Intelligent Traffic & Tolling Systems

Phillip Securities stated that KTB will serve as the clearing house for the common rail ticket project, after the Ministry of Transport confirmed that from January 1, 2027 onward, rail commuters will use a common ticket fare system across all rail lines, all colors, and all routes at prices of 17 to 45 baht. The government will bear the cost of compensating passengers for the fare difference on journeys that actually exceed 45 baht, without directly reimbursing operators, and KTB will prepare the back-end system to manage the money and clear refunds of the difference to the public. This is seen as positive sentiment for KTB, but the main revenue expected is the fee for serving as clearing house, which is unlikely to be significantly high relative to previous forecasts. An additional benefit is low-cost liquidity from funds passing through the bank and user data from rail passengers that can be used to cross-sell other financial products. The brokerage maintains its 2026 profit forecast at 48.9 billion baht, up 1.4% year-on-year, and keeps its base price target at 46 baht. It expects a dividend of 2.10 baht per share for 2026, representing a dividend yield of 4.7%, and 2.21 baht per share for 2027, representing a dividend yield of 4.9%. Recommendation: accumulate.

Akio Sato, chairman of the Japan Automobile Manufacturers Association, said at a press conference in Tokyo on the 17th that the association aims to put core autonomous driving systems into practical use in some regions by 2028. He stressed the need for public-private cooperation to achieve this, and said the association will move quickly to build an information control platform that integrates systems for remotely monitoring autonomous vehicles and mechanisms for cars to receive pedestrian information from sensors and cameras on roads. Sato argued that eliminating traffic deaths and improving convenience should go hand in hand, and said the pace of development will be accelerated. The public and private sectors will also consider creating a framework to provide relief for victims and conduct accident investigations when accidents occur.

BEM shares rose 4.58% to 6.85 baht, up 0.30 baht, after Dao Securities maintained its Buy recommendation with a 9.00 baht target price based on sum-of-the-parts valuation. The broker said it holds a positive view following a group conference call with BEM, expecting electric train passenger volume in 2027 to potentially grow more than 10% year on year, supported by the common ticket policy, while the company is currently negotiating details with the government, particularly on cost subsidies. The company expects to begin seeing cost savings from bringing maintenance work on the Purple Line back in-house from the third quarter of 2026, with average cost savings estimated at 100 million baht per year, and in the fourth quarter of 2026 there may be a partial reversal of maintenance expenses as a one-time item. It also expects interest expenses in the second half of 2026 to remain low and steady, close to the second quarter of 2026. As for the SOE toll increase in December 2026, the company views the net impact as neutral and is in discussions with the Expressway Authority of Thailand on measures to mitigate the impact. Dao Securities maintained its 2026 net profit forecast at 3.9 billion baht, up 3% year on year, with third-quarter 2026 net profit preliminarily expected to expand year on year on lower interest expenses and Purple Line maintenance costs, and to grow quarter on quarter supported by seasonal travel factors. Catalysts include progress on the Double Deck project and the South Purple Line operating contract, as well as the common electric train ticket policy in early 2027, which should help lift passenger volume across the entire electric train system.

The Expressway Authority of Thailand, or EXAT, has confirmed that the 15-baht increase in tolls on the Western Expressway, the Si Rat-Outer Ring Road Kanchanaphisek route, is in line with concession contract terms requiring an adjustment every five years. Four-wheel vehicles will rise from 65 baht to 80 baht, six- to ten-wheel vehicles from 105 baht to 130 baht, and vehicles with more than ten wheels from 150 baht to 185 baht, effective December 15, 2026. EXAT Governor Surachet Laophulsuk said the authority is currently considering relief measures for motorists, initially possibly in the form of discount coupons or special discounts for Easy Pass users, with a conclusion and public announcement expected soon. The Western Expressway currently handles about 60,000 vehicles per day. Meanwhile, Panan Tosuwannathaworn, Deputy Managing Director for Accounting and Finance at Bangkok Expressway and Metro Public Company Limited, or BEM, said the company sees both its expressway and rail businesses growing in line with the expansion of economic activity and travel, and is pressing ahead with building commercial revenue to reduce reliance on fares and tolls. It is developing and revamping areas inside rail stations into landmarks and waiting areas, gradually adding and redesigning digital advertising displays inside stations, and expanding into above-ground areas such as the Silom and Sukhumvit intersections and areas along the expressways. Separately, Yuanta Securities (Thailand) said in an analysis that it holds a positive view on BEM, expecting the eastern Orange Line rail project to begin trial operations ahead of the original schedule of January 2028, while maintaining its 2026 normal profit forecast at 3,973 million baht, up 5.1% year on year, and keeping its Buy recommendation with a target price of 10.50 baht.

