The State Railway of Thailand (SRT) board has approved the results of a new study conducted on planned further investment in the SRT's Inland Container Depot in Bangkok's Lat Krabang district, which has been delayed for several years.
It is therefore expected that the contract for this investment project will be signed later this year, SRT governor Veeris Ammarapala said yesterday.
The board approved the study results last Thursday, which pointed to a public-private partnership (PPP) under a net cost structure -- where the private operator collects all revenue and shares a portion with the state -- as the most suitable business model for this project, he said.
Thammasat University conducted the updated study, which also proposes extending the concession period from 18 to 20 years to improve the project's financial viability and increase returns for the SRT, he said.
It followed a cabinet resolution on Jan 17, 2024, instructing the SRT to expedite an updated study to align the project with current economic conditions, after the project was delayed for many years, said the SRT governor.
Originally, the bidding process for this project began in 2019, with a total value of 40 billion baht, yet it has since faced various delays.
ALG Joint Venture (Thailand), the selected bidder, has reaffirmed its interest in the project, saying that despite the long delay, the new study has indicated higher potential returns, which motivates both parties to proceed with a new round of negotiations on the new contract, Mr Veeris said.
The SRT expects to submit the updated study to the Ministry of Transport for review by June, and subsequently forward it to the cabinet for final approval, before signing the new contract later this year, he said.