The Transport Ministry has given the green light to the loss-ridden rail agency to go ahead with public-private partnership investments in developing 12 prime areas for commercial purposes along six dual-track routes.
Transport Minister Arkhom Termpittayapaisith said the State Railway of Thailand is required to consider three factors -- clear expected returns, environmental friendliness and community participation -- when finalising plans to develop land for commercial purposes.
It is part of the SRT's efforts to raise revenue and tackle debts of 100 billion baht.
The six routes are Chira Junction in Nakhon Ratchasima-Khon Kaen; Prachuap Khiri Khan-Chumphon; Map Kabao-Thanon Chira Junction; Nakhon Phanom-Hua Hin; Lop Buri-Pak Nam Pho; and Hua Hin-Prachuap Khiri Khan.
"The government wants local communities to be part of the land development, so it's important to undertake land readjustment and the SRT has to work closely with public works authorities," Mr Arkhom said.
Panthop Malakul Na Ayutthya, SRT deputy governor in charge of business and asset management, said revenue from non-core operations has increased to 3.4 billion baht, well above the target of 2.6 billion, after re-evaluation of land lease contracts.
He said the value of SRT land at Bang Sue station has jumped fourfold to 250,000-380,000 baht per square wah.
"We are looking to develop more than 100 plots of SRT land to generate more income," he said.
Deputy permanent secretary for transport Peraphon Thawornsupacharoen said authorities have identified four potential stations for commercial development along the 672km Thai-Japanese high-speed Bangkok-Chiang Mai route.
They are Lop Buri, Nakhon Sawan, Phitsanulok and Chiang Mai stations.
According to Mr Peraphon, land readjustment is recommended at Lop Buri and Nakhon Sawan stations where land appropriation is required for development. However, owners of the plots will be asked to take part in development projects.
He said land development plans and investment models for the four stations are expected to be finalised in December and the Japan International Cooperation Agency has been asked to provide support.
A panel drafting terms of reference on procurement of diesel electric locomotives is expected to revise and complete them within one month, an SRT source said.
The committee has to adjust the terms after the bidding failed, according to the source. Only one firm tendered a bid to supply locomotives and it was not qualified.
The SRT plans to buy 50 diesel electric locomotives and spare parts at estimated price of 6.15 billion baht and lease another 50. The locomotives will replace ageing general electric engines.
The SRT originally planned to lease 120 locomotives but changed its mind after reviewing costs.
The agency's scheme to buy 186 cars at an estimated price of 13.5 billion baht is being vetted by the National Economic and Social Development Board before it goes to the cabinet for approval, the source said.
