NONG KHAI — Thailand will hold a majority stake in a firm to be set up with China to build and operate new train lines, Transport Minister Prajin Juntong said on Wednesday.
The State Railway of Thailand will have a 30% stake and 30% will be allocated to Thai private firms in a joint venture with China, the minister said after a meeting with Chinese officials.
Chinese state enterprises will account for 40% of the company, he added.
The composition of the shareholders has not been finalised, however as it could be on the agenda again in the next round of talks.
"The setting up of a joint venture and shareholder stakes is expected to be concluded in the next meeting," he said.
Thailand and China have set May 6-8 for the next meeting in Kunming.
The joint venture will handle the construction and operation of two new train tracks to be built between Thailand and China.
The Thai government signed an agreement with China in December to build the 1.435 standard gauge tracks on two routes from Nong Khai to Map Ta Phut in Rayong and from Kaeng Khoi to Bangkok.
ACM Prajin said the operation will be divided into three phases. The first three years will be the responsibility of China, while Thailand and China will jointly run the service from the fourth to seventh years.
Thailand will fully control the lines afterwards, with China to be relegated to adviser only, he added.
Deputy Transport Minister Arkom Termpittayapaisith estimated the construct cost of the two lines at 328 billion baht.