Transport SRT Advances 40 Billion Baht Upgrade of Lat Krabang Inland Container Depot

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Photo courtesy of Bangkok Post

 

After enduring years of frustrating delays, the State Railway of Thailand (SRT) is set to advance a significant 40 billion baht upgrade of Bangkok's Inland Container Depot in Lat Krabang. The SRT board has given its approval, marking a crucial step forward in a project mired by stalled negotiations and missed timelines since bidding began in 2019.

 

Last Thursday, the SRT board approved a long-overdue study that designates a public-private partnership (PPP) using a net cost structure as the optimal business model. In this arrangement, a private operator will oversee revenue collection while sharing profits with the state, a move intended to resuscitate the long-awaited project.

 

SRT Governor Veeris Ammarapala announced that a contract is anticipated later this year, following the approval of the study, which aims to be submitted to the Transport Ministry by June. Conducted by Thammasat University, the updated feasibility study also recommends extending the concession period from 18 to 20 years. This enhancement is intended to boost the project's financial viability and attract better investment returns for the SRT.

 

This momentum results from a January 17 Cabinet resolution that urged the SRT to fast-track the project and adjust the study to better reflect present economic conditions. The chosen bidder, ALG Joint Venture (Thailand), has expressed readiness to advance, buoyed by the updated study which points to significantly improved returns, thereby inspiring renewed confidence for both parties to enter new contract negotiations.

 

Veeris highlighted that the revised model offers enhanced investment incentives, aiming to boost private sector involvement. The Inland Container Depot serves as a crucial logistics hub for Thailand, facilitating the seamless movement of goods in and out of Bangkok. Its expansion is essential for alleviating port congestion and upgrading the country's freight transport infrastructure.

 

Provided they receive final Cabinet approval in the latter half of the year, the long-stalled Lat Krabang upgrade might soon gain momentum, fostering hopes for modernisation, heightened investment, and economic growth within the region.

 

  Adapted by ASEAN Now from The Thaiger 2025-05-21