Double-track rail projects reviewed amid Covid-19 impact
The Transport Ministry is reviewing double-track rail projects worth Bt270 billion that it says have been hit by fallout from the Covid-19 crisis.
The State Railway of Thailand will now study seven projects, headed by the Khon Kaen-Nong Khai link in the Northeast.
“We need to review phase 2 of all the double-track railway projects, as we have to assess economic returns amid rising public debt,” Sorapong Paitoonphong, director-general of the Department of Rail Transport, said on Wednesday after meeting with senior officials.
The review is expected to begin next month and conclude within three months before being sent to the Transport Ministry.
The SRT proposed investing a total Bt271 billion in the double-track projects back in May.
However, the National Economic and Social Development Council (NESDC), a state think-tank, has now asked more for details and investment priorities after the Covid-19 fallout triggered mounting public debt and big changes in logistics and transportation.
Sorapong said concerned parties have agreed that construction of the double-track link between Khon Kaen and Nong Khai provinces is urgent since it will connect with the China-Loas high-speed railway which is scheduled to begin operating in December next year.
The SRT has already completed studies on the environmental impact study and feasibility of the 167-kilometre route, which is expected to cost Bt25.84 billion.
According to the feasibility study, the route will transport about 12 million tonnes of goods per year until 2037, with estimated economic returns of 19 per cent. An inland container depot (ICD) has been added to the original plan to accommodate cross-border goods transportation.
The SRT has been given one month to study the project, with the outcome dictating whether or not next year’s investment can go ahead. If so, the Khon Kaen-Nong Khai project will be submitted to the Cabinet for approval this year and bidding for construction will be held next year, he said.
Investment in other double-track rail routes may be deferred, but they would not be cancelled, he assured.
The other six projects are the 285km Pak Nam Pho-Denchai route (Bt62.86 billion), 189km Denchai-Chiang Mai (Bt56.84 billion), 308km Chira Junction-Ubon Ratchathani (Bt37.53 billion), 186km Chumphon-Surat Thani (Bt24.29 billon), 321km Surat Thani-Songkhla (Bt57.38 billion) and the 45km Hat Yai-Padang Besar route (Bt6.66 billion).
