U-Tapao Aviation City Project Aims for Construction Start This Year
Bangkok, Thailand April 20, 2024 UTA, the consortium developing U-Tapao Aviation City, is eager to begin construction but awaits resolution of the stalled high-speed rail project linking three airports. Despite delays and over 4,000 million baht in expenses, UTA hopes the Eastern Economic Corridor (EEC) will allow construction to start this year. Meanwhile, the Royal Thai Navy has seen strong interest from 30 companies bidding on U-Tapao Airport's second runway construction.
Key Points:
Project Stalled: The U-Tapao project has been unable to start construction due to unresolved issues with the 3-airport high-speed rail project, despite UTA fulfilling other contractual conditions.
Mounting Costs: UTA has invested over 4,000 million baht in project preparation costs without any generated revenue.
Construction Readiness: UTA has requested access to the site for preparatory work as they anticipate receiving the 'go-ahead' to begin construction this year.
Government's Role: EEC and the Thai government are seen as critical in resolving the high-speed rail impasse to allow the project to proceed.
Runway Bidding Success: Over 30 companies have expressed interest in bidding on the second runway for U-Tapao Airport, a project undertaken by the Thai Navy.
Statements
Putthipong Prasatthong-osot, President of Bangkok Airways (UTA Partner): Emphasizes UTA's commitment and readiness to start construction immediately upon receiving the green light.
Putthipong Prasatthong-osot: Believes the Thai government will find a solution to the high-speed rail issue and allow the project to move forward.
Capt. Ratan Wanphunga, Royal Thai Navy: Highlights the strong private sector interest in constructing U-Tapao's second runway.
Thailand Approves $10B+ Investment in High-Speed Rail Expansion, Aims for 2031 Launch
BANGKOK April 22, 2024 In a move to boost regional connectivity, the State Railway of Thailand (SRT) board has approved a substantial multi-billion-dollar investment into Phase 2 of the Thai-Chinese high-speed rail project. This phase focuses on the 357-kilometer Nakhon Ratchasima-Nong Khai section of the line.
The total investment of 341,351.42 million baht (approximately $10 billion USD) has been earmarked for this extension. Construction is expected to take four years, with the service targeted to open in 2031.
Project Details
This phase of the Thai-Chinese high-speed rail project includes the construction of:
- 357 km of high-speed rail line (mix of elevated and ground-level)
- Five stations: Bua Yai, Ban Phai, Khon Kaen, Udon Thani, and Nong Khai.
- Four maintenance depots and a central maintenance center
- Natha Cargo Transshipment Center, a PPP initiative with a 5,686.21 million baht investment (approximately $165 million USD) to support cross-border trade
Economic and Connectivity Benefits
"This significant investment is crucial for enhancing cross-border transportation and economic growth between Thailand, Laos, and China," said Nirut Maneepan, Governor of the SRT. "We expect the project to create jobs, promote tourism, and improve connectivity within the region.
The SRT will break down construction into 13 contracts, facilitating competitive bidding and ensuring the highest quality in project execution.
Auction for 14 contracts totaling 340 billion baht by Board Forwarding Transport-Cabinet.
Mr. Nirut Maneepan, Governor of the State Railway of Thailand (SRT), disclosed that during the SRT board meeting on April 18, it was decided to endorse the collaborative endeavor between the Royal Thai Government, the Thai Kingdom, and the Government of the People's Republic of China to develop the high-speed rail infrastructure connecting Bangkok to Nong Khai, Phase 2, spanning from Nakhon Ratchasima to Nong Khai, covering a distance of 357.12 kilometers. The approved budget amounts to 341,351.42 million baht. The proposal is slated to be submitted to the Ministry of Transport by April 2024 for subsequent deliberation at the Cabinet meeting. The construction timeline targets completion by '73 with operational commencement in '74.
Furthermore, Mr. Nirut elaborated on the Phase 2 High-Speed Train Project, which encompasses routes spanning four provinces: Nakhon Ratchasima, Khon Kaen, Udon Thani, and Nong Khai, totaling 357.12 kilometers. The infrastructure entails 202.48 kilometers of elevated track and 154.64 kilometers at ground level, housing five stations: Bua Yai, Ban Phai, Khon Kaen, Udon Thani, and Nong Khai. Additional facilities include a container storage area and a cargo transfer hub at Natha Railway Station, Nong Khai Province, along with two maintenance centers located at Chiang Rak Noi Railway Station in Phra Nakhon Si Ayutthaya Province and Natha Railway Station in Nong Khai Province.
