SRT signs contract with 20th governor, "Veeris", insists no orders from "Suriya", time to lead the organization forward. Urgent tasks: "Debt resolution and project investment acceleration"
Source - Manager Online
Thursday, September 19, 2024 13:13
SRT signs contract hiring "Veeris" as the 20th governor, insists he applied himself, denies "Suriya" ordered it, stating he wouldn't have come if he didn't want to. Clarifies his qualifications are valid, checked with the State Enterprise Policy Office (SEPO), the spirit of the law doesn't prohibit state enterprise contracts. Requests time to study the work, no more than 1 month, confident it's time to lead SRT forward. Accelerate PPP, Lat Krabang ICD, generate income from land, resolve 200 billion baht debt, separate government investment debt.
Reporters reported that today (Sept 19) at 09:09, the State Railway of Thailand (SRT) held a signing ceremony for the employment contract of Mr. Veeris Ammarapala, the new governor of the State Railway of Thailand (the 20th). Mr. Chirut Wisanjit, Chairman of the Board of SRT, signed the contract. Mr. Veeris Ammarapala is scheduled to start work immediately, with SRT executives welcoming him. After the signing, the SRT board held a preliminary meeting with Mr. Veeris to understand how to work together and officially introduce SRT executives.
Mr. Veeris Ammarapala, the new SRT governor, said his work approach will align with the policy of Mr. Suriya Juangroongruangkit, Deputy Prime Minister and Minister of Transport, regarding the development of rail infrastructure to be the main network of the country, debt resolution, asset management to generate income, and finding ways to improve internal management for increased efficiency. He admitted that solving various problems cannot be done quickly and requires cooperation from everyone at SRT. After this, he will urgently study the work and talk to relevant parties, including railway employees and the SRT uni0n, to get to know them and listen to their opinions on how they want SRT to develop. He will request about 20-30 days, then will announce clear policy directions for his work.
"My vision is to reduce debt burden, increase revenue, increase efficiency, increase satisfaction in service. How much can be achieved depends on cooperation from everyone. We need to go into the details of each matter. In the past, I studied as an outsider, aware of various problems as presented in the media. I intend that in the first 3 months, I may deal with the regulations related to work first. The division of work must be clear, and the organizational structure must be efficient."
Mr. Veeris addressed the SRT's debt problem of over 200 billion baht, saying it's necessary to see how much is the government's commitment to support SRT and how much is SRT's actual debt burden. This needs to be clearly separated. As for increasing revenue, he sees that SRT has a lot of land and assets. He questions what obstacles there have been in the past and why SRT Asset Company Limited or SRTA, a subsidiary, is still facing difficulties. Regarding SRT's investment, it's another matter that increases debt burden, but it's increasing debt to create benefits in transportation, reduce logistics costs, and increase competitiveness. The goal is for Thailand's rail system to be the main public transport for travel.
"From the discussions and information received, SRT's current situation is at the lowest point of the U Curve and is about to rise. I believe one way is the policy of the Minister of Transport to accelerate the development of double-track and high-speed rail projects, which will help the railway move forward according to the goals."
When asked about urgent problems that need to be addressed and any concerns, Mr. Veeris said, "I volunteered to come, I have the intention and confidence to lead the SRT organization forward. But I admit it's a difficult task, a challenge for SRT, which has had its Act in use for 100 years. Managing thousands of personnel and increasing workload without increasing personnel is something that needs to be addressed systematically. But it must be done because if not, we will keep regressing."
Regarding urgent projects or those facing obstacles in some areas, such as land handover, contract negotiations, and others, he said it's necessary to look into the details of those issues to ensure they progress efficiently. He will coordinate with deputy governors and assistant directors of various departments first, such as solving problems related to Public-Private Partnership (PPP) projects. From studying the project to find private partners to operate the Inland Container Depot (ICD) at Lat Krabang, there have been long delays. It used to transport 2 million TEUs, now it's down to 1 million TEUs, with goods turning to road transport instead. This needs to be addressed urgently as it's a part that can generate significant income for SRT. Other tasks, he sees, need to be expedited from now as the PPP process takes 2-3 years to complete.
