducing the development

gap in the region. As a result, the development of transportation

services such as road, rail and water transport. The study of toll

collection for AEC transport will help the plan to increase

the transportation network and competitiveness with measures

to regulate the management and control of international road use.

Master Plan on ASEAN

Connectivities 2025

Enhancing supply chain efficiency by fixing congestion problem at

important chokepoints such as border management (customs,

immigration, quarantine), as well as management of cross-border

movement of people / goods, ustoms procedures and border

management practices. The study of toll collection for AEC

transport will help to manage the cross-border movement of people

/ goods more effectively.

Security Border

Management Plan

(2016 – 2021)

Operation guideline in security community and the work

opportunity during the crisis to meet the security threats that may

take place on the border after the AEC. The study of toll collection

for AEC transport will enhance the capacity to prepare for border

security threats.

ASEAN Highway Network Development of ASEAN Highway Network will support Thailand's

road infrastructure to meet the standard and able to accommodate

the traffic generating from entering the AEC. The study of toll

collection for AEC transport makes sense to the payer whether

Thailand infrastructure is suitable for toll charge or not and also

enhances ASEAN highway development capabilities.





2.5 REVIEWS ON TRAFFIC AMD TRANSPORTATION STUDIES AND

OTHER PROJECTS ASSOCIATED

In this study, data and traffic studies and projects associated are reviewed from

many agencies that have studied in the past to be guideline in the study and reliable sources

for the study. The detail is summarized in Table 2.5-1 as follows:

Table 2.5-1: Information obtained from the literature review of relevant studies

Related Studies Information obtained from the literature review

of relevant studies

The study for Highway

Development Strategic Plan

to Support the Entering AEC

2015

Information on Economic and Social Growth Trends. Traffic

growth and how to analyze the impact and measures taken

when entering the AEC will be taken into account in studying

of toll collection for AEC transport and to guide the

implementation of the study.

Strategic Plan for

the Motorway of Thailand

2012

Information of motorway route between the city and plans

to launch services will be analyzed in the process of surveying

and forecasting future traffic volume and also analyzes

toll collection supporting transportation of the AEC.

Study and Development of

Rail Transportation System

in Thailand and Neighbor

Countries

Roadmap for the development of rail transportation system

according to the development plan and plans to be opened will

be analyzed to forecast the number of passengers and freight

entering the future railway network. This may affect the mode

shift of transport.

Customs Infrastructure

Development Project

The Customs Infrastructure Development Information will

assist in the process of analyzing the determination of survey

location covering important border areas.

Study on Capacity and

Preparation of Infrastructure

and Transport Services

in Thailand for ASEAN

Economic Community 2015

Information on economic and social growth trends including

analysis of the feasibility of toll collection and relevant

information will be considered for the Study on Toll

Collection for the AEC transport and to guide the

implementation of the study.


CChhaapptteerr 33

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AANNDD DDEEMMAANNDD FFOORREECCAASSTTIINNGG OOFF RROOAADD

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CHAPTER 3

SURVEY AND ANALYSIS CURRENT ISSUES AND

DEMAND FORECASTING OF ROAD USAGE

CROSS BORDER INTERMODAL

3.1 SOCIOECONOMIC STUDY

Socioeconomic affects traffic volume according to domestic and international

trip generation and freight transportation volume report after participating in Asian

economics community (DOH,2015). In addition, socioeconomic of neighboring countries

expands in long term according to the article “ASEAN 2030: Toward a Borderless

Economic Community” by the bank of Asian development. As mentioned are adapted

to the study and traffic and transportation analysis as display in the table 3.1-1 to 3.1-3.

It will be implemented to forecast trip generation and freight transportation of border

Thailand in the future.

Table 3.1-1: The result of product value per person of Asian member countries

in 2017-2037

Countries GDP PER CAPITA at Market Price (US $)

2017 2022 2027 2032 2037

Brunei darussalam 10,780 13,475 16,753 20,908 26,194

Cambodia 28,740 36,110 45,410 57,106 71,813

Indonesia 1,309 1,830 2,588 3,661 5,178

Laos 3,895 5,790 7,917 10,827 14,806

Malaysia 2,051 2,883 3,943 5,392 7,374

Myanmar 9,623 13,958 18,373 24,184 31,832

Philipine 1,375 2,211 3,221 4,691 6,832

Singrapore 3,102 4,937 6,208 7,807 9,818

Vietnam 51,431 57,451 66,602 77,210 89,507

China 2,306 3,208 4,387 6,000 8,205

Thailand 8,481 12,363 15,778 20,138 25,701

Source: Forecast from ASEAN 2030: Toward a Borderless Economic Community (ADB, 2012)




Table 3.1-2: Population Projections of ASEAN Member Countries in 2017-2037

Countries Population (million people)

2017 2022 2027 2032 2037

Brunei darussalam 0.43 0.46 0.48 0.52 0.55

Cambodia 16.01 17.25 18.58 20.02 21.56

Indonesia 261.99 279.05 297.22 316.57 337.18

Laos 7.30 8.02 8.81 9.68 10.63

Malaysia 32.20 35.03 38.11 41.46 45.11

Myanmar 52.65 54.36 56.13 57.96 59.85

Philipine 106.28 117.34 129.55 143.04 157.93

Singrapore 5.68 5.93 6.20 6.48 6.78

Vietnam 93.61 97.93 102.46 107.20 112.15

China 1,390.85 1,432.26 1,474.91 1,518.82 1,564.04

Thailand 66.09 67.65 68.97 70.31 71.63


Table 3.1-3: Average population density Of the ASEAN Member Countries in 2017-2037

Countries Average population density (People per square kilometer)

2017 2022 2027 2032 2037

Brunei darussalam 74 79 84 89 95

Cambodia 88 95 103 111 119

Indonesia 138 147 156 166 177

Laos 31 34 37 41 45

Malaysia 98 106 116 126 137

Myanmar 78 80 83 86 88

Philipine 355 392 433 478 527

Singrapore 7,993 8,356 8,736 9,133 9,549

Vietnam 282 295 309 323 338

China 145 149 154 158 163

Thailand 129 132 134 137 140





3.2 THE STUDY OF CURRENT TRAFFIC AND TRANSPORTATION

3.2.1 Survey and collect traffic volume data at border crossing points (Enter and

Depart)

The data was collected by separating to types of vehicles in each customs.

These data will be forecast traffic volume enter and depart the kingdom in the future at the

border where are 28 customs of roads. The data of customs statistic was displayed in figure

3.2.1-1 (Customs statistic, 2016)

According to the data, the limitation such as unavailable statistic data of some

border crossing points, this study has to do additional survey traffic volume at some border

crossing points. The survey focused on workday and national holiday (in the period from

22 May 2017 to 16 June 2016) in order to analyze entry and departure behavior

at the border. The result show that the number of entry and departure the kingdom are not

equal in some border crossing points because some border crossing points are nearby each

other, thus the vehicles are not necessary to enter and depart at the same border crossing

points. These data is consistent with customs statistic. Thus, the forecasting future traffic

volume at the border crossing points base on the customs statistic data and survey data.

The data of traffic volume is displayed in the table 3.2.1-1

Also found There are two crossing points from 28 crossing points is a port checkpoint

for trucks crossing the border only, including the Ban Kokpai Border and the Ban Pak Saeng

Border. There are only 26 checkpoints individual cars (4 wheel) can cross




Figure 3.2.1-1: Locations of 28 border crossing points that surveyed and collected data




Table 3.2.1-1: Traffic Volume of inbound and outbound at the Thai border crossing points in current year (trip/year)

(Units: trip/year)

Note: Traffic volume from Customs in 2016 and survey conducted by consultants in 2016.

inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound

1 Sadao Border 237,250 333,245 300,760 320,470 365 2,190 105,850 129,940 644,225 785,845 61,320 90,885 266,815 342,005 8,030 21,900 36,135 27,740 372,300 482,530 from Survey

2 Padang Basar Border 469,755 457,710 590,205 508,080 - 365 55,845 64,970 1,115,805 1,031,125 129,940 91,615 208,415 241,630 365 4,380 22,995 21,900 361,715 359,525 from Survey

3 Ban Prakob Border - 2 1 - - - 639 1,298 640 1,300 881 543 11,650 9,541 138 66 299 299 12,968 10,449 from customs

4 Sungai Go lok Border 1 - 5 5 - - - - 6 5 1,882 1,772 43,097 43,761 95 93 - - 45,074 45,626 from customs

5 Betong Border - - - - - - 141 153 141 153 5,303 5,261 44,981 44,527 848 840 3,490 3,490 54,622 54,118 from customs

6 Wang Prachan Border - - 5,632 5,632 - - - - 5,632 5,632 4,215 2,510 18,674 15,475 171 104 - - 23,060 18,089 from customs

7 Buketa Border - - - - - - 34 34 34 34 226 120 2,380 2,180 2 1 32 32 2,640 2,333 from customs

1 1st Sai River Bridge Border 50,005 74,460 185,785 173,740 - - - - 235,790 248,200 550,420 447,855 255,135 257,690 - - - - 805,555 705,545 from Survey

2 2nd Sai River Bridge Border - - - - - - 25,915 23,725 25,915 23,725 - - - - - - - - - - from Survey

3 Ban Rim Moei Border (Mae Sot) - - 36,865 52,195 - - 93,075 129,575 129,940 181,770 - 365 240,535 227,760 - - 9,855 9,855 250,390 237,980 from Survey

4 Ban Phunamron Border 14,235 17,520 50,005 40,150 - - 2,555 2,190 66,795 59,860 - - - - - - - - - - from Survey

1 4th Thai-Laos Friendship Bridge Border (Chaing Khong) - - 10,220 8,030 365 730 39,420 37,230 50,005 45,990 - - 11,680 12,410 365 730 - - 12,045 13,140 from Survey

2 Ban Huai Kon Border (Thung Chang) - - 19,345 18,615 - - 3,285 5,840 22,630 24,455 - - 2,555 2,555 - - - - 2,555 2,555 from Survey

3 Mae Nam Hueang Friendship Bridge Border (Thali) - - 8,395 18,980 - - 23,725 19,710 32,120 38,690 - 2,555 39,420 38,690 - 365 11,315 8,395 50,735 50,005 from Survey

4 Ban Kok Pai Border - - - - - - 234 234 234 234 - - - - - - 3,681 3,681 3,681 3,681 from customs and Survey

5 1st Thai-Laos Friendship Bridge Border (Nong Khai) - - 263,895 221,555 6,205 365 50,370 116,800 320,470 338,720 - - 441,285 377,045 2,190 2,555 17,155 49,275 460,630 428,875 from Survey

6 Bueng Kan Border - - 1,095 1,460 - - 2,555 2,190 3,650 3,650 - - 2,555 2,555 - - - - 2,555 2,555 from Survey

7 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) - - 23,725 30,295 - - 96,360 89,425 120,085 119,720 - - 56,210 54,750 - - 22,995 34,675 79,205 89,425 from Survey

8 2nd Thai-Laos Friendship Bridge Border (Mukdahan) - - 41,975 48,910 4,745 2,920 36,865 44,165 83,585 95,995 - - 162,425 165,345 9,855 7,665 2,920 1,460 175,200 174,470 from Survey

9 Ban Pak Saeng Border (Khemarat) - - - - - - 7,529 7,529 7,529 7,529 - - - - - - - - - - from customs

10 Chong Mek Border - - 27,740 50,005 730 - 33,945 51,100 62,415 101,105 - - 39,055 26,645 365 - 1,095 730 40,515 27,375 from Survey

11 Phu Doo Border - - 1,825 1,825 - - 5,110 5,110 6,935 6,935 - - - - - - - - - - from customs and Survey

1 Chong Sangam Border 20 3 356 380 - - 1,393 3,267 1,769 3,650 14 3 1,389 1,539 - - - - 1,403 1,542 from customs

2 Chong Chom Border 7,665 2,555 57,305 62,050 - - 1,825 5,840 66,795 70,445 253,675 237,250 142,350 100,010 - - 365 730 396,390 337,990 from Survey

3 Aranya Prathet Border 50,370 60,955 85,410 87,600 365 - 88,695 128,115 224,840 276,670 468,660 385,440 170,455 170,455 - - - - 639,115 555,895 from Survey

4 Ban Laem border (Chanthaburi) 27 40 85 67 - - 253 138 365 245 29 30 1,792 1,920 - - - - 1,821 1,950

5 Ban Pakkard Border (Chanthaburi) 53 40 215 233 - - 507 622 775 895 12 11 784 656 - - - - 796 667

6 Ban Had lek Border (Klong Yai) 1,825 9,125 41,610 35,770 - 365 10,950 19,345 54,385 64,605 3,650 1,460 15,695 8,760 - - 3,285 730 22,630 10,950 from Survey

Note

from customs and Survey

THAI - MYANMAR

THAI - LAOS

THAI - CAMBODIA

Total

THAI - MALAYSIA

No. Border Crossing Points

Thai nationality non-Thai nationality

Motorcycle 4 axles vehicles Bus Truck Total Motorcycle 4 axles vehicles Bus Truck




3.2.2 Origin-Destination Survey (O-D Survey)

The behavior of 4 axles cars and more than 6 axles trucks were analyzed in order

at 16 borders from survey location to recognize the trips behavior of Thai national and other

national which enter and depart the kingdom. The result especially analyze the average

volume of trip in Thailand.

1.) Average trip volume of Thai national vehicle

All of vehicle types enter and depart the kingdom by 16 borders from survey

location. Average distance in the kingdom approximately 95.6 kilometers per vehicle that

separate to 4 axles vehicles approximately 82.4 kilometers per vehicle and more than 6

axles vehicles approximately 124.6 kilometers per vehicle.

The result of inbound and outbound the Thailand kingdom and neighboring

countries trips are

4 axles vehicles, The most average trips volume is trip crossing

between Thailand and Laos. In addition, The average trips volume

of Cambodia, Myanmar, and Malaysia is 149.3, 112.9, 94.4 and 41.2

respectively.

More than 6 axles vehicles, The most trips in order to transport freight

is trip crossing between Thailand and Myanmar. In addition,

The average trips volume of Laos, Cambodia and Malaysia is 236.2,

142.6, 71.5 and 43.0 respectively.




Figure 3.2.2-1: Survey results from border crossing points

4-wheel drive vehicle (Thai vehicle)


More than 6 axles vehicles (Thai vehicle)

Mae Sai border

Mae Sai district

Nong Khai border

Nong Khai district

Mae Sai border

BKKBan Phunamron Border

Kanchanaburi District

Mae Sot borderMueang Tak District

Nakhon Sawan Province

Mukdahan border

Mueang Mukdahan border

Chong Mek border

Mueang U-bon District

Chong Chom borderMueang SurinDistrict

Klong Yai border

Mueang Chanthaburi

Traffic Volume (veh/day)Mueang Songkhla

Sadao border


Nakhon Sawan Province

BKK

Nong Khai border

Nong Khai district

MueangNakhonratchasima

Mueang Chanthaburi

Mueang Chonburi

Aranya Prathet BorderChong Chom border

Mueang SurinChong Mek border

Mueang U-bon

Mukdahan borderMueang Mukdahan

Nakhon Phanom

Traffic Volume (veh/day)




2.) Average trip volume of non-Thai national vehicle

All of vehicle types enter and depart the kingdom by 16 borders from survey

location. Average distance in the kingdom approximately 35.1 kilometers per vehicle that

separate to 4 axles vehicles approximately 34.9 kilometers per vehicle and more than 6

axles vehicles approximately 37.0 kilometers per vehicle.

The result of entry and departure the Thailand kingdom and neighboring

countries trips are

4 axles vehicles, The most average trips volume is trip crossing between

Thailand and Laos. In addition, The average trips volume of Cambodia,

Malaysia, and Myanmar is 44.6, 41.0, 39.4 and 12.3 respectively.

More than 6 axles vehicles, The most trips in order to transport freight

is trip crossing between Thailand and Cambodia. In addition,

The average trips volume of Malaysia, Laos and Myanmar is 77.1, 39.4,

36.1 and 18.0 respectively.





4-wheel drive vehicle (non-Thai vehicle)


More than 6 axles vehicles (non-Thai vehicle)


Mae Sai border

Mae Sai district

Thali border

Mueang Loei

Nong Khai border

Mueang Khon Kaen

Mukdahan border

Mueang Mukdahan

Chong Mek border

Mueang U-bon District

Chong Chom border

Mueang Surin

Aranya Prathet Border

Mueang Sakaew

BKK

Mueang Songkhla

Sadao border

Traffic Volume (veh/day)

Mae Sai border

Mae Sai district

Mae Sot borderMae Sot District

Thali border

Thali District

Nong Khai border

Nong Khai District

BKK

Mueang Songkhla

Sadao border

Mueang Satun Traffic Volume (veh/day)




To calculate the estimate total toll roads, it is necessary to consider the traffic

volume of 4-wheel foreign vehicle through 28 border checkpoints (as mentioned in Chapter 6).

So, other border checkpoints do not survey the distance traveled, Consultants have used

the travel information of the border checkpoint on the left side or a travel behavior are

similar include:

1) Sungai Go lok border, Betong border, Wang Prachan border, and Buketa border

used the average travel distance of the Sadao border is 40 kilometers.

2) Ban kok Pai border, Ban Pak Saeng border, and Phu Doo border perform

an average distance trip survey. The average distance traveled is 0 kilometers

(meaning is no traffic for 4-wheel foreign vehicles).

3) Chong Sangam border used the average travel distance of the Chong Chom border

is 52 kilometers.

4) Ban Laem border and Ban Pakkard border used the average travel distance

of the Ban Had lek border is 84 kilometers.

It can summarize the average travel distance of 4-wheel foreign vehicle of 28

border checkpoints as shown in Table 3.2.2-1.

Table 3.2.2-1 : summarizes the average distance traveled of 4-wheel foreign vehicle

of 28 fixed points

Number of

Border Checkpoint List of Border Checkpoint

4-wheel

foreign vehicle

(Kilometers)

THAI - MALAYSIA 40

1 Sadao Border 40

2 Padang Basar Border 39

3 Ban Prakob Border 40

4 Sungai Go lok Border 40

5 Betong Border 40

6 Wang Prachan Border 40

7 Buketa Border 40

THAI - MYANMAR 13

1 1st Sai River Bridge Border 7

2 2nd Sai River Bridge Border N/A

3 Ban Rim Moei Border (Mae Sot) 18

4 Ban Phunamron Border N/A

THAI - LAOS 53

1 4th Thai-Laos Friendship Bridge Border (Chaing Khong) 46

2 Ban Huai Kon Border (Thung Chang) 79




Number of

Border Checkpoint List of Border Checkpoint

4-wheel

foreign vehicle

(Kilometers)

3 Mae Nam Hueang Friendship Bridge Border (Thali) 56

4 Ban Kok Pai Border N/A

5 1st Thai-Laos Friendship Bridge Border (Nong Khai) 42

6 Bueng Kan Border 5

7 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) 17

8 2nd Thai-Laos Friendship Bridge Border (Mukdahan) 39

9 Ban Pak Saeng Border (Khemarat) N/A

10 Chong Mek Border 137

11 Phu Doo Border N/A

THAI - CAMBODIA 64

1 Chong Sangam Border 52

2 Chong Chom Border 52

3 Aranya Prathet Border 30

4 Ban Laem border (Chanthaburi) 84

5 Ban Pakkard Border (Chanthaburi) 84

6 Ban Had lek Border (Klong Yai) 84

Note: N/A means no traffic volume of 4-wheel vehicle foreign.

3.3 FORECASTING TRAFFIC AND TRANSPORTATION IN THE FUTURE

Domestic trips and freight transit are considered to change mode of entry and

departure. Apart from trips and road freight transit such as rail freight transit. Railway

network is available only two checkpoints which are

1. Padang Besar border (Songkhla province) currently is able to serve

passengers and freight transit.

2. First Thai-Lao Friendship Bridge (Nongkhai) currently is able to serve only

passengers.

The result of origin-destination survey for trips and freight transit by as

mentioned two border checkpoints are trips around checkpoints areas only especially

non-Thai national vehicles. The trip for passengers have average distance approximately

40 kilometer and freights have average distance approximately 10-80 kilometer. Although

railway network will be developed, the behavior will not be changed altogether. Because

of the behavior of trips around checkpoints areas only. Thus, the study will mainly mention

on trips behavior on road network.




Forecasting model of traffic volume entry and departure border is separated

to 2 parts

1) Freight transit entry and departure border model (In order to consider

trend of freight trucks volume) Volume of goods and weight will not be considered

to forecast freight truck transit because of discrepancy from transit technology and

changing goods. The study consider the value of border commerce (proxy) as goods volume

and weight.

2) Passengers entry and departure border model (In order to consider trend

of 4 axles cars, motorcycle and public buses volume) The volume of people crossing border

by checkpoints will be considered instead of vehicle volume passing checkpoints which is

collected by customs because of more complete people data than vehicle.

