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Thailand: EEC backs rail link to 3 airports
The Eastern Economic Corridor (EEC) Committee led by Prime Minister Prayut Chan-o-cha has approved a high-speed railway project connecting Don Mueang, Suvarnabhumi and U-Tapao airports to draw investors to its flagship policy.
The 220-kilometre project, estimated to cost 200 billion baht, is now just one step away from a cabinet decision, unless further adjustments to the plan are needed.
“This will be the first time Bangkok and Rayong are linked by rail,” Kanit Sangsuphan, secretary-general of the EEC office, said after the committee met on Monday.
The trains will travel at speeds of up to 250kph, meaning people will shuttle between the capital and Rayong in just 60 minutes.
Rayong is one of three provinces on the eastern coast that the government plans to develop into a hub of high-tech industries and modern services. The total area spans 30,000 rai. Chon Buri and Chachoengsao are the other two provinces.
The government originally planned to build a high-speed rail system linking Bangkok’s Lat Krabang district with Rayong.
But as the EEC scheme grew in importance the project was upgraded to include better transport links between the three airports to lure more investors.
The rail project will serve as an extension of the 29km Airport Rail Link that serves commuters from Phaya Thai in central Bangkok to Suvarnabhumi Airport in Samut Prakan.
A 21km-long route will link Phaya Thai and Don Mueang airport. A longer section of track stretching 170km will run from Suvarnabhumi airport to U-Tapao airport in Rayong.
“The government included the Airport Rail Link in this high-speed rail project to help cut losses,” Mr Kanit said.
SRT Electric Train Co, which operates the Phaya Thai-Suvarnabhumi line, has racked up operating losses totalling 1.78 billion baht, including 280 million baht from last year alone.
The company is also mired in debt due to the 33 billion baht it forked out in construction costs.
Experts predict the new airport links will generate an economic return of 700 billion baht, Mr Kanit said.
He was referring to the benefits gained from the commercial development along the route, the new jobs created, and a decrease in oil consumption and pollution as more people travel by train instead of car or bus.
Some 400 billion baht is expected in the first 50 years of commercial services.
The government will grant a concession over this period to a private company that wishes to co-invest in the project under a so-called Public Private Partnership (PPP).
“After 50 years, the government will own all the assets, stations and property, which will have a value of about 300 billion baht,” Mr Kanit said.
PM’s Office Minister Kobsak Pootrakool said that once the terms of reference for the project have been completed, foreign diplomats will be called in to hear further details and relay this information to companies in their respective countries.
The government expects to attract international bids for the project as soon as next month with a winner picked within the third quarter of this year, Mr Kanit said.
The new rail service connecting the three airports is scheduled to start between 2022 and 2023, he said.
The project will also see the 50-rai Makkasan area in Bangkok developed as a key station.
Fares are expected to start from 270 baht for a trip from Makkasan to Pattaya in Chon Buri, or 330 baht from Makkasan to U-Tapao.
About 100 rai of land in Chon Buri’s Sri Racha district will be developed for use as a maintenance centre and commercial area.
The EEC committee also assigned the EEC Office to conduct a study on Monday of the second phase of the high-speed railway from U-Tapao Airport to the easternmost province of Trat, Mr Kanit said.
Once the extension is completed, people will be able to travel from Bangkok to Chanthaburi in 100 minutes and Trat near the Cambodian border in just two hours, he said.
The railway is one of several developments to shore up investors’ confidence, along with plans to expand U-Tapao airport and revise the EEC law.
Source: https://www.bangkokpost.com/business/tourism-and-transport/1418878/eec-backs-rail-link-to-3-airports