Investment plan for Phase 2 of Thai-Chinese railway heads to Cabinet

TUESDAY, JULY 23, 2024

Private constructors eye multibillion-baht construction contracts for line between Korat and Nong Khai

The investment plan for Phase 2 of the Thai-Chinese high-speed railway (Nakhon Ratchasima-Nong Khai) will be presented to the State Railway of Thailand (SRT) board on Thursday, then sent to Cabinet, according to the Transport Ministry.

Meanwhile, the last two construction contracts for Phase 1 of the project (Bangkok-Nakhon Ratchasima) should be signed by year-end, it said.

Following approval by the ministry and Cabinet, the SRT will expedite the Phase 2 process to allow private sector involvement within this year, said Deputy Transport Minister Surapong Piyachote in the latest project update.

"The ministry aims to advance the Thai-Chinese railway project because rail transport can significantly lower logistics costs. China and Laos have already established a high-speed rail connection from China. Connecting this railway to Thailand at Nong Khai will complete and enhance the high-speed rail route’s potential and connectivity," Surapong said.

The completed project will allow transport of people and goods between Bangkok and Kunming, capital of China’s Yunnan province. It will also reduce travel time from Bangkok to Nakhon Ratchasima to 90 minutes from the current 4.5 hours. 

Phase 2 of the high-speed rail project spans 357 kilometres between Nakhon Ratchasima and Nong Khai with total investment value of 341.35 billion baht. This includes 235 billion baht for civil works, 10.3 billion baht for land acquisition, 80 billion baht for rail and electrical systems, and 10 billion baht for project management and system assurance consulting. Phase 2 is scheduled to open in 2031.   

The SRT will conduct electronic bidding for 10 contracts – nine for civil works and one for system installation and signalling. The project features 202km of elevated tracks and 154.6km of ground-level tracks, serving five major stations: Bua Yai, Ban Phai, Khon Kaen, Udon Thani, and Nong Khai.

The proposal will require Cabinet approval, followed by a study of the public-private partnership (PPP) investment model that is expected to take six months.

If the plan proceeds as scheduled, selection of private-sector bidders could be completed by mid-2026, according to the ministry.