The result of commerce and crossing border trips value forecasting

The result of commerce and crossing border trips value forecasting is displayed

in the table 3.3-1 in order to forecast trips generation of personal vehicles and public

vehicles and freight truck transit by commerce growth value and trip of people.

As a result, in 20 1 7 -2022 grow extremely because of ASEAN community including

modifying regulation and infrastructure. The import value increase approximately

8-10 percent per year. In addition, the export value increase approximately 5-7 percent per

year. However, growth rate decrease continuously from 2022 to 2037 and the trend of

people trip crossing border is the same as commerce value but the growth rate less than

commerce. The growth rate of year from 2017-2022 is 5-8 percent but decrease

continuously until 2037

Table 3.3-1: Result of commerce and crossing border trips value forecasting of people

Detail Countries Year

2017 2022 2027 2032 2037

Value of import by

border

(Billion Baht)

Malaysia 252.53 371.62 495.72 656.25 867.78

Myanmar 134.75 204.81 289.81 414.01 596.96

Laos 57.70 93.39 123.48 153.96 184.12

Cambodia 14.14 22.11 28.82 35.62 42.35

Value of export by

border

(Billion Baht)

Malaysia 250.34 317.61 395.20 484.76 588.20

Myanmar 119.52 159.41 200.60 243.13 287.05

Laos 152.00 209.46 272.59 341.95 418.15

Cambodia 119.73 168.94 221.96 279.07 340.60

Value of people trips

depart border

(Thousand people)

Malaysia 4,723.89 6,219.11 7,845.79 9,615.50 11,540.80

Myanmar 1,069.80 1,515.82 1,976.37 2,451.92 2,942.97

Laos 3,523.16 4,681.07 5,953.20 7,350.81 8,886.30

Cambodia 4,038.13 5,422.02 6,912.81 8,518.77 10,248.79

Value of people trips

entry border

(Thousand people)

Malaysia 4,753.29 6,241.89 7,861.38 9,623.25 11,540.04

Myanmar 827.45 1,221.48 1,628.34 2,048.45 2,482.26

Laos 3,400.96 4,474.43 5,653.79 6,949.48 8,372.98

Cambodia 3,941.40 5,277.29 6,716.38 8,266.64 9,936.66

Source : Consultant’s process, 2560




As a result of commerce and crossing border trips value forecasting of people

in the table 3.3-1 is considered to forecast the traffic volume crossing border in the future by.

Growth rate of people entry trips at the border are considered to forecast trips

volume by personal vehicle such as motorbike, car and bus. Traffic volume

base on current year 2560.

Growth rate of commerce border value are considered to forecast freight

trucks volume by more than 6 axles trucks. Traffic volume base on current

year 2560.

The result of entry and departure traffic volume forecasting at border between

Thailand and neighboring countries is display in the table 3.3-2 to 3.3-5 which display

volume of trip by motorcycle, car, bus and freight truck transit crossing border.

As a result of traffic volume forecast in the future is able to calculate cost of

vehicles usage in each types including cost of spare parts Vehicle fittings along with

determination of appropriate toll the will be presented in chapter 6.




Table 3.3-2 Traffic forecast of inbound and outbound at the Thai border crossing points in 2022 (trip/year)

(Units: trip/year)



Motorcycle 4 axles vehicles Bus Truck Total Motorcycle 4 axles vehicles Bus Truck Total

inbound outbound inbound outbound inbound inbound outbound inbound outbound inbound inbound outbound inbound outbound inbound outbound inbound outbound inbound outbound

THAI - MALAYSIA

1 Sadao Border 311,550 438,725 394,950 421,906 479 2,883 155,766 164,852 862,746 1,028,366 80,524 119,652 350,374 450,258 10,545 28,832 53,175 35,193 494,618 633,935

2 Padang Basar Border 616,870 602,586 775,042 668,899 - 481 82,180 82,426 1,474,092 1,354,392 170,634 120,613 273,685 318,112 479 5,766 33,839 27,784 478,637 472,275

3 Ban Prakob Border - 3 1 - - - 940 1,647 942 1,649 1,157 715 15,298 12,561 181 87 440 379 17,077 13,742

4 Sungai Go lok Border 1 - 7 7 - - - - 8 7 2,471 2,333 56,594 57,612 125 122 - - 59,190 60,068

5 Betong Border - - - - - - 207 194 207 194 6,964 6,926 59,068 58,621 1,114 1,106 5,136 4,428 72,281 71,081

6 Wang Prachan Border - - 7,396 7,415 - - - - 7,396 7,415 5,535 3,304 24,522 20,373 225 137 - - 30,282 23,815

7 Buketa Border - - - - - - 50 43 50 43 297 158 3,125 2,870 3 1 47 41 3,472 3,070

THAI - MYANMAR

1 1st Sai River Bridge Border 73,817 105,504 274,254 246,176 - - - - 348,071 351,680 812,526 634,575 376,628 365,126 - - - - 1,189,154 999,702

2 2nd Sai River Bridge Border - - - - - - 39,388 31,644 39,388 31,644 - - - - - - - - - -

3 Ban Rim Moei Border (Mae Sot) - - 54,420 73,956 - - 141,465 172,824 195,885 246,780 - 517 355,076 322,718 - - 14,979 13,144 370,055 336,379

4 Ban Phunamron Border 21,014 24,824 73,817 56,889 - - 3,883 2,921 98,714 84,635 - - - - - - - - - -

THAI - LAOS

1 4th Thai-Laos Friendship Bridge Border (Chaing Khong) - - 13,446 10,669 480 970 63,804 51,305 77,730 62,944 - - 15,367 16,489 480 970 - - 15,847 17,459

2 Ban Huai Kon Border (Thung Chang) - - 25,451 24,733 - - 5,317 8,048 30,768 32,781 - - 3,361 3,395 - - - - 3,361 3,395

3 Mae Nam Hueang Friendship Bridge Border (Thali) - - 11,045 25,218 - - 38,401 27,161 49,445 52,379 - 3,395 51,862 51,406 - 485 18,314 11,569 70,177 66,854

4 Ban Kok Pai Border - - - - - - 379 322 379 322 - - - - - - 5,958 5,073 5,958 5,073

5 1st Thai-Laos Friendship Bridge Border (Nong Khai) - - 347,190 294,370 8,164 485 81,528 160,957 436,881 455,812 - - 580,570 500,963 2,881 3,395 27,767 67,904 611,218 572,262

6 Bueng Kan Border - - 1,441 1,940 - - 4,135 3,018 5,576 4,958 - - 3,361 3,395 - - - - 3,361 3,395

7 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) - - 31,213 40,252 - - 155,966 123,233 187,179 163,484 - - 73,952 72,744 - - 37,219 47,784 111,171 120,528

8 2nd Thai-Laos Friendship Bridge Border (Mukdahan) - - 55,224 64,985 6,243 3,880 59,669 60,862 121,135 129,726 - - 213,692 219,687 12,966 10,184 4,726 2,012 231,384 231,883

9 Ban Pak Saeng Border (Khemarat) - - - - - - 12,186 10,375 12,186 10,375 - - - - - - - - - -

10 Chong Mek Border - - 36,496 66,439 960 - 54,943 70,419 92,399 136,858 - - 51,382 35,402 480 - 1,772 1,006 53,635 36,408

11 Phu Doo Border - - 2,401 2,425 - - 8,271 7,042 10,672 9,467 - - - - - - - - - -

THAI - CAMBODIA

1 Chong Sangam Border 27 4 477 510 - - 2,177 4,610 2,681 5,124 19 4 1,860 2,066 - - - - 1,879 2,070

2 Chong Chom Border 10,263 3,431 76,728 83,315 - - 2,853 8,241 89,843 94,986 339,655 318,557 190,598 134,284 - - 571 1,030 530,824 453,871

3 Aranya Prathet Border 67,442 81,845 114,359 117,621 489 - 138,636 180,778 320,926 380,244 627,507 517,533 228,229 228,871 - - - - 855,736 746,404

4 Ban Laem Border (Chanthaburi) 36 54 114 90 - - 396 195 545 338 38 40 2,399 2,578 - - - - 2,438 2,619

5 Ban Pakkard Border (Chanthaburi) 71 54 288 313 - - 792 877 1,152 1,244 17 15 1,050 880 - - - - 1,066 895

6 Ban Had lek Border (Klong Yai) 2,444 12,252 55,713 48,029 - 490 17,116 27,297 75,272 88,068 4,887 1,960 21,015 11,762 - - 5,135 1,030 31,036 14,753

Source: Processed by consultants.




Table 3.3-3: Traffic forecast of inbound and outbound at the Thai border crossing points in 2027 (trip/year) (Units: trip/year)





THAI - MALAYSIA

1 Sadao Border 392,384 553,479 497,422 532,261 604 3,637 207,784 205,126 1,098,193 1,294,503 101,416 150,949 441,281 568,028 13,281 36,373 70,933 43,791 626,911 799,141

2 Padang Basar Border 776,920 760,200 976,130 843,858 - 606 109,624 102,563 1,862,673 1,707,227 214,905 152,161 344,694 401,318 604 7,275 45,139 34,572 605,342 595,325

3 Ban Prakob Border - 3 2 - - - 1,254 2,049 1,256 2,052 1,457 902 19,268 15,846 228 110 587 472 21,540 17,330


5 Betong Border - - - - - - 277 242 277 242 8,771 8,738 74,393 73,954 1,402 1,395 6,851 5,509 91,417 89,596


7 Buketa Border - - - - - - 67 54 67 54 374 199 3,936 3,621 3 2 63 51 4,376 3,872

THAI - MYANMAR

1 1st Sai River Bridge Border 98,405 137,559 365,606 320,971 - - - - 464,011 458,531 1,083,170 827,378 502,080 476,063 - - - - 1,585,250 1,303,441




THAI - LAOS

1 4th Thai-Laos Friendship Bridge Border (Chaing Khong) - - 16,990 13,569 607 1,234 84,361 66,768 101,957 81,571 - - 19,417 20,970 607 1,234 - - 20,024 22,203





6 Bueng Kan Border - - 1,820 2,467 - - 5,468 3,928 7,288 6,395 - - 4,247 4,317 - - - - 4,247 4,317




10 Chong Mek Border - - 46,115 84,495 1,214 - 72,644 91,643 119,973 176,138 - - 64,925 45,023 607 - 2,343 1,309 67,875 46,332

11 Phu Doo Border - - 3,034 3,084 - - 10,936 9,164 13,970 12,248 - - - - - - - - - -

THAI - CAMBODIA



3 Aranya Prathet Border 85,834 104,348 145,544 149,961 622 - 180,737 237,510 412,737 491,819 798,625 659,829 290,466 291,800 - - - - 1,089,091 951,629


5 Ban Pakkard Border (Chanthaburi) 91 68 367 399 - - 1,032 1,153 1,490 1,621 21 19 1,336 1,122 - - - - 1,357 1,141











THAI - MALAYSIA

1 Sadao Border 480,324 678,322 608,903 652,319 739 4,458 275,070 251,613 1,365,036 1,586,712 124,145 184,997 540,179 696,153 16,257 44,578 93,903 53,715 774,485 979,443

2 Padang Basar Border 951,041 931,671 1,194,898 1,034,200 - 743 145,123 125,807 2,291,062 2,092,421 263,070 186,483 421,946 491,839 739 8,916 59,757 42,407 745,511 729,644

3 Ban Prakob Border - 4 2 - - - 1,661 2,513 1,663 2,517 1,784 1,105 23,586 19,421 279 134 777 579 26,426 21,239


5 Betong Border - - - - - - 366 296 366 296 10,736 10,709 91,066 90,635 1,717 1,710 9,069 6,758 112,589 109,812


7 Buketa Border - - - - - - 88 66 88 66 458 244 4,818 4,437 4 2 83 62 5,363 4,746

THAI - MYANMAR

1 1st Sai River Bridge Border 123,793 170,659 459,933 398,204 - - - - 583,727 568,862 1,362,631 1,026,462 631,617 590,613 - - - - 1,994,249 1,617,075




THAI - LAOS






6 Bueng Kan Border - - 2,238 3,046 - - 6,817 4,927 9,055 7,973 - - 5,221 5,331 - - - - 5,221 5,331




10 Chong Mek Border - - 56,684 104,332 1,492 - 90,570 114,961 148,745 219,293 - - 79,804 55,593 746 - 2,922 1,642 83,472 57,235

11 Phu Doo Border - - 3,729 3,808 - - 13,634 11,496 17,363 15,304 - - - - - - - -

THAI - CAMBODIA



3 Aranya Prathet Border 105,645 128,590 179,138 184,800 766 - 223,373 298,624 508,922 612,013 982,962 813,118 357,510 359,589 - - - - 1,340,473 1,172,708





T h e S t u d y o f T o l l C o l l e c t i o n f o r E x e c u t i v e S u m m a r y R e p o r t t h e A S E A N E c o n o m i c C o m m u n i t y T r a n s p o r t a t i o n







THAI - MALAYSIA

1 Sadao Border 575,996 814,142 730,185 782,932 886 5,350 363,734 305,304 1,670,801 1,907,728 148,873 222,039 647,774 835,543 19,495 53,503 124,171 65,177 940,313 1,176,263

2 Padang Basar Border 1,140,472 1,118,219 1,432,900 1,241,277 - 892 191,901 152,652 2,765,273 2,513,040 315,468 223,822 505,990 590,320 886 10,701 79,018 51,456 901,363 876,298

3 Ban Prakob Border - 5 2 - - - 2,196 3,050 2,198 3,055 2,139 1,327 28,284 23,309 335 161 1,027 703 31,785 25,500


5 Betong Border - - - - - - 485 359 485 359 12,875 12,853 109,205 108,783 2,059 2,052 11,993 8,200 136,131 131,888


7 Buketa Border - - - - - - 117 80 117 80 549 293 5,778 5,326 5 2 110 75 6,442 5,697

THAI - MYANMAR

1 1st Sai River Bridge Border 150,009 204,836 557,333 477,952 - - - - 707,343 682,788 1,651,196 1,232,031 765,375 708,895 - - - - 2,416,572 1,940,926


3 Ban Rim Moei Border (Mae Sot) - - 110,591 143,586 - - 412,322 311,210 522,913 454,796 - 1,004 721,577 626,559 - - 43,658 23,669 765,235 651,232


THAI - LAOS





5 1st Thai-Laos Friendship Bridge Border (Nong Khai) - - 649,695 558,817 15,276 921 160,726 321,324 825,697 881,062 - - 1,086,419 951,002 5,392 6,444 54,740 135,558 1,146,551 1,093,005

6 Bueng Kan Border - - 2,696 3,682 - - 8,153 6,025 10,849 9,707 - - 6,290 6,444 - - - - 6,290 6,444




10 Chong Mek Border - - 68,294 126,125 1,797 - 108,315 140,579 178,407 266,704 - - 96,151 67,205 899 - 3,494 2,008 100,544 69,214

11 Phu Doo Border - - 4,493 4,603 - - 16,306 14,058 20,799 18,661 - - - - - - - - - -

THAI - CAMBODIA


2 Chong Chom Border 19,324 6,485 144,472 157,483 - - 5,465 16,613 169,261 180,581 639,540 602,142 358,879 253,826 - - 1,093 2,077 999,512 858,045

3 Aranya Prathet Border 126,988 154,704 215,327 222,329 920 - 265,579 364,458 608,815 741,492 1,181,539 978,249 429,734 432,616 - - - - 1,611,274 1,410,865

4 Ban Laem Border (Chanthaburi) 67 102 214 169 - - 759 393 1,040 664 72 76 4,518 4,874 - - - - 4,590 4,950




CChhaapptteerr 44

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CHAPTER 4

CASE STUDIES ON CROSS BORDER

TOLL COLLECTION SYSTEMS

Consultant team investigates the Cross Border Toll Collection System in five

key countries, which includes Malaysia, Singapore, Canada, Mexico, and EU countries.

Table 4-1 is a summary of the Cross Border Toll CollectionSystem in these five

countries. Table 4-2 is an Analysis of Characteristic and Key Observation in each Case

Study. This analysis will be used in developing a system for Thailand’s Cross Border

Toll Collection System, the details are as follows:

4.1 CROSS BORDER TOLL COLLECTIONSYSTEM IN MALAYSIA

The Vehicle Enter Permit (VEP) system of Malaysia developed on the purpose

to improve the security and safety of traveling across the border and controlling vehicles

that travel into Malaysia, The VEP system records entry and departure of all foreign cars

into the system. In addition, the system records traffic laws that have been violated, and

personal information about the driver and the car into the archives at the Road Transport

Department: JPJ. While the implementation of Road Charge (RC) aimed to reduce traffic

around the border, from private vehicles traveling in and out of Malaysia and Singapore

multiple times per day, However, vehicles used for commercial purposes are exempted

from this charge, so that people traveling by public transport do not have extra expenses.

Currently in Malaysia, VEP and RC is collected at both the Bangunan Sultan Iskandar

(BSI) checkpoint, which connects with the Woodland checkpoint in Singapore and

the Sultan Abu Bakar CIQ Complex (Malaysia-Singapore Second Link) checkpoint,

which connects with the Taus Check point in Singapore. RC is only collected from

personal vehicles.

4.2 CROSS BORDER TOLL COLLECTION SYSTEM IN SINGAPORE

There are 2 border crossing points to travel between Malaysia and Singapore.

The first point, Johor-Singapore Causeway, is at the Jahor Bahru checkpoint in Malaysia

and the Woodlands checkpoint in Singapore. The second point, Malaysia-Singapore

Second Link, passes through the Sultan Abu Bakar checkpoint in Malaysia and the Tuas

checkpoint in Singapore. Singapore officials have been collecting VEP since 1973

as a policy to restrict and control the amount of vehicles entering the country. This is

done by collecting a fee, at the same rate for all vehicles. Subsequently, after Malaysia

started collecting a fee for vehicles traveling from Singapore on November 1st, 2016,

Singapore started collecting a Reciprocal Road Charge (RRC) for all vehicles that were

registered in a foreign country traveling through Taus and Woodlands Check point

to Singapore. This RRC initiative has started since February 15th, 2017.




4.3 CROSS BORDER TOLL COLLECTION SYSTEM BETWEEN

THE UNITED STATES OF AMERICA AND MEXICO

Since 2011, Mexico announced that vehicles traveling from the border of

the United States of America to Mexico must request for a Temporary Import Permit

(TIP). This includes registering the vehicle and the driver’s passport to ensure that

the driver does not import cars to sell in Mexico. In addition, drivers must leave Mexico

within the given duration. When drivers receive a TIP, officials will provide them with

a car sticker and official documents. However, drivers do not have to request for a TIP if

they do not intend to drive beyond the Free Zone, Border Zone, or 16 miles beyond

the border of both countries, the Baja California Peninsula, and other specified areas.

If drivers travel into other areas without a TIP, the customs officers in Mexico have

the right to confiscate the vehicle. Although there are no road charges, drivers need to

place a deposit with the department that provided the permit. This is done to make sure

that the car will be out of the country within the given time. To drive a vehicle from

the United States of America to Mexico, car registration document, the traveller’s

unexpired credit card, and the TIP is needed. In addition, drivers must buy insurance from

a company in Mexico because the law in Mexico does not recognize insurances from

foreign businesses. This insurance can be bought from agencies nearby border

of the United States of America and Mexico. However, there are no Cross Border

Toll Collection system when traveling from the border of Mexico to the United States

of America. Vehicles that travel from Mexico to the United States of America must pass

a strict check by the customs and immigration departments before entering.


THE UNITED STATES OF AMERICA AND CANADA

The government of each state in the United States of America and the central

government in Canada establishes a policy for collecting a fee for crossing the border

between the two countries. There are different policies depending on the state or district.

A fee is only collected in some states and border crossing checkpoints; for example, there

are no fees for crossing the border from the state of Washington in the United States of

America to the province of British Columbia in Canada. For border crossing checkpoints

that have a Cross Border Toll Collection fee, the government of each state in the United

States of America and the central government in Canada would set up a committee or

management team to manage and set a policy for the Cross Border Toll Collection fee

for the bridge or tunnel that is used to travel across the border.


COUNTRIES WITHIN THE EUROPEAN UNION

The European Union (EU) is another group of countries that have a Road Charge

system. Each country in the EU has the liberty of developing an appropriate policy for

their Cross Border Toll Collection system. However, these countries must get consent

from the European Commission, to ensure that agreements between the countries in

the EU is not violated or used as a way to prevent travel between countries in the EU.

There are 3 types of Road Charges used in Europe: 1) Road toll, which is a general fee paid

at checkpoints when using the expressway. Here, the charge depends on travel distance,




which is charged differently in different countries. 2) Vignette, which is road tax that

drivers have to buy in a form of sticker to be able to legally drive on public roads

in certain countries. 3) Cross Border Toll Collection fee for vehicles that pass through

certain checkpoints where fees are collected electronically. Generally, the toll that is

collected depends on the distance of travel within a country. Some countries in the EU

use a mixture of method of collecting toll.

