Thailand’s government has given the final go-ahead for the high-speed railway project, paving the way for construction to commence. As reported by Railway Supply, the project aims to enhance connectivity between Suvarnabhumi, Don Mueang, and U-Tapao international airports, and the resort city of Pattaya.
Next week, Thailand’s Cabinet will review the updated contract for the project. Once approved, the contract with the contractor, Asia Era One—a subsidiary of Charoen Pokphand Group—will be signed by the end of December. Construction is set to begin in the first quarter of 2025, accelerating the development of Thailand’s railway network and improving nationwide transportation links.
Key Details of the Project
Amendments to the contract, approved on October 19, 2021, aim to compensate the contractor for losses incurred during the Covid-19 pandemic. The outbreak significantly reduced expected revenue from airport transport, necessitating revisions to the contract’s financial terms to maintain profitability.
The project’s total cost is ฿276.5 billion ($8.3 billion), primarily allocated for the construction and infrastructure of the high-speed rail line linking key transportation hubs. This modernization effort is pivotal for supporting Thailand’s economic growth.
Purchasing rolling stock for the new 220-kilometer railway line is estimated at ฿15.5 billion ($460 million). While the specific trains have yet to be confirmed, a similar high-speed line between Bangkok and Nong Khai will utilize Chinese Fuxing Hao CR300AF trains. These trains can reach speeds of up to 300 kilometers per hour, though in Thailand, their maximum operational speed will be limited to 250 kilometers per hour due to local infrastructure requirements.
The high-speed railway project is expected to significantly boost Thailand’s economy and tourism by providing fast connections between the capital and resort regions, thus enhancing the country’s appeal to tourists and business travelers. The project will also facilitate freight transport, contributing to national economic growth.
Transforming Thailand’s Infrastructure
The project is set to open new opportunities for Thailand’s transportation infrastructure. In the future, it could be integrated into a broader high-speed train network across Southeast Asia, bolstering Thailand’s status as a regional transportation hub and attracting investment.
By introducing this high-speed line, the Thai government aims to stimulate economic growth, reduce transportation costs, and improve environmental conditions. The project is also expected to positively impact the labor market by creating jobs during both the construction and operational phases.
Looking ahead, the high-speed railway could play a crucial role in integrating transportation systems across Southeast Asia. Countries in the region are discussing joint projects to create a unified transportation network, which would open new economic prospects.
Thus, Thailand is not only enhancing its internal transportation system but also positioning itself to play a key role in new regional transport corridors. This development is a significant step towards strengthening economic ties with neighboring countries and improving international trade conditions.
The high-speed railway project, linking Thailand’s airports and major cities, is of strategic importance to the country. Its successful completion will substantially contribute to long-term economic development and an improved quality of life for citizens.
Author: Mr. KC Cuijpers
For more information: Please contact Town & Country Property – [email protected]
