## 🇹🇭 State Railway to Clear $280 Billion Baht Debt, Develop 38,000 Rai of Land
The State Railway of Thailand (SRT) is pressing ahead with a revised rehabilitation plan to tackle over **280 billion baht** in accumulated debt. The ambitious strategy aims to transform the organization into the **"Best Rail System Service Provider in ASEAN by 2027"** (B.E. 2570).
### **Debt Resolution and Revenue Generation**
The plan focuses on two main strategies for debt resolution and revenue increase:
1. **Enhancing Rail Operations:**
* **Cargo and Passenger Transport:** SRT aims to significantly boost revenue, targeting a **fourfold increase** in passenger transport income and a **fivefold increase** in freight transport income.
* **Boosting Freight:** A $2.4-2.5$ billion baht increase in annual freight transport revenue is targeted.
* **Tourism Trains:** SRT is leveraging popular services like the KIHA183 and Royal Blossom trains, aiming to double annual tourism revenue to **100 million baht by 2025**.
* **Private Investment:** SRT will re-evaluate fare structures, but is also mandated to consider Public-Private Partnerships (PPP) for new passenger carriage procurement, with implementation expected by 2026.
2. **Unlocking Real Estate Potential:**
* **Massive Land Development:** The core of the recovery plan involves the commercial development of **38,000 rai** (approximately 6,080 hectares) of high-potential land, worth hundreds of billions of baht.
* **SRT Asset Management (SRTA):** The land assets were transferred to its subsidiary, SRT Asset Co., Ltd. (SRTA), in 2022 to spearhead development and secure private investment through auctions.
* **Key Development Areas:** Focus areas include the surrounding area of Krung Thep Aphiwat Central Terminal (formerly Bang Sue Grand Station), the largest rail hub in ASEAN, for large-scale mixed-use projects.
* **Contract Renewals:** SRTA is managing the extension of several key leases, including the **20-year renewal** for the land used by Central Plaza Lat Phrao (Phaholyothin Triangle) with Central Pattana (CPN).
* **Other Projects:** Land plots near Thonburi Station (148 rai) are set for a major mixed-use development, leveraging its location near Siriraj Hospital and future rail links (Orange and Red Lines).
### **Financial Support and Challenges**
The Cabinet recently approved an additional **18 billion baht** loan for SRT's operational liquidity, as the accrued debt has outpaced its ability to cover increasing operating costsespecially maintenance for aging infrastructure, rolling stock, and pension expenses.
SRTA is currently studying the feasibility of developing an additional 28 commercially viable large land plots and is preparing to present several contract renewal plans to the SRT Board for approval by November 25.
**SRT Pushes for 57 Billion Baht Fleet Upgrade Amidst Government "Open Access" Pressure**
**BANGKOK** The State Railway of Thailand (SRT) is in urgent consultations with the Department of Rail Transport (DRT) to justify a massive 57-billion-baht procurement plan for new passenger trains. The state enterprise faces pressure from the Ministry of Transport to adopt an "Open Access" policy, inviting private operators to run services instead of increasing state debt.
Mr. Anan Phonimdaeng, Deputy Governor and Acting Governor of the SRT, revealed that the Ministry of Transport has returned the SRTs proposal to acquire **479 new passenger units**. The Ministry has directed the agency to coordinate with the DRT to explore if the private sector can assume some of these operations under the upcoming Rail Transport Act.
The government aims to reduce the SRTs loan burden by implementing "Open Access," a policy allowing private companies to operate on state-owned tracks to boost efficiency and service quality.
**Replacements, Not Expansion**
However, the SRT maintains that the new fleet is strictly necessary to replace aging, dilapidated rolling stock rather than to expand services significantly.
"The SRT is currently preparing data to present to the DRT this month," Mr. Anan stated. "We need to explain that these trains are replacements for expired assets needed to maintain our existing market presence."
Mr. Anan highlighted the economic reality of Thailands rail network, arguing that full privatization is unfeasible for "Social Service" lines. He cited the Bangkok-Chachoengsao route, where fares are capped at roughly **0.20 Baht per kilometer** (approximately 13 Baht per trip).
"It is unlikely that any private entity would invest in routes with such low fares," Mr. Anan explained. "The SRT is seeking approval to replace the trains we currently operate. However, for any future increase in train numbers beyond this, we are open to discussing private participation."
**Procurement Timeline Delays**
The stalled passenger train proposal includes three major groups:
1. **184 Commercial Air-conditioned DMUs** (24 billion Baht).
2. **182 Passenger Cars** to replace Express and Special Express trains (10.5 billion Baht).
3. **113 Diesel Electric Locomotives** (23 billion Baht).
If the SRT and DRT can reach a compromise, the proposal must be resubmitted to the SRT Board. The bidding process is projected to begin in **2026**. Due to the specific design requirements for Thailands 1-meter gauge tracks, manufacturing is expected to take up to two years, with new trains entering service by **2028**.
**Freight Wagons Given the Green Light**
While passenger trains face bureaucratic hurdles, the SRT is moving ahead with its freight expansion. Mr. Anan confirmed that the Cabinet approved a 2.45 billion Baht budget in August 2025 for **946 Container Flat Wagons**.
The SRT aims to auction the freight project in **2026**. The first lot of 154 wagons is scheduled for assembly by July 2027, with test runs in October and full commercial service commencing in **January 2028**.
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