Thailand: A huge market for railway technology

Thomas Hundt

Thailand is getting several long-distance and local transport projects on track. Rail companies from all over the world are counting on opportunities. Germany has already established a network with local partners.

In 2017, the Thai Ministry of Transport presented a master plan for rail development, which foresees total expenses of approximately US$ 80 billion by 2030. These projects are gathering speed, and Thailand is developing into an attractive market for rail systems and rail technology.

The rail network in Thailand covers approximately 5,000 kilometers. While it is the second largest network in South-East Asia, the lines of the State Railway of Thailand (SRT) are mainly single-track, not electrified and run only on a narrow meter track. Thailand has neglected the expansion and modernization of the network for a long time.

The SRT is now expanding its single-track, long-distance network to two or three tracks, yet without electrification. The SRT is therefore inviting tenders for the construction work, section by section. In 2022, SRT purchased used trains from Japan and bought 50 new diesel locomotives from manufacturer CRRC Qishuyan in China.

The 220-kilometre high-speed railroad linking the three airports –Don Mueang and Suvarnabhumi in Bangkok and U-Tapao Airport in the south, is considered to be the largest individual project in the country. Asia Era One, a consortium managed by Thailand's Charoen Pokphand Group, was awarded this public-private partnership (PPP) project in 2021.

Asia Era One will build the route and operate it for a 50-year period. As system suppliers, mainly Chinese companies are expected to be involved in the construction. However, the Airport Rail Link commuter rail service, whose system was provided by Siemens Mobility, needs to be integrated into this track as well.

The Asia Era One consortium comprises the China Railway Construction Company, the Thai groups Italian-Thai Development and CH Karnchang, as well as the Bangkok Expressway and Metro company.

Asia Era One is still seeking technical solutions for the challenging high-speed line and has yet to secure the financing. Just the extension of the Makkasan station in central Bangkok, which is planned based on the Transit-Oriented Development concept with offices, shops and apartments, is expected to cost around US$ 1.3 billion. In 2014, the Governments of Thailand and China agreed to establish and operate a 609kilometre high-speed rail line from Bangkok to Nong Khai at the border with the Lao People’s Democratic Republic. Thai companies are responsible for the construction work of the so-called Sino-Thai High-Speed Rail project and Chinese manufacturers are supplying the rail systems.

CRRC's trains are expected to operate at speeds of up to 250 kilometers per hour. Multiple construction contracts for the first 253-kilometre section from Bangkok to Nakhon Ratchasima, worth US$5.2 billion, were granted by SRT in October 2020.

For public tenders, special regulations must be followed. Providers need to register and meet required criteria in order to be allowed to participate. Interested parties should obtain information about planning and studies early on as well as establish good business connections with project sponsors.

The metropolis of Bangkok already has a network of 210-kilometre metro lines, with another 123 kilometers under construction and a further 234 kilometers planned. The Mass Rapid Transit Authority of Thailand (MRTA) is responsible for planning and tendering of new projects in the capital and surrounding provinces. Since the 1990s, the operation of new routes has been awarded to private rail companies as PPP contracts.

In Bangkok, SRT operates the Red Line urban rail service and intends to tender its extension as a PPP project. Opened recently in November 2021, the line will be extended from 26 to 87 kilometers in the next few years.

In 2021, SRT handed over its 28-kilometre Airport Rail Link, the line connecting the city center with Suvarnabhumi Airport, to Asia Era One. The Airport Link will be extended as part of the Three Airports High-Speed Rail project.

The Bangkok Expressway and Metro (BEM) and the BTSC company operate most of the mass transit lines in the capital region. Private transport companies choose funding, rail technology and maintenance considering commercial aspects. Therefore, the competition among suppliers is intense.

Phuket province is currently planning a 59-kilometre tramway or, as an alternative, a cheaper rapid bus service. The city of Nakhon Ratchasima is considering the construction of an 11-kilometre tramway, and the Chiang Mai municipality aims to build a 35-kilometre tramway network.

The city of Khon Kaen in north-eastern Thailand is already ahead with planning its 26- kilometer tramway (light rail), for which a memorandum of understanding was signed in November 2021. It provides for deliveries of streetcars from the Chinese manufacturer, CRRC.

Thailand has no rail industry and therefore purchases rail technology abroad. Transport companies also depend on foreign expertise for planning, track construction and subsequent maintenance. In addition to CRRC, Siemens Mobility, Bombardier and Hitachi are active as system suppliers and have supplied various train systems.

Siemens Mobility employs around 1,000 people and has maintenance centers in Bangkok for its train systems in Thailand. Siemens office also provides in-house engineering services for international rail projects.

The German-Thai Railway Association (GTRA), which was registered in September 2021, includes companies, public agencies and universities from both countries. In addition to networking, GTRA's tasks include technical training and collaborations.

Contact details: Thomas Hundt, Director Thailand, Cambodia, Myanmar, Laos, GERMANY TRADE & INVEST, www.gtai.com