Table 4-1: Summary of Cross Border Toll Collection Systems

Analysis Malaysia Singapore The United

States – Mexico

The United States

– Canada European Union

Roles

between

policy maker

and operator

Government

establishes the

policy and

operate the

collecting

process. Private

company only

involved as

technical

consultant

Government

establishes the

policy and

operate the

collecting

process.

Government

establishes the

policy and

operate the

collecting

process.

Different

depending on the

agreement made

in each state.

The central

government of

each country

comes up with a

policy that does

not oppose

central policies

of the European

Union.

Operator Government

operate the

collecting

process

Government

operate the

collecting

process

Government

operate the

collecting

process

Difference

depending on the

state. In some

states, the private

sector are

involved.

Difference

between

countries.

Generally, this is

done by the

government or

state enterprises.

Involvement

of Private

Sector

Private

company

(DNex) as

system

consultant and

system

maintenance

thru 5-year

concession

contract.

No

involvement

from Private

sector

No involvement

from Private

sector

Private sector is

involved in

collecting process

through a

concession in

Detroit city

The private

sector is no

involved.

In some

countries, state

own enterprise is

involved

Separation of

VEP and RC

Clear separation

between VEP

and RC

Clear

separation

between VEP

and RC

RC is not

collected, but

there is a fee for

temporary

permit in

Mexico.

VEP is not

collected, but

there are road

charges in several

states/check

points

VEP is not

collected, but

there are

different types of

road charge in

each country.

Collection by

type of

vehicle

Difference

among type of

vehicle

Difference

among type of

vehicle

All types of

vehicle are

charged at the

same amount

Difference among

type of vehicle

Difference

among type of

vehicle and

duration

Country




Analysis Malaysia Singapore The United

States – Mexico

The United States

– Canada European Union

Technology

used in

collecting the

fees

RFID

Technology

RFID

Technology

Inspected by the

officer and

RFID when

SENTRI Card is

registered

RFID Technology Inspected by the

officer and

ANPR

(Automatic

Number Plate

Recognition)

Table 4-2: Analysis of Characteristics and Key Observations in each Case Study

Country Characteristic Key Observation

Malaysia Government establishes the policy and

operate the collecting process. Private

company only involved as technical

consultant thru thru 5-year concession

contract

After announced the RC collection by

towards the end of 2016, there was a

significant decrease in the number of cars

traveling from Singapore in the first two

months. However, the situation became

normal in the month afterward

Singapore Government manages everything. Started

collecting VEP since 1973 and RCC

recently, in 2017.

Singapore collected 6.4 Singapore Dollars

for RCC, which is equivalent to 20

Malaysia Ringgit that Malaysia collects.

The United

States –

Mexico

No cross border toll collected in both

countries, except in the event that the driver

drives pass the specified border zone.

No border crossing fee at both US borders

between Canada and Mexico

The United

States –

Canada

Each checkpoint has the liberty to manage

their own Cross Border Toll Collection

system, depending on the agreement made

between states in both the United States

and Canada.

Generally, central department between the

two countries will set-up to be responsible

for Cross Border Toll Collection, which

only collected in border crossing with

bridge or a tunnel.

European

Union

The system, amount and technology used

to collect cross border toll differs between

countries. However, all policies must

follow the agreement made with the

European Union.

Only some countries can use e-vignette.

For example, Hungary and Portuguese

already applied lectronic system.

However, most countries still use manual

system.

Country

CChhaapptteerr 55

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CHAPTER 5

IMPACT ANALYSIS OF TOLL COLLECTION

5.1 ANALYSIS ON THE IMPACT OF HAVING A TOLL COLLECTION

FOR CROSS-BORDER TRANSPORTATION

Implementing of Cross-border transportation fees may impact stakeholders.

The consultants have evaluated potential impacts that may arise from implementing

such measures. This includes impacts on the economy, society, and other related factors.

The consultants investigated stakeholders’ views, from primary sources, in both

the private and public sectors from both the central and regional areas. In addition,

risk factors and suggestions are discussed in this chapter.

The consultants have applied two research methods as follows:

1) In-depth Interview: This method was used to collect data in the central

regions. In theory, this method of data collection is time consuming, but is allows

consultants to get detailed and in-depth information. Usually when conducting

an in-depth interview, there is a low sample group of around 7-12 people, in which

a one-on-one interview between the interviewer and a researcher or analyst. Open-ended

questions are used so that the sample group can freely, flexibly, and openly answers

questions with no constrictions.

2) Focus Group Discussion: This was organized to collect data from

regional areas by inviting to the discussion. Participation for this is voluntary focus group

discussion involves talking in a group, between the consultant and sample group of

no more than 20 people. The discussion guide is used as reference for a discussion of

topics related to the aim of the study. This allows the sample group to express their

opinion, make suggestions, communicate concern and/ convey potential risks that may

occur in the future.




5.2 Summary of In-depth Interview (Central Region)

Topic Government Sector Transport and Logistic Company Travel Agency Company Toll Collection Department

Suitability

in Collecting

Toll Fee

Agree that a fee should be

collected by considering equality.

This should be divided into two

parts: (1) cost for using the Cross-

border transportation and (2) for

requesting for permission to pass.

This will be used in managing the

entry and departure of cars,

reducing accidents and for road

maintenance, reducing pollution,

or developing new routes.

Agree that there should be an

effective a toll collection system that

is convenient and fast.

Agree that there should be a toll

collection.

Agree that a fee should be collected.

Following the principle that users are

collectively responsible for the

infrastructure, if the objective of

collecting a fee can be conveyed,

payers will be willing to pay.

Suitable Toll Fee The government sector did not

suggest any thoughts on the

finances, but suggested that the

type of car, the objective of

traveling, goods, and the weight

of that type of car are factors that

should be taken into account.

When comparing the fee, it

should not be lower than the rate

in Malaysia, so that Thailand is

not at a disadvantage.

The collection fee rate should be

suitable with the economic status of

different Cross-border transportation

point and regions within the country.

On the issue of dividing the types of

cars, they suggest that the collection

fee should be set at one standard rate,

which should be at the rate of break-

even.

Each border control point should

not have the same toll rate as the

Cross-border transportation to

Malaysia because different

economic factors should be taken

into consideration for crossing

each Cross-border transportation

point.

The fee that is collected should be

considered from calculating the cost of

crossing the border, people’s ability to

pay and whether the Office of

Transport and Traffic Policy and

Planning can accept a change in the

ways in which people travel.

Impacts towards

Institutions

- This is a method of

strengthening protection of the

border to become more effective,

by a have a clear system of the

cars that enter and depart and can

be used in preventing accidents.

- Government departments will

not be affected because they

follow government policy.

- Not affected because entrepreneurs

will make consumers pay for the cost.

- If the collection fee is too high, they

might consider not providing this

service

- Will not be greatly affected.

Might be affected in the

beginning, if they did not know

about the policy beforehand.

- Tourists will have to pay the

cost

- Might decrease the amount of

personal cars brought in. People

might start using tour services

instead.

- Does not impact the toll collection

department because the money that is

collected will become part of the

government’s central budget, which is

managed according to the policy and

the existing budget criteria. However,

there can be an indirect impact in a

decrease in road usage, which may

result in a decrease number of labour

that can be managed.

Economical

Impact

- May affect the tourism and

transportation, depending on

- Most people view that the economy

will not be impacted.

- Tourism may decrease in the

beginning and tourists may

- May impact the tourism and

transport industries, depending on




Topic Government Sector Transport and Logistic Company Travel Agency Company Toll Collection Department

the toll rate and the economic

status in each region.

- Transportation will not be

affected because, when

comparing the collection fee rate

and the amount of transport, it is

acceptable.

- Some think that there might be an

impact. The amount of decreasing

the amount of transportation

will because the cost is high.

consider using other method of

travel; for example, by flying.

- There will be no impact.

This will help the tourism

industry by increasing group

tours rather than tourists traveling

on their own.

the toll rate and the economic status

in each region.

- Transport will not be impacted

because, when comparing the rate of

collection fee and the amount of

transportation, it is acceptable.

Environmental

Impact

- There should be a fee for

personal cars and there should

also be an additional car

inspection to measure black

smoke from the engine, speed,

and sound, for example.

- Setting a toll collection system may

cause traffic in areas in front of the

border, which can cause noise and air

pollution.

- The environmental impact

should not differ from now. Tour

companies regularly have car

inspections for their cars and

already control the emission of

pollution. There may be traffic

problems in the beginning when

people are not accustomed with

the new system yet.

- There may be problems of pollution

that is created from traffic in front of

the crossing point.

Impact on

International

Relations

- Not impacted, if both sides set a

collecting a fee and it is based on

equality.

- May affect countries with

smaller economies, but an

agreement can be negotiated.

- Should not affect international

relations because the other side can

also counteract by collecting a fee.

- In addition, this can benefit

international relations by using the

money to improve and repair roads in

both countries. This allows for more

convenient transportation.

- The impact depends on the

agreement made for each border

control.

- Can impact citizens of both

countries that often travel

in and out. This may cause

dissatisfaction.

- Having toll collection depends only

on the agreement made between

countries. In the case where everyone

cooperates, there should not be any

problem between the countries.

The case of

establishing

a management

fund for this

income

- It is a good way of

management, but it may be hard

to implement because there is no

clear framework on who is

responsible for the funding.

- It is not likely possible because

the cost of fixing and repairing

the infrastructure must mostly

come from a government budget.

Therefore, the toll collection fee

system should operate normally.

- Agree because the money should

be used in the departments directly

related.

- Agree because it will help

decrease government budget.

- No comments made on the point.




5.3 SUMMARY OF FOCUS GROUP DISCUSSION

The consultants conducted focus group discussions to introduce and present

the background of the project and to ask focus group’s opinion in 4 Cross-border area

in 4 regions. This includes:

1) Aranyaprathet border, Sa Kaeo Province This is a trade crossing point

between the border of Thailand and Cambodia. At this border, there is traffic congestion

due to the of developing infrastructure in Sa Kaeo. Roads are being built to support

the ASEAN community. In addition, this Cross-border point allows a lot of trucks to pass

through Thailand to Cambodia and Vietnam.

2) Mae Sai border, Chiang Rai Province This Cross-border transportation

connects to Myanmar and Laos. A lot of tourist, especially Chinese tourist that come in

through the 4th Thai-Lao Friendship Bridge (Chiang Khong) during peak season, travel

through this Cross-border to Thailand. However, the rules set by the customs department

in 2016 make it harder to travel; therefore, the amount of tourists that drive into

the country has decreased and only local transportations are regularly used to travel in and

out of the country.

3) Nong Khai border, Nong Khai Province This is a Cross-border point

that connects to Laos PDR. Lao citizen often travel pass this Cross-border point to buy

and spend a lot of money in Thailand during holiday seasons or on the weekends.

Subsequently, this Cross-border point has heavy traffic. Lao people that travel through

this Cross-border to spend impacts the economy and trade in province of Nong Khai

more than in any other province.

4) Sadao border, Songkla Province This border connects to Malaysia,

which is a country that already has toll collection for cars coming in from foreign

countries. Currently, there is not a lot of personal cars come into Thailand from Malaysia

because of the issue of security and alternative of flying, which has become cheaper.

Consequently, there has been a remarkable decrease in the amount of tourist that from

travel Malaysia to Thailand in the past three years. In the past, tourists would pass

through the Sadao Cross-border to Phuket for the Vegetarian Festival and other festivals.

However, in the present, there is a collection fee. There is a charge for 350 baht per car.

Thai cars that travel to Malaysia are usually vehicles that transports goods around

the border.




Table 5.3-1: A Summary of the Analysis of Impact in regional area From Focus Group Discussion

Topic Government Sector Transport and Logistics

Company Travel Agency Company Foreign Entrepreneur

Impact

on the Law

and Policy

- Consider the principle of equality set by

the World Trade Organization (WTO)

- Make an agreement between each

country before a setting a policy, so that

all sides have an understanding and

no problems emerge after.

- All policies that are made has to

facilitate in reducing cost the for

entrepreneur and not create extra burden.

Impact

on Economy

- The affects may only occur in the short-

run. If adaptations can be made,

everything will return back to normal.

- When setting a toll collection fee, it is

important consider the amount of cars

that enter, the types of cars, and

the purpose of traveling.

- A toll collection will be at a similar rate.

- Do not agree with having toll

collection for crossing

the border because the border

is shared. Businesses will lose

customers.

- This will impact the

transportation of goods across

the border because this

becomes an extra cost in

addition to the other costs that

already exists. Consequently,

this may decrease the amount

of goods that are transported

through the border; thus,

affecting the economy in both

the short and long run.

- May have a small impact

on tourism in the short-run.

However, collecting fee that

is too high will affect tourism

in the long run.

- This policy will lead to a

change in traveling method--

from traveling by personal

cars to traveling by planes

instead.

- There will be many methods

of collecting the fee; for

example, making monthly,

weekly, or yearly payments.

- Having a Cross-border fee

affects the cost transportation

and traveling for foreigners.

This will impact the decision

in using services, which will

affect entrepreneurs.

- The government must have a

protocol for helping or

healing if there is a negative

impact on the economy

in the areas around the Cross-

border point in the long run.

Impact

on Society

and Culture

- In the past 3 years, the amount of tourist

has decreased as there has been an

increase in the Value Added Tax (VAT).

- Tourists that are not familiar with the

Thai Law show behaviors that indicate

that they do not respect the Thai law.






Impact on the

Environment

- Cars that travel into the country must

comply to the Thai Vehicle Act on the

laws that are stated and the condition of

the vehicle.

- Environmental problems comes from

tourists that travel into Thailand causing

an increase in trash. During hours of

traffic congestion, things that fall off

the truck onto the road causing accidents.

- The budget that is received from

collecting a fee must be allocated to

the central government, related

departments, departments that are

directly impacted, and as benefits to

encourage workers.

- The problem of corruption

may be emerge from setting

a collection fee.

- Should force an inspection

on personal cars that enter

Thailand.

- Must have a checkpoint for

noise and air pollution.

- It is necessary to have

a budget or department that

looks after the problem of

trash from tourists and

foreigners when there is

not enough trashcans and

when there is problems with

trash management.

- Set-up a One Stop Service to

reduce traffic congestion

areas in front of Cross-border

- All vehicles entering

Thailand needs to be

inspected to prevent accidents

from occurring.

- A GPS system must be

installed in all cars to control

traveling, speed, and

terrorism.

- There must a checkpoint to

measure emission of smoke

and noise pollution 2-3

kilometers before reaching

the Cross-border

transportation.

- Establish a private

department for toll collection

and to oversee the process.

- Comply to the conditions

on the Vehicle Act by setting

a limit for speed, smoke

emission, and noise to reduce

the impact on communities

near the Cross-border

transportation point on

the both sides.

Impact

on Stability

- Be strict and stern about the reinforcing

the law with foreign tourists.

- Use modern technology in the system to

control and verify vehicles that enter and

depart the Cross-border

Impact on

International

Relations

- There will be a retaliation on the toll

collection system between the countries.

- The toll collection fee rate for each

bordering crossing point should be

similar to the country it is at the border

of. In addition, economic status of each

region, the amount of cars, and the type

of cars that enter Thailand should be

taken into consideration.

- There should not be a fee for Thai people

that are traveling in and out of Thailand






because they already pay for vehicle tax.

- May impact neighboring countries to

spend in other countries instead.

Impact

on Tourism

- Car must be overseen by using CCTV

and GPS for traveling so that it is easier

to attend to tourists when there is an

accident.

- Must advertise to make tourists aware of

the toll collection fee policy or new

conditions that are related to it.

- Does not affect tourism

because entrepreneurs will

includes these fees into

the tour package.

- Tourists are usually willing to

pay for expenses.

- Must have a service point

near the Cross-border

transportation point for

documents or have a sign that

indicates the different

processes for tourists.

- The toll collection fee must

be collected separately at

different points.

The fee should not all be at

the same rate.

Impact

on Transport

and Logistics

- The entrepreneurs will not be impacted

because they will make the consumers

pay for the cost.

- The toll collection fee must be

different between types of

cars, distance of travel, and

type of vehicle used for

different businesses.

- A toll fee can be daily, month,

or weekly.

- The Thai government must

have a procedure for

requesting for documents that

is fast or uses minimum

amount of documents.

Impact

on citizen

living around

the border

- There must an inspection of items that is

transported into the country because

there might be problem for citizens

living around the border or

the community nearby if anything falls.

- There must be a waste management

system, a management team and

budgeting

- Establishing a One Stop

Service will create jobs for

people in the community

- There has to be a related

department or budget to help

with problems of amount of

waste and environmental

pollution, including air

pollution, noise disturbance,

crime that will happen.

- On the subject of accidents,

speed must be controlled,

police and soldiers are

needed for management, and

driving laws needs to be

strictly reinforced because

the steering wheels are

installed differently

in different countries.




5.4 RESULTS AND RECOMMENDATIONS

The result of the analysis from the in-depth interview and focus group discussion

with the government sector, private sector, and citizen suggest that the majority agree

with having a toll collection system. From the analysis a Toll Collecting System will be

used increase budget for maintenance, for verifying, and for supervising the safety of

traveling around the border to make it more efficient and systematic. Here, the consulting

team has made suggestions for managing the toll collection system.

1) Setting a toll fee for each Cross-border point should depend on the cost of

living in each regions and the cost of living in the neighboring countries. In addition,

the fee should be set at a suitable rate that should not be too high that it is a burden for

entrepreneurs, especially those in the transportation business who will most likely to be

most affected by the toll fee. In comparison, the travel companies may only be affected

in the beginning, in the short-run. Furthermore, the frequency of collecting a toll fee

should be determined, such as, daily, monthly, or yearly. This is suggested so that

businesses that travel in and out the frequently are not impacted. Moreover, there should

be areas near the border where a toll collection fee should be lifted.

2) An operation center to manage Customs, Immigration, and Quarantine (CIQ) and

toll collection fee all at the same time should be set up. This operation center should reduce

redundant payment of fees so that everything can be paid in one time.

3) Thai government should negotiate and come to an agreement with

the neighboring countries on the toll collection system. In addition, officers at different

Cross-border points should have a clear understanding of the rules and regulation.

Officers in foreign countries also should have an understanding of the law in Thailand

so that foreigners that enter Thailand can adapt to the law.

4) Cars that enter Thailand should be inspected to make sure that it meets

the standard for safety and for emission of pollution.

5) Technology should be adapted to be able to store data that can be

connected with data in different governmental departments. With this technology,

criminal checks can be conducted and crime can be prevented in from coming into

the country.

6) There should be an evaluation of the amount of vehicles that travel in and

out of each Cross-border point to adapt the toll collection system and the electronic

system used for storing this data. This evaluation should be done because there is

a high cost with setting these systems.




5.5 AN ANALYSIS OF RISK AND RISK MITIGATION

Type of risk Risk Issues Methods of Reducing Impact

Laws and International

Relation

Other countries with counteract

the toll collection fee, especially

in neighboring countries with smaller

economy.

The government may negotiate with

the government or local officials

in neighboring countries to come to

an agreement that is reasonable for

both sides.

Set a different toll fee rate for

different Cross-border transportation

points depending on the economic

status in each region.

Violating the code of conduct

established by the WTO.

May use the same method as

Malaysia and only collect a fee from

cars that are not registered

in Thailand.

Laws and internal

regulations

The problem of having a clear

understanding whether

the government or private sector

will be in charge of collecting the fee.

The policy needs to be clear.

Government departments have to

negotiate and come to an agreement

on any changes on the rules and

regulations, in which the private

sector will execute.

Whether the money that is collected

should go to the central budget or

budget for maintaining local roads.

Clearly state how the collection fee

is managed and used (between

the central government and regional

areas)

Process of collecting

a fee

May make the procedure of entering

the country harder.

Might be able to establish

a service center or a separate

department for collecting toll fee.

The problem of the readiness of

the verification system to check

ownership of car that passes through

the border.

May adapt and use the same

technology and data storage system

as Malaysia, which allows the private

sector to manage.

The car inspection system may not be

up to standard; thus, resulting

in further complications.

Use the registration system and RFID

tracking system or read

the information on the car

license plate.

Economic The process and documents needed

in traveling into Thailand becomes

more complicated; affecting tourists

and possibly reducing the amount of

people that come from neighbouring

countries to spend.

Consider having a different toll fee

rate for each region, making sure that

the collection fee is the same between

the two bordering countries, or

agreeing to only collect from

personal cars, to increase the use of

buses and tours.

Make the procedure clear. Put

customs, immigration and quarantine

checkpoints and toll collection at

the same service center. The use of

tracking technology may help reduce

the process of identifying the car

owner, which should reduce the time

in checking for those who frequently

travels between the border.




Type of risk Risk Issues Methods of Reducing Impact

The higher cost of traveling and

maintaining a business may result

in cancellation of certain

transportation services.