**@ Insists he applied himself, not related to 'Suriya' ordering him to come, and consulted SEPO, qualifications are valid**
When asked about previous news that Mr. Suriya chose Mr. Veeris to be the SRT governor and how he can confirm he's truly working for SRT, and about the issue of his qualifications contradicting the recruitment announcement, how he will clarify the correctness, Mr. Veeris said, regarding the news in the media, personally, he wants to go back to when he graduated and applied for his first job at the Chaipattana Foundation. He had the intention to truly work for the development of the country because, looking from the outside, our country still has competition and things to develop and move forward.
"Regarding Mr. Somsak (Somsak Thepsuthin), Mr. Suriya, and others, actually, before this, I served as an advisor in various committees. I tried to do my best in every role to develop the country. Becoming the SRT governor is a moment where I thought I could do it, so I applied. So, if you ask if I applied myself or Mr. Suriya picked me, I have to say if Mr. Suriya picked me and I didn't want to come, I wouldn't have come. Therefore, I can say it's my own intention," Mr. Veeris said.
Regarding the qualifications issue, Mr. Veeris said he came through the process and consulted the State Enterprise Policy Office (SEPO) and the legal department throughout. He confirmed that the spirit of the law in question is not to prevent state enterprises from working with each other, but the intention is to protect against organizations seeking benefits. He has no intention of seeking benefits; it's a matter of state agencies needing to integrate and help each other. For example, in developed countries, industrial estates have low logistics costs because they have railways connected to factories, allowing everything to be transported by train to ships or final destinations, connecting with other modes of transport without incurring duplicate costs. He has known this issue for ten years and volunteered to come and help with this work.
**@ Ready to take care of employee welfare appropriately**
When asked about the approach to working with the State Railway of Thailand Labor Uni0n (SRLU), Mr. Veeris said he has no issues with the uni0n and hasn't set any expectations. They will schedule a meeting soon. He sees that employee benefits and welfare are important but need to be considered for what's good, appropriate, and feasible. As a former outsider, he hopes employees receive full benefits but not beyond the limit the state can provide, as where he used to be, IEAT, there were never any issues with the uni0n, only support for good welfare.
**@ Receives compensation of 370,000 baht per month**
According to the contract, Mr. Veeris Ammarapala's term as SRT governor starts from September 19, 2024, with an initial fixed compensation of 370,000 baht per month (maximum adjustable fixed compensation not exceeding 500,000 baht). Special compensation, other benefits, and conditions are as per the draft contract, as considered by the Ministry of Finance.
Unveiling the Treasure in the Hands of the New SRT Governor: 38,000 Rai of Railway Land 600 Billion Baht Rail Network
Thansettakij
September 20, 2024 | 05:48 AM
The State Railway of Thailand (SRT) has appointed Veeris Amrapala as its 20th governor, following a Cabinet resolution on September 17, 2024. Veeris aims to utilize 38,000 rai of railway land, valued at billions of baht, and develop a 600-billion-baht rail network to help erase SRTs accumulated debt of 230 billion baht.
Veeris plans to study the operations for a month and focus on reorganizing the systems and structure within the first three months. The main goal is to address the large debt over the next four years.
The SRT has assets in the form of 38,000 rai of valuable land, transferred to its subsidiary, SRT Asset Co., Ltd. (SRTA), in 2022 to generate revenue through auctions. The existing target aims to generate 125 billion baht over 10 years and 600 billion baht over 30 years to alleviate the 230 billion baht debt.
One key asset is the 2,325-rai Phaholyothin Transport Hub, centered around Bang Sue Grand Station (Bangkok Apiwat Central Station), the largest rail hub in Southeast Asia. Although previous attempts to auction off the surrounding land failed twice, plans have been revamped, with a focus on attracting private developers for mixed-use commercial development.
Additionally, SRT land near Central Ladprao and other major locations like Ratchada (186 rai) and Thonburi (148 rai) will be developed. Some of these plots are approaching the end of their leases, offering opportunities for redevelopment and renegotiation of contracts to maximize revenue.
