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China’s new rail project with Thailand hits snag


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China’s New Rail Project With Thailand Hits Snag
By Prashanth Parameswaran

Reports indicate another disagreement has emerged on the multi-billion dollar railway project.

BANGKOK: -- The finalization of multi-billion dollar railway project between China and Thailand has been placed on hold due to outstanding disagreements, Thai media outlets reported on December 2.


The rail project, which has been proposed for years, would comprise two routes covering 867 kilometers and costing 350 billion baht ($9.7 billion), according to a draft cooperation framework approved in Thailand earlier this month. It has been hailed by both sides as a boost to their relationship as they commemorate the 40th anniversary of the establishment of diplomatic ties.

But on Tuesday, The Bangkok Post cited Thailand’s transport minister Arkhom Termpittayapaisith as saying that deputy prime minister Somkid Jatusripitak had placed a hold on the signing of a memorandum of cooperation after China failed to honor an associated pact on rubber that was part of a package deal initially reached last year.

Full story: http://thediplomat.com/2015/12/chinas-new-rail-project-with-thailand-hits-snag/

-- THE DIPLOMAT 2015-12-03

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When a contracting party does not comply with an initial term of the contract, how much confidence does compliance with build quality have for the future of the contract?

The main concern is the quality of the steel to be used...

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Why the hell to we need a high speed rail between China and Thailand. What about spending the billions on fixing up Thailands internal transportation probelems. Traffic congestion, Standard of buses (appalling), Road standards (also appalling), Checking of motor vehicles for drivers license and safety standard compliance. There are so many more that could be done to improve the infrastructure and transpotation services in Thailand that I would need a 100 pages to complete. Pay the police better so that they aren't compelled to take bribes just to make enough to support their family etc., etc.

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Notice the article's title says "China's" New Rail Project....it didn't say "Thailand's" New Rail Project. Although the rail project is being built in Thailand the article is most definitely correct in saying it's "China's" rail project because unless China funds the rail loan the project will not occur although the Thai govt would then just say they will just round up the money internally to continue the project---yea, right.

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When a contracting party does not comply with an initial term of the contract, how much confidence does compliance with build quality have for the future of the contract?

The main concern is the quality of the steel to be used...

or the quality of rice in return?

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Lost count of the times i have said it ain't gonna happen. The Thai's have brought nothing to the table apart from old rubber, which doesn't cut it with their Chinese masters.

Can you imagine experienced Chinese Railway Engineers and Bankers meeting for useful discussions with brainless Thai Idiot Ministers who are just there for the free flights in first class, the 5 star hotels, food and wine, whilst talking about how important they are in 'The Greatest Nation On Earth' ?

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When a contracting party does not comply with an initial term of the contract, how much confidence does compliance with build quality have for the future of the contract?

The main concern is the quality of the steel to be used...

There are some major concerns in Australia at the moment with cheap Chinese steel been used in building construction that could lead to problems in the future

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When a contracting party does not comply with an initial term of the contract, how much confidence does compliance with build quality have for the future of the contract?

The main concern is the quality of the steel to be used...

or the quality of rice in return?

More likely a dispute over the quality quantity of tea (money).

Edited by jaywalker
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Why the hell to we need a high speed rail between China and Thailand. What about spending the billions on fixing up Thailands internal transportation probelems. Traffic congestion, Standard of buses (appalling), Road standards (also appalling), Checking of motor vehicles for drivers license and safety standard compliance. There are so many more that could be done to improve the infrastructure and transpotation services in Thailand that I would need a 100 pages to complete. Pay the police better so that they aren't compelled to take bribes just to make enough to support their family etc., etc.

It's about a railroad, not roads or traffic. Living away from Bangkok I can see a need vs more road traffic jams. And far less buses from that area. This is also likely to be partially funded by China.
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"The rail project, which has been proposed for years, ... has been hailed by both sides as a boost to their relationship as they commemorate the 40th anniversary of the establishment of diplomatic ties."

So maybe there has been valid reasons for all previous governments not to proceed with this project. But the Junta wants a "trifecta" propaganda victory: big transportation project, big sale of rice and big sale of rubber. The problem is not the Chinese nor their steel or technology but the Junta that keeps changing the "Deal" for maximum political advantage.

Unfortunately for the Thai people, there is no one who can tell Prayut - "You're fired."

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Reminds me of the implementation of 4G in Thailand. How much of the country is presently covered? How many delays did they have on ruling out the auctions? It was shameful behavior. Now, they are using any excuse possible to delay the project. In five years the budget will probably have doubled. In my opinion, nearly any amount of money spent on quality public transportation is worth it. Thailand is so far behind the region with regard to rail transport. The trains are all antiques. When was the last time they replaced a rail car ?

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A former Thai Railways official has testified that Thailand does not have the population density to support a high-speed rail system for passengers and companies don't like to ship by high-speed rail because of the costs so who would actually benefit from this rail project? It won't be the people of Thailand.

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I think it's been stated elsewhere that this rail system is to give China access to shipping ports ... Dawei, and Laem Chabang ... I can't see much benefit to Thailand from this ... unless there's big money to be made from tea ...

Sent by carrier pigeon

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  • 2 weeks later...

whistling.gif Has nothing to do with that stuff.

The real problem is with the financing by the Chinese and the slowdown of the Chinese economy is putting a strain on finding Chinese financial firms willing to undertake the financing of the project in the current economic climate with China and Thailand.

In 2015 7 Chinese financial firms have found themselves unable to pay the dividends due bonds issued by their firms to investors for various reasons, and therefore investors are not exactly racing to invest finds in projects in China, even when they are backed by the Chinese Government.

But all that according to the government is just "scaremongering".

Edited by IMA_FARANG
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I am in Malaysia now and in a newspaper I was reading, there was a map of an entire project. Apparently the plan is to go from Singapore through KL into Thailand. Then off to Myanmar and Cambodia Vietnam when it hits the gulf. North would be syraight up and on to Kunming. Another branch through isaan north. I think it was that one and the one in Vietnam then linking up to go north and east into China

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