Three-Airport Rail Link Project Faces Five-Year Delay Amid Contract Negotiations
PUBLISHED: 17 Jan 2025 at 18:53
The long-awaited three-airport rail link project is poised to begin construction this April, contingent on the approval of contract amendments with the contracting consortium as stated by the Eastern Economic Corridor (EEC) Policy Committee.
At a recent meeting led by Deputy Prime Minister Pichai Chunhavajira, plans to revise the contract for the high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-tapao airports were discussed.
The State Railway of Thailand (SRT) is preparing the amended contract, set to be presented to the EEC Policy Committee and the cabinet for final approval.
Construction is anticipated to last five years, with the rail link expected to open in 2029, marking a significant five-year delay from the original timeline.
The initial contract, established in 2019 between the SRT and a consortium led by the Charoen Pokphand Group, was intended to facilitate the operation of the Airport Rail Link (ARL) in Bangkok.
During the COVID-19 pandemic, decreased passenger traffic on the ARL led Asia Era One to seek compensation, resulting in a cabinet-approved contract revision in 2021.
Transport Minister Suriya Jungrungreangkit has countered opposition claims that revisions disproportionately benefit private sector partners.
Last month, the SRT confirmed its readiness to assume full control of the project should the contractor fail to meet project deadlines.
Additionally, the EEC Policy Committee has endorsed the expansion of the Eastern Aviation City project, which encompasses U-tapao Airport, with 714 rai of land allocated from the Royal Thai Navy for development.
This expansion aims to introduce a second runway to enhance aviation safety and mitigate natural challenges posed by nearby mountains, according to Mr. Pichai.
Furthermore, the land-use plan for the Eastern Economic Corridor of Innovation (EECi) will be revised to encompass commercial production activities in addition to prototype development. Approximately 975 rai of the 3,454 rai designated for the project will be dedicated to this hub.
The primary focus will be on modern automotive, smart electronics, and bio-agriculture sectors. These modifications aim to invigorate the local economy, promote technology transfer, and improve the quality of life for residents.
Additionally, the meeting approved the establishment of Blue Tech City, a 1,172-rai special economic zone in Chachoengsao, designed to bolster advanced industries, including electric vehicles, smart electronics, aviation, and digital technologies.
This initiative is projected to draw investments totaling 156 billion baht and create approximately 20,000 jobs. Local entrepreneurs will be prioritized for sourcing 90% of electronic components and auto parts needed for EV production from domestic suppliers.