The Joint Ticket System Policy Committee has resolved to approve Krungthai Bank to operate the Central Clearing House, or CCH, in Bangkok and its vicinity, in order to drive the common ticket system with a maximum fare of no more than 45 baht under the Common Ticket System Management Act of 2025. The third meeting of 2026 was chaired by Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, and the meeting also considered two additional subordinate laws concerning common fare rates, so as to create a concrete mechanism for driving the common ticket system. On the progress of the subordinate legislation, the Office of Transport and Traffic Policy and Planning has issued five office announcements and published them in the Royal Gazette, while the Minister of Transport signed six Ministry of Transport announcements and two committee announcements on 14 September 2026. In addition, the Mass Rapid Transit Authority of Thailand, the State Railway of Thailand and Bangkok Metropolitan Administration reported progress on negotiations with operators, implementation under the Public-Private Partnership Act of 2019, and the installation and testing of the common ticket system. The meeting resolved to acknowledge the reports and directed the relevant agencies to expedite implementation in line with the set plan.

The Expressway Authority of Thailand, under the Ministry of Transport, has announced that it will adjust the toll rates on the Prachim Ratthaya Expressway, also known as the Si Rat–Outer Ring Road Expressway in Bangkok, effective from 15 December 2026 onward. This adjustment applies only to this particular Prachim Ratthaya Expressway route. The rate change follows the conditions of the investment concession contract, which stipulates that toll rates be adjusted every five years, with Bangkok Expressway and Metro Public Company Limited, or BEM, as the concessionaire and the sole investor in the entire project. Under the new rates, four-wheel vehicles will pay 80 baht per vehicle, up from 65 baht; six- to ten-wheel vehicles will pay 130 baht per vehicle, up from 105 baht; and vehicles with more than ten wheels will pay 185 baht per vehicle, up from 150 baht. The Expressway Authority of Thailand is currently discussing the details with BEM and relevant agencies to finalize measures to ease the burden and reduce the impact on the public's expenses, and will announce the official details in advance before the toll increase takes effect.

The Mass Rapid Transit Authority of Thailand, or MRTA, led by Chairman Monchai Dechasakulsom and Governor Kajpholchon Udomthamphakdi, together with executives from the Department of Rail Transport, the Office of Transport and Traffic Policy and Planning, and the Bangkok Metropolitan Administration's Traffic and Transportation Office, inspected the readiness of the Green Line to prepare for the installation of an EMV Contactless common ticketing fare collection system, in line with the common ticket policy and common fare measures, which are targeted to begin in 2027. The delegation traveled on the Green Line from Mo Chit station to five key stations with high passenger volumes: Mo Chit, Asok, Siam, Sala Daeng, and Phaya Thai. They conducted a physical inspection of the stations and observed passenger density around the ticket sales areas. Monchai said this site visit was aimed at identifying physical problems in order to help reduce travel costs and encourage more people to use public transport. The executives also discussed and exchanged information on various aspects of passenger services to set guidelines for managing the common ticketing system and common fare structure as efficiently as possible, with the goal of raising the country's transport system to be convenient, safe, and seamlessly connected across all travel modes by 2027.