Certain transportation services may

be cancelled due to higher cost of

traveling and maintaining a business

A different fee should be applied for

personal cars and cars for commercial

use, which frequently travels through

the border.

Entrepreneurs may lose customers

that switch to traveling by airplanes

instead of tour buses.

Have payment options

(E.g. monthly, yearly) to reduce

the cost for entrepreneurs. Travelling

companies may arrange tour

packages with airlines.

Having is a toll collection system for

local cars can impact tourism and

businesses around the border.

Have a free zone where cars don’t

have to pay a toll collection fee if

they do not go beyond that area.

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PPV/TR_G/RT6022/P4440/RT170 6-1 TEAM/Strategy 1/DR

CHAPTER 6

FEE CALCULATION AND TOLL COMPOSITION

The objective of Toll collection management is to propose management options

and suggestions to operate the system as well as the technology to be applied for

this project. Revenue management, roles of the regulator, vehicle detection and tracking

systems will be discussed in this chapter. Chapter 6 comprises of nine (9) sections, i.e. toll

pricing model; technology to be used; manpower and costs; analysis of VEP and RC; VEP

and RC pricing; financial results and financial analysis.

6.1 TOLL PRICING MODEL

To calculate VEP and the RC, it is necessary to understand the definition of

costs incurred from both activities. The purpose of VEP is to check the vehicles coming to

Thailand. Therefore, the expenses incurred due to the installation of the vehicle detecting system

will be a VEP expense, these include depreciation on investment and operating expenses.

While RC refers to the cost of using the vehicle after the vehicle has entered

Thailand. As a results in damage to the road and create other effects include chance of

accident and the pollution of the vehicle. Therefore, it must be installation with a vehicle

tracking system to know the distance to the Kingdom of Thailand and the impact.

Meaning and difference the Vehicle Entry Permissions (VEP) and Road Charge

(RC) are shown in Figure 6.1-1.

Figure 6.1-1: Meaning of VEP and RC

TrackingWhereWhen

Road Charge: RC

Road Maintenance

Accident

Environment

Vehicle Entry Permission: VEPDetectingWho

WhereWhen

Vehicle Entry Permit (VEP) is

The fee for applying for a license

to use a vehicle registered in a

foreign country is temporarily

Road Charge (RC) is Charges for

road charges are collected directly

from motorists. It may be calculated

from the vehicle distance or the

vehicle time on the road to collect fees collected for road maintenance.




The calculation of tolls will be driven from a financial model construction.

Data gathered from previous chapters will be modeled and analyzed. This is to calculate

the costs of VEP and RC as well as pricing formula. Required data includes:

1) Traffic volume forecast;

2) Operating expenses in relation to traffic volume such as road maintenance

costs, accident, and environmental treatment;

3) Capital expenditure in technology and manpower required;

4) Capital expenditure in building an equipment;

5) Operation and maintenance (O&M) costs

Analysis process and financial model structure as presented in Figure 6.1-2

Figure 6.1-2 : Financial Model Structure for Cost Analysis and Toll Pricing

From the figure 6 . 1 - 2 in determining the RC and VEP fees, the calculation is

based on the analysis and forecasting of the arrival traffic volume entering to Thailand

in the future at a total of 28 border checkpoints. There will be only two border checkpoints

is port for trucks crossing include Ban Kokpai Border and Ban Pak Saeng border

In predictions of the cost of installing the toll collection system, the consultants

will only consider 26 border checkpoints where passenger cars can cross the border. It has

a 20-year forecasting period to create a financial model.




6.2 TECHNOLOGY USED FOR MANAGEMENT OF TOLL COLLECTION,

MAN-POWER AND COST ANALYSIS

6.2.1 Suitable technology for toll collection management

1. Payment Method can be broken down into 3 main methods, which are;

(1) Manual Toll Collection ( MTC) is when the toll is collected manually

by a toll collecting officer stationed at each toll booth, where it will

require the driver to hand the Toll, which may be in a form of cash or

purchased coupons, to the officer, then receive change (if any) and

receipt voucher (if required) from the same officer.

(2) Semi-Auto Toll Collection is designed to have the toll collected through

an automatically toll collecting equipment instead of an officer, where

the driver still pays the toll, except the payment will be made through a

transaction on an automatic system, such as, an automatic prepaid card

system or an automatic coins machine.

(3) Electronic Toll Collection, ETC does not require the driver to roll down

the vehicle’s window when paying toll or receiving change or card, nor

does it require a toll officer to station at the toll booth (except for

emergency cases). This method requires communications between the

fitted vehicle equipment (RFID tag) and the equipment that is installed

at each toll booth. The toll will be automatically deducted from the

equipment right on the spot.

2. The Technology of Toll Collection

This section is a discussion of the technology used to collect tolls in Thailand

and many countries. It consists of 3 main technologies as follows:

(1) DSRC (Dedicated Short-range Communications)

Dedicated Short-range Communications (DSRC) technology is a technology

that relies on two-way radio communication between roadside equipment (RSE) and

on-board unit (OBU). OBU must be registered with the operator of the toll collection

system. OBU technology can be used to store vehicle specific information, such as vehicle

registration data, vehicle type, and so on. Used for calculation of toll collection, the cost of

the OBU box is 300-1,000 Baht, which is considered a high-cost device compared to RFID.

(2) RFID (Radio Frequency Identification)

RFID (Radio Frequency Identification) technology used radio frequency

to locate equipment automatically. In terms of use, the DSRC and RFID technology is

similar, that is, work with microwave. The RFID-based toll collection system consists of

(1) TAGs or RFID circuits installed in vehicles. It functions as an OBU in the DSRC

system. The TAG is both Active (with built-in battery, high cost equivalent to OBU

in DSRC system) and Passive type (sticker without battery, cost 30-50 Baht per sheet).

(2) Antenna for writing and reading data; and (3) Central Computer System. RFID

technology uses camera with ANPR technology installed on the Gantry or at the crossing

checkpoint to identify the offense and also check license plate and vehicle exterior.




(3) GNSS (Global Navigation Satellite System)

GNSS (Global Navigation Satellite System) technology is a technology

that relies on radio frequency to locate vehicle position through at least three satellites,

requiring On-Board Unit (OBU) to transmit signal. With GNSS technology, radio frequency is

transmitted through On-Board Unit (OBU) installed on the vehicle. OBU equipment must

be registered with toll operator prior to access the system. When the vehicle passes through

the express route at the crossing checkpoint, the system will track and calculate the distance

traveled on all the routes sent to the central control center. To charge a fee from the carrier,

the OBU device can send and receive important data of the vehicles, such as, vehicle

registration, vehicle speed, vehicle location, etc. The cost of OBU box in GNSS is about

3,00-5,000 baht.

By reviewing the technology used to collect the toll, this can summarize

the features of the technology in various ways. Table 6.2.1-1.

Table 6.2.1-1: Comparison Chart of Technology for Toll Collection

Technology Shared

device

In-vehicle

equipment

Cost of

In-vehicle

equipment

Reading

data Usage

Suitability

with space

1) DSRC

(Dedicated

Short-range

Communications)

Antenna

reader

+ ANPR

+ Server

OBU Medium

(300-1,000

Baht)

Vehicle

Identification

And money

in the system

Expressway /

Motorway /

System

keeping track

of costs

The

infrastructure

of Thai

vehicle

tracking

technology

does not

cover all

areas. At this

time, RFID

technology is

more

suitable

because

it has a

lower cost

compared to

DSRC and

GNSS.

2) RFID

(Radio

Frequency

Identification)

Antenna

reader

+ ANPR

+ Server

RFID

sticker

Low

(30-50

Baht)

Vehicle

Identification

Office

building /

Area with all

rights

reserved

3) GNSS

(Global

Navigation

Satellite System)

Satellite

system

+ ANPR

+ Server

OBU High

(3,000-

5,000

Baht)

Vehicle

Identification

And money

in the system

and travel

route

Shipping /

Track service/ System

keeping track

of costs

3. Tracking and supervision technology for cross-border transport

Vehicle tracking technology is used to verify location of cross-border

transport which can monitor the speed, work hours, and transportation routes, etc. The

technology, used to track, investigate, control and supervise the vehicle, consists of

followings:

1) Global Positioning System (GPS), GPS Tracking System

A system can display the location of a vehicle. It includes in-vehicle GPS

unit to transmit location data by satellite to detect coordinates. The GPS device then

transmits the location information over the cellular network in the form of a GPRS (General

Packet Radio Service) signal to send a signal to the Control Center with a server and a

database. Then it will rely on the server to collect data, execute data, and transfer data to

various relevant agencies through application software developed to suit the user. The cost




of the in-vehicle GPS device (2017) is quite different according to device property.

The cost is around 1,000 - 5,000 Baht.

2) Global Positioning System (GPS), GPS Tracking System

A system can display the location of a vehicle. It includes in-vehicle GPS

unit to transmit location data by satellite to detect coordinates. The GPS device then

transmits the location information over the cellular network in the form of a GPRS (General

Packet Radio Service) signal to send a signal to the Control Center with a server and

a database. Then it will rely on the server to collect data, execute data, and transfer data to

various relevant agencies through application software developed to suit the user. The cost

of the in-vehicle GPS device (2017) is quite different according to device property.

The cost is around 1,000 - 5,000 Baht.

3) Intelligent Video Tracking and Surveillance System (CCTV)

The Intelligent Video Tracking and Surveillance system must be installed

in a networked environment (Network CCTV) along the way or along the travel route to

track vehicle all time in the zone. In addition, each closed circuit camera must be equipped

with additional software to enable image processing capability and detect vehicles

in the scope of a closed circuit camera (Detection Zone), together with the ability to link

vehicle tracking to the next camera (Hand Off).

6.2.2 Preliminary investment budget of toll collection system

In the process of collecting toll through the cross-border transportation of

vehicles into Thailand at the 28 permanent cross-border checkpoints, the costs are

infrastructure construction and installation of the toll collection system including operation

and maintenance (O&M) cost. In addition to infrastructure and technology to be installed

at the 28 permanent cross-border checkpoint, to monitor, control, and collect toll,

the Control Center is also available for controlling the border crossing checkpoints and also

the Database Center where relevant agencies have access to information. There are also

vehicle control equipment to link such systems. The composition and linkage of the work

process of the toll collection system through cross-border transport illustrated Figure 6.2.2-1.




Figure 6.2.2-1: Components and Linkages of the Toll Collection System

for Cross-Border Transport

In this study. The consultants have estimated the cost of investment and management

cost of the fee collection system through cross-border transport. It is considered as two

periods of time in accordance with its objectives and operational readiness as follows:

Phase 1: The purpose is to collect tolls and investigate inbound-

outbound vehicle information

In the first phase, RFID (Radio Frequency Identification) technology is used in

conjunction with ANPR (Digital Signage Detection System) under infrastructure and

budget constraint. Many countries also use these systems because of quite efficient

performance and low cost. RFID systems, like Malaysia, is used to charge Road Charge

fees to Singapore. In-vehicle equipment uses a built-in RFID reader to check the vehicle

information. And Smart Card or Contecless Smart Card is used to pay tolls. These devices

are low cost, easy to use and widely used. The cost of investment in phase 1 can be

summarized as follows:

Infrastructure investment and system installation costs at the 26 border checkpoint

approximately 225 million Baht

Infrastructure investment and system installation cost of database center

of Bangkok (1 location) approximately 300 million Baht

Reserved investment cost for in-vehicle equipment approximately 98 million Baht

Operation and maintenance costs of the system at the 26 border checkpoint

approximately 21.7 million Baht per year

Operation and maintenance costs of the system at the database center of Bangkok

(1 location) about 30 million Baht per year.

Database Center 1 place in Bangkok

Vehicles entering the

border checkpoint.

Control

RoomAntenna

Transmission via satellite

on the CLOUD system

Composition and linkage toll

collection system for

cross-border transportation




Phase 2: The purpose is to collect tolls and check vehicle information

as well as to control, track and supervise vehicles entering and leaving

the country. * (Consider only incremental cost from Phase 1)

In this phase, there are additional objectives from the initial stage: controling,

monitoring and supervising transportation of cross-border vehicles, which can be

implemented when infrastructure and budgets of the country are ready. The GPS

technology will be integrated with RFID ANPR and Smart Card or Contecless Smard Card

in the first phase. GPS helps to tracking, monitoring and supervising across the border. The

cost of investment in Phase 2 can be summarized as follows:

Infrastructure investment and system installation costs at the 26 border

checkpoints (already in Phase 1)

Infrastructure investment and system installation costs of database center

of Bangkok (1 location) (due to the incremental cost of GPS) increased by

about 200 million Baht.

Reserved investment cost of in-vehicle equipment, about 3,368 million Baht

(change equipment to update technology every 5 years).

Operation and maintenance costs of the system at the 26 border checkpoints,

approximately 21.7 million Baht per year (no additional cost from the GPS

system at the border crossing checkpoints)

Operation and maintenance costs of the system at the database center of

Bangkok about 50 million Baht per year (increased from the first phase

about 20 million Baht per year because of the cost of additional GPS system)

6.3 ANALYSIS OF VEP AND RC

To conduct cost analysis of VEP and RC, the Consultants applies financial model

structure as set out in Figure 6.1-2. Total cost is calculated from traffic volume forecast of

four-wheel foreign vehicle coming to Thailand only. This is because foreign trucks are

prohibited according to our current legal constraint to operate logistics services in

Thailand.1

6.3.1 Traffic Forecast

Based on the analysis of current traffic volumes of foreign vehicles and future

forecast in the next twenty years, (from B.E. 2560), the Consultants use data from both

primary and secondary sources, it has been forecasted that four-wheel vehicles from aboard

will come to Thailand from 2.2 million vehicles to 5.6 million vehicles. The average growth

rate is around 7.1% in the first period and will reduce to 3.5% by the end of forecasting

period as shown in Figure 6.3.1-1.

1 Section 26 of Land Transport Act, B.E. 2522 (1979). No person shall use a vehicle registered in a foreign country for

transport operation except in the international transport and having been permitted by the Central Registrar. However,

such prohibition must not conflict with conventions or agreements that Thailand has made with foreign countries.

Therefore, the import of vehicles registered in a foreign country to be used in Thailand is carried through under

the conventions or agreements that Thailand makes with foreign countries.




Figure 6.3.1-1: Forecast on Number of Foreign Four-Wheel Vehicles trips

to Thailand B.E. 2560-2580

6.3.2 Operating Expenses

Key operating expenses comprises operation and maintenance as well as

depreciation. Details of operating expenses are summarized in Table 6.3.2-1

Table 6.3.2-1: Summary of Operating Expenses

OPERATION COST 2017 2018 2019 2020 2021 2022

1) Operation and

Maintenance Cost (O&M)

Control Center 30,000,000 31,500,000 33,075,000 34,728,750 36,465,188

Border and Toll Booth 21,700,000 22,785,000 23,924,250 25,120,463 26,376,486

Total 0 51,700,000 54,285,000 56,999,250 59,849,213 62,841,673

2) Depreciation Cost 43,290,000 43,290,000 43,290,000 43,290,000 43,290,000

Total Operation Cost 0 94,990,000 97,575,000 100,289,250 103,139,213 106,131,673

Source: The Consultants

From Table 6.3.2-1, Operating expenses before allocation. (Before being divided

into 2 parts: VEP 50% and RC 50%), amounting to about 95 million baht in 2018 and will

increase to 161.94 million baht in the 20th year of forecasting (2080). So, if we divide by

the estimated number of cars in the year 2018 of 2.3 million cars, the average operating

cost per trip will be 41.3 baht per trip. (in case of allocation costs will be charged at 42 baht

per trip).

From the financial simulator, Figure 6.1-2, the operating cost is divided into 2

parts to calculate VEP and RC Cost, since the installation of VEP and RC collection system




it must be invested in the database center (control center) and toll booth. The consultants

then divide the costs into two equal parts (50%) to calculate the RC and VEP costs

separately for clarity, although in practice it may be possible to charge a total fee. As has

already been done in other countries.

6.3.3 RFID Tag Cost and Smart Card (Contectless Smart Card) Cost

Estimates of the need for RFID tag and Smart Card are provided in Chapter 6 ,

Section 6 . 2 , of the final report can show the estimated demand for fittings vehicles

equipment and expenses relevant in the first 5 years of operation in Table 6.3.3-1.




Table 6.3.3-1: Estimates Vehicle Fitting Equipment Requirements and Related Expenses


Vehicle Fitting Cost 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Total Trip 2,334,077 2,488,822 2,643,567 2,798,312 2,953,068 3,119,078 3,285,088 3,451,098 3,617,108 3,783,127 3,961,340 4,139,553 4,317,766 4,495,979 4,674,185 4,865,621 5,057,057 5,248,493 5,439,929 5,631,353

Average Trip per Car (trip/year) 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Number of Car (veh/year) 583,519 622,206 660,892 699,578 738,267 779,770 821,272 862,775 904,277 945,782 990,335 1,034,888 1,079,442 1,123,995 1,168,546 1,216,405 1,264,264 1,312,123 1,359,982 1,407,838

Spare Rate 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Number of Vehicle Fittings Required (unit) 1,167,038 1,244,412 1,321,784 1,399,156 1,476,534 1,559,540 1,642,544 1,725,550 1,808,554 1,891,564 1,980,670 2,069,776 2,158,884 2,247,990 2,337,092 2,432,810 2,528,528 2,624,246 2,719,964 2,815,676

Number of New Vehicle Fitting (unit) 1,167,038 77,374 77,372 77,372 77,378 83,006 83,004 83,006 83,004 83,010 89,106 89,106 89,108 89,106 89,102 95,718 95,718 95,718 95,718 95,712

2023 116,703 1,167,038 1,167,038

2024 77,374 77,374 77,374

2025 77,372 77,372 77,372

2026 77,372 77,372 77,372

2027 77,378 77,378 77,378

2028 83,006 83,006

2029 83,004 83,004

2030 83,006 83,006

2031 83,004 83,004

2032 83,010 83,010

2033 89,106

2034 89,106

2035 89,108

2036 89,106

2037 89,102

Total Vehicle Fittings for Sale (unit) 1,167,038 77,374 77,372 77,372 77,378 1,250,044 160,378 160,378 160,378 160,388 1,339,150 249,484 249,486 249,482 249,490 1,434,868 345,202 345,204 345,200 345,202

Number of vehicle fittings required

RFID Tag (unit) 1,167,038 77,374 77,372 77,372 77,378 1,250,044 160,378 160,378 160,378 160,388 1,339,150 249,484 249,486 249,482 249,490 1,434,868 345,202 345,204 345,200 345,202

Smart Cart (unit) 1,167,038 77,374 77,372 77,372 77,378 1,250,044 160,378 160,378 160,378 160,388 1,339,150 249,484 249,486 249,482 249,490 1,434,868 345,202 345,204 345,200 345,202

RFID Tag and Smart Cart Cost

RFID Tag (Baht/unit) 40 41 42 43 44 45 46 47 48 49 50 52 54 56 58 60 62 64 66 68

Smart Cart (Baht/unit) 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 87 90

Average Cost per Unit 90 93 96 99 102 105 108 111 114 117 120 124 128 132 136 140 144 148 153 158

RFID Cost 46,681,520 3,172,334 3,249,624 3,326,996 3,404,632 562,511,980 7,377,388 7,537,766 7,698,048 7,859,012 66,957,500 12,973,168 13,472,244 13,970,992 14,470,420 86,092,080 21,402,524 22,093,056 22,783,200 23,473,736

Smart Cart Cost 58,351,900 4,023,448 4,178,088 4,332,832 4,487,924 75,002,640 9,943,436 10,264,192 10,584,948 10,906,384 93,740,500 17,962,848 18,461,964 18,960,632 19,460,220 114,789,440 28,306,564 28,997,136 30,032,400 31,068,180

ToTal Cost of RFID Tag and Smart Card 105,033,420 7,195,782 7,427,712 7,659,828 7,892,556 637,514,620 17,320,824 17,801,958 18,282,996 18,765,396 160,698,000 30,936,016 31,934,208 32,931,624 33,930,640 200,881,520 49,709,088 51,090,192 52,815,600 54,541,916




6.3.4 Cost of VEP

VEP cost is driven from investments in the detection system and operating costs

in relation to the traffic volumes through Thailand. Key cost drivers are in investment in

building and equipment both in headquarters and at the crossing points and operating

expenses. A 50% of operating system expenses are allocated to the VEP costs as per shared

resources (between detection system and tracking system) The VEP costs by crossing

points are presented Table 6.3.4-1 and 6.3.4-2

Table 6.3.4-1 : Cost of VEP by Crossing Points


Note: Border Checkpoint don’t have traffic or "0 ” due to data collection because no traffic for 4 - wheel-drive

non-Thai nationals.

