The government will not reduce the maximum speed of the 670km Thai-Japanese high-speed train project stretching from Bangkok to Chiang Mai, says Deputy Prime Minister Somkid Jatusripitak.
Mr Somkid said the government has so far made no decision to cut the speed of the project despite earlier proposals advocating the move to save on construction costs.
An initial study found that although lowering the maximum speed would reduce costs slightly it would end up doing more harm than good, he said.
As a result, the project should go ahead as originally planned, he added.
Previously, Mr Somkid said Prime Minister Prayut Chan-o-cha had instructed the Transport Ministry to study the possibility of curbing the maximum speed to 180-200kph after a Japanese feasibility study suggested the original goal of 300kph would require a budget of 420 billion baht.
Fares are expected to be just over 1,000 baht per trip, according to the study.
The deputy prime minister also gave approval to the loss-ridden State Railway of Thailand's (SRT) proposal to increase train fares to help cover operational costs.
Speaking after delivering policy guidelines to the SRT's management, Mr Somkid said he gave the rail agency the green light to raise fares on the condition that it would offer better services.
According to Mr Somkid, he instructed the SRT executives to study the fare hike in detail, including when it should be implemented and how much the rise should be as train fares have remained unchanged for years.
The fare increase is likely to happen after the opening of the next phase of double-track railway development and the purchase of new carriages, said the deputy prime minister.
Mr Somkid also pledged to help the SRT in its reform plan by amending a previous cabinet instruction to allow the state agency to recruit 5,000 new staff to accommodate the double-track railway development project.
Of 5,000 new recruits, 2,000 would be for the first phase and the rest for the second. Currently the SRT has about 14,000 employees who are in charge of train operations and track repair and maintenance.
The SRT is not allowed to recruit new staff due to a cabinet resolution passed in 1998 to reduce the agency's costs.
According to Mr Somkid, the State Enterprises Policy Commission, or superboard, chaired by Gen Prayut will meet this month to discuss measures to help the SRT including amending the 1998 cabinet resolution.
Last month, Deputy Transport Minister Pailin Chuchottaworn said the ministry would not approve the train fare hike until the construction of the first phase of double-track railway development project was completed.
The first phase worth 69.5 billion baht has five routes with a combined length of 702km. They are Hua Hin-Prachuap Khiri Khan; Prachuap Khiri Khan-Chumphon; Map Kabao-Jira; Nakhon Pathom-Hua Hin; and Lop Buri-Pak Nam Pho.