Regarding the rail network, urgent projects, including nine major investments totaling 661.06 billion baht, are being prioritized by the government. These projects include:
1. The Red Line extension from Rangsit to Thammasat University (Rangsit campus), an 8.84 km line, with a budget of 6.47 billion baht.
2. The Light Red Line from Siriraj to Salaya, a 20.5 km route, with a budget of 15.17 billion baht.
3. The Thai-Chinese High-Speed Rail (Phase 2) from Nakhon Ratchasima to Nong Khai, a 356 km line, with a total budget of 341.35 billion baht.
The goal is to enhance the overall efficiency of the SRTs operations and revenue streams to clear the organization's significant debt over the next few decades.
Veeris Ammarapala Aims to Open Railway Tracks for Private Sector Rental to Increase Revenue, Pushing for Separate PSO and Investment Accounts, Discussing with the Ministry of Finance to Reduce Debt Burden
Source: Manager Online
Monday, September 23, 2024 06:25
Veeris Ammarapala Raises the Flag to Increase SRT Revenue, Aims to Open Tracks for Private Sector Rental for Transportation and Support Increased Rail Transport in the Country, Awaiting the Enforcement of the Rail Transport Act to Drive the Initiative, Not Concerned about the Uni0n, Ready to Separate Social Service Debt and Investment Debt Accounts, Discussing with the Ministry of Finance to Solve Debt and Sustainable Losses
Mr. Veeris Ammarapala, Governor of the State Railway of Thailand (SRT), revealed his work goals, stating that his vision is to reduce debt burden, increase revenue, increase efficiency, and increase satisfaction in service provision. The extent to which this can be achieved depends on cooperation from everyone, and further details on each matter need to be explored.
Regarding the SRT's debt of over 230 billion baht, he said it is necessary to examine how much of it is a commitment that the government has promised to support the SRT, which is a large amount of public service obligation or PSO debt, and how much is actually the SRT's debt burden. This needs to be clearly separated, and then discussions will be held with the Ministry of Finance on what can be done.
In terms of increasing revenue, he believes that the SRT has a considerable amount of land and assets. It is necessary to examine what obstacles have arisen in the past and why the work of SRT Asset Company Limited or SRTA, a subsidiary, is still hindered. Many plots of land with potential for development to generate significant revenue, such as the land along the Chao Phraya River in Bang Sue, have been left idle. The details of these matters need to be studied urgently, with the goal of relieving the SRT's debt. The extent to which this can be achieved within 4 years cannot yet be determined, as the picture is not yet clear. It may not be possible to eliminate the entire debt, but it must be reduced.
Another important matter is allowing the private sector to participate more in transportation by opening up the tracks for private sector rental. The most appropriate and efficient model that can be implemented quickly needs to be studied, as there are currently several private companies interested in renting the tracks. However, this needs to wait for the Rail Transport Act B.E.... to come into effect first, to serve as a legal tool for implementation. Whatever can be done will be done first, and it will be expedited because allowing anyone to use the tracks will definitely generate revenue for the SRT.
Mr. Ammarapala stated that regarding allowing the private sector to rent and share tracks with the SRT, he believes it will benefit the assets. Therefore, the SRT State Enterprise Labor Uni0n is unlikely to oppose it. He thinks that if he were a railway worker and someone suddenly took what they had and gave it to others to use, it wouldn't be acceptable. However, it is necessary to consider whether allowing it would create benefits and whether the uni0n would also benefit, along with the railway workers. He assured that if the private sector is allowed to rent the tracks, it will not be excessive to the point of causing damage to the railway.
Mr. Ammarapala mentioned the Lat Krabang Inland Container Depot (ICD), stating that based on his preliminary study of the data, it used to handle up to 2 million TEUs per year, but now it's only 1 million TEUs per year, resulting in lost revenue for the railway. This has led shippers to use trucks instead, causing traffic congestion on the roads. The new concession contract cannot yet be implemented due to obstacles, which he will look into to expedite resolution. The SRT itself has a plan to develop the ICD into a rail freight center, and if it proceeds as planned, it will lead to increased cargo volume at the ICD and generate more revenue for the railway.
In addition, efforts will be made to develop tourist trains more concretely, as they clearly contribute to increased revenue. The problem identified is the limited number of seats, which cannot meet passenger demand, leading to difficulties in booking tickets as they are always fully booked.