The Expressway Authority of Thailand is preparing to submit 11 priority expressway projects to the Cabinet for consideration. Of these, two are under construction, six are awaiting approval to proceed, and two are in the study and design stage. Surachet Laophulsuk, Governor of the Expressway Authority of Thailand, disclosed that the Chalong Rat - Bangkok Outer Ring Road East expressway project, formerly known as N2, with a length of 6.67 kilometres and a budget of 14,802 million baht, is being presented to the Cabinet. It is expected to be approved and begin construction in 2027, opening for service in 2030. Meanwhile, the Chalong Rat - Khae Rai expressway project, formerly known as N1, with a length of approximately 12.60 kilometres, is undergoing a new feasibility study. The Cabinet is expected to approve it in 2029, with construction starting in 2030 and service opening in 2033. As for the second-level elevated expressway project along the Ngam Wong Wan - Rama IX section, also known as the Double Deck, with a length of 20.09 kilometres and a budget of 34,800 million baht, it is being submitted to the Public-Private Partnership Committee for approval of a contract amendment under the procedures of the Public-Private Partnership Act of 2019. Construction is expected to begin in 2027 and service to open in 2031. For the two projects under construction, they are the Rama III - Dao Khanong - Bangkok Outer Ring Road West expressway project, with a length of 18.70 kilometres and a budget of 31,244 million baht, which has reached 95.98% construction progress as of August 2026, and the Chalong Rat expressway extension project along the Chatu Chot - Lam Luk Ka Road section, with a length of 16.21 kilometres and a budget of 24,060 million baht, which has reached 9.57% progress and is expected to open for service in 2028.

KGI Securities said the increase in tolls on the Chalong Rat Expressway, also known as the Si Rat - Outer Ring Road Expressway in Bangkok, which is adjusted every five years under the terms of the investment concession contract, takes effect from 15 December 2026. Four-wheel vehicles will pay 80 baht per vehicle, up from 65 baht, and six- to ten-wheel vehicles will pay 130 baht per vehicle, up from 105 baht. This is seen as slightly positive, given traffic volume on the expressway route of about 62,500 vehicles per month, or 5.5% of the 1.1 million vehicles using the expressway each month. The impact is expected to be about 3% of expressway revenue. The tolls will undergo a major contractual adjustment in 2029, rising from 50 baht to 60 baht for the city-bound routes and from 55 baht to 65 baht for Sector C. The years 2028 to 2031 are expected to be a golden era for BEM, driven by the full operation of the Orange Line and Purple Line electric train services and the increase in urban expressway prices. KGI maintains its buy recommendation with a target price of 8.40 baht.

The Royal Gazette has published a Ministry of Transport announcement designating the Western Ring Road expressway as a toll expressway, along with new toll rates effective from 15 December 2026 onward. The announcement repeals the Ministry of Transport's 2021 announcement designating the Si Rat expressway and the Bangkok Outer Ring Road as a toll expressway, which was issued on 18 November 2021. Under the new rates at the Bang Sue 2 toll plaza, which apply to Western Ring Road users entering the Si Rat expressway and the Chalerm Maha Nakhon expressway, vehicles with no more than 4 wheels are charged 80 baht per vehicle, up from 65 baht; vehicles with more than 4 but no more than 10 wheels are charged 130 baht per vehicle, up from 105 baht; and vehicles with more than 10 wheels are charged 185 baht per vehicle, up from 150 baht. The Expressway Authority of Thailand board considered the matter in accordance with the conditions of the concession contract for the Si Rat expressway and Bangkok Outer Ring Road project at its 8/2026 meeting on 14 July 2026. The announcement was signed by Phiphat Ratchakitprakarn, Minister of Transport, on 27 August 2026.