(Unit: baht)

year 1 5 10 15 20

Border crossing cost (VEP) 2018 2022 2027 2032 2037

50% of OPEX 50% 50% 50% 50% 50%

1 Sadao Border 6,446,386 7,123,599 8,215,067 10,063,356 10,689,548

2 Padang Basar Border 5,164,523 5,707,080 6,581,501 8,062,271 8,563,931

3 Ban Prakob Border 288,694 319,005 367,898 450,666 478,710

4 Sungai Go lok Border 1,067,935 1,180,140 1,360,945 1,667,155 1,770,890

5 Betong Border 1,114,620 1,231,729 1,420,441 1,740,030 1,848,305

6 Wang Prachan Border 462,750 511,351 589,710 722,373 767,333

7 Buketa Border 58,975 65,165 75,153 92,059 97,793

8 1st Sai River Bridge Border 1,140,341 1,374,402 1,677,653 2,111,992 2,266,958

9 2nd Sai River Bridge Border 0 0 0 0 0

10 Ban Rim Moei Border (Mae Sot) 2,764,499 3,331,937 4,067,095 5,120,060 5,495,743

11 Ban Phunamron Border 0 0 0 0 0

12 4th Thai-Laos Friendship Bridge Border (Chaing Khong) 332,990 368,511 426,355 524,440 559,703

13 Ban Huai Kon Border (Thung Chang) 125,088 138,420 160,155 197,025 210,256

14 Mae Nam Hueang Friendship Bridge Border (Thali) 1,368,177 1,514,050 1,751,752 2,154,736 2,299,613

15 Ban Kok Pai Border 0 0 0 0 0

16 1st Thai-Laos Friendship Bridge Border (Nong Khai) 11,487,112 12,711,795 14,707,434 18,090,855 19,307,137

17 Bueng Kan Border 7,917 8,761 10,136 12,470 13,307

18 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) 592,246 655,393 758,283 932,727 995,434

19 2nd Thai-Laos Friendship Bridge Border (Mukdahan) 3,926,078 4,344,661 5,026,746 6,183,131 6,598,825

20 Ban Pak Saeng Border (Khemarat) 0 0 0 0 0

21 Chong Mek Border 3,316,158 3,669,734 4,245,842 5,222,588 5,573,726

22 Phu Doo Border 0 0 0 0 0

23 Chong Sangam Border 44,957 50,422 58,753 72,358 77,053

24 Chong Chom Border 4,607,912 5,166,836 6,021,117 7,416,173 7,896,282

25 Aranya Prathet Border 3,183,272 3,569,399 4,159,564 5,123,302 5,454,968

26 Ban Laem border (Chanthaburi) 93,681 105,054 122,456 150,832 160,582

27 Ban Pakkard Border (Chanthaburi) 40,988 45,980 53,569 65,966 70,268

28 Ban Had lek Border (Klong Yai) 820,700 920,262 1,072,391 1,320,889 1,406,389

Total VEP Cost (baht) 48,456,000 54,113,686 62,930,020 77,497,453 82,602,756




Table 6.3.4-2 : Average VEP Cost per Trip by Crossing Points (Unit : Baht/Trip)



non-Thai nationals.

6.4 ROAD CHARGE (RC) CALCULATION

In this study, it can only be considered as external cost or can be described as

the cost of damage caused by the use of road vehicles. By reviewing Leeds's University of

the United Kingdom about cost-effective transportation research under the Unification of

Accounts and Marginal Costs for Transport Efficiency (UNITE) program, there are three

types of external costs that are caused by the use of roads: Infrastructure Cost, Accident

Cost and Environmental Cost (Environmental Cost)

Average Cost of VEP per Trip 2018 2022 2027 2032 2037

1 Sadao Border 23 20 19 19 17

2 Padang Basar Border 23 21 19 19 17

3 Ban Prakob Border 23 21 19 19 17

4 Sungai Go lok Border 23 21 19 19 17

5 Betong Border 23 21 19 19 17

6 Wang Prachan Border 23 21 19 19 17

7 Buketa Border 23 21 19 19 17

8 1st Sai River Bridge Border 4 4 3 3 3


10 Ban Rim Moei Border (Mae Sot) 10 9 9 9 8


12 4th Thai-Laos Friendship Bridge Border (Chaing Khong) 27 24 22 22 19

13 Ban Huai Kon Border (Thung Chang) 46 41 38 38 33

14 Mae Nam Hueang Friendship Bridge Border (Thali) 33 29 27 27 24


16 1st Thai-Laos Friendship Bridge Border (Nong Khai) 24 22 20 20 18

17 Bueng Kan Border 3 3 2 2 2

18 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) 10 9 8 8 7

19 2nd Thai-Laos Friendship Bridge Border (Mukdahan) 23 20 19 19 17


21 Chong Mek Border 80 71 65 65 58


23 Chong Sangam Border 30 27 25 25 22

24 Chong Chom Border 30 27 25 25 22

25 Aranya Prathet Border 17 16 14 14 13

26 Ban Laem border (Chanthaburi) 49 44 40 40 36

27 Ban Pakkard Border (Chanthaburi) 49 44 40 40 36

28 Ban Had lek Border (Klong Yai) 49 44 40 40 36

Total (Baht/Trip) 21 18 17 17 15




This study divided vehicle types into 4-wheel vehicles, buses and 6-wheel or

more trucks. The cost of road maintenance for each type of vehicle can be summarized in

Table 6.4-1.

Table 6.4-1 : Road maintenance costs for each type of vehicle

Vehicle type

Infrastructure Cost

(Baht/Vehicle-

Kilometer)

Accident Cost

(Baht/Vehicle

-Kilometer)

Environmental Cost

(Baht/Vehicle-

Kilometer)

Total

Maintenance Cost

(Baht/Vehicle-

Kilometer)

1. 4-wheel

vehicle 0.850 0.510 0.138 1.498

2. Bus 1.470 0.510 0.348 2.328

3. 6-wheel

or more trucks 1.860 0.510 0.352 2.722

Source: Department of Highways and Office of Transport and Traffic Policy and Planning, additional analysis and

processing by consultants.

Note: Accident rates for all types of vehicles are the same. According to sources available, the accident rate classified by

vehicle severity is difficult and takes a long time to complete due to the variety of factors and methods applied.

6.4.1 Total Traveling Distance

The statistics surveyed on the inbound travel of four-wheel vehicles entering

Thailand from four countries can be summarized in Table 6.4.1-1. It is expected that the

traveling pattern will not change during the analysis period. However, the Consults

recommend that travelling pattern shall be regularly updated (at least every 2-3 years). This

is to make sure that the traveling pattern will reflect the real patter of commuters which will

directly affect costs of road used and fees to be charged in the future.

Table 6.4.1-1 : Average distance of four-wheel vehicle by countries

No. Country No.of crossing point Avg. traveling distance (km.)

1 4-whell vehicle from Malaysia 7 40

2 4-whell vehicle from Myanmar 4 13

3 4-whell vehicle from Laos 11 53

4 4-whell vehicle from Cambodia 6 64

Total average traveling distance (km.) 28 48 Source: The Consultants

Table 6.4.1-2 shows average distance of four-wheel vehicles coming to Thailand

Separate border points.

Infrastructure Cost

Accident CostEnvironmental

CostRoad Usage

Cost




Table 6.4.1-2 : Expected Kilomater Travelling into Thailand from Projected Volume and

Average Traveling Distance (Unit : Kilomater)

Source: The Consultants Note: Border Checkpoint don’t have traffic or "0 ” due to data collection because no traffic for 4 - wheel-drive

non-Thai nationals.

6.4.2 RC Cost Estimation

The data in Table 6.4-1 can be summarized RC Cost, it is classified as cost include

Road Maintenance Cost, Accident Cost and Environmental Cost. And the kilometer data is

made at each border checkpoint in table 6.4.1-1 can be used to calculate the RC Cost.

The results are summarized in table 6.4.2-1.

Border Crossing Points Border 2018 2019 2020 2021 2022

1 1 Sadao Border TH-Malaysia 22,115,106 23,418,642 24,722,178 26,025,714 27,329,172

2 2 Padang Basar Border TH-Malaysia 17,717,520 18,761,840 19,806,160 20,850,480 21,894,800

3 3 Ban Prakob Border TH-Malaysia 990,400 1,048,800 1,107,200 1,165,600 1,223,840

4 4 Sungai Go lok Border TH-Malaysia 3,663,680 3,879,600 4,095,520 4,311,440 4,527,520

5 5 Betong Border TH-Malaysia 3,823,840 4,049,200 4,274,560 4,499,920 4,725,440

6 6 Wang Prachan Border TH-Malaysia 1,587,520 1,681,120 1,774,720 1,868,320 1,961,760

7 7 Buketa Border TH-Myanmar 202,320 214,240 226,160 238,080 250,000

8 1 1st Sai River Bridge Border TH-Myanmar 3,912,076 4,252,262 4,592,448 4,932,634 5,272,792

9 2 2nd Sai River Bridge Border TH-Myanmar 0 0 0 0 0

10 3 Ban Rim Moei Border (Mae Sot) TH-Myanmar 9,483,948 10,308,636 11,133,324 11,958,012 12,782,736

11 4 Ban Phunamron Border TH-Loas 0 0 0 0 0

12 1 4th Thai-Laos Friendship Bridge Border (Chaing Khong) TH-Loas 1,142,364 1,210,168 1,277,972 1,345,776 1,413,764

13 2 Ban Huai Kon Border (Thung Chang) TH-Loas 429,128 454,566 480,004 505,442 531,038

14 3 Mae Nam Hueang Friendship Bridge Border (Thali) TH-Loas 4,693,696 4,972,352 5,251,008 5,529,664 5,808,544

15 4 Ban Kok Pai Border TH-Loas 0 0 0 0 0

16 5 1st Thai-Laos Friendship Bridge Border (Nong Khai) TH-Loas 39,407,928 41,747,916 44,087,904 46,427,892 48,767,880

17 6 Bueng Kan Border TH-Loas 27,160 28,770 30,380 31,990 33,610

18 7 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) TH-Loas 2,031,772 2,152,404 2,273,036 2,393,668 2,514,368

19 8 2nd Thai-Laos Friendship Bridge Border (Mukdahan) TH-Loas 13,468,884 14,268,618 15,068,352 15,868,086 1,667,976

20 9 Ban Pak Saeng Border (Khemarat) TH-Loas 0 0 0 0 0

21 10 Chong Mek Border TH-Loas 11,376,480 12,051,890 12,727,300 13,402,710 14,078,668

22 11 Phu Doo Border TH-Cambodia 0 0 0 0 0

23 1 Chong Sangam Border TH-Cambodia 154,232 164,008 173,784 183,560 193,440

24 2 Chong Chom Border TH-Cambodia 15,808,000 16,811,600 17,815,200 18,818,800 19,822,192

25 3 Aranya Prathet Border TH-Cambodia 10,920,600 11,613,900 12,307,200 13,000,500 13,693,740

26 4 Ban Laem border (Chanthaburi) TH-Cambodia 321,384 341,712 362,040 382,368 403,032

27 5 Ban Pakkard Border (Chanthaburi) TH-Cambodia 140,616 149,520 158,424 167,328 176,400

28 6 Ban Had lek Border (Klong Yai) TH-Cambodia 2,815,512 2,994,264 3,173,016 3,351,768 3,530,520

Total Distance traveled (km.) 166,234,166 176,576,028 186,917,890 197,259,752 207,603,232




Table 6.4.2-1 : Cost of RC (including expenses related to accident and environmental

issues) (Unit : Baht)



non-Thai nationals.

Form the above table together with the cost of management for vehicle detection

and tracking (in the future), the cost of VEP that is calculated from road usage and allocated

operating expenses (50%) and average cost per trip are presented in Table 6.4.2-2 and 6.4.2-3.

2018 2022 2027 2032 2037

Maintenance Cost

1 Road Maintenance 0.85 0.88 0.99 1.14 1.32 1.54

2 Acidential 0.51 0.53 0.59 0.69 0.79 0.92

3 Ebvironmental 0.14 0.14 0.16 0.19 0.21 0.25

Total maintenance costs per kilometer 1.5 1.54 1.74 2.01 2.33 2.71

Maintenance Cost

1 Sadao Border 34,122,282 47,459,637 69,293,722 98,333,723 136,701,860


3 Ban Prakob Border 1,528,128 2,125,311 3,103,207 4,403,667 6,121,913


5 Betong Border 5,899,956 8,206,164 11,981,360 17,002,643 23,636,807

6 Wang Prachan Border 2,449,448 3,406,778 4,974,182 7,058,638 9,812,938

7 Buketa Border 312,168 434,148 633,912 899,553 1,250,616





12 4th Thai-Laos Friendship Bridge Border (Chaing Khong) 1,762,599 2,455,132 3,596,284 5,124,551 7,157,685

13 Ban Huai Kon Border (Thung Chang) 662,119 922,197 1,350,901 1,925,223 2,688,834




17 Bueng Kan Border 41,906 58,367 85,500 121,850 170,179

18 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) 3,134,902 4,366,433 6,396,088 9,114,107 12,729,970



21 Chong Mek Border 17,553,226 24,448,910 35,813,485 51,032,331 71,278,849


23 Chong Sangam Border 237,971 335,926 495,582 707,040 985,385



26 Ban Laem border (Chanthaburi) 495,876 699,902 1,032,910 1,473,845 2,053,581


28 Ban Had lek Border (Klong Yai) 4,344,166 6,131,075 9,045,570 12,907,023 17,985,423

Total 256,489,344 360,522,229 530,811,918 757,263,630 1,056,354,298

Road Maintenance Cost




Table 6.4.2-2 : Cost of RC by Crossing Points (Unit : Baht)



non-Thai nationals.

Maintenance Cost + 50% Operation 2018 2022 2027 2032 2037

1 Sadao Border 40,568,668 54,583,236 77,508,789 108,397,079 147,391,408


3 Ban Prakob Border 1,816,822 2,444,317 3,471,105 4,854,333 6,600,622


5 Betong Border 7,014,576 9,437,893 13,401,801 18,742,673 25,485,113

6 Wang Prachan Border 2,912,198 3,918,129 5,563,892 7,781,010 10,580,272

7 Buketa Border 371,142 499,313 709,065 991,613 1,348,409





12 4th Thai-Laos Friendship Bridge Border (Chaing Khong) 2,095,590 2,823,643 4,022,639 5,648,992 7,717,388

13 Ban Huai Kon Border (Thung Chang) 787,206 1,060,617 1,511,056 2,122,248 2,899,091




17 Bueng Kan Border 49,823 67,128 95,636 134,319 183,487

18 3rd Thai-Laos Friendship Bridge Border (Nakhon Phanom) 3,727,148 5,021,826 7,154,371 10,046,834 13,725,404



21 Chong Mek Border 20,869,384 28,118,644 40,059,326 56,254,919 76,852,575


23 Chong Sangam Border 282,928 386,348 554,336 779,398 1,062,438



26 Ban Laem border (Chanthaburi) 589,557 804,956 1,155,366 1,624,676 2,214,163


28 Ban Had lek Border (Klong Yai) 5,164,867 7,051,337 10,117,961 14,227,913 19,391,813

Total (baht) 304,945,344 414,635,914 593,741,937 834,761,084 1,138,957,055




Table 6.4.2-3 : Average RC Cost per Kilometer by Crossing points (Unit : Baht/Trip)



non-Thai nationals.

RC per Trip 2018 2022 2027 2032 2037

1 Sadao Border 143 156 176 201 228




5 Betong Border 147 160 180 206 233


7 Buketa Border 147 160 180 206 233














21 Chong Mek Border 503 547 617 705 799








Average cost of RC per trip 131 140 157 179 202




6.5 TOTAL COSTS OF VEP AND RC

Table 6.5-1 : Total VEP and RC Costs by Crossing Points (Unit : Baht/Trip)



non-Thai nationals.

In summary, the total cost of toll fee (VEP) and road charge (RC) is about 1 5 1 baht

per trip (VEP costs are 21 baht per trip and RC 130 baht per trip). The operating expenses

are allocated to calculate the cost of VEP and RC (The operating cost of VEP section is

50%, which is 21 baht and the operating cost of RC section is 50%, which is 21 baht.

If there is no 50% cost allocation, then the VEP costs will be 42 baht per trip). The details

mentioned in section 6.3.2.

Total cost per trip 2018 2022 2027 2032 2037

1 Sadao Border 166 176 194 219 244




5 Betong Border 170 181 199 225 250


7 Buketa Border 170 181 199 225 250














21 Chong Mek Border 583 619 682 770 857








Include operating expenses 151 159 174 195 217

Average total cost per trip classified by country 2018 2022 2027 2032 2037

Malaysia 169 180 199 224 249

Myanmar 27 28 31 35 39

Loas 163 173 191 215 239

Cambodia 274 291 320 362 403

Average Nationwide (baht/trip) 151 159 174 195 217

VEP and RC Cost 2018 2022 2027 2032 2037

VEP 21 18 17 17 15

RC 130 139 157 178 202

Total Cost (baht/trip) 151 157 174 195 217




6.6 VEP AND RC PRICING

To price VEP and RC, there are generally four methods i.e.

1) Cost Plus Pricing;

2) Market Benchmarking Pricing;

3) Demand Driven Pricing; and

4) Strategic Objective Pricing.

The Consultants recommends the toll to be divided into 2 categories, one as

Registration Fee for entry permit application, serving the purpose of keeping record of

the vehicles entering Thailand through the borders, and the other as Crossing Fee, which is

set to be collected from each vehicle at each inbound. Both categories, however, will be

addressed as “cross-border toll” as the tracking capability at present is quite expensive.

In conclusion, toll is separated into 2 categories; 1) Registration fee for entry

permit application, collected at 100 THB with the exchange of RFID tag, cash

card, and a 5-year entry permission 2) Crossing fee, collected at the rate of

160 THB each time a vehicle crosses into Thailand through the border.

Table 6.6-1 : Expected Revenue from Cross-border Tool


year 0 1 5 10 15 202018 2019 2023 2028 2033 2038

Profit & Loss Statement1 Border crossing + road usage fees

Number of trips 2,334,077 2,953,068 3,783,127 4,674,185 5,631,353Cost fo VEP & RC 151 159 174 195 217Marked up % 3.0% 3.0% 3.0% 3.0% 3.0%Border crossing + Road usage fees 160 160 172 194 214Revenue from Crossing Fee 372,376,607 471,129,891 651,939,125 904,876,777 1,206,299,097

2 Registration fee + cash card soldcash cards sold (in-stock included) 1,167,038 77,378 160,388 249,490 345,202average cost of cash cards 90 102 117 136 158Marked up % 4.0%Registration Fee (for 5 Years) 100 100 116 133 155Revenue from registration + cash card 116,703,800 7,737,800 18,544,863 33,265,333 53,434,393

Total reveunes 489,080,407 478,867,691 670,483,988 938,142,110 1,259,733,490




6.7 EXPECTED FINANCIAL RESULTS AND RETURN ON INVESTMENT

6.7.1 Proforma Income Statement of the Operator

Table 6.7.1-1 : Projected Income Statement of the Operator


Table 6.7.1-2 : Projected Cash Flows of the Project


number of year 1 5 10 15 20

2018 2022 2027 2032 2037

Profit and Loss Statement

1 Bord Cross and Road Usage fees

Number of trip 2,334,077 2,953,068 3,783,127 4,674,185 5,631,353

Cost of VEP and RC (baht/trip) 151 159 174 195 217

Marked up % 3.00% 3.00% 3.00% 3.00% 3.00%

Bord cross and Road Usage fees (baht/trip) 160 160 172 194 214

Total Bord Cross and Road Usage fees (baht) 372,376,607 471,129,891 651,939,125 904,876,777 1,206,299,097

2 Registration fee and cash card sold

cash cards sold (in-stock included) 1,167,038 77,378 160,388 249,490 345,202

average cost of cash cards (baht) 90 102 117 136 158

Marked up % 4.0%

Registration Fee (for 5 year) 100 100 116 133 155

Revenue from Registration + Cash Card (baht) 116,703,800 7,737,800 18,544,863 33,265,333 53,434,393

Total Revenue (baht) 489,080,407 478,867,691 670,483,988 938,142,110 1,259,733,490

Deducted Expenses (baht)

vehicle fitting equipment

RFID tag 46,681,520 3,404,632 7,859,012 14,470,420 23,473,736

Cash Card 58,351,900 4,487,924 10,906,384 19,460,220 31,068,180

1 vehicle fitting equipment 105,033,420 7,892,556 18,765,396 33,930,640 54,541,916

2 Road maintenance 256,489,344 360,522,229 530,811,918 757,263,630 1,056,354,298

Operating expense

Operation & Maintenance (O&M) 52,506,000 63,821,371 81,454,039 98,102,679 108,313,284

Depreciation 44,406,000 44,406,000 44,406,000 56,892,228 56,892,228

3 Operating expense 96,912,000 108,227,371 125,860,039 154,994,907 165,205,513

Total expense (baht) 458,434,764 468,749,600 656,671,957 912,258,537 1,221,559,811

Operating Profit (baht) 30,645,643 10,118,091 13,812,031 25,883,573 38,173,679

Net margin % 8.2% 2.1% 2.1% 2.9% 3.2%

Project cash flow 2018 2019 2023 2028 2033 2038Investment

Building -162,000,000 0 0 0 0 0Tools and Equipment -363,060,000 0 0 -487,922,281 0 -655,726,745 Total investment -525,060,000 0 0 -487,922,281 0 -655,726,745

Operating Cash flow Net income 30,645,643 10,118,091 13,812,031 25,883,573 38,173,679Depreciation 44,406,000 44,406,000 44,406,000 56,892,228 56,892,228Operating Cash Flow 75,051,643 54,524,091 58,218,031 82,775,801 95,065,907

Net Project cash flow -525,060,000 75,051,643 54,524,091 -429,704,250 82,775,801 -560,660,838




6.7.2 Financial Analysis

Financial analysis of the project is based on assumptions from topic 6.2 up to now,

we can summarize the key hypothesis as follows:

1) The total cost of investment is 525 million baht, include equipment and

control system cost at control center (about 300 million baht) and

border checkpoint (about 225 million). And investment in vehicle fitting

(approximately 98 million).

