On January 19, 2019, a source from the Ministry of Transport revealed that the State Railway of Thailand (SRT) has indicated in its proposal to hire a private company that wins the bidding for the high-speed rail project connecting three airports in the EEC Phase 1, from Bangkok to U-Tapao (CP Group), to operate the rail services in Phase 2 from U-Tapao to Trat, covering a distance of 300-400 kilometers, with an investment budget exceeding 300 billion baht, without the need for a bidding process. This is aimed at ensuring convenience for the public, or there may be a possibility of hiring the same private company to operate the service, similar to the case of the Blue Line extension of the Mass Rapid Transit Authority of Thailand (MRTA).

 

          “Currently, the bidding process for the high-speed rail project connecting three airports Phase 2 is underway. At present, the hiring of consultants to oversee the overall project of Phase 2 is delayed beyond schedule due to increased procurement procedures under new laws and a lack of experience among officials. Therefore, SRT aims to sign the hiring contract within this month or by February 2019,” the source stated.

 

          The source also mentioned the progress of the high-speed rail project from Bangkok to Hua Hin, covering a distance of 209 kilometers with an investment budget of 100 billion baht, stating that SRT has decided to postpone this project as it was found that the distance does not justify the investment, raising concerns that private companies may not be interested in the project. Therefore, they wish to develop it into a longer route instead, from Bangkok to Surat Thani, covering a distance of 635 kilometers with an investment budget exceeding 600 billion baht. They are currently in the process of budgeting for hiring a private company to conduct a study, which is expected to be finalized within this year, with the study to be conducted in 2020, taking no less than six months.

 

          However, this route is considered a long high-speed rail project requiring a significant investment, so it is uncertain whether future policymakers will continue with the southern high-speed rail project. If the route is reduced to Bangkok-Prachuap Khiri Khan or Bangkok-Chumphon, it still may not reflect the value as much as finishing at the final station in Surat Thani, which is regarded as the gateway to southern tourism.

 

          A source from SRT stated that the joint committee meeting for railway cooperation between Thailand and China in Beijing has been postponed from January 25 to the end of next month. Regarding the progress of contract 2.3 for rail systems, electrical systems, and machinery, as well as procuring train sets and training personnel, with a budget of 40 billion baht, significant progress has already been made. The Chinese side has gradually sent details, specifications, and cost estimates (BOQ) and expense figures.


          However, initial checks have shown that they meet the standards that the Thai side has studied regarding the average price. Therefore, it is expected that there should not be any issues, and the contract is likely to be signed in the next meeting. However, it is crucial to finalize the contract quickly as the trains take up to six years to manufacture and will be imported gradually to ensure they are ready for operation in 2022-2023.

 

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