The research department of Asia Plus Securities stated that the passing of the draft annual expenditure budget bill for fiscal year 2027, worth 3.788 trillion baht, marks the start of a new round of accelerated public investment, with investment budget as high as 789 billion baht, or 20.8% of the total budget. It views the construction contractor group as the most direct beneficiary, as this unlocks bidding and accelerates investment in large-scale projects, especially rail systems, motorways, expressways, and logistics infrastructure, which will be a key source of backlog replenishment over the next 2-3 years. This makes CK and STECON the stocks most closely linked to the acceleration of budget disbursement. For the construction materials group, public investment will help support demand for cement, concrete, and domestic construction materials amid a property sector that is still recovering only modestly, with SCC, SCCC, and TPIPL as the main beneficiaries of the construction cycle recovery, while TASCO is supported by budgets for road and highway network maintenance. The research department has a positive view on the public investment theme, seeing the passing of the fiscal 2027 budget bill as an important catalyst confirming the return of the country's infrastructure investment cycle over the next 1-3 years. It recommends overweighting stocks that directly benefit from the opening of bidding and accelerated construction of public projects as the first priority, with CK and STECON as the top picks of the contractor group, while SCC and TASCO are the main representatives of the construction materials group. Issues to monitor going forward are the speed of budget disbursement, the opening of bids for transport projects, the gradual signing of new work contracts, and progress on PPP projects, which will be key factors for the timing of revenue recognition, backlog replenishment, and profit recovery in the construction materials and construction contractor groups in the period ahead.

China's Ministry of Industry and Information Technology unveiled a plan for the intelligent electric vehicle industry on Thursday, September 10, aiming for widespread use of autonomous driving vehicles by 2030. Under the plan, China will accelerate the deployment of autonomous driving technology on highways, urban expressways and some city roads, with the goal that autonomous vehicles meet higher safety standards than human driving. The ministry said the Chinese government aims to elevate the automotive industry into one of the pillars of the economy, develop several Chinese automakers into the world's top 10 by sales, increase global acceptance of Chinese car brands, and expand China's role in setting international automotive standards. At the same time, China will tighten regulations on vehicle production, road safety, autonomous driving systems and software updates, and will consider special-case approval processes for key components and vehicles produced in small volumes. The ministry added that China will strengthen oversight of vehicle and battery production capacity, curb excessive investment, promote industry consolidation and eliminate inefficient capacity, as well as step up antitrust enforcement, improve product quality supervision, promote fair competition and rein in inappropriate incentives from local governments. For overseas expansion, the ministry will draw up guidelines for Chinese automakers to comply with the regulations of other countries, and will promote cooperation between Chinese and foreign companies in research and development of vehicles and key components, investment, and global market expansion.

Seoul Mayor Oh Se-hoon announced that Seoul plans to invest 86.1 trillion won, or 64.3 billion US dollars, in 100 major projects to raise the city's competitiveness into the world's top 3 by 2030. These initiatives focus on improving residents' quality of life and adopting new technologies, such as allocating exercise spaces within a 10-minute walk from home, granting access to artificial intelligence services to 500,000 young people, and increasing the number of driverless buses to 500 by 2030 from 16 currently. In real estate, Seoul aims to begin construction of 310,000 housing units by 2031 through rapid integrated planning, while pushing to supply 130,000 units of public housing to counter surging property prices. Oh has been pushing to raise Seoul's ranking since winning the local election on June 3, which secured him a third consecutive term as Seoul mayor and his fifth term in the office overall. Seoul currently ranks sixth in the 2025 Global Power City Index by the Mori Memorial Foundation of Japan, behind London, Tokyo, New York, Paris and Singapore. The index evaluates cities on six key indicators: economy, research and development, cultural interaction, livability, environment and accessibility.

On July 15, 2026, Tobu Railway began service for Tokyo's first "walk-through facial recognition gates" at Ikebukuro and Kamitabashi stations on the Tojo Line. The service is available to passengers holding PASMO commuter passes for sections including the two stations. The gates utilize the biometric authentication service "SAKULaLa," developed jointly with Hitachi, where cameras installed on the automatic ticket gates recognize faces to verify identity, allowing passengers to pass without stopping. Tobu Railway had previously introduced the system at Tobu Utsunomiya Station in May 2026, and for these two stations, existing automatic ticket gates were modified to accommodate the system. To expand the number of stations with the system, the company has collaborated with OMRON Social Solutions, Nippon Signal, and Toshiba to enhance the versatility of the facial recognition system. On the security front, the system combines Hitachi's "PBI" technology with Panasonic Connect's facial recognition technology, storing biometric information in the cloud in a form that cannot be restored, and generating and deleting secret keys each time. Ikebukuro Station, with an average of about 420,000 users per day, is the company's largest station and includes commercial facilities, making it a model case for the implementation.

