## Big Data Analysis Column: Thai Transportation Costs to Decrease for the Second Consecutive Year in 2025
Source - Krungthep Thurakij
Tuesday, January 21, 2025 04:04
The National Economic and Social Development Council (NESDC) has revealed that Thailand's logistics costs relative to GDP rose to 14.1% in 2023, continuing an upward trend from the already high level of 14.0% in 2022.
However, ttb analytics estimates that the logistics cost to GDP ratio will decrease to 13.6% in 2024 due to an 18.5% increase in double-track railway distance. This shift towards rail transport, which is almost three times cheaper than road transport, is becoming increasingly clear.
It is expected that in 2025, Thailand's logistics costs to GDP will continue to decline for the second consecutive year, reaching 12.8%. This is in line with the plan to develop double-track railways and new railway lines. The report recommends accelerating transportation efficiency, developing infrastructure to support multimodal transport, and adding value to goods to accelerate the reduction of logistics costs relative to GDP.
The success of government infrastructure investments is becoming more evident with the development of the rail transport system. This has resulted in an increase in the proportion of rail freight transport to 2.21% in 2023, up from 1.68% in 2022.
**Source: Krungthep Thurakij Newspaper, 21 January 2025**
## Cabinet Increases Land Expropriation Budget for Mab Kabae - Chum Tang Thanon Jira Double-Track Railway to 29,763.57 Million Baht
**Source - Prachachat Business Website**
**Tuesday, January 21, 2025 13:04**
The Cabinet has approved an additional budget for land and property expropriation for the Mab Kabae - Chum Tang Thanon Jira double-track railway construction project, increasing it to 29,763.57 million baht, an increase of 314 million baht from the original budget.
Mr. Karam Phonphongklang, Deputy Spokesperson for the Prime Minister's Office, revealed that the Cabinet has approved the following proposals from the Ministry of Transport:
1. **Approval of the adjusted total budget** for the Mab Kabae - Chum Tang Thanon Jira double-track railway construction project of the State Railway of Thailand (SRT) to 29,763.57 million baht.
2. **Approval for SRT to proceed with amicable acquisition** worth 197.37 million baht, according to Section 39 (5) of the State Railway of Thailand Act, B.E. 2494. This will be used to pay compensation for expropriated land and properties within Contract 1 (Mab Kabae - Khlong Khanan Chit section) and Contract 3 (Railway Tunnel) of the project.
**Key details:**
1. **Previous approval:** The Cabinet initially approved the project on September 27, 2016, with a budget of 29,449.31 million baht, comprising:
* Land expropriation: 56 million baht
* Construction costs: 28,598.86 million baht
* Consultant fees for bidding and supervision: 794.45 million baht
On December 19, 2017, the Cabinet approved changes to construction costs and consultant fees for project management and construction supervision. They also approved two additional consultant fees: one for reviewing, preparing bidding documents, and conducting international bidding; and another for adjusting detailed designs in Sikhiu District and Nakhon Ratchasima city. This increased the total project budget to 31,129.22 million baht, but the land expropriation budget remained at 56 million baht.
2. **Land expropriation challenges:** During project implementation, SRT needed to expropriate land and properties for railway construction. However, the actual compensation costs exceeded the approved budget due to increased land value, some areas being overlooked during the initial survey, and the omission of compensation estimates for buildings and trees in the initial budget request. This led to an increase in the land expropriation budget. Additionally, there is uncertainty regarding design adjustments for Contract 2 (Khlong Khanan Chit - Chum Tang Thanon Jira section) due to complaints from local residents.
To avoid project delays and ensure timely land delivery to contractors, the Ministry of Transport proposed increasing the land expropriation budget for Contract 1 and Contract 3 by 197.37 million baht. This brings the total expropriation budget from 56 million baht to 253.37 million baht. The budget for Contract 2 will be proposed to the Cabinet later.
3. **Budget adjustments:** SRT has already signed some construction contracts, and the increased land expropriation costs have changed the total project budget from the initial approvals in 2016 and 2017. Therefore, the Ministry of Transport has adjusted the total project budget to reflect the current situation and facts.
4. **Approval from relevant agencies:** The Ministry of Finance, Ministry of Natural Resources and Environment, Bureau of the Budget, Office of the National Economic and Social Development Council, and the Council of State have reviewed and approved/have no objections to the proposal.
## Thai Cabinet Approves Increased Budget for Mab Kabae-Jira Double-Track Railway
Source: Manager Daily 360 degrees
Wednesday, January 22, 2025, 03:39
Following the State Railway of Thailand's request for an additional 56 million baht for land expropriation.
