Thailand’s Transport Infrastructure Development Plan 2015-2022-
The Thai cabinet approved the Thai Transport Infrastructure Development Plan 2015-2022 on December 1, 2015. The plan, worth 1.8 trillion baht ($50.3 billion), aims to boost the efficiency of transportation infrastructure in the country. The plan consists of five key programmes, which aim to reduce the cost of logistics and transportation, and improve the competitiveness of the economy. At present, the transport infrastructure of Thailand is inadequate to meet the growing demand for goods and passenger transportation. The need to sharply increase spending on long-term infrastructure investments will put increasing pressure on Thailand’s national budget.
Current status
Thailand’s intercity train system currently stretches about 4,429 km, 90 per cent of which consists of single-track metre gauge lines. In the five years 2009-13, rail ridership declined in Thailand, while freight traffic increased at a modest compound annual growth rate (CAGR) of 1.5 per cent.
Besides, Thailand also has a 36.5 km skytrain network, comprising two lines. The Sukhumvit Line spans 22.25 km and covers 22 stations. The Silom Line spans 14.2 km and covers 13 stations.
Currently, Thailand has 38 airports, including seven international airports. Six of them, in Samutprakarn, Bangkok, Chiang Mai, Chiang Rai, Phuket and Hat Yai, are under the supervision of Airports of Thailand Public Company Limited, while U-Tapao Pattaya International Airport is operated by the Royal Thai Navy. The Don Mueang International Airport experienced a massive CAGR of over 50 per cent from 2009 to 2014.
Further, Thailand has a coastline of 3,219 km with ports at Bangkok, Laem Chabang, Map Ta Phut, Ranong and Phuket. The seaports at Laem Chabang and Bangkok are Thailand’s main ports for both imports and exports. Both ports are now overcrowded and do not have adequate multimodal freight transport connections.
According to the World Economic Forum’s competitiveness report for 2015-16, Thailand was ranked 71st out of 140 countries in terms of quality of overall infrastructure, while neighbouring countries like Singapore and Malaysia ranked 4th and 16th respectively. Thailand’s railroad infrastructure is inadequate, ranking 78th among 140 countries. Thailand, therefore, needs to develop its infrastructure to match international standards in order to drive economic growth and raise the nation’s competitiveness.
Thai Transport Infrastructure Development Plan 2015-2022
There are five key transport infrastructure subplans covered under the Thai Transport Infrastructure Development Plan 2015-2022. The plan involves an investment of around 1.8 trillion baht. Massive business opportunities will emerge from these projects, covering major transportation modes – rail, air and water. Further, the government plans to raise all funds domestically in order to avoid exposure to external currency risks.
Under the first plan, six dual-track new railway lines of 900 km will be laid by 2020. The double-track rail service will enhance the efficiency and flexibility with which goods and passengers are transported. By adding a 1 metre track alongside the original lines, the double-track service will reduce the time lost when switching between northbound and southbound trains. According to reports, the environmental impact assessment reports for two projects (Kang Koi-Cha Cheng Sao and Jira-Khon Kaen) have been approved by the National Environment Committee and the contracts are expected to be awarded by March 2016, while for the remaining four projects (Prachuab-Chumporn, Nakhon Pathom-Hua Hin, Mab Ka Bao-Jira, and Lopburi-Pak Nam Pho), the contractors are expected to be announced by June 2016.
The second plan involves the expansion of the mass rapid transit (MRT) system of the country. The five new MRT projects planned are the Orange Line heavy metro, the Pink Line monorail and the Yellow, Red and Purple metro lines.
The third plan focuses on enhancing connectivity between key domestic production bases and neighbouring countries. Three road routes of a total length of 324 km have been identified for this. These three routes will be developed at an estimated cost of 160.42 billion baht.
The water transport network will be increased under the fourth plan. The plan aims to better facilitate multimodal shipment, which connects services by ships to logistics centres using other modes like road and rail. This will reduce logistics costs for business operators, enhance the efficiency of importing and exporting goods and create business opportunities for related sectors.
The air transport capacity will be enhanced under the fifth plan. The fast growth and high importance of air travel and air shipment has prompted the government to prioritise the expansion of Suvarnabhumi airport and the Don Mueang International Airport.
The way forward
The infrastructure plan is expected to provide massive benefits (direct and indirect) to all stakeholders. Railway projects can be a catalyst for urbanisation by creating new business opportunities along the rail lines. The new airport and seaport projects will raise the demand for petroleum, while expansion of the rapid rail system will raise the demand for electricity. Macroeconomic benefits can also come from increased public investment; however, public expenditure must stay aligned with fiscal discipline.