On August 25, the intelligent driving sector rebounded in intraday trading. Zhejiang Shibao hit the daily limit, while Xingyuan Zhuomei, China Post Technology, Yachuang Electronics, Wanji Technology, and Fulongma also rose. In news, according to Xinhua News Agency, the draft revision to the Road Traffic Safety Law submitted that day for initial review to the Standing Committee of the National People's Congress includes a dedicated chapter on special provisions for autonomous vehicles. It defines the concepts of autonomous vehicles and assisted driving functions, and clarifies that when a road traffic safety violation occurs while an autonomous vehicle's automated driving function is activated, the manufacturer or importer of the autonomous vehicle shall handle the matter. Institutions noted that 2026 has been officially established as the first year of mass production for Level 3 autonomous driving in China, with multiple policy, technological, market, and competitive signals resonating, marking a critical turning point for the country's intelligent driving industry.

Kagoshima Bank and the Kagoshima City Transportation Bureau announced on the 21st that they have reached a basic agreement to develop and operate a transit money function using a bank payment app. The transit payment function will be added to the Pay Don app, which was developed by the bank and is jointly operated with financial institutions in the prefecture, making it usable on local route buses and city trams. Operations are scheduled to begin in late October, and this is said to be the first case in Japan of a transit payment function being operated on a cashless payment app from a financial institution using QR codes. The aim is to improve the convenience of public transportation and promote cashless payments.

The Mass Rapid Transit Authority of Thailand, or MRTA, has signed contracts hiring consultants to study the Silver Line rail project from Bang Na to Suvarnabhumi Airport and the Grey Line from Watcharaphon to Thong Lo. The studies will take about 12 months, and both projects are expected to be submitted to the cabinet for approval in 2028. Initially, both projects are expected to be developed under a PPP Gross Cost model, in which the public sector invests in civil works and bears all revenue risk, while hiring private companies to build the systems and manage the projects over the long term. For the Silver Line, the route has been extended to connect to the south passenger terminal of Suvarnabhumi Airport, following discussions with Airports of Thailand Public Company Limited. For the Grey Line, the study will examine convenient connections with other rail lines. MRTA has signed a contract with MHPM Company Limited as consultant to study and design the Grey Line Phase 1 from Watcharaphon to Thong Lo, worth 76.35 million baht, and hired Chotichinda Consultant Company Limited as consultant to study and design the Silver Line from Bang Na to Suvarnabhumi Airport, worth 75.70 million baht.

Rekor Systems has been selected by the South Carolina Department of Transportation for a seven-year contract with a potential value exceeding $22 million, subject to final negotiations. The company will maintain and modernize SCDOT's traffic count, vehicle classification, speed monitoring, and weigh-in-motion sites statewide, replacing aging in-road sensors with AI-powered roadside systems to improve data accuracy and reduce maintenance-related lane closures. The contract is also available to South Carolina cities, counties, and other local agencies, which could push the total value above the $22 million statewide baseline. Rekor will provide the infrastructure and manage the systems under a Data-as-a-Service model, while SCDOT receives validated traffic data. Shares of Rekor Systems traded 2.25% higher at approximately $0.68 following the announcement.

Bangkok Mass Transit System Public Company Limited, or BTS, together with Eastern Bangkok Monorail Company Limited and Northern Bangkok Monorail Company Limited, operators of the Yellow and Pink Line monorails, have partnered with Via Group (Thailand) Company Limited, developer of the ViaBus application, to allow passengers to track train positions in real time for the first time in Thailand. The service covers the Sukhumvit and Silom lines of the Green Line, as well as the Yellow and Pink Line monorails, and displays the destination of each train. Train position data will be linked to other public transport networks on the ViaBus app, including buses and passenger boats, which have over 10 million users, enabling multi-modal journey planning from a single platform. This collaboration marks a significant step in developing a multi-modal public transport information system that connects rail, road, and water for seamless travel.

