The State Railway of Thailand will allow private sector participation in a multibillion-baht commercial development of 200 rai of land at Bang Sue train station in Bangkok, where a major transport terminus is planned.
SRT chairman Omsin Chiwaphruek said on Wednesday the SRT planned to allow private sector commercial development worth 68 billion baht on 218 rai of the 305.5 rai Bang Sue railway compound.
He expected tenders for the project to be called in 2019. The winner would have the right to rent the commercial zone for long-term development and operation.
An initial development, to be called the Smart Business Complex, on 35 rai south of Bang Sue station was expected to open around 2023.
Other developments planned over a 15 year period are an Asean commercial and business hub on 78 rai, about 700 metres from Chatuchak market; and the Smart, Healthy and Vibrant Town on 105 rai where the Mor Chit bus terminal is now sited.
The SRT introduced its plan to the private sector at meeting on Wednesday to sound out reaction. The commercial development will include office buildings, department stores, residential buildings, recreational zones and park-and-ride areas.
The Bang Sue railway compound would be developed as the hub for all kinds of railway services, including high-speed trains, and would be connected to expressways and main roads, Mr Omsin said.
The railway hub development there was being delayed because the design needs to be changed to accommodate high-speed trains, he said.
The new railway service zone of the Bang Sue complex was scheduled to open in 2019, Mr Omsin said.
Pornnarit Chonchaisith, president of the Thai Real Estate Association, said investors want the SRT to extend the lease period from 30 to 99 years to make the property development deal attractive.