Premier Approves Five New Rail Routes
Prime Minister Samak Sundaravej yesterday approved a Bt367.3 billion budget for the construction of five double-track rail routes during the meeting with the transport mega-project committee.
The five routes consist of the 990-km route from Nong Khai to Kanchanaburi, which requires an investment of Bt132.7 billion; the 311-km route from Ubon Ratchathani to Nakhon Ratchasima, Bt41.7 billion; the 247-km route from Kaeng Khoi to Map Ta Phut, Bt33 billion; the 796-km route from Chiang Khong to Ayutthaya, Bt111.88 billion; and the 300-km route from Nakhon Ratchasima to Map Ta Phut, Bt48 billion.
Transport Minister Santi Prompat said the combined railroads of 2,644 kilometres are extensive enough to make Thailand an attractive destination for private investors.
"We have received interest from investors in China and the United Arab Emirates," he said. (Report by The Nation)
The government will invite private companies to invest in the projects under concessions. It will also offer automatic rights to carriage makers to supply the projects if they set up a manufacturing plant in Thailand.
The new railroads aim to raise rail transportation to 10 per cent and facilitate goods transportation and reduce logistics costs, which are rising because of increasing fuel prices.
The Transport Ministry, the State Railway of Thailand and other related agencies are assigned to finalise the investment details.
The budget of Bt39 billion will be used to maintain and improve the existing 4,000-km rail network. Some parts will be expanded.
Meanwhile, the Industry Ministry will be responsible for establishing industrial estates along the railway lines so as to diversify investment to other provinces.
The projects are expected to link Thailand with countries in the Mekong region.