Manager Daily 360 The Cabinet has approved a total budget of 29,763.57 million baht for the Mab Kabae-Thanon Chira Junction double-track railway construction project. An additional 56 million baht has also been approved for land and property expropriation, bringing the total expropriation cost to 253.37 million baht.
Mr. Karam Phonphongklang, Deputy Spokesperson for the Prime Minister's Office, revealed that the Cabinet meeting on January 21, 2025, approved the Ministry of Transport's proposal to adjust the total budget for the State Railway of Thailand (SRT) project to 29,763.57 million baht. The Cabinet also approved the SRT's use of reconciliation methods, amounting to 197.37 million baht, under Section 39 (5) of the State Railway of Thailand Act, B.E. 2494, for compensation payments for land and property expropriation in Contract 1 (Mab Kabae-Khlong Khanan Chit section) and Contract 3 (Railway Tunnel).
The Cabinet had previously approved the SRT's double-track railway construction project between Mab Kabae and Thanon Chira Junction on September 27, 2016, with a budget of 29,449.31 million baht. This included 56 million baht for land expropriation, 28,598.86 million baht for construction costs, and 794.45 million baht for consultant fees for bidding and supervision. On December 19, 2017, the Cabinet approved changes to construction and consultant fees and added two more consultant categories: consultants for review, bidding document preparation, and international bidding; and consultants for detailed design adjustments in Si Khiu district and Nakhon Ratchasima city. This increased the total project budget to 31,129.22 million baht, while the land expropriation budget remained at 56 million baht.
However, upon commencing the project, the SRT found that the actual compensation value for land and properties was higher than the approved budget due to increased land value and some areas being overlooked during the initial survey and appraisal. This resulted in a higher land expropriation budget.
Furthermore, Contract 2 (Khlong Khanan Chit-Thanon Chira Junction section) faced uncertainties due to public complaints and required design adjustments. To avoid project delays and ensure timely land delivery to contractors, the Ministry of Transport proposed an additional 197.37 million baht for land expropriation for Contract 1 and Contract 3, increasing the total expropriation budget from 56 million baht to 253.37 million baht.
Contract 2 will be presented to the Cabinet for consideration later.
Due to signed construction contracts and increased land expropriation costs, the current total project cost differs from the initial approval. Therefore, the Ministry of Transport has adjusted the total budget to reflect the current situation.
Source: Manager Daily 360 degrees, January 22, 2025
SRT Confirms High-Speed Train and Double-Track Railway Will Not Be Completed in Time for the Horticultural Expo; Korat Residents Request Special Trains to Accommodate Tourists
Source - Matichon Online
Wednesday, January 22, 2025, 16:58
On January 22nd, at the Luang Por Khun Parisutho Meeting Room on the 3rd floor of the Nakhon Ratchasima City Hall, Mr. Suraphan Sinsuwan, Deputy Governor of Nakhon Ratchasima Province, presided over a meeting with the Subcommittee on Land Traffic Management of Nakhon Ratchasima Province (Ojor.Nm.) No. 1/2568, with representatives from government agencies and the public in attendance.
In agenda item 3, regarding follow-up (project implementation in Nakhon Ratchasima Province):
3.1 Progress of the High-Speed Train Project to connect regions, Phase 1, Bangkok-Nakhon Ratchasima, a distance of 251 kilometers:
Cumulative progress by the end of 2024 for the entire project is at 39.476%, an increase of 2.535% from the previous meeting in October 2024.
Overall progress is behind schedule by 41.427%.
For Contract 3-5, Kok Kruat-Nakhon Ratchasima, a distance of 12.36 km, progress is at 12.132%, behind schedule by 66.70%. This is due to a request to change the construction format from ground level to elevated (Elevated) according to Route 4, Kok Kruat-Phu Khao Lat section, with an additional budget of 2,052 million baht and an extended construction period of 36 months.
Currently, the Minister of Transport is considering approval and has instructed the Permanent Secretary of Transport to sign and inquire about opinions from relevant agencies, the Bureau of Budget, the Ministry of Finance, the National Economic and Social Development Council, and to propose it to the Cabinet (Cabinet) for approval.
It is expected to be completed around 2028.
3.2 Progress of the Double-Track Railway Project, Mab Krabeau-Thanon Chira Junction section, the route through Nakhon Ratchasima city:
The consultant has submitted details of the format adjustment to the SRT for consideration and discussion with relevant agencies.
After that, project approval will be sought, including an environmental impact assessment.
The principle is to start elevating the track after Kok Kruat Station for a distance of 1.62 km, then elevate it to a height of 5 meters, crossing the city bypass bridge and the Simathanee bridge before lowering it to Nakhon Ratchasima Railway Station and Thanon Chira Junction Railway Station. The track will be lowered before reaching Hua Thale Bridge.
