The government is considering luring private companies with technology for operating and managing tram services in Spain, France, China, Japan and South Korea to jointly invest in the three tram lines planned for Chiang Mai worth 100 billion baht.
Office of Transport and Traffic Policy and Planning (OTP) director-general Chaiwat Tongkamkoon says Thailand needs to learn from the expertise of an overseas tram technology company, especially in terms of tram service maintenance.
The Mass Rapid Transit Authority of Thailand was in the process of studying a possible design for the tram system and the ideal format of joint ventures to be adopted for the project, he said. No names of possible contenders from overseas for the construction work or later phases of the project were available.
The most likely joint venture format to be picked for this project is a public-private partnership, in which the government will invest in the infrastructure while local administrative bodies will either hire a private company to operate the tram services or will jointly manage them, he said.
The OTP initially proposed a start to the work on all three tram lines at the same time but, because most locals preferred underground tram systems, the budget required for this project blew out.
As a result only one line will be constructed first, he said.
The three lines are the 12km Red Line, to run from Chiang Mai's government centre to Mae Hia municipality in Muang district through Chiang Mai airport; the 11km Blue Line, to run from Chiang Mai Zoo to the Don Chan area of the province through the Tha Phae area; and the 12km Green Line, to run from Maejo University to the airport via Warorot Market (also known as Kat Luang market).
The Red Line will be the first to be constructed, some time between late next year and early 2020, with the work likely to take five years, he said.
The government also plans transit-oriented development in the areas surrounding the central station of Chiang Mai's tram system for commercial purposes when the tram project gets under way, he said.
The tram project requires as much as 100 billion baht because about 70% of the system will be built underground and the cost of constructing an underground system normally is three times the cost of building a regular type, he said.
"Struggling to cope with traffic problems, large cities in the regions, too, now need serious public transport development," he said.
Provinces considered important tourist destinations such as Chiang Mai, Phuket and Khon Kaen all need an efficient public transport system to keep up with the growing demand for services, he said.
The OTP also plans to submit a proposal to construct two new tram projects -- one in Khon Kaen and the other in Phitsanulok -- to the cabinet for consideration later this month, he said. No budget was available.