Deputy Prime Minister Somkid Jatusripitak has ordered the debt-ridden State Railway of Thailand (SRT) to set up a special unit to manage commercial development of its land plots worth 600 billion baht to shore up its revenues.
Speaking after a meeting with the SRT board, Mr Somkid said the rail agency is in need of a business unit specialised in the commercial development of property and estate to help raise money and improve its financial health.
"The SRT has made a little money but spent a lot, and that's why its accumulated debts stand at 80 billion baht. But it's not a problem because the SRT has assets worth 600 billion baht which can be used to make money," he said.
The SRT now owns a combined 36,000 rai of land across the country.
However, Mr Somkid said if the SRT is not ready to invest, it should find private partners, while stressing that the SRT must not sell its land plots to raise funds.
"Within 10-15 years the SRT's finances will improve," he said.
The land has been sorted into categories, comprising 21,000 rai of low-potential land that is rented to farmers, 7,200 rai making up Chatuchak market and five remaining prime plots, including Makkasan and Bang Sue as well as a site near Mae Nam railway station in Klong Toey district covering a total of 277 rai.
It has struck a deal worth 61 billion baht to lease a 497-rai plot in Makkasan to the Finance Ministry for 99 years to clear its huge debts, but the handover is on hold after legal concerns over whether it can be developed for other purposes apart from those concerning rail systems.
Mr Somkid said he also ordered the SRT to draw up a long-term business plan with the State Enterprises Policy Commission, or the superboard, which is expected to be completed within two months.
He said the SRT has also been told to speed up its public-private investment projects, especially two high-speed train schemes for the Bangkok-Hua Hin and Bangkok-Rayong routes and the Inland Container Depot project to be located in Lat Krabang district.