Thailand Accelerates Rail Network Development With Laos and China

[webfact]

 

by Natthaphon Sangpolsit

    

BANGKOK (NNT) - The Ministry of Transport has been tasked with improving rail transportation networks between Thailand, Laos and China.

 

According to Minister Saksayam Chidchob, the committee responsible for connecting railways between the three nations has confirmed orders for the State Railway of Thailand (SRT) to expedite construction of the Bangkok - Nong Khai high-speed railway. It will also propose the Khon Kaen - Nong Khai dual-track railway project for Cabinet consideration.

 

Additionally, the committee has instructed the Department of Highways (DOH) to request funding for a study on the construction of a new Mekong River transportation hub for both trains and motor vehicles.

 

The committee will also consider the freight logistics in supporting rail lines as the primary mode of transportation between Thailand, Laos and China.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG220807152903277

 

-- © Copyright NNT 2022-08-08

 

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[Srikcir]

"consider the freight logistics in supporting rail lines as the primary mode of transportation"

 

As China has discovered with its own high speed rail systems, passenger-only on high speed rail lines is not profitable and requires constant state increased annual funding to survive. It's a national "money pit."

 

Many Thai economists expressed (as I recall) similar concerns about the proposed Thai-China high speed rail system in reviewing the original proposal resulting in default without significant freight on the system.

 

Recall that the subject rail network was instigated in Thailand under Article 44 by the then Prayut Junta using its absolute power authority that bypassed formal economic justification for the project. That may explain why China would only finance the project 100% at an interest rate higher than then Thailand's T-bill interest rate.

 

[MrJ2U]

"Laos Faces Debt Crisis After Borrowing Billions From China"

 

https://www.voanews.com/a/laos-faces-debt-crisis-after-borrowing-billions-from-china-/6641633.html#:~:text=According the lab's statistics%2C the,methodologies from the World Bank.

[newnative]

Committee after committee after committee.  Where's the acceleration?

[John Drake]

Food out. Chinese construction gangs in.

[Andycoops]

15 minutes ago, newnative said:

Committee after committee after committee.  Where's the acceleration?

The acceleration is of committee allowances into the sitting members bank accounts...

[Photoguy21]

4 hours ago, MrJ2U said:

"Laos Faces Debt Crisis After Borrowing Billions From China"

 

https://www.voanews.com/a/laos-faces-debt-crisis-after-borrowing-billions-from-china-/6641633.html#:~:text=According the lab's statistics%2C the,methodologies from the World Bank.

China will just take over the country. After all that is why they fund overseas projects so they can rule the country.

[MrJ2U]

2 hours ago, Photoguy21 said:

China will just take over the country. After all that is why they fund overseas projects so they can rule the country.

Looks that way.

 

Sri Lanka is giving them troubles though. 

 

"China's debt trap diplomacy responsible for economic calamity in Sri Lanka"

 

https://wap.business-standard.com/article/international/china-s-debt-trap-diplomacy-responsible-for-economic-calamity-in-sri-lanka-122072001498_1.html

[SunsetT]

This is only just happening now!!! ????

[Srikcir]

21 hours ago, John Drake said:

Food out. Chinese construction gangs in.

Actually, as I recall, Thailand was to build all the civil engineering projects (stations, roads, track grades, crossings, buildings, etc.) but Chinese contractors would build the system technology (switching, signals, power systems, operational computing systems), in essence not sharing its high speed train technology with Thailand. China would also be paid a "consulting fee" of billions of baht aside from financing the entire cost as a loan.

[John Drake]

8 minutes ago, Srikcir said:

Actually, as I recall, Thailand was to build all the civil engineering projects (stations, roads, track grades, crossings, buildings, etc.) but Chinese contractors would build the system technology (switching, signals, power systems, operational computing systems), in essence not sharing its high speed train technology with Thailand. China would also be paid a "consulting fee" of billions of baht aside from financing the entire cost as a loan.

At one point, I remember reading about a Chinese-only city to be constructed in the Eastern Economic Corridor. That was six or seven years ago.

[Srikcir]

6 hours ago, John Drake said:

At one point, I remember reading about a Chinese-only city to be constructed in the Eastern Economic Corridor. That was six or seven years ago.

Coincidentally, the EEC also was established by the junta under Article 44 driven by Airbus that wanted a SE Asia regional aircraft maintenance center. 

Post script: Airbus pulled out.

[Gknrd]

Everything I have been hearing from the "Belt and Road project is bad. Hemorrhaging money and bankrupting countries. China signing high interest loans and using their labor to built the thing.. After built they will flood the market with their products.