Bt367 bn approved for five new rail routes

Transport Minister Santi Prompat said the combined length would be 2,644 kilometres, extensive enough to make Thailand an attractive destination for private investors.

"We have received interest from investors in China and the United Arab Emirates," he said.

The five routes are the 990-km route from Nong Khai to Kanchanaburi, which requires an investment of Bt132.7 billion; the 311-km route from Ubon Ratchathani to Nakhon Ratchasima, Bt41.7 billion; the 247-km route from Kaeng Khoi to Map Ta Phut, Bt33 billion; the 796-km route from Chiang Khong to Ayutthaya, Bt111.88 billion; and the 300-km route from Nakhon Ratchasima to Map Ta Phut, Bt48 billion.

The Cabinet will consider the projects at Tuesday's meeting. Private companies will be invited to invest in the projects under concessions. Carriage makers will be offered automatic rights to supply the projects if they set up a manufacturing plant in Thailand.

The investment aims mainly to facilitate goods transportation and reduce logistics costs, which are rising because of higher fuel prices.

The investment aims to raise rail transportation to 10 per cent from the current 2.84 per cent, Santi said.

The committee assigned the Transport Ministry, the State Railway of Thailand and other related agencies to finalise the investment details.

The SRT will also need to allocate about Bt39 billion to maintain and improve the existing 4,000-km rail network. Some parts will be expanded.

Meanwhile, the Industry Ministry will need to step up establishing industrial estates along the railway lines so as to diversify investment to other provinces.

"The projects will link Thailand with countries in the Mekong region," Santi said.