Photo courtesy of Khaosod

 

Thailand's $6.8 billion high-speed rail project, intended to connect Don Mueang, Suvarnabhumi, and U-Tapao airports, is on the verge of collapse nearly six years after the signing of a public-private partnership contract. Asia Era One Company, the project’s private partner, has not met the required conditions to proceed, stalling development due to multiple factors, including the COVID-19 pandemic.

 

The delay has substantially affected the project’s viability, with reduced investment returns and lower-than-expected passenger numbers undermining its feasibility. The consortium faced difficulties securing financing and paying the 10.67-billion-baht concession fee for the Airport Rail Link, halting construction. As a result, options considered included contract termination, amending the PPP agreement, or letting the State Railway of Thailand proceed independently.

 

To address these issues, the Eastern Economic Corridor Policy Committee approved contract amendments allowing government co-investment to be paid in installments. Asia Era One agreed to provide an additional 160 billion baht in guarantees, and the contract was reviewed by the Office of the Attorney General for Cabinet approval. However, a recent government change led by Prime Minister Anutin Charnvirakul disrupted this plan, with the administration opposing the revised contract terms citing legal concerns.

 

Transport Minister Phiphat Ratchakitprakarn rejected the revised payment structure, advocating for adherence to the original contract. Consequently, the amendment framework was nullified, and the SRT Governor’s resignation plunged the project into further uncertainty. This stalled high-speed rail project jeopardizes the overall development of the Eastern Economic Corridor, including key projects like the U-Tapao Airport expansion.

 

The project’s future remains unclear, with termination under the current PPP contract seemingly likely. Such a decision could lead to significant legal battles and compensation claims, impacting not only the rail line but the wider region's growth prospects.

 

Key Takeaways

• Thailand’s high-speed rail project is stalled with possible termination.
• Government changes have halted progress on proposed contract amendments.
• Broader EEC development is at risk due to the rail project's uncertainties.

 

Related Stories

Minister Rejects High-Speed Rail Contract Amendments

Thailand's High-Speed Rail Bidding Opens for 2026

 

  Adapted by ASEAN Now from Khaosod 2025-10-21

 

 

Pathetic bunch       😡

Maybe common sense will somehow prevail.  A medium-speed rail line with more stations would be more useful and at less cost for this short line.

1 hour ago, Lee65 said:

Maybe common sense will somehow prevail.  A medium-speed rail line with more stations would be more useful and at less cost for this short line.

 

Even if complete, it won't be a "high-speed" line as advertised.

 

There might be a few short stretches way out in the rice fields where speeds might break 150 kmh for a few moments, but the majority of the line will likely be limited to 80-90 kmh.

 

And what's with the massive budget for such a short line?  The DMK to BKK portion is already in operation, right?  The stretch from BKK to UTP is only 150 kilometers..........so $6.8 Billion?

 

That's more expensive than the entire 425 km Vientiene-Boten line with 20 some stations, and hundreds of kilometers of tunnels and bridges through mountains.

 

47% of the railway is spanned over 75 tunnels and 15% is set on viaducts spread over 167 bridges.

 

I thought the Chinese were funding it

On the verge of collapse?  Substandard concrete in those supports?  I'll take the bus!

15 hours ago, snoop1130 said:

The consortium faced difficulties securing financing and paying the 10.67-billion-baht concession fee for the Airport Rail Link, halting construction. As a result, options considered included contract termination, amending the PPP agreement, or letting the State Railway of Thailand proceed independently.

Should never have been allowed to bid for the contract without adequate proof of finance.

12 minutes ago, Homburg said:

On the verge of collapse?  Substandard concrete in those supports?  I'll take the bus!

As long as the bus doesn't go under the overhead railway?

2 minutes ago, hotchilli said:

As long as the bus doesn't go under the overhead railway?

Or crash, or catch fire, or fall into a a sinkhole! Welcome to Thailand.  Safety last.

15 hours ago, snoop1130 said:

The project’s future remains unclear

The potential to make money by clearing up the project's future remains to be high, so let's just milk it with more viability studies and their associated travel, meetings, stays, lunches and entertainment... 

I as reading more details about this in Khaosad english. The facts about it are quite dim and seem to be getting dimmer. I do not see any hope that the high speed rail will continue as planned. Although, I think it was a bad idea to begin with given Thailands safety record. 