2) Traffic forecast for 4-wheel vehicles in the next 20 years will increase from

approximately 2.3 million trip per year in 2018 and grow by an average of

3-6% per year.

3) Estimation of the average distance traveled by 4-wheel vehicles to Thailand.

(About 48 km)

4) Estimates of man-power needs at the control center and border checkpoint

(286 jobs), which will be part of the operating expenditure.

5) Estimation of operating expenses (ie, depreciation and operating and maintenance

expenses) and allocation to the cost of the toll fee and road used 50%.

6) Estimated cost of toll fee and road used (150 baht per trip).

7) Determining the minimum rate of return to set the toll fee.

8) Toll fee Pricing (Registration fee 100 Baht within 5 years and pay 160 baht

per trip).

The Consultants apply three types of financial indicators i.e. Payback Period,

Financial Internal Rate of Return (FIRR), and Net Present Value to evaluate the investment

project. The result of financial analysis is summarized in Table 6.7.2-1.

Table 6.7.2-1 Result of Financial Analysis

Return on Investment

1 Payback Period (years : months) 6 11

2 Financial Internal Rate of Return (FIRR) 12.70%

Discount Rate 12.00%

3 Net Present Value (NPV) 22,141,031 Baht


Payback period is six years eleven months with FIRR at 12.7% this is a good

investment. The Net Present Value is 22.1 millions baht. This project, therefore, is

a feasible project which can generate return higher than cost of fund. (using financial

criteria only) The private sector can partially or fully participate in this project as it can

generate high return on investment. However, it also depends on impacts on each

dimentions which will be presented in the next chapter.




6.7.3 Financial Result in the Case of Applying GPS Technology

The Consultants also coduct an analysis on implementing the vehicle tracking

capability in the first period. Additional investments and manpower are required. In terms

of investment in the system, it is expected that an andditonal THB200 millions will be

needed. The investment in GPS equipment at THB 3,000 per piece (now the cost of GPS

equipment is in between THB 1,000 – 5,000 per piece. Moreover, additional 8 staff

(2 shifts) at the headquarters will be required. Total required staff will be 294 posts.

Based on comments made by stakeholders in Chapter 6, the toll fee that will

force a commuter to pay for an extra of THB 3,000 for the GPS equipment may impact on

traffic volume as this will add up more fixed expenses for a commuter. Furthermore,

the stakeholders have provided comment that the exceptable toll shall not exceed 500 baht.

The Consultants, therefore, apply this rate for the equipement cost that a commuter will be

forced to pay. The residual cost will be absorbed by the operator and will be allocated to

the higher crossing fee per trip.

To achieve a 12% FIRR, the crossing fee shall be 251 baht per trip and will be

adjusted at 10% for every five years. The financial results are presented in Table 6.7.3-1




Table 6.7.3-1: Fincial Results in the Case that GPS is Installed and Fees are Subsidised


Table 6.7.3-2 : Project Cash Flows: GPS Installed and Fees to be Subsidised (Unit : Baht)



2018 2022 2027 2032 2037


Number of trip 2,334,077 2,953,068 3,783,127 4,674,185 5,631,353


Marked up % 3.00% 3.00% 3.00% 3.00% 3.00%


Total Bord Cross and Road Usage fees (baht) 372,376,607 471,129,891 651,939,125 904,876,777 1,206,299,097



average cost of cash cards (baht) 90 102 117 136 158

Marked up % 4.0%



Total Revenue (baht) 489,080,407 478,867,691 670,483,988 938,142,110 1,259,733,490


2018 2022 2027 2032 2037



Number of trip 2,334,077 2,953,068 3,783,127 4,674,185 5,631,353


Marked up % 32.0% 32.0% 32.0% 32.0% 32.0%


Total Bord Cross and Road Usage fees (baht) 585,834,262 741,195,947 1,007,593,593 1,322,914,817 1,759,644,494



average cost of cash cards (baht) 3,090 3,090 3,090 3,090 3,090

Marked up % -518.0%



Total Revenue (baht) 1,169,353,263 779,884,947 1,087,787,594 1,447,659,818 1,932,245,494


vehicle fitting equipment

RFID tag 46,681,520 3,095,120 6,415,520 9,979,600 13,808,080

Cash Card 58,351,900 3,868,900 8,019,400 12,474,500 17,260,100

1 vehicle fitting equipment 3,606,147,420 239,098,020 495,598,920 770,924,100 1,066,674,180

2 Road maintenance 256,489,344 360,522,229 530,811,918 757,263,630 1,056,354,298

Operating expense

Operation & Maintenance (O&M) 72,320,000 87,905,412 112,192,057 135,123,333 149,187,078

Depreciation 64,220,000 64,220,000 64,220,000 41,700,000 41,700,000

3 Operating expense 136,540,000 152,125,412 176,412,057 176,823,333 190,887,078

Total expense (baht) 3,999,176,764 512,647,641 707,223,974 934,086,964 1,247,241,377

Operating Profit (baht) 2,829,823,501- 267,237,306 380,563,619 513,572,854 685,004,117

Net margin % -483.0% 36.1% 37.8% 38.8% 38.9%

Project cash flow 2560 2561 2565 2570 2575 2580Investment

Building -500,000,000 0 0 -239,500,000 0 -722,444,494 Tools and Equipment -223,200,000 0 0 -96,500,000 0 -291,145,131 Total investment -723,200,000 0 0 -336,000,000 0 -1,013,589,625

Operating Cash flow Net income -2,829,823,501 267,237,306 380,563,619 513,572,854 685,004,117Depreciation 64,220,000 64,220,000 64,220,000 41,700,000 41,700,000Operating Cash Flow -2,765,603,501 331,457,306 444,783,619 555,272,854 726,704,117

Net Project cash flow -723,200,000 -2,765,603,501 331,457,306 108,783,619 555,272,854 -286,885,507




From the financial analysis for the case that vehicle tracking system is implemented

at current costs and is subsidized, the commuter will pay the registration fee at less than THB

500 (for five years), the crossing fee will be increased from THB 160 to THB 251 per trip.

This will enable the project to be feasible at 12% FIRR. However, the cash flows will be

insufficient. The CAPEX requirement will be high at THB 723 millions before

the operating date. Moreover, additional staff will be required to 294 positions (from 286

staff for RFID technology). Therefore, vehicle tracking capability enhancement at present,

where the cost is still relatively high, may not be feasible. This is because of high

investment compared with the RFID technology application in the first period.

6.8 OPTION IDENTIFICATION

The decision of Cross-Border Toll Collection (Toll refers to a fee for a foreign

vehicle that is intended to be temporarily used in the Kingdom of Thailand) should be under

a discreet, thorough and multi-dimensional consideration as it may impact Thailand’s

National Policy. A number of concerned issues, such as, International Relations with

neighbouring countries, Thailand Tourism Policy, Thailand Economic policy, etc, should

carefully be taken into account. Meticulous examination should be made across all

associated divisions under the government sector before finalizing the decision whether or

not to collect the cross-border toll. It is much necessary that there is an instruction from

the policy department to conduct a study in this regard because this would require

the cooperation not only from the operation level, but also from the higher level associated

divisions in the government sector in order for this mission to succeed.

The process of consideration for the alternatives is divided into 4 core procedures;

(1) Option identification;

(2) Selection criterion;

(3) Option analysis; and

(4) Recommendation on the optimum option.

4 Main options for consideration and analysis;

Option 1 Remaining current status (Status Quo);

Option 2 Authorizing of a legalized division to collect toll;

Option 3 Department of Land Transport to request for support from other

agency; or

Option 4 Establishment of integrated service center (One Stop Services).




6.8.1 Option 1 : Remain Current Status (Status Quo)

This option is to proceed as how it is presently. The foreign registered vehicles

intendeded to enter and use in Thailand are classified into 2 categories;

1) Group of countries with vehicles entering without an Agreement with Thailand

are required to submit a petition for an entry permit to the Department of

Land Transport as according to the 1979 vehicle act, section 6/1 last

paragraph and as stipulated in the 2016 Notification by the Department of

Land Transport in regards to the imposed criteria, procedures and terms for

the petition, approval, approved time frame of vehicle usage, and a tag which

indicates a temporary usage of the imported foreign vehicle for tourism or

any other specific purpose in the Kingdom of Thailand.

2) Group of countries with vehicles entering under an International Convention

or Agreement signed with the Thai government, which are Malaysia,

Singapore and Laos.

6.8.2 Option 2 : Authorizing of a legalized division to collect toll

Due to Clause 2 of the 2002 Ministerial Regulations of the Land Transport

Division under the Ministry of Transport, stipulating that it is the duty of the Department

of Land Transport, under the Ministry of Transport, to manage the system and regulations

of land transporting by means of handling, supervising, inspecting the overall system to

operate as accordingly to the law, rules and regulations, and also to coordinate and establish

plans that will enable linkage to other transport systems, so to create an enhanced system

of transporting on land in flexibility, convenience, speed, coverage, and safety.

Option 2 Operating Model

Option 2 provides 2 sub-options 1) Department of Land Transport is the operator

2) The Department of Land Transport hires the private sector through a concession

agreement.




Key Issues for Consideration

Option 2, under the operation of Department of Land Transport, whether

it be operated by its sub-division or private sector, requires amending of certain sections of

the 1979 vehicle act to cover both groups of foreign vehicles, however, this step is

a procedure in the policy level that must be approved prior to the next step.

Moreover, the government shall come to a term of agreement with

the concessionaire in regards to the shared revenue generated under the concession

agreement in collecting tolls from foreign vehicles crossing into Thailand, to which it shall

be distributed to each party as agreed accordingly. Thus, this enables the private

concessionaire the ability to collect their shares of revenue directly at the point of toll

collection, and this may also include the chance to exploit in other related subject as means

to generate more benefits (depending on the terms of Agreement), such as, to lease out

the adjacent area for retail purpose. In contrary, the cost of maintenance for all assets under

the concession normally falls under the concessionaire’s responsibility (private sector),

hence, the concessionaire will need to acquire reasonable toll collecting system, such as,

choosing the right technology, procuring the construction fund for the infrastructure, or

outsourcing the manpower to operate.

6.8.3 Option 3 : Department of Land Transport authorizes another department

the rights to collect tolls

The study of the Cross-border toll collection should also be perceived in a dimension

of security objectives, which is another factor to be brought into account when finalizing

the decision whether or not the toll should be collected. Most of the time, it is agreed that vehicles

registered in other countries should be required to undergo a proper registration process before

entering Thailand so that the vehicles may be tracked and verified after when needed, such as in

cases where the imported vehicle was involved in an accident, terrorism, sabotage or stolen from

other countries. Therefore, by defining security as the main concerned issue, the controlling and

monitoring of vehicles registered in foreign countries may be conducted simultaneously with

the examination and authorization of entry permit for persons entering the Kingdom of Thailand.

Hence, considering the convenience of the operator, the division of "Immigration Office"

is another appropriate option in this matter.




Option 3 Operating Model


This option requires amending of certain sections of the 1979 vehicle act to

cover both groups of foreign vehicles, however, this step is a procedure in the policy level

that must be approved prior to the next step. For the Department of Land Transport to

authorize the duty to the Immigration Office, matters such as knowledge in the subject and

working ability of the immigration officer should be taken under concern, therefore, proper

training courses or prior job trainings to the relevant immigration officers should be

arranged, together with providing support in other knowledgeable fields related. Moreover,

for this mission to succeed, the government should grant a budget and manpower

specifically to support the Immigration Office in this regard as it would be imposing extra

work to the division, otherwise, it may result with a negative impact for the Immigration

Office management system.

6.8.4 Option 4 : Establishment of integrated service center (One Stop Services)

The idea of establishing an integrated service center (One Stop Services) is based

on the concern in convenience of the service receiver when contacting the government

divisions, meaning that, in a case where additional check point is set up on the borders

between Thailand and its neighboring countries for the purpose of submitting requisitions

for vehicle entry application, the driver would be required to contact the offices of

Immigration, vehicle entry application, and Customs, in some cases, which will consume a

large amount of time for the driver to reach all offices should they be in 3 different

locations. Hence, if the 3 offices were integrated into one location, processes were to have

less procedures to follow, and redundant basic information forms were combined (means

no basic information will need to be repetitively filled out in separate forms), it would be

such great convenience for the people, especially the use of electronic system which

provides the capability to link information across all divisions. Setting up of “Integrated

Service Center” is therefore recommended for each province, detail to be shown as follows;

Department of Land Transport

Division responsible for collecting tolls

Ministry of Transport

Ministry of Finance

Customs

Coordinate and share information

Royal Thai Police

Immigration officeAppoint

authorization and provide required

budget




Option 4 Operation model


Option 4 requires the collaborations of various divisions at the border. Never

before in Thailand in which any person who was able to carry 3 main duties in immigration,

vehicle check, and evaluation of custom tax. It is perhaps impossible for one individual to

take up all 3 tasks, but operation wise, the tasks may be operated in a form of an integrated

service center where all are located under the same roof. However, the integrated center

will not have the ability as a person would to break down the task as per the type of work

or areas of expertise.

6.9 OPTION SELECTION CRITERIA AND ANALYSIS

6.9.1 Option Criteria

Options Analysis is performed upon the basis of the cost-benefit analysis

principles. Cost, herein refers to the direct cost of system installation in each option, and

the economic and other strategic impact. The principles for considering each of the options

that will be put into action is based on the convenience level of the road user and the ability

to perform.

1) Convenience and speed of travel

2) Tourism and economic impact

3) Freedom to travel and safety

4) Traveling cost compensation

5) Acquisition of Travel information

6) Difficulties in operations


Integrated Service Center One Stop Service)


Ministry of Finance

Customs

Royal Thai Police

Immigration office

County

Supervises




6.9.2 Options Analysis

Option 1 : Status Quo

Criteria Benefit/Advantages Cost/Constraints

Road

Use

r P

ers

pec

tive

1 Convenience and speed

of travel

Convenient and fast Foreign vehicles registered in the country which has

no agreement made with Thailand will be required to

submit in advance the request for entry permission,

pay a high amount of fee, and placed under route

restriction.

2 Tourism and economic

impact

Supports tourism industry, generates revenue

from tourism and business continuity, no

travel cost

No changes

3 Freedom of travel and

safety

Freedom of travel (according to the

international agreement)

There are travel route restrictions as per the

international agreement. Not all areas are attended

due to lack of information

Gover

nm

ent

Sec

tor

Per

spec

tiv

e

4 Travel expense

compensation

There is cost of road maintenance and continuous

incurred expense from the entering and exiting of

foreign vehicles.

5 Acquisition of Travel

information

Missing of completed information, which makes it

impossible to analyze and to effectively determine

the proper regulation for controlling the foreign

vehicles entering Thailand.

6 Difficulties in

operation

Operation is not complicated since there is no

action on legal issue, and no impact on

manpower nor budget.




Option 2 : Authorizing of a legalized division to collect toll


Road

Use

r P

ers

pec

tive

1 Convenience and

speed of travel

Burdens will be placed on the foreign vehicles

which entered Thailand due to the added procedure

that requires application of entry permission and

more imposed fee.


impact

Ability to obtain information which would

greatly benefit the tourism industry or other

business activities in a long run.

The increased in cost of travel may affect the

demand for the cross-border entry which would

then impact the tourism situation or border trade

status condition.


safety

Increase in travel safety, due to the government’s

support in the system that enables the ability to

verify and track vehicles.

May impact the rights to privacy, a result from

tracking foreign vehicles which entered Thailand.

Gover

nm

ent

Sec

tor

Per

spec

tiv

e

4 Travel expense

compensation

Compensation for the cost of road usage Requires more investment on the system and

manpower.


information

Information applicable to be used for analysis

which will help in determining an efficient

policy.

Cost of acquiring of information

6 Difficulties in

operation

Simultaneously enhance the regulations or

previous Notifications with more detail

clarification all at one time.

Requires additional action in the legal process.




Option 3 : DLT to request for support from other agency;


Road

Use

r

Per

spec

tiv

e

1 Convenience and

speed of travel

Enhanced convenience in travel for the traveler

due to single point service (existing)

May increase travel obstacles due to the added

vehicles verification procedure.


impact

No impact upon process of travel May have impact on travel that could be from the toll

collected at the rate which creates an impact on the

traveler’s psychological level (increased travel cost).


safety

Increase in travel safety, due to the

government’s support in the system that

enables the ability to verify and track vehicles.

May impact the rights to privacy, a result from

tracking foreign vehicles which entered Thailand.

Gover

nm

ent

Sec

tor

Persp

ecti

ve 4 Travel expense

compensation

A compensation for the cost of road usage and

a lower cost of operation.

Requires an investment on the infrastructure system

(more tools and equipment which must be procured)


information


which will help in determining an enhanced

cost-effective policy.


6 Difficulties in

operation

Less complicated than to establish a new

division to operate in this matter.

The success of this option depends on the perceived

edge and agreement of the division which was asked

to perform (immigration office). The duty delegation

of authority to another division under different

Ministry requires a negotiation process at the

ministerial level, which is difficult and requires a clear

detailed procedure (Budget spending procedure or

handling of the money received)




Option 4 : Establishment of the Integrated Service Center (One Stop Services)


Road

Use

r P

ers

pec

tive 1 Convenience and speed of

travel

Integrated service center can integrate the

provision of multiple services of various

divisions into one service point, which would

be an enhancement in convenience and speed

for travelers.

If the integrated working system is unclear, it may

create confusion in the operation (especially at the

beginning stage of operation)


impact

Enhanced level of convenience for travelers Additional facilities may be required.


safety

Increase in travel safety, due to the

government’s support in the system that

enables the ability to verify and track vehicles.

May impact the rights to privacy, a result from tracking

foreign vehicles which entered Thailand.

Gover

nm

ent

Sec

tor

Persp

ecti

ve 4 Travel expense

compensation

A compensation for the cost of road usage and

a lower cost of operation.

Requires an investment on the infrastructure system

(more tools and equipment which must be procured)


information


which will help in determining an enhanced

cost-effective policy.


6 Difficulties in operation Successful collaboration between divisions

would improve process efficiency.

Policy planning is a must have and staff training must

provide sufficient knowledge and skills to perform, thus

makes the establishment of the integrated service center

to be with a number of procedure to undergo, and

requires a review in legal issue and amend the legal

issues in accordance with and prior to the establishment,

thus, the establishment process does consume quite an

amount of time to complete.

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CHAPTER 7

RECOMMENDATION ON CROSS-BORDER

TOLL COLLECTION, OPERATING MODEL,

REVENUE HANDLING AND SYSTEM

CONTROLLING APPROACH

7.1 RECOMMENDATION ON TOLL COLLECTION METHOD AND MODEL

7.1.1 Toll Rate and Time Frame

If considered only the result in economics over the 20-year forecast time frame,

it may be concluded that it is possible for Thailand to take action to declare the Collection

of Cross-border Toll, despite the expected reciprocated action of the other countries,

Thailand will still be on top in balance of service, the only down side would be the cost

arises due to the consequence of reciprocated action of other countries will be a burden to

the citizens travelling with cars.

Yet, when the consideration is looked upon from the indirect result from

the expatriate tourist expenditures which has a higher number than the cost of

maintenance, therefore, Tolls collected to compensate the cost of maintenance (Road

Charge; RC) may possible be excluded from the cross-border toll as means to reduce

the impact on foreign travelers, meaning consider collecting only the VEP, reducing

the tolls to collect from foreign vehicles to a rate lower than THB 160.

By adjusting the calculation of the consultant when the cost of road maintenance

is not taken into consideration. It is found that the toll cost alone will be at the rate is 42 baht per trip (as described in the calculation of toll costs (VEP) in Section 6.3.2 of Chapter 6 of this report. Cost of operating expenses before allocation based on the forecast of the traffic

volume of 4-wheel vehicles (foreign) to Thailand and the operating expenses before the 50%

allocation to the RC cost calculation would be 42 baht per trip).

