Railway land assets worth THB96 bn set for auction to generate revenue

The State Railway of Thailand (SRT) is accelerating its efforts to generate income through the development of commercial land, increasing revenue from the current 3.7 billion baht to 5 billion baht. 

The SRT is sitting on vast land assets across the country, including large plots of land with high commercial development potential. These lands are centrally located and easily accessible via public transportation.

In a recent announcement during the contract handover and management of the non-core commercial areas, the SRT revealed that its land holdings currently totalled 246,880 rai (around 39,501 hectares), divided into:

Core business area: Land near stations, railway depots, and tracks, totalling 201,868 rai (32,299ha).

Non-core business area: Land that can be developed for commercial purposes, totalling 45,012 rai (7,202ha).

Within this non-core business area, there are 33,761 rai (5,401.7ha) of land with high commercial potential that can be developed to create added value. Notably, there are 28 large plots of land with significant development potential, covering a total of 2,855.42 rai (456.86ha), with an estimated land value of over 96.152 billion baht.

SRT Governor Veerit Amrapal stated that the current efforts would enhance SRT’s ability to generate income and make the most efficient use of its land assets.

Currently, the SRT has 28 large plots of land with high commercial potential, which can be developed to generate income for the organisation. The results of the study on these potential commercial plots were handed over to SRT Asset for feasibility studies starting in May 2022, and the process is nearing completion. 

The development of these projects will be carried out in three phases. The first phase is set to begin in 2025 with 7 plots, while the remaining plots will be developed between 2026 and 2029. 

The first phase includes the following land projects:

Bang Sue - Klong Tan (RCA) Project
Sila At Project
Klong San Market Project
Ratchaprarop Station Project 
Phahonyothin Road Project
Bang Sue Area Bus Terminal Project
Nong Khai Station Area Project 

In addition, the SRT has revealed the top 10 large plots of high-potential land that will soon be opened for bidding to find private investors for development. These include:

Hua Hin Railway Golf Course and Guesthouse (Golf Inn Hotel)
Area: 500 rai (80ha)
Estimated land value: 2.2 billion baht

Km 11 Railway Industrial Estate Development Project (Plot G)
Area: 430 rai (68.8ha)
Estimated land value: 24.94 billion baht

Makkasan Area Development Project, SRT (Plots B, C, D, and E)
Total Area: 369 rai

Plot B: 117.3 rai (18.76ha), estimated land value 8.68 billion baht
Plot C: 152.4 rai (24.38ha), estimated land value 11.20 billion baht
Plot D: 88.58 rai (14.17ha), estimated land value 6.554 billion baht
Plot E: 11.3 rai (1.80ha), estimated land value 836 million baht

Mae Nam Station Area Development Project
Area: 277.5 rai (44.4ha)
Estimated land value: 7.159 billion baht

Ministry of Transport headquarters and Adjacent Area (Red Building, Bang Sue) Development Project (Plot E)
Area: 140 rai (22ha)
Estimated land value: 3.444 billion baht

Bangkok Station Area (Hua Lamphong)
Area: 121.41 rai (19.42ha)
Estimated land value: 9.955 billion baht

Commercial Development at Bang Sue Grand Station, Zone C
Area: 105 rai (16.8ha)
Estimated land value: 6.090 billion baht

Commercial Development at Bang Sue Grand Station, Zone B
Area: 73.04 rai (11.68ha)
Estimated land value: 4.236 billion baht

Nong Khai Market Stop
Area: 73 rai (11.68ha)
Estimated land value: 119 million baht

Hua Hin Railway Hotel Project (Centara Beach Resort and Spa Hua Hin)
Area: 72 rai (11.52ha)
Estimated land value: 2.880 billion baht