Regarding the construction of the high-speed train, Phase 2, Nakhon Ratchasima-Nong Khai section, which is the route through Bua Yai Junction Railway Station, to be used to travel to the "Horticultural Expo Nakhon Ratchasima" in Khon Kaen Province:
It will not be completed in time for the Expo.
As for the double-track railway, Contract 2, Khlong Khanan Chit-Thanon Chira Junction, according to the timeline, it is expected to be completed in 2031.
Therefore, the meeting requested the SRT to arrange special train services, Nakhon Ratchasima-Khon Kaen, a distance of approximately 70 km, to connect with Nakhon Ratchasima's transportation system.
The province has a plan to connect public transport to accommodate 20,000 tourists per day.
The SRT has taken this into consideration and agreed, and will report progress at the next meeting.
The Prime Minister has ordered a feasibility study for a high-speed train in the South and a double-track railway in the Northeast. They emphasized that all ministries must prepare their budgets for the year 2025 effectively.
January 28th, 2025
Government Spokesperson, Mr. Jiravu Houngsup, revealed the Prime Minister's directives from the 4th Cabinet meeting of 2025:
1. World Economic Forum 2025:
The Prime Minister summarized Thailand's participation in the World Economic Forum 2025 in Davos, Switzerland, highlighting how it showcased the country's potential in various aspects, including economics, politics, society, and culture. The Thai delegation met with leaders from several countries like Bangladesh, Bhutan, Montenegro, Sweden, Switzerland, and Armenia, and also with leaders from the private sector, such as Google, Bayer, DP World, Coca-Cola, AstraZeneca, and AWS.
Thailand presented its potential in three areas:
Logistics Hub of Asia: Thailand's strategic geographical location, political stability, and neutrality were emphasized to attract investors. The government will continue projects like the Land Bridge, high-speed rail, double-track rail, and the development of an aviation hub with a new large-scale airport. This builds on the policies of the previous administration. The Ministry of Transport and related agencies were instructed to expedite the feasibility study for the Land Bridge project.
Kitchen of the World: The government aims to make Thailand a source of food security and a world food storage hub. Thailand's abundant agricultural production will be a key soft power. The Ministries of Agriculture and Cooperatives, Commerce, and Foreign Affairs were asked to collaborate on a plan to increase the export of Thai agricultural products and food ingredients to the global market.
Green Energy Resources: Thailand is ready to promote clean energy and support investment from global technology companies like AWS, Google, and Microsoft. Clean energy is a major factor in investment decisions. The Ministry of Energy and related agencies were instructed to expedite plans for generating sufficient clean energy to meet the demands of foreign investors.
In addition to promoting Thailand, the Prime Minister encouraged business matching between Thai and foreign companies and explored ways to upskill and reskill the Thai workforce for future industries.
A significant outcome of this meeting was the successful signing of the Thai-EFTA free trade agreement by the Ministry of Commerce. The Prime Minister urged the Ministries of Commerce and Foreign Affairs to expedite FTA negotiations with other trading blocs, especially the Thai-EU ETA.
2. 50th Anniversary of Thai-Chinese Diplomatic Relations:
All ministries were instructed to strengthen the relationship between the two countries through various initiatives:
The Ministry of Interior was asked to increase the number of sister city relationships between Thai provinces and Chinese cities or provinces from 38 to 50.
The Ministry of Transport was asked to expedite the high-speed rail link between Thailand and Laos, a long-standing request from China.
The Ministry of Tourism and Sports was asked to organize promotions to boost Thai-Chinese tourism.
3. PM 2.5 Problem:
Each ministry was asked to present their mitigation measures. The Ministry of Industry was specifically asked to address the issue of sugarcane burning, a major contributor to PM 2.5, and to find additional measures to reduce this practice.
4. Double-Track Railway from Hat Yai to Sungai Kolok:
Following the Prime Minister's visit to Yala province, the State Railway of Thailand proposed a second phase of the double-track railway project to reduce logistics costs for both freight and passengers. The Prime Minister requested the State Railway to conduct further studies on the Hat Yai to Sungai Kolok route and asked the Budget Bureau to provide necessary funding for the study and preliminary design.
5. Budget Allocation for Fiscal Year 2025:
Due to limited budget and increasing liabilities, the Prime Minister emphasized the need for efficient budget allocation for the 2025 fiscal year. To ensure that the budget effectively supports government policies and benefits the public, the Prime Minister gave the following directives:
Each minister must supervise their respective agencies to ensure that budget requests are efficient, cost-effective, and prioritize projects aligned with key government policies. Agencies with off-budget funds should utilize those funds, revenue, and reserves first.
The Budget Bureau must prioritize budget allocation to projects that drive key government policies, address urgent needs, improve people's livelihoods, and enhance the country's long-term competitiveness.
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