In the past, the railway network spanned 4,044 km, covering 47 provinces. The first phase of double-track railway investment involved 5 projects with a total distance of 500 km, increasing the double-track network to 1,243 km. Two new double-track railway projects are currently under construction, and one project in the second phase of double-track railway construction is being prepared for submission to the Cabinet for approval. These 6 projects, with a total distance of 1,483 km, will, upon completion, increase the double-track network to 3,404 km.
Shanghai Thai Rubber Prepares to Launch Rail Cargo Terminal Project, Conducts Site Visit at Wang Yen Railway Station, Kanchanaburi
September 30, 2024, 16:45 - Siam Rath Online, Thailand News
Shanghai Thai Rubber Co., Ltd. is preparing to develop a rail cargo terminal project. A delegation of executives and officials visited Wang Yen Railway Station in Kanchanaburi to plan before entering the area to construct an international rail cargo transfer station.
Reporters state that on September 30, 2024, Mr. Yongyuth Kongsawat, authorized director of Shanghai Thai Rubber Products Co., Ltd., led a team of executives for the International Rail Cargo Terminal Project at Wang Yen Station, Wang Yen Subdistrict, Muang District, Kanchanaburi Province, and the Kanchanaburi Dry Port Project (Laem Chabang-Kanchanaburi-Dawei). Accompanied by Mr. Phatthiphong Luangthong and Mr. Witthaya Bunyot, executive directors of Shanghai Thai Rubber Products Co., Ltd., they inspected the site at Wang Yen Railway Station to prepare for the construction of the rail cargo terminal.
The State Railway of Thailand has officially approved the use of nearly 20 rai of land around Wang Yen Railway Station. Before the end of 2024, Shanghai Thai Rubber Products Co., Ltd. will hold a foundation stone laying ceremony before beginning construction of the rail cargo terminal project. This includes building various government facilities related to cargo transfer both incoming and outgoing.
Once completed, the project will facilitate cargo transfer. Some private sector organizations have already expressed interest in using this location for cargo transfer. When the project is finished, especially the people of Kanchanaburi will receive enormous benefits. Both public and private sectors will be able to use the route for more convenient cargo transportation, saving time and transport costs.
The Wang Yen Station rail cargo terminal will connect goods to various countries such as Laos, Myanmar, China, Vietnam, Malaysia, and Singapore. Under the operational framework towards the vision of the 20th Governor of the State Railway of Thailand, six visions have been highlighted to drive the railway towards becoming a regional rail transport hub: "Increase opportunities, add value, reduce state burden, develop personnel" in six areas:
1. Operate to increase revenue
2. Develop services
3. Reduce expenses
4. Personnel management
5. Support, coordinate, monitor, and expedite important infrastructure projects according to government policy
6. Implement environmental and social projects
SRT Governor Inspects and Listens to Progress of Projects in the Northeast
Source - Manager Online
Tuesday, October 08, 2024 09:42
Mr. Veeris Ammarapala, Governor of the State Railway of Thailand (SRT), revealed that on October 7th, he visited and listened to the progress of various projects and challenges faced by operators in the northeastern region (Bangkok, Nakhon Ratchasima, Khon Kaen, Udon Thani, and Nong Khai), along with the SRT management team. He received briefings on the plans for various key SRT projects, such as:
* The Red Line Commuter Train Project
* The Thai-Chinese High-Speed Rail Project linking Bangkok to Nong Khai
* The Maeb Krabeau - Chum Tang Thanon Chira Double-Track Railway Project (Phase 1)
* The Ban Phai - Nakhon Phanom / Khon Kaen - Nong Khai Double-Track Railway Project (Phase 2)
**High-Speed Rail and Double-Track Updates**
Regarding the high-speed rail project, overall progress has reached 36%. Concerning the Ayutthaya station, the Heritage Impact Assessment (HIA) report has been submitted to the Cultural Heritage Subcommittee for consideration. It is currently being proposed to the National Committee on the World Heritage Convention.