It is therefore recommended that the toll for entry permit be collected at

the rate of 100 baht with the use of a 5-year RFID tag and Smard Card and toll for

crossing the border be collected at 42 baht per crossing (rate will be adjusted for

increase at every 5-year interval) The calculation is based under a condition that all

checkpoint throughout the country start operating simultaneously. It will be worth the

investment. The system is a one time investment in the system.




7.1.2 The Operating Model

The optimum operating model, from the analysis of cost and benefit and

the financial analysis, it is recommended that the Option 2 be the suitable one for the toll

collection operation with the reason that it contains very clear steps for the legal process

and implementation, especially in the short-term period. It is also recommended that, as

an alternative to the option, the implementation should involve the private sector, so that

it will help reduce the cost of investment supported by the government. It is also

a possible option that The Department of Land Transport use authorize existing operating

division to help carry this mission. However, it will require amending of legal issue in

the law and Notifications, detail as shown in the Action Plan.

Figure 7.1.2-1: The toll collection scheme by the Department of Land Transport

employs some private operators

7.2 RECOMMENDATIONS ON REVENUE MANAGEMENT

The operation of collecting cross-border toll when foreign vehicle enters

Thailand generate a sum amount of revenue, and after exploring the methods of

the revenue management which are practiced among the government sector, it was found

that the revenue is managed differently.

The revenue and expenditure management of government division relating to

the collection of tolls can be divided into 5 methods;

1) Management according to the government general budget.

2) Management as specified by law.

3) Management as specified by law assigning the responsibility for the

delivery of revenue to one particular location.

4) Management through a Concession Agreement with Private Entrepreneurs

5) Management through funding.


Division responsible for collection tolls


Ministry of Finance

Customs


Royal Thai Police

Immigration Office


Private sector co-operation




From the analysis of all 5 options of revenue management, it is recommended

that Method 4: the revenue would most proper be managed in a form where there is

a joint private sector involved through a concession agreement under a limited

scope. The concession is limited to the most appropriate approach, hence,

the government will be bearing the lowest cost of investment and requiring lesser number

of manpower needed.

7.3 RECOMMENDATIONS

7.3.1 Policy Level

The Ministry of Transport is a governmental agency at the ministry level that is

with a direct relation to toll collection projects, thus, would be required to step in as

the core supporter on policy, such as, submitting of the petition of Toll collection project

budget from the government and parliament or support in provision of the manpower,

performance training, government sector procurement, all through in presenting to

the parliament the proposals on various matter or raising of problems or issues which

require government to support at policy level.

7.3.2 Regulatory Level

The Land Transport Department is a division under the Ministry of Transport.

The division is responsible under the Vehicle Act, 1 9 7 9 and the authority and duty to

consider whether or not the foreign registered vehicles will be allowed to enter Thailand.

Thus, it can be said that the Land Transport Department is the division with main duty

and responsibility in this regard, however, their role will depend on the type of management

used.

7.4 SUMMARY

In conclusion, the Consultants recommend that Option 2 (2) is an optimum one, the

Department of Land Transport employs a private company in place of the operator. There are

steps in amending the laws and various Notifications in the initial phase. The amending of the

1979 vehicle act (Section 6/1 , Section 41), there is no provision requiring public officials

and tolls are always available to cover all vehicles. And set fees (This study used to

represent that tolls) collected in Bangkok must be the revenue of Bangkok, in other

provinces, the income of the Provincial Administration Organization. The provisions of

these two sections are not in line with the format that the Advisory Board has analyzed

and proposed as a model. It is proposed to amend the Vehicle Act 1979 about toll charges.

From the vehicle is to be used in Thailand and the Director-General of the Department of

Land Transport shall issue a notification stating the criteria. The vehicle is to be used in

Thailand and the Director-General of the Department of Land Transport shall issue a

notification stating the criteria. The registration or permission of vehicles registered

overseas to be used in Thailand. Including tolls / fees paid to the land.

However, with the purpose of the announcement of the Department of Land

Transport, Methods and conditions To apply for permission to use the car. And the sign

of using the car.Imported into the Kingdom temporarily for use in tourism or any other




necessity. Only in case of 2 0 1 6 Therefore, it may apply the criteria or procedures for

obtaining permission under the Notification of the Department of Land Transport. BE

2 5 5 9 shall apply mutatis mutandis to vehicles registered overseas without a treaty with

Thailand and without Thailand.

Thereafter, Department of Land Transport is to grant a concession for the toll

collection in a form of a state-to-private relationship. The purpose is to involve the private

sector in the provision of public services under the terms of Concession Agreement in

Build-transfer-Operate (Build-Transfer-Operate) where the government will not have to

bear the cost of investment, but will have ownership to the assets, and the important thing

is, it will acquire an efficient traveler’s information as to how they travel in-out of

Thailand. The private sector is responsible for collecting revenue and deducting expenses,

then to hand in the concession amount in equal to the payroll of the 90 hired officials as

monthly payments throughout the concession period (20 years). In addition, additional

concessionary rates may be imposed where revenue can be collected higher than the

minimum income assessed in the investment program. This can be attributed to

the private sector's share of revenues as a percentage of future revenue. Annual revenue

collected from the concession. The details of draft concession contracts will need to be

implemented in the short term.

In order to not allow the collection of the cross-border toll to become

a burden for travelers when driving in-out of Thailand, it is recommended to use RFID

technology that is integrated with prepaid cards. Based on the calculation for short term fee,

the lowest rate for the application fee (comes with vehicle’s RFID tag) is THB 1 0 0

for a period of 5 years, plus a toll at THB 4 2 per trip, this rate from the financial

model calculation Considering the predictions of travel of foreign cars throughout

the concession period of 2 0 years. It is expected that the concessionaire will have a

return on investment of about 8.9 percent, which is the return of which the private

sector is likely to be interested in as detailed in the table 7.4-1.

From table 7.4-1 shows that if the toll collected by vehicle equipment cost (RFID tag

and Smart Card) at a cost plus 4 percent by fee collected is 100 baht per ticket (vehicle

equipment is valid for 5 years) and the toll fee per trip collected is the same as

the operating cost (there is not allocation the operating costs to Road Charge (RC)).

There is toll fee collection is 42 baht per trip. The project will generate annual revenue of

213.6 million baht in the first year. And increased to 364.6 million in the 20-year,

following the growth of foreign cars entering to Thailand according to the forecast.




Table 7.4-1 : Predicts Financial Results and Return on Investment (In case of toll

collection (VEP) only at cost rate)

ปีที่ 0 1 5 10 15 20

2017 2018 2022 2027 2032 2037


1 Border Cross and Road Usage revenue

Number of trip 2,334,077 2,953,068 3,783,127 4,674,185 5,631,353

VEP Cost (baht/trip) 42

% Mark Up 0.0%

Border Cross and Road Usage fee (baht/trip) 42 42 46 50 55

Total of Border Cross and Road Usage revenue (baht) 96,912,000 122,612,804 172,784,978 234,830,036 311,209,743

2 Registration and Smart Card revenue

Number of cards sold (Included spare) (unit) 1,167,038 77,378 160,388 249,490 345,202

Average cost per unit (baht/unit) 90 102 117 136 158

% Mark Up 4.0%

Registration fee (every year) (baht) 100 100 116 133 155

Total of Registration and Smart Card revenue (baht) 116,703,800 7,737,800 18,544,863 33,265,333 53,434,393

Total Revenue (baht) 213,615,800 130,350,604 191,329,841 268,095,369 364,644,136


Vehicle fitting cost

RFID tag cost (baht) 46,681,520 3,404,632 7,859,012 14,470,420 23,473,736

Smart Card cost (baht) 58,351,900 4,487,924 10,906,384 19,460,220 31,068,180

1 Vehicle fitting cost 105,033,420 7,892,556 18,765,396 33,930,640 54,541,916

2 Operation cost

Operation and Maintenance cost (baht) 52,506,000 63,821,371 81,454,039 98,102,679 108,313,284

Depreciation cost (baht) 44,406,000 44,406,000 44,406,000 56,892,228 56,892,228

operating cost (baht) 96,912,000 108,227,371 125,860,039 154,994,907 165,205,513

Total Cost 201,945,420 116,119,927 144,625,435 188,925,547 219,747,429

Operating Profit (baht) 11,670,380 14,230,677 46,704,406 79,169,823 144,896,707

Net profit margin 12.00% 11.60% 27.00% 33.70% 46.60%

Cash Flow of the Project 2017 2018 2022 2027 2032 2037

Investment Cost (baht)

control center (baht) -300,000,000 0 0 -268,783,276 0 -361,222,247

border checkpoint and toll booth (baht) -225,060,000 0 0 -219,139,005 0 -294,504,498

Total of Investment Cost (baht) -525,060,000 0 0 -487,922,281 0 -655,726,745

Cash flow from operations

Net profit (baht) 11,670,380 14,230,677 46,704,406 79,169,823 144,896,707

depreciation cost plus (baht) 44,406,000 44,406,000 44,406,000 56,892,228 56,892,228

Cash flow from operations (baht) 56,076,380 58,636,677 91,110,406 136,062,051 201,788,935

Net cash flow from the project (baht) -525,060,000 56,076,380 58,636,677 -396,811,875 136,062,051 -453,937,810

Return on investment

1 Payback Period (years : months) 10 12

2 Financial Internal Rate of Return (FIRR) 8.90%

Discount Rate 12.00%

3 Net Present Value (NPV) -104,841,845 (baht)

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CHAPTER 8

ACTION PLAN

Chapter 8 presents a three-phase action plan that is a short-term plan (three-

year action plan), a medium-term plan (seven-year action plan) and a long-term plan

(more than seven year action plan)

The short-term plan focuses on amending law and regulations. Agency

responsible for the toll will be set up. Operators can be configured as needed to install

a vehicle detection system. (Detecting)

The medium-term plan aims at maximizing operational efficiency. Especially

review of vehicle travel pattern. And new technology would be implemented to track

vehicles. (Tracking)

The long-term plan aims to extend the scope of toll collection to other types of

vehicles. Take advantage of vehicle’s route information for different purposes such as

security, trade and tourism. Moreover, such information would be served for

the transportation hub of the ASEAN Economic Community.

The action plan is divided into 3 phases. Each phase is related but in different

objective, as shown in Table 8-1.

Table 8-1: Key Objectives of Three-Phase Action Plan

Year

Short-term Medium-term Long-term

1 2 3 4 5 6 7 8 9 10

1 Regulation revision and implementation of

vehicle detection capability

2 Implementation of vehicle tracking capability

3 Leverage of transport data




Table 8-2: Key Activties to be undertaken in the three-phase action plan

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

1 Short-Term Plan (Implementation of Vehicle Dection)

1 Policy approval and regulation amendments

2 Manpower requesition

3 Additional regulation anouncement

4 Operator selection (through PPP)

5 System implementation and testing

6 Public relations for VEP

7 System evaluation and monitoring

2 Medium-Term Plan (Implementation of Vehicle Tracking)

1 Traffic volume and pattern review and update

2 The study of vihecle tracking implemtation

3 Road charge study

4 Regulation review and amendments

5 Public relations for RC

6 Tracking technology procurement

7 Deparment of Land Transport's Regualtion amendments to cover all types of vehicle

8 System evaluation and monitoring for all types f vehicle

3 Long-Term Plan (Site Relocation and Transport Data Utilization)

1 Study of Public Private Partnership

2 Site relocation selction

3 Construction and system relocation


5 Transport data sharing (with other relevant government agencies)

Key Activities Year 6 Year 7

Long-Term

Year 8 Year 9 Year 10Year 1 Year 2 Year 3 Year 4 Year 5

Short-Term Medium-Term




8.1 THE SHORT-TERM PLAN (YEAR 1-3)

The main objective of the short-term plan is to focus on laws and regulations to

enable control and charge the fees of vehicles that have entered the Kingdom of Thailand.

All vehicles will be supervised under the national standard. The Government does not

require to invest or recruit new officers to operate. A Build-Transfer-Opearate (BTO)

concession will be granted to a private sector. In the future, it can further enhance the

regulatory capacity by sharing information with other agencies in order to achieve

national strategy.

The operating procedures are as follows:

1) Law and regulations enactment or amendments, including

[1] the amendment to the Vehicle Act, B.E. 2522 (1979) and

[2] ministerial regulation related to the fees under the Vehicle Act B.E. 2546

(2 0 0 3 ) , The ministerial regulations related fees under the Vehicle Act

B.E. 2546 (2003) by virtue of Section 5 (17) of the vehicle Act B.E. 2522

as amended by the Vehicle Act. (No. 1 0 ) B.E. 2 5 4 2 , which is

the Ministerial Regulation prescribing fee but not over the car;

2) New staff request;

3) Enact or amend law and regulations;

4) Concessionaire granting to the private sector;

5) System installation and testing;

6) Public relations capaigns; and

7) System monitoring and evaluation.




Table 8.1-1: Short-term plan

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

1 Policy approval and regulation amendments

1.1 Proposal submt to the Cabinet for approval 3

1.2 Act amendment 12

1.3 Decree amendment 4

2 Additional manpower requesition

2.1 New staff recruitment 8

3 Additional regulation anouncement

3.1 Department of Land Transport to issue new regulations 3

4 Operator selection (through PPP)

4.1 Concessionair invitation 3

4.2 Concessionair award 3

4.3 The Cabinet approval 2


5.1 Equipment sourcing 1

5.2 System implementation 6

5.3 System testing 2

6 Public relations for VEP

6.1 Policy inform campaigns 2

6.2 Billboard and notification installation at all gates 18

6.3 Internal PR campaigns for relevant agencies 2

7 System evaluation and monitoring

7.1 System evalulation 6

7.2 Process improvement 3

7.3 New process implementation to improve efficiency 3

Year 1 Year 2 Year 3ระยะเวลา

(เดือน)




8.2 MEDIUM TERM PLAN (YEAR 4-7)

The medium-term plan (4-7 years) will focus on controlling and monitoring of

foreign vehicles, especially four-wheeled vehicles. The law and regulations will be

amended, if necessary. Medium-term plan focused on the preparation of vehicle tracking

using GPS technology. According to this technology, it improves vehicle tracking

capabilities, travel patterns would be recorded and collected at the beginning of

the medium-term plan to calculate the cost of the maintenance route in Thailand.

At this time, the cost of GPS technology should decrease steadily until the cost of

one GPS device falls below 500 baht. As a result, it may be appropriate to use in the plan

because the charges levied on the vehicle in the Kingdom of Thailand will not affect

the driver's decision.

There are six steps in the medium-term plan. The operating procedures are as

follows:

1) Traffic volume and assessment.

2) Study of technology changes in vehicle tracking.

3) Study of Tolls fee.

4) Enact or amend the law/regulations related to the Department of Highways.

5) Amend Notification of the Department of Land Transport for the purpose of

inspecting certain vehicles.

6) Procurement and installation of technology for tracking vehicles.

7) Tests and inspections the tracking of vehicles system.

8) Publish information to the public.

8.3 LONG-TERM PLAN (YEAR 8-10)

Based on the Draft 20 Years National Strategic Plan (B.E. 2560-2579), Thailand

will focus on key strategies as follows:

1) National Security

2) Competitive Advantage

3) Human Resource Development

4) Soial Equality

5) Sustainable Development

6) Balance Adjustment and Public Administration System Development

Each of strategies will promote Thailand to be a developed country and enhance

competitive advantage of the nation in all areas e.g. manufacturing and service sectors as

well as industrial, agricultural, and services. Morover, the strategies will focus on

development of Thai economy by innovations to promote sustainable development.




From the suggestion in this project, development of foreign vihecle detection and

tracking could fullfil the relevant stregy include (1) national security and (2) competitive

advantage of the nation.

Key activities in the Long-Term Plan include:

1) Study of Public Private Partnership;

2) Site relocation selction;

3) Construction and system relocation;

4) System implementation and testing; and

5) Transport data sharing (with other relevant government agencies)

8.4 LONG-TIME VIEW

Once the logistics sector has been liberealized, which means that all foreign

logistics providers can operate in ThailandIn the long run, the regulator (which has been

established or empowered since Phase II) will have full capabilities fro detection and

tracking all type of foreign vehicles travel in Thailand including motocycles. The fees

will be fully and fairly charged in accordance with costs related with transport activities.

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CHAPTER 9

SHORT-TERM PRACTICE WITH

THE MALAYSIA CASE

Conclusion of a prepared approach in the case of Malaysia with toll collection

With Singapore There may be a toll fee for Thailand in the near future. The consultant has

prepared a Recommend Case Study of VEP and RC Systems in Malaysia Report. Which is

part of The Study of Toll Collection for the ASEAN Economic Community Transportation

Project. The main content of the report is as follows:

9.1 SOURCE OF OPERATION IN MALAYSIA

The Vehicle Entry Permit (VEP) in Malaysia. It has the concept of developing

and improving the security and safety of cross-border travel between Malaysia and

neighboring countries including the ability to control vehicles from abroad during the

import into Malaysia. The VEP system records the entry and exit of other nationality car

and the driver's personal history. The information will be sent to the database of

Road Transport Department's (JPJ), which will allow them to monitor the history and

control of the use of individual vehicles and riders in a more convenient, faster and more

efficient manner.

At the same time, Malaysia's Road Charge Due to efforts to reduce traffic

congestion at the border checkpoint. It is found that there are passenger cars that have a

one-day trip between Malaysia and Singapore many time in a day. These types of fees are

excluded for commercial vehicles. This is not to increase the burden for people traveling

by public transport that passes through this area on a regular basis.

On June 1, 2016, The Road Transport Department's (JPJ) has begun testing VEP

(Vehicle Entry Permit) systems and officially started the RC on 1 November 2016.

The Ministry has agreed to charge a fee of 20 Ringgit Malaysia for passenger vehicles

registered overseas to travel to Malaysia. As a result, all other nationally cars traveling

across the border between Singapore and Malaysia are: (1) Bangunan Sultan Iskandar (BSI)

border and (2) Sultan Abu Bakar Complex CIQ (Malaysia-Singapore Second Link) border

must pay RC and require a vehicle license to enter the country (VEP).

The Vehicle Entry Permit (VEP) and Road Charge (RC) storage are covered by

the Road Transport Act 1987. The Road Transport Department (JPJ) is the policy leader to

adjust the operation plan and the fee collector. There are also other government in

cooperation with the Ministry of Transport to supervise and enforce such measures in

the process of crossing the international border include The Malaysian National Police,

Customs And the Malaysian Highway Authority (LLM). The VEP system is linked to the

police office to prevent a car theft and investigate the offense of those who will drive the

vehicle across the international border.




Nevertheless, the Malaysian government has opened up the private sector to take

part in the process through the contracting process. And the private contractor selected to

serve as the main contractor for the joint project with the government is TCSens Sdn Bhd.

And it is a company that operates in the field of wireless products and RFID (Radio

Frequency Identification) it has been the installer of the technology infrastructure for VEP

& RC collection, as well as consulting and development system to maintenance under

the agreement, the Malaysian Ringgit is worth 104.3 million ringgit with government for

5 years. The Malaysian Government invests and supports all budgets for education and

installation projects and all this will be the asset of the Ministry of Transport.

Vehicle Entry Permission

For the Vehicle Entry Permission (VEP) There is a fee of 10 ringgit per license (each

license is valid for 5 years). The other nationally vehicles that require a vehicle license

to enter the country are as follows:

1) Passenger car (A vehicle owned by an individual, company or organization that

carries a personal business).

2) Used car for business (Vehicles owned by a company or used for business

purposes)

3) Automotive belonging to the Embassy, Consulate or government Department

Road Charge

The RC likely a tool to increase revenue for the Malaysian government. Curlently,

the fee is only applicable to registered other nationally cars traveling to Malaysia for

20 ringgit per trip. These fees will be except for commercial vehicles in order not to

affect people traveling by public transport.

9.2 RECOMMENDATIONS FOR THE IMPLEMENTATION OF VEP

AND RC COLLECTION POLICIES IN MALAYSIA

In the case of operation, if Malaysia has announce tolls collection with Thailand. Considering the speed of implementation (which is a short-term measure) to reduce the loss

of service from being charged tolls unilaterally. The consultant recommends the use of the

law enforcement agency as the main operator is The Department of Land Transport is the

authorized person under the Vehicle Act, 1979 which updated according to the Vehicle Act

(No. 10), 1999. The main points to consider follow:

A) Types of Vehicles to be Collection

If Malaysia charges to Thailand, It is expected that Thai personal vehicles

will be entry to Malaysia, The same goes for Singapore cars. Thailand should collection

fees only to passenger car groups to be the same criteria whearwith Thailand has a law

governing the transportation of commercial vehicles already. In summary, the process and

process of operation shown in Figure 9.2-1.




