Plan to construct own trains in Northeast gathers steam

Plan to construct own trains in Northeast gathers steam

The Transport Ministry plans to set up train assembly plants in the northeastern region. (Bangkok Post file photo)
The Transport Ministry plans to set up train assembly plants in the northeastern region. (Bangkok Post file photo)

The Transport Ministry is planning to set up train assembly plants in the Northeast to ease Thailand's heavy dependence on train imports in a move to slash government spending on new rolling stock 10-fold.

If the ambitious plan is realised, the cost of procuring new trains, which is currently estimated around 70 billion baht, will fall to between 6 and 7 billion baht, Deputy Transport Minister Pailin Chuchottaworn said on Tuesday.

The Transport Ministry is working with the Industry Ministry and the Board of Investment to kick start the plan next year.

The government expects to build three plants with a yearly production volume of 900 carriages by 2027, Mr Pailin said.

Under the plan, the plants must be able to build more than 300 carriages a year in order to break even, he said.

Officials are attracted to the northeastern region because it is currently a centre for local public bus production.

If new factories are built and opened there, "we can also export trains to CLMV", Mr Pailin said, referring to the four neighbouring countries of Cambodia, Laos, Myanmar and Vietnam.

But there is a lot of work to do to pave the way for a train assemby business, he added, saying that not only does Thailand need to invest in new infrastructure, but it will also have to establish a research institute on rail technology and a new state agency to regulate the rail network.

So far, Thailand has imported train carriages from five countries: Germany, China, Japan, Austria and Turkey.

The ministry's plan will help cut other expenses too, including yearly maintenance spending worth about one billion baht.

The factories will also provide many much-needed employment opportunities for people in the region, Mr Pailin said.

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