10 hours ago, Lee65 said:

Maybe common sense will somehow prevail.  A medium-speed rail line with more stations would be more useful and at less cost for this short line.

But not once they have seen those impressive Chinese and Japanese HST's = They just have to have one like the other "developed" countries, never mind they have no infrastructure, no clue, no nothing, just their sad, hollow longings to be accepted on the world stage as equals, Sadly, it isn't going to happen, they belong under the coconut.

'GIMMY more money !!

8 hours ago, NoDisplayName said:

The DMK to BKK portion is already in operation, right? 

Not at all.

16 hours ago, JoePai said:

Pathetic bunch       😡

Bad steel??,hate to see this collapse, then they could grow gunga on it 

    I could never see much need for it.  Low passenger numbers, cited in the article, is correct.  Who would ride it other than the section linking the two Bangkok airports?   Tour groups arrive and immediately get on the tour bus to immediately start their first day of sightseeing--they won't be using it.  Bangkok visitors to Pattaya take their own cars--at least my Bangkok relatives always do.  Independent tourists might use it but they would be better off taking the airport bus or a private taxi.  As proposed, you'd be dumped off on the Darkside of Pattaya and would then have to figure out how to get to your Pattaya hotel from there--better to just get a taxi at the airport in the first place and not have to find a taxi once you get to Pattaya and pay a second transportation charge.   

1 hour ago, Homburg said:

On the verge of collapse?  Substandard concrete in those supports?  I'll take the bus!

A Thai driving it,.................. I'll join you on the Bus

17 hours ago, snoop1130 said:

Asia Era One Company

Asia Era One Company is a Thai consortium and rail operator, led by the Charoen Pokphand Group.

I suppose the envelopes have already been handed over so threats to end the project will fail a long as the people who gave permission are still around. 

With an election due next year there must be a lot of people panicking.

1 hour ago, wombat said:

I thought the Chinese were funding it

Wrong.

Thailand turned down their offer.

Gosh was thinking construction it was nearly finished. 😁 

18 hours ago, snoop1130 said:

The consortium faced difficulties securing financing and paying the 10.67-billion-baht concession fee for the Airport Rail Link, halting construction.

 

18 hours ago, snoop1130 said:

To address these issues, the Eastern Economic Corridor Policy Committee approved contract amendments allowing government co-investment to be paid in installments. Asia Era One agreed to provide an additional 160 billion baht in guarantees, and the contract was reviewed by the Office of the Attorney General for Cabinet approval.

 

So they couldn't come up with 10.67 billion baht but they can provide 160 billion baht in guarantees?

18 hours ago, JoePai said:

Pathetic bunch       😡

They must be same people that designed the Cali bullet project.

 

I really don't understand why they don't build the swampy to pattaya section they can simply follow express way

2 hours ago, wombat said:

I thought the Chinese were funding it

You thought wrong.

The usual Thai problems: incompetent project design, incompetent project management, too many fingers in the till and no comeback for monies already spent.

10 hours ago, NoDisplayName said:

 

Even if complete, it won't be a "high-speed" line as advertised.

 

There might be a few short stretches way out in the rice fields where speeds might break 150 kmh for a few moments, but the majority of the line will likely be limited to 80-90 kmh.

 

 

 

Where do you get that nonsense from? It would run at 250km/h.

Even the existing ARL can hit 160km/h between stations and they are only a few kms apart, although it usually runs slower at about 130km/h these days.

 

Quote

And what's with the massive budget for such a short line?  The DMK to BKK portion is already in operation, right? 

No.

 

Quote

The stretch from BKK to UTP is only 150 kilometers..........so $6.8 Billion?

 

That's more expensive than the entire 425 km Vientiene-Boten line with 20 some stations, and hundreds of kilometers of tunnels and bridges through mountains.

 

47% of the railway is spanned over 75 tunnels and 15% is set on viaducts spread over 167 bridges.

It is very expensive, I agree. If you want a high speed rail built quickly and cheaply then you get the Chinese to do it - nobody does it better.

I don't know whether any of the other consortium partners were foreign companies. Thais would never be able to bring a project in like this on time, and anywhere near the original budget.

...222,961,800,000 Baht... (?)

 

...The Hub Of _ _ _ _ _ _ _ _ _ _ ...

 

 

Back to normal then? 

Not surprised at all that this project is failing.