The track design, set at 1.435 meters, enables trains to achieve a maximum speed of 250 kilometers per hour. The estimated travel time from Nakhon Ratchasima to Nong Khai is approximately 1 hour and 44 minutes, and from Bangkok to Nong Khai, it is projected to take around 3 hours and 28 minutes. Pending Cabinet approval, SRT will initiate an auction immediately post-project design completion. The Environmental Impact Assessment (EIA) report is undergoing evaluation, having received approval from the expert committee overseeing the Environmental Impact Assessment Report and is poised for submission to the National Environment Board.
Mr. Nirut further detailed that Phase 2 of the High-Speed Railway Project is segmented into 14 contracts, comprising 11 contracts for high-speed railway construction, one contract for the Chiang Rak Noi Maintenance Center, and another for the Natha Product Transfer Center and rail system, electrical, and mechanical systems. Construction is slated to commence in 2024, with civil construction spanning four years and electric train system work requiring 5.5 years. The total project budget amounts to 341,351.42 million baht, apportioned as follows: civil construction costs at 235,129.40 million baht, rail system investment costs including electrical and mechanical systems at 80,165.61 million baht, land ownership costs and asset compensation at 10,310.10 million baht, and consulting fees for project supervision, management, and independent engineering at 10,060.10 million baht, with the Natha transshipment center construction valued at 5,686.21 million baht.
Moreover, Mr. Nirut highlighted SRT's decision to segregate the Natha interchange center construction from the Phase 2 high-speed railway development, opting to solicit private investment through state enterprise participation (PPP). Previously, SRT commissioned a consultant to conduct a feasibility study and analysis for private sector involvement in government enterprise investments for the product interchange center project and the container storage area to bolster rail transportation in Nong Khai Province (Natha Transshipment Center). The board meeting subsequently sanctioned the project with a budget of 5,686.21 million baht, covering land ownership costs, civil construction costs, rail system investment, equipment and locomotive investment, and consulting fees.
The State Railway of Thailand (SRT) has announced its plans to proceed with Phase 2 of the Thailand-China high-speed rail project, marking a significant milestone in transportation development. Approved during the recent SRT Board of Directors meeting on April 18, the project entails constructing the high-speed rail system from Nakhon Ratchasima to Nong Khai, covering a distance of 357.12 kilometers with a total budget exceeding 300 billion baht.
Mr. Nirut Maneepan, Governor of the State Railway of Thailand, disclosed the details of the project, highlighting its comprehensive financial breakdown. The budget allocation includes expenses for construction, land acquisition, rail system infrastructure, and project management consultancy. With the project's detailed design now finalized, the Environmental Impact Assessment (EIA) report is currently under review by the National Environment Board for subsequent approval by the Ministry of Transport and the Cabinet.
Phase 2 of the Thai-China high-speed rail initiative is set to kick off with electronic bidding for contractors scheduled within 2025. Divided into 13 civil works contracts, including route alignment and maintenance center construction, the project aims to maintain a competitive environment. The timeline forecasts completion by 2030, with operations expected to commence by 2031.
In response to local concerns, the civil construction design has been adjusted to minimize community disruption, featuring a combination of elevated and ground-level runways across the route. The project will incorporate five major stations, strategically located to optimize accessibility and efficiency.
Furthermore, the SRT Board of Directors has endorsed a separate endeavor focusing on private investment in the transshipment center and container storage facility at Natha, Nong Khai Province. This initiative, aimed at bolstering rail transport support, will be presented to relevant authorities for approval. Envisioned as a joint venture between the public and private sectors, the project is slated to enhance cargo handling capacity, with an estimated volume projection of 11.06 million tons by 2047.
The decision to segregate the Natha contract from the main Thai-China High-Speed Project Phase 2 underscores its pivotal role in facilitating freight transfer and aligns with broader transportation infrastructure objectives. As the project moves forward, it reflects a concerted effort to harness public-private partnerships for sustainable development and economic growth in the region.
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