The Cabinet has approved in principle a draft royal decree allowing the Mass Rapid Transit Authority of Thailand to operate electric train services in Songkhla province, as proposed by the Ministry of Transport. The draft decree authorises the MRTA to expand its operations into Songkhla, in addition to its existing operations in Chiang Mai, Phang Nga, Phuket, Nakhon Ratchasima, and Phitsanulok. The project is a monorail mass transit system with a total distance of 12.54 kilometres and 12 stations. It includes one depot and maintenance centre at Khlong Wa station, and three transport interchange points at Khlong Wa, Kho Hong, and Rot Tu stations. The stations are designed as three-storey structures situated on median strips, intended to connect various transport modes and accommodate passenger volumes from surrounding areas of Hat Yai city and nearby provinces. Park-and-ride and drop-off areas will also be provided. The MRTA board has already approved the plan, which is in line with the resolution of the Land Traffic Management Committee.

STAR Systems International is supporting the launch of a new series of Multi-Lane Free Flow tolling projects across India, including the landmark Delhi-Jaipur Pink City Expressway in Rajasthan. The deployments use the company's Titan Pro reader and Avior antenna to enable vehicles to travel at highway speeds while tolling transactions are automatically identified and processed in real time, eliminating conventional toll barriers. The projects span multiple locations, including Choryasi in Gujarat, Mundka on Delhi's Urban Extension Road-II, Shahjahanpur, Daulatpura, and Manoharpura in Rajasthan on the NH-48 corridor, and Gharaunda on NH-44 in Haryana. The initiative supports the Government of India's vision for a safer, smarter, and more efficient national highway network through digitization of the tolling ecosystem.

Geely Auto has announced it has obtained China's first certification certificate for a combined driver assistance safety management system for automotive production organizations. This certification is a mandatory compliance requirement directly tied to market access. The certificate, numbered 001, was obtained at a critical juncture as the mandatory national standard for safety requirements of combined driver assistance systems for intelligent connected vehicles is about to be implemented. With just over half a year remaining before the full enforcement of the mandatory standard in January 2027, all vehicle models on sale across the industry must complete this system certification before they can be sold. As one of the core drafting units of this mandatory national standard, Geely Auto incorporated its vast amount of real-world testing data from complex domestic road conditions into the regulatory clauses, and completed internal process alignment during the standard framework development phase, thereby securing the first certification as soon as the standard took effect. Currently, the penetration rate of Level 2 driver assistance systems in new vehicles in China has exceeded 70 percent, and the installation rate of advanced navigation-assisted driving has surpassed 30 percent. This system certification is effectively a compliance permit for automakers' intelligent vehicle models, forcing the entire industry chain to address shortcomings in the full lifecycle management of intelligent driving safety.

The global digital railway market is projected to grow from $90.98 billion in 2026 to $136.49 billion by 2031, at a compound annual growth rate of 8.5%, according to a new report from ResearchAndMarkets.com. The passenger information system segment is expected to record the highest CAGR as transit authorities deploy dynamic digital displays and mobile apps for real-time schedule and disruption updates. Remote monitoring held the largest market share in 2025, driven by IoT-based sensors and analytics that monitor track conditions, rolling stock, and signaling systems. Asia-Pacific is identified as the fastest-growing regional market, supported by smart-city investment, urbanization, and advanced signaling, with Siemens Mobility extending its collaboration with SBS Transit in Singapore in November 2025 to modernize the Downtown Line's signaling system. Key players include Siemens, Cisco, Hitachi, Wabtec, Alstom, and IBM.

The digitalisation of public transport and the adoption of AI are advancing, with transit management systems that build on bus location technology enhancing convenience. In March this year, the Public Transport Open Data Frontier 2026 forum was held, where the enrichment and utilisation of the General Transit Feed Specification were discussed. Using GTFS as a foundation, efforts are underway to achieve on-time operations through signal control, simplify the construction of smartphone bus navigation, and develop apps with generative AI. Pilot projects and commercialisation are progressing across various regions, including NTT Docomo Business's AI-operated bus, Fujitsu's Mobility as a Service and demand-responsive regional mobility transport system, and Lecip Holdings' transit management system LIVU. The spread of AI on-demand transport and autonomous driving is expected to encourage elderly people to go out more, resolve transport-poor areas, and shift the focus from vehicle ownership to mobility as a service.