The Charoen Pokphand Group-led consortium signed a contract with the State Railway of Thailand on Thursday to build a high-speed train network linking three major airports.
CP Group chief executive officer Suphachai Chearavanont represented the consortium at the signing at Government House, and acting chief Worawut Mala signed for the SRT.
Prime Minister Prayut Chan-o-cha was among the government witnesses.
The consortium had until Friday to sign the long-delayed agreement or be fined for failing to honour the terms of the bidding.
The 224-billion-baht rail project will connect Don Mueang and Suvarnabhumi airports in Bangkok with U-tapao airport in Rayong province.The distance is 220 kilometres, with the specification for trains to run up to 250 kilometres per hour.
The government seem the project as a key booster for the Eastern Economic Corridor.
The government said on Thursday the new rail network is expected to be operational in 2023, and is expected to generate economic development along the route.
Mr Supachai said after the deal was inked that construction will start in 12 to 24 months and be completed within five years.
He also said a complex including a train station, mall, hotel, convention centre and rail research centre will be developed in downtown Bangkok at a cost of about 140 billion baht.
Under the railway development scheme, the contractor will develop and operate the high-speed rail system for a period of 50 years and commercially develop 150 rai of land in the Makkasan area and a 100-rai plot in Chon Buri’s Si Racha.
The consortium contained 12 other members, including China Railway Construction Corp,
Bangkok Expressway and Metro Plc, Italian-Thai Development Plc and CH. Karnchang Plc.