The
government is planning to open bidding for the first phase of the high-speed
train project with a total investment of Bt400 billion to make Thailand a hub
for Asean connectivity.
Under the plan, four routes will be opened
for international bidding early next year. China, Japan, South Korea and France
have expressed interest in bidding for the routes.
The plan aims to boost Thailand's economy by
reducing energy cost by Bt400 billion and increasing the value of farm goods by
Bt300 billion per year. In addition, it will also directly upgrade Thailand's
one tambon one product (Otop) to have more distribution channels as well as
develop manufacturers who are mainly small-and-medium enterprises, to create a
new city and industrial zone, to link trading points with tourist destinations,
and upgrade the living standards of Thais.
Pansak Vinyaratn, chief adviser to Prime
Minister Yingluck Shinawatra, said yesterday in an interview with Krungthep
Turakij newspaper that the Transport Ministry would propose the master plan for
Cabinet approval this year. The approval will allow the government to open
international bidding by next year.
The first-phase high-speed train routes will
cover 250 kilometres of track over four routes -Bangkok-Pitsanulok,
Bangkok-Nakhon Ratchasima, Bangkok-Pattaya and Bangkok-Hua Hin.
"Construction work on those four routes
would start at the same time to ensure their completion as planned in
2018," said Pansak, noting that in the same year, Dawei Port will also be
completed. This will encourage Thailand to be the logistics hub of the Asean
region with all basic infrastructure such as inland transportation, rail and
deep seaport on the East and West.
He added that the government also plans to
continue the second-phase construction - to be completed by 2022. It includes
the Bangkok-Chiang Mai, Bangkok-Nongkhai, Bangkok-Rayong, and Bangkok-Hat Yai
routes. The construction of the high-speed train will be on the side of the
existing railway routes.
The ministry has already conducted partly the
environmental impact assessment, which needs to be done to ensure value of
investment. At this point, the ministry will allow all provinces along the way
of the high-speed train route to propose the setting up of stations for the
Cabinet's consideration.
"High-speed trains are necessary to
ensure solid growth of the Kingdom's economy otherwise Thailand would lose
competitiveness in the long run," said Pansak.
According the government's study, the
high-speed train is a basic infrastructure necessity for Thailand's
transportation system in the next 80 years. In particular, the high-speed train
project will shift Thailand to focus more on rail transportation, with the
ratio projected to reach 80 per cent compared with 2 per cent now. So far,
transportation in Thailand has mainly focused on road, accounting for 80 per
cent.
In addition, the study also pointed out that
land transportation would be gradually reduced as oil price is estimated to
reach US$180 per barrel within the next five years.
"The high-speed train is considered a
backbone project for Thailand to create hope for the Thai economy. The project
will not only create linkage for other businesses with the logistics system but
also ensure income distribution to rural areas," said Pansak.
The high-speed train service will include
both passenger and cargo, which will also facilitate faster transportation of
farm goods. It is expected that this rail system will reduce fermentation loss
during transportation by 35 per cent or Bt300 billion per year.
The success of the high-speed train
construction will prompt Thailand Post to restructure its organisation to
become a real logistics service operator for light-weight goods. However, heavy-weight
products such as the cement, steel and others will use rail transportation, on
which the government plans to spend Bt140 billion for renovation.
Transport Ministry's permanent secretary
Silapachai Jarukasemratana said yesterday, after meeting a representative from
China, that he has ordered the Office of Transportation and Traffic Policy and
Planning to set up committees to study the four high-speed train routes. The
committees will also work with interested bidders to learn more details of the projects.
The office will select a consultant company
for the high-speed train project.
Chinese representatives are interested in
investing either wholly owned by the Thai government or as a joint venture.
Nakarin Srilert
Business & Investment Opportunities
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