For the Maeb Krabeau - Chum Tang Thanon Chira double-track project, the issue of dust and smoke at the Pha Sadet Tunnel is being addressed in coordination with the Pollution Control Department to assess compliance with standards. It is expected that this section will be operational by the end of November 2027.
**CTC System and Khon Kaen Railway Market Development**
Mr. Veeris also visited Khon Kaen Station and received a briefing on the Centralized Traffic Control (CTC) system. Located in the Khon Kaen Station building, this system controls the signaling system covering the area from Chum Tang Thanon Chira Station to Khon Kaen Station. The CTC system can also generate train schedules and perform automatic route setting, replacing the SRT's traditional train control system. Currently, the SRT has CTC systems at the Bang Sue Grand Station and Khon Kaen Station, with plans to expand coverage nationwide in the future.
In addition, Mr. Veeris listened to a presentation on the Khon Kaen Railway Market Development Plan, which aims to generate revenue for the organization by utilizing land for commercial purposes.
**Udon Thani Freight Hub and Gathering Feedback**
The visit also included a stop in Udon Thani province, specifically the Nong Takai Station yard, a crucial point for domestic freight transport for the Udon Thani Industrial Estate and surrounding areas. This location is poised to become a major freight hub in the upper northeastern region in the future.
Mr. Veeris emphasized that the feedback gathered during this trip will be used to improve operations and employee welfare, both at the central and regional levels, to boost morale.
**Maximizing Project Benefits and Looking Ahead**
He assigned management to formulate plans for maximizing the benefits of various projects, especially the Phase 1 double-track railway project, which is nearing completion. He also expressed gratitude and encouragement to the dedicated staff and emphasized the importance of ensuring passenger safety.
"We will continue to develop Thailand's rail industry to become a regional rail transport hub in ASEAN as quickly as possible. Railways are a vital transportation artery for our citizens," Mr. Veeris concluded.
Thailand and Laos Join Hands for Seamless Rail Freight Transport
Thailand Post, October 9, 2024, 4:30 PM
Prime Minister Paetongtarn Shinawatra and Lao Prime Minister Sonexay Siphandone presided over the signing of a "Memorandum of Understanding on Technical Operations for Rail Freight Transport" between the State Railway of Thailand (SRT) and the Lao National Railway State Enterprise. This agreement aims to stimulate economic growth and strengthen the joint transportation system between the two countries, linking rail networks and positioning Thailand as a central rail transport hub in ASEAN. The signing ceremony took place on October 8, 2024, at the Prime Minister's Office in Vientiane, Laos.
Veeris Ammarapala, Governor of the State Railway of Thailand, revealed that the government prioritizes rail system development as a key infrastructure for the country's transportation. The SRT has been tasked with expediting the development of rail transport, particularly freight transport between Thailand, Laos, and China. This route has the potential to link rail networks, promote regional growth, stimulate the economy, and align with the country's logistics development strategy.
"The SRT and the Lao National Railway State Enterprise have enforced a joint railway operation agreement between the governments of the Kingdom of Thailand and the Lao People's Democratic Republic since March 30, 2008. This new memorandum aims to facilitate rail freight transport and services between Thailand and Laos," said Veeris. "It covers aspects like transport routes, border entry and exit points, train formations and schedules, freight regulations and documentation, operational regulations, accident assistance, and account settlements, all contributing to efficient joint freight transport."
Currently, various goods are transported from Thailand to Laos and China, including malt rice, fertilizers, auto parts, e-commerce products, consumer goods, and fruits. An average of 4-6 trains travel back and forth daily, particularly carrying agricultural products (durian) and goods from Laem Chabang. These goods pass through Nata station in Thailand to Thanaleng station in Laos for distribution within Laos and to China. This has generated increased revenue. In 2023, revenue from freight transport between Thailand and Laos amounted to 11,361,000 baht. Between October 2023 and August 2024, revenue increased to 26,749,500 baht. It is estimated that revenue will exceed 30 million baht in 2025.
"We are confident that this memorandum will be a significant turning point in expanding rail networks, enhancing rail freight transport in both countries, and driving international trade growth. This will enable Thailand to become a central rail transport hub in ASEAN, in line with the government's policy," Veeris stated.
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