The Rail Department, a newly created body tasked with regulating rail management, is set to begin operations in April.
Nathporn Chatusripitak, a spokesman for Deputy Prime Minister Somkid Jatusripitak, who oversees the government’s economic affairs, said the National Legislative Assembly (NLA) approved a draft bill on the Rail Department and it is pending royal endorsement.
Under the draft bill, the existing Rail Project Development Office under the Transport and Traffic Policy and Planning Office will be upgraded to the Rail Department. The department will function as a policymaker and regulator for overall rail management.
“The Rail Department has duties to propose rail-related policy, strategy and development plans for the complete rail network, not only at home but also connectivity with neighbouring countries,” Mr Nathporn said.
The department is also tasked with supervising electric rail, double-track rail and high-speed rail to ensure development lives up to international and safety standards; setting fair ticket prices; and upgrading rail services.
Mr Nathporn said the State Railway of Thailand and the National Science and Technology Development Agency have reached an agreement to improve Thailand’s parts-making industry for the rail system so that it meets international standards.
He said the government will later establish the Institute of Rail Technology Development as a public organisation to conduct research, training and human resource development.
The government is encouraging the private sector to manufacture trains, signalling systems and equipment in Thailand, with the goal of increasing competitiveness in the rail industry and reducing train imports.
The Board of Investment (BoI) earlier on Jan 11 approved special measures to promote investment in rail and rail-related industries, projecting demand to top 10,000 trains over the next 20 years.
Over the next 10 years, plans call for developing a 6,000km network with double-track, electric and high-speed rail.
The BoI’s special measures will be offered for making train cars, significant parts of the operator’s cab, signalling and braking systems, couplers, rails and power supply.
Under the special measures, investment in train cars with domestic engineering designs will be entitled to a corporate income tax exemption for eight years.
Interested parties who submit applications to the BoI by Dec 30, 2021 will be granted a 50% reduction in corporate income tax for three to five years.
The measure aims to accelerate investment within three years.
Projects with factories in Khon Kaen and Nakhon Ratchasima will be afforded a 50% reduction in corporate income tax for five years.