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High-Speed Rail Project Linking Airports Faces New Delay


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Picture courtesy: MGR online

 

The ambitious high-speed rail project connecting Suvarnabhumi, Don Mueang, and U-Tapao airports has hit another delay, stemming from disagreements within the coalition government.

 

The proposed revisions to the contract need the coalition partners' approval, but according to sources from the Eastern Economic Corridor (EEC) Policy Committee, internal disagreement has caused a stall in progress.

 

Initially agreed upon in principle by the committee, the revisions were anticipated to receive cabinet approval at this week's meeting. However, the government is still negotiating, leaving the project's timeline in question. Transport Minister Suriya Jungrungreangkit remains optimistic, indicating that he expects resolution soon, with hopes of cabinet submission in the coming weeks.

 

Once the cabinet grants approval, the committee will negotiate with concession holder Asia Era One, a consortium spearheaded by the Charoen Pokphand (CP) Group.

 

The outcome will then need further approval from both the cabinet and the Office of the Attorney-General. The original contract, inked in 2019, included a concession agreement for operating the Airport Rail Link (ARL).

 

The ARL witnessed a significant dip in ridership during the Covid-19 pandemic, prompting Asia Era One to seek compensation, leading to the 2021 cabinet-approved contract revisions. Mr Suriya has openly dismissed claims that the adjustments unduly benefit private partners.

 

This rail project holds the status of a flagship undertaking under the EEC initiative, designed to seamlessly connect the nation’s three major airports. However, delays in revising the contract could have a domino effect, potentially stalling the crucial U-Tapao airport development as well.

 

With efforts ongoing to resolve land issues related to the U-Tapao Airport and Eastern Aviation City project, commencement of rail construction isn’t expected for five years. This schedule pushes the anticipated operational date to 2029, reflecting a five-year setback, reported Bangkok Post.

 

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-- 2024-10-31

 

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