Figure 9.2-1 : Legal Steps to Implement If Malaysia announces VEP and RC

Collection to Thailand

B) Technology Issues to be Applied and Manpower

In Thailand, there is no automatic payment system. While Malaysia and

Singapore have used Touch n 'GO (Malaysia) or ez link (Singapore) for a while.

The use of technology in Thailand requires a lot of time and many investment cost such as,

In the case of Malaysia, there are many delays due to technological obstacle. So in short-

term plans the consultant recommends using a manual toll collector system. The system is

a toll collection system used by the toll collector. These may be stored in cash or coupons.

The driver will pay the fees by the type of car at the toll booth. That is to pay fees to

the toll staff within the toll booth, and pay in Thai baht or car except, and there is a system

to check the type of car at the same time. The operating capacity is 350 vehicles per hour

for the cash register. And can be upgraded to 600 cars per hour when using any coupon.

There will be one operator per booth per shift (2 shifts total per day) work in the inland. Details of the number of workers at each border checkpoint of the Thai-Malaysian border

are shown in Table 9.2-1.

The Department of Land Transport (“DLT”)

proposes to the Ministry of Transport (“MoT”)

for review and approval

The MoT proposes to the Cabinet to review and approve as follows:

[1] Collecting fee for temporary use of the foreign-registered vehicle in Thailand; and

[2] Approving a draft of the Ministerial Regulation on the fees as amended under section 5(17)

of the Vehicle Act B.E. 2522 as amended by the Vehicle Act (No.10) B.E. 2542 in order to

repeal clause 2 (13) of the Ministerial Regulation on the fees under the law on vehicle B.E. 2546

and amend the vehicle license fee, in accordance with the Convention on Road Traffic, Geneva

B.E. 2492 (A.D. 1949) to which Thailand has accessed as at 15 August B.E. 2505, from 1,000

Baht to an appropriate rate but not exceeding a rate as specified under the Vehicle Act.

The Cabinet

To approve a collection of the fee, in principle, for

temporary use of the foreign-registered vehicle in

Thailand by the DLT being responsible agency as

proposed by the MoT

The MoT represented by the Minister of Transport

To order the DLT as an internal government agency to

issue and announce any relevant notification

regarding temporary use of the foreign-registered

vehicle in Thailand

The DLT proposes to the Ministry of Finance

For approval of the working budget in

accordance with the resolution of the Cabinet

The DLT proposes to the Public

Sector Development Commission

For allocation of manpower to

proceed the work according to the

resolution of the Cabinet

The Director-General of the DLT

To issue the notification on criteria

and mark for use of vehicle




Table 9.2-1 : The Number of Workers at Each Border Checkpoint of the Thai-Malaysian

Border

List of

Thai-Malaysia

border checkpoints

Number of Booth (Booth)

This case only considers

inbound

Number of staff

per shift

(8 hours per shift)

Total number of staff

at all times open to

checkpoint (2 shifts)

1) Sadao Border 2 2 4

2) Padang Basar Border 2 2 4

3) Ban Prakob Border 1 1 2

4) Sungai Go lok Border 1 1 2

5) Betong Border 1 1 2

6) Wang Prachan Border 1 1 2

7) Buketa Border 1 1 2

Source: The principle of calculating the number of booth from Table 6.2.2-1 in Chapter 6.

C) Fees Rate and Management Fees Collected

From financial analysis The consultants suggest that they be fees collection

at a rate comparable to the fees rate of Malaysia to cover the operating expenses and fees

that Thailand will have to pay to Malaysia. Thailand will have to lose the trade balance

from being fees collection with four-wheel-drive vehicles in Malaysia for about 8 4 0 ,000

trips per year, amounting to 151.2 million baht per year. It should be calculated as well as

VEP and RC in Malaysia is the registration fee is 100 baht and the toll fee is 160

baht per trip. When considering the total number of cars entering and leaving the 7

border checkpoint, there are 6 3 0 ,0 0 0 trips per year. The above toll charges will help

compensate for the deficit.

The amount of money management fees collected. According to the fiscal law,

When the law explicitly states that the revenue collected by the Government Sector must be

forwarded to any department, Government Department must strictly comply with the law.

Therefore, the fee collected in this case. Must comply with the procedures prescribed in Section

41 of the Vehicle Act, BE 2522. That is, the revenue collected must be sent to the local

government.

ISSUES TO CONSIDER

This approach is just a guideline for action to support Malaysia toll collection

only in the short term to support the announce fees collection of Malaysia In short term only

and the fastest action to reduce the deficit to the retention fee. However, in considering the

measures fees collection of Malaysia in consideration should be given to other impacts

beyond the issue of compensation for the economic deficit (which is the direct effect)

include determining measures for medium and long term implementation should be

consider the action plan outlined in Chapter 8 of the final report.

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CHAPTER 10

OVERALL PERFORMANCE ON SEMINAR

AND PUBLIC PARTICIPATION

In the study of the toll collection for ASEAN Economic Community transport

to be appropriate, enhance acceptance, unaffected to international relations, and not a barrier

to cross border, seminar and public participation are then necessary to focus on providing

information, ensure accurate understanding of the importance and necessity of the toll

collection as well as the expected benefits. These would be with the exchange of information,

point of view, and comment with a variety of target groups. It covers the major dimensions

of education and development, in the fields of Engineering, Financial Economics, Legal

Management including international relationship to make this study more rigidly.

10.1 RESULTS OF THE SEMINAR TO INTRODUCE THE PROJECT

AND LISTEN TO COMMENTS FROM RELEVANT AGENCIES

(1ST SEMINAR)

Seminar to introduce the project and listen to comments from relevant agencies

(1st Seminar) was held on Monday, 26 June 2016 at 08.00-12.00 hrs, Kamontip 1 Room,

The Sukosol Hotel, Sri Ayudhaya Road, Rajthevee, Bangkok. There were 120 participants.

The seminar was about the information to the public and the public sectors about

the importance, benefits and opportunities according to development of the project

including the process of project study. This is an opportunity for the concerned people

to participate in providing comments and suggestions to the consultants. There are also

exchange of opinions of the professionals from both the public and private sectors.

The comments and suggestions are considered for the study of toll collection for ASEAN

Economic Community transport.

Conclusions of opinions and suggestions received from the participants.

It is proposed to set the toll rates of trucks to international standards. It still,

however, benefits the Thai shipping companies that deliver goods to and

from the border checkpoints.

Do not charge a fee for a vehicle that has been shipped and returned.

If neighbor countries charge the fee same as that in Thailand. Consider

the benefits that Thailand will obtain from foreign cars and should limit

travel distance of foreign cars.

Several toll rates should be considered according to incoming distance.

For example, Lao PDR places different tolls in each area. Each district has

increased income.




Toll Collection will increase transportation costs for overseas operators.

This is beneficial to small domestic businesses.

Toll Collection is like a commercial wall. May be a hindrance to international

co-operation.

Agreed with the technology used to track the car into Thailand. Can be

tracked and controlled and also check the type of goods. This will help

prevent shipping or dangerous objects as well.

It is important to consider methodology process from various government

agencies. This is used to determine process to toll collection management

making most convenient for users.

The volume of foreign cars entering Thailand is small, thus the revenue from

toll collection may not reflect the maintenance and management cost.

Therefore, toll rate should assess the cost of safety, environment, and

the prevention of drug into the country.

It is advisable to study the international toll collection process. Why is it

unarchived?

Accoridng to WTO framework under equal implementation, if Thailand

collect toll from neighbor countries, other countries can also collect tolls

with cars from Thailand as well.

The fund should be set up to manage the revenue from toll collection.

10.2 RESULTS OF THE SEMINAR TO PRESENT THE RESULTS AND

LISTEN TO COMMENTS ON THE DRAFT REPORT (2ND SEMINAR)

Seminar for presenting the results of the study and listening to the draft report

(2nd Seminar) was held on Monday, 27 November 2016 at 08.30-12.00 hrs, at Kamontip 3,

The Sukosol Hotel, Sri Ayutthaya. There were 104 participants presenting the seminar.

This seminar presented the results of the draft report. This is a summary of the project

and open the forum to listen to comments from all sectors involved. After that, suggestions

and comments are considered to develop the final results and to effectively achieve

the objectives.

Conclusions of comments and suggestions.

Agreed with the toll collection. However, the toll rates should be considered

at many different rates. Sorted by car type because weight of each car type

is not equal.

Should consider impact of crossing cars and cost of entrepreneurs. If there

are tolls for vehicles coming into Thailand, so the cars from Thailand to the

neighbors may also have toll collection measure.

The advantages and disadvantages should be considered. And the purpose

of bringing the car through the country. What is the purpose? To transport




goods, distribution goods or entry to tourism. If the fee is collected, will the

impact affect on the trade and travel?

The impact of cross-border trade should be taken into account. If there are

tolls that have not been collected before, it may cause closure of the

checkpoints. According to statistics, Thailand exports more products

to neighboring countries. If the border is closed, may it have more cons than

pros?

Agreed with the toll rate at the rate of 100 Baht, but it is recommended

to classify the vehicle as a sub-item and charge at proper rate. This can be

achieved by the use of technology with fast storage.

Suggestion on the integration of each agency. Available information of each

agency should be gathered and analyzed by academics. This will reduce

costs.

Operations should not be complicated. Suggestions for front office staff

to be operator. Moreover, finding out the method to integrate among

the Ministry of Transport, Ministry of Finance and the Customs Department

at policy level and in practice. By doing that, this should reduce the load

at checkpoints and meet the objectives of the project.

CChhaapptteerr 1111

IIMMPPOORRTTAANNTT IINNFFOORRMMAATTIIOONN

AANNDD SSUUMMMMAARRYY


CHAPTER 11

IMPORTANT INFORMATION AND SUMMARY

The Study of Toll Collection for the ASEAN Economic Community Transportation.

It has been implemented as a guideline for the government to carry out toll collection with

registered vehicles abroad. This will increase every year, It also enhances the efficiency of

the supervision of other nationally vehicles entering the country for security and safety reasons.

Toll revenue is part of the compensation for maintenance costs and other related expenses.

In addition, the data of inland transportation of other nationally vehicles in Thailand each year

can also be used to determine the policy on the Transportation, Tourism, And Environmental

management appropriately.

In this study. Carry out surveys and forecasts of cross-border traffic, Analyze

technology to be used in vehicle tracking and tracking system from abroad, calculation

the Vehicle Entry Permitt (VEP) and Road Charge (RC), Recommendation for the fees rates,

Forms of management and collection of fees, Financial Analysis, Investment type Including

the implementation Include short-term planning (1-3 years), medium-term plans (4-7 years)

and long-term plans (years 8-10). The plan will cover 26 border checkpoint nationwide.

In the case of Malaysia, which has a policy to fees collect on four-wheel vehicles

entering Thailand from seven border checkpoints in the future (Malaysia is currently collecting

fees with vehicles from Singapore). This study prepared a Recommend Case Study of VEP

and RC Systems in Malaysia Report up to 1 more. To be a short-term measure to be able to

proceed as soon as possible to reduce the loss of fees collected from Malaysia.

The recommendation is summarized in Chapter 9 of this report.

11.1 A SUMMARY INFORMATION FROM THE STUDY

11.1.1 Traffic Forecast for 4-Wheel Vehicles

From the forecast model of traffic volume of 4 - wheel vehicles imported into

Thailand during the years 2017-2037. It has been forecasted that four-wheel vehicles from

aboard will come to Thailand from 2.2 million vehicles to 5.6 million vehicles. The average

growth rate is around 7.1% in the first period and will reduce to 3.5% by the end of

forecasting period. If the proportion of 4-wheel vehicles to Thailand divided into each

country across the border checkpoint the proportion is similar. The number of cars from

Laos to Thailand is the highest. Secondly is Malaysia, Myanmar and Cambodia, respectively.

Shown in table 11.1.1-1.




Table 11.1.1-1 : Predicts the Number of Four-Wheeled Vehicles Entering Thailand.

And the Annual Growth Rate of Traffic Volume from Each

Country in the First Phase of the Forecast


11.1.2 The Average Distance Travel In and Out of Thailand

According to the survey data, 4-wheel vehicles are used to travel in Thailand

from all four countries at every border checkpoint which the average distance traveled to

Thailand is shown in table 11.1.2-1. It can be seen that the average distance in the case of

Myanmar although there are 4-wheel vehicle arrive in Thailand at 2 border checkpoints1

in large quantities to 13.4 million trips in 2018. However, the average distance traveled

between these two border checkpoint is estimated to be 7 km. and 18 km. (while the average

travel distance of cars from other countries is from 40 km. to 137 km.), The number of cars

made in Myanmar is the smallest in 4 countries.

Table 11.1.2-1 : Average distance traveled by 4-wheel-drive vehicle of 28 border checkpoint

No. Country No. of

Border Checkpoint

Average Distance

(Km.)

1 Thai - Malaysia 7 40

2 Thai - Myanmar 4 13

3 Thai - Laos 11 53

4 Thai - Cambodia 6 64

Average travel distance for foreign cars

entering Thailand from all countries 28 48


11.1.3 Technology and Investment Cost

Initially, it can be implemented under infrastructure and budget constraints

which will take The RFID (Radio Frequency Identification) technology is used in

conjunction with ANPR (Camera Detection System). The vehicle fitting consider using a

RFID tag to check vehicle information and Smart Card (Contactless Smart Card) to use to

pay toll fees. The estimated cost of infrastructure investment and the installation of

1 There are 2 of 28 crossing checkpoints is a port checkpoint for trucks crossing the border, including the Ban Kokpai

Border and the Ban Pak Saeng Border. It does not calculate the average travel distance of 4-wheel vehicles.

Country

No. of Border

Checkpoint2017 2018 2019 2020 2021 2022

1 Foreign cars imported from Malaysia 7 596,012 633,343 670,674 708,005 745,336 782,666

2 Foreign cars imported from Myanmar 4 495,670 542,877 590,084 637,291 684,498 731,704

3 Foreign cars imported from Laos 11 755,185 802,855 850,525 898,195 945,865 993,547

4 Foreign cars imported from Cambodia 6 332,465 355,002 377,539 400,076 422,613 445,151

28 2,179,332 2,334,077 2,488,822 2,643,567 2,798,312 2,953,068

Growth rate of each country (%) 2017 2018 2019 2020 2021 2022

1 The growth rate of foreign cars into Thailand from Malaysia (%) 6.3% 5.9% 5.6% 5.3% 5.0%

2 The growth rate of foreign cars into Thailand from Myanmar (%) 9.5% 8.7% 8.0% 7.4% 6.9%

3 The growth rate of foreign cars into Thailand from Loas (%) 6.3% 5.9% 5.6% 5.3% 5.0%

4 The growth rate of foreign cars into Thailand from Cambodia (%) 6.8% 6.3% 6.0% 5.6% 5.3%

The growth rate of foreign cars into Thailand from all countries (%) 7.1% 6.6% 6.2% 5.9% 5.5%




technology to collect fees. With the assumption that Only 4-wheel (foreign) at 26 border

checkpoints nationwide. as the following:

The Investment and installation the toll collection system at database center

approximately 300 million baht.

The Investment and installation the toll collection system at 26 border

checkpoints nationwide approximately 225 million baht.

The Spare cost of vehicle fitting (RFID Tag and Smart Card) approximately

98 million baht.

11.1.4 Operation and Maintenance Cost

Operation and maintenance Cost of the system. At the 26 border checkpoints,

approximately 21.7 million baht per year. While operating and maintenance the system at

the database center or the control center of Bangkok about 30 million per year. There is

also depreciation from tools and equipment of Both in the database center and all border

checkpoints another 43.3 million baht per year, that total operating cost are 95 million baht.

11.1.5 VEP and RC Cost

The VEP Cost before appropriation2 amounted to approximately 95 million baht

in the year 2018 When divided by the estimated traffic volume (in 2018) of 4-wheel

vehicles, 2.3 million trip, So that the average operating cost per trip before the appropriation

is 42 baht per trip.

For the RC Cost. It can be calculated from the variable road maintenance costs

of 4-wheel vehicle only, which is approximately 1.50 baht per kilometer (table 11.1.5-1).

Table 11.1.5-1: Road maintenance costs for each type of vehicle

Type of

vehicle

Infrastructure Cost

(Baht/veh-km.)

Accident Cost

(Baht/veh-km.)

Environmental Cost

(Baht/veh-km.)

Total

(Baht/veh-km.)

4 - Wheel 0.85 0.51 0.138 1.498

Source: Department of Highways and Office of Transportation and Traffic Policy and Planning, additional analysis and

processing by consultants.

11.1.6 Recommended Toll Rates

Considering indirect results from the spending of foreign tourists more

maintenance cost. The RC fee may not be included in the calculation of toll fees to reduce

the impact on foreign travelers may consider only charge for VEP fee. When the cost of

maintenance is not taken into consideration found the toll fee is only 42 baht per trip. And

if the license fee is collected via we still use the smart card at the rate of 1 0 0 baht which

the card is 5 years old and continues to invest in buildings, tools and equipment under the

old investment plan in the amount of 525 million baht. In the first phase found. Excluding

2 Appropriation of operating expenses is a division of operating expenses to calculate VEP and RC costs by 50%.




the cost of maintenance, the way to calculate will continue to profit from operations with

the return on investment (FIRR) was 8.9%. Therefore, the consultant recommends that

the license fee is 100 Baht. It will be RFID tag and Smart Cards will be valid for

5 years and will be charged at the toll rate of 42 baht per trip (with a 5-year rate

adjustment). The fee should be able to start nationwide, it will be worth investing in the

system, It is a one time investment when installing the system.

11.1.7 Operation model

The consultant suggested using the model of operation by involving the private

sector in the implementation to reduce the investment burden of the government department

(option 2 (sub-option 2) as detailed in the final report) in figure 11.1.7-1.

Figure 11.1.7-1: Recommended to Operation model

In this regard, there will be a need for a total of 260 staff to be recruited. Part of

the government 90 employees and private 170 employees. The government employee will

consider approving the entry into Thailand of vehicles through the link check the data from

the database of government.

(Note: This is the man power worst case rating. All staff must be staffed.

11.1.8 Summary of Action Plans and Actions

The action plan is divided into 3 phases, with a focus on each of the different but

continuous and interconnected phases, as shown in table 11.2-1. the details are summarized

in Chapter 8.


Division responsible for collection tolls


Ministry of Finance

Customs


Royal Thai Police

Immigration Office


Private sector co-operation




Table 11.2-1: Key points in the 3-phase action plan over the 10-year period

Year

Short-term Medium-term Long-term

1 2 3 4 5 6 7 8 9 10

1 Regulation revision and implementation of

vehicle detection capability

2 Implementation of vehicle tracking capability

3 Leverage of transport data

11.2 SUMMARY TABLE OF THE STUDY

Project details The Study Results

1 Time frame for traffic

forecasting.

20 years

2 Recommended technology in

monitoring and tracking

vehicles (in short term)

In short, use RFID tag and Smart Card.

In the medium term, GPS technology will be used to track

additional vehicles.

3 Investment Cost 1) Infrastructure investment budget and system installation total

525 million baht, divided into

- Infrastructure investment budget and system installation at

control center about 300 millio

- Infrastructure investment and system installation at the

nationwide border checkpoints 225 million baht.

2) Spare cost of equipment for vehicle fittings of 98 million baht

(RFID tag and Smart Card)

4 Investment Type Let the private sector co-operate in the form of a BTO concession.

Will be operated by the private sector in the form of a concession.

And access to government or other relevant government

information.

5 Fee collection The VEP collection only in short term, It is divided into two parts

is (1) Permit to bring vehicles into the country or registration fee

(Once collected for 5 years) and (2) tolls fee (Collected every time

you enter the country) by collecting 26 border checkpoints at the

same time.

6 Fee Rate License fee / registration fee of 100 Baht (with RFID and

prepaid cards). The toll rate is 42 Baht per trip.

In the case of Malaysia only The registration fee is 100 baht

and the tolls fee is 160 baht per trip.

7 Analysis of financial results 1) In the case of tolls fee collection only (VEP) 42 baht per trip,

and for the private sector to participate. The project will have

a payback period of 11 years and a financial return rate

(FIRR) of 8.9 percent.

2) In the case of tolls fee (VEP) and Road Charge (RC)

collection 160 baht per trip. The project will have

a payback period of 6 years 11 mount and a financial return

rate (FIRR) of 12.7 percent.

8 Action Plan Short-term plans (Year 1-3), updated relevant laws /

regulations, and the installation of vehicle inspection

capabilities. (By collecting VEP only)

Medium Term Plan (Years 4-7) Enhance Vehicle Tracking

Capabilities (Increased collecting at variable rates by distance

traveled: RC)




Project details The Study Results

Long-Term Plan (Year 8-10) Expands the scope of inspection

and tracking of vehicles entering Thailand by road Integration

of travel information for the use of information in transport

policy, promotion of trade and tourism

the asean economic community transportation · the asean economic community transportation...

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