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Thailand Infrastructure News

Issue 815 January 2019

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PwC Thailand l January 2019 2

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Headlines

Thailand to promote single-window clearance system for border trade

Amata eyes Yangon for next foreign play

Cabinet OKs land use for airport rail

BoI gears up to snare aerospace investors for U-tapao

MRO takes centre stage as sector expands

3PwC Thailand l January 2019

Headlines

Brown Line monorail gets nod under PPP framework

NOD TO BROWN LINE

Udon to push for 'dry port' development

High-speed rail needs help to make an impact

Phuket seeks tram bidders


Headlines

Thai-Chinese high-speed rail opened up to foreign finance

Local train manufacturing plant on agenda

MRTA to call bids for Phuket mass transit in Q3

BoI to focus on rail and cruise ship port investment

Govt takes investment roadshow to Japan


Headlines

Debate on CP rail-link offer today


Thailand to promote single-window clearance system for border trade02 January 2019

7

IN a push for digital transformation within the Asean region, member countries will join forces to implement the Asean Single Window (ASW) for all 10 nations in the trade bloc by the end of next year.At the beginning of this year, five Asean countries – Thailand, Vietnam, Singapore, Malaysia and Indonesia – launched the ASW. The ASW aims to integrate the different national single-windowsystems of the Asean countries in order to expedite cargo clearance and boost cross-border trade via enabling the electronic exchange of trade-related documents among Asean member “As chair ofAsean in 2019, Thailand will facilitate the development of the ASW in the remaining five Asean countries – Cambodia, Laos, Myanmar, Philippines and Brunei,” said Auramon Supthaweethum,director-general of the Department of Trade Negotiations under the Commerce Ministry. “Our aim is achieve a fully complete ASW system for all 10 Asean members by the end of 2019,” shecontinued in an interview with The Nation. “The tariffs on goods imposed between different Asean countries have been reduced to nearly 0 per cent. Our next goal is to ensure a faster and moreeffective physical flow of goods between the Asean members, specifically, through pushing for the development of the ASW digital system in 2019,” Auramon explained. Before the ASW isimplemented, goods that are being traded among Asean countries will need a physical certificate of origin, called Form D, to benefit from the Asean Free Trade Agreement (Afta). However, there arevarious border posts in the Asean region that lack the authority to approve these certificates, causing goods to be delayed and idle at the border for up to 10 days before they are approved byauthorities, she said. “The ASW will digitise the Form D. We expect the use of an electronic Form D through the ASW gateway will reduce the waiting time for goods at the borders down to only one tothree days,” she said. “As chair of the Asean summits in 2019, we aim to complete the development of the ASW for all 10 Asean countries, facilitating the development of the necessary digital andtechnological infrastructure in the five remaining Asean members,” she stated. Cambodia, Philippines and Brunei are now at the testing stage in the development, according to Auramon. “The ASWsystem is expected to boost cross-border trade and allow Thailand to achieve its targeted bilateral trade value with different Asean members in 2019 and 2020,” she said. In the first 10 months of 2018,Thai-Cambodia trade value reached $6.938 billion (Bt225.61 billion), with the aim to reach an annual value of $15 billion (Bt487.76 billion) by 2020. The Thai-Laos trade value for the first 10 months ofthis year was at $5.611 billion, with the aim to reach an annual value of $11 billion in 2021. The Thai-Myanmar trade value stood at $6.367 billion from January to October and is projected to reach anannual value of $12 billion in 2022, according the Department of Trade Negotiations. Thailand aims to push for more connectivity within the region as the next host of the Asean summits next year,”said Sakon Varanyuwatana, Thailand’s Vice Minister of Commerce. “This includes encouraging the development of cross-border logistics to reduce transportation costs for exporting businesses withinthe region, and to improve trade regulations between countries to allow for more convenience in trade,” he said. Meanwhile, Thailand aims to accelerate its own Thailand 4.0 initiative to promote thegrowth of technological and digital industries through developing the Eastern Economic Corridor (EEC) special economic zone. The zone includes the provinces of Chon Buri, Chachoengsao andRayong.

The Board of Investment of Thailand (BoI) has set a total investment target of up to Bt300 billion by the end of 2018 in the EEC. In the first nine months of this year, Bt230.55 billion has been investedin the EEC, showing an increase of up to 117 per cent compared to the same period last year, according to BoI secretary-general Duangjai Asawachintachit. The five key infrastructure investmentprojects in the EEC are: high-speed railway; expansion of U-Tapao airport; expansion of Laem Chabang seaport and Map Ta Phut seaport; and aircraft maintenance, repair and overhaul, with theircombined investment estimated at Bt650 billion. Transport Minister Arkhom Termpitt-ayapaisith said these key investment projects would be completed in the next five to six years and a digital parkproject will be completed in 2022.

Source: THE NATION

http://www.nationmultimedia.com/detail/Economy/30361253

PwC Thailand l January 2019


Amata VN Plc, a subsidiary of SET-listed industrial estate developer Amata Corporation, plans to develop a 50-square-kilometre plot in Yangon as its second foreign industrial estate in 2019. Amata VN is conducting afeasibility study to allocate budget for the first phase of the industrial estate in Myanmar's biggest city. In this phase, the company plans to build all related infrastructure to prepare for future investors. Mrs Somhatai islooking at a second foreign estate. Somhatai Panichewa, president and chief executive, said Amata VN will develop the project in the first half of 2019, dependent on Myanmar's political environment. "The plot is locatedin northern Yangon," Mrs Somhatai said. "This project will be 10 times larger than the [nearby] Thilawa special economic zone.“ She said the first phase is focused on sectors that industry is trying to make greener, suchas electronics, garments and textiles, which require a great deal of manpower. Amata VN also aims to develop an industrial estate near Vientiane, focused on Chinese investors and Amata customers from Thailandseeking to expand in Laos. Laos would be the third foreign industrial estate under Amata VN's operation. "We will start to acquire the land plot and allocate the budget for the industrial estate's infrastructure in 2019," MrsSomhatai said. "Both projects in Myanmar and Laos will use business models similar those in Thailand to develop the industrial estate as an eco-friendly concept.“ For Amata's first foreign industrial estate in Vietnam, thecompany will increase spending in 2019 for all three locations: Amata City Bien Hoa, Amata City Halong and Amata City Long Thanh. In 2018, Amata VN budgeted 3.4 billion baht for development of infrastructure at thethree locations. "We aim to complete our investment in all neighbouring countries of Thailand because those countries are developing countries with new foreign investment flows, so they are high-potential locations forAmata's investment," Mrs Somhatai said. In addition, the Vietnamese government has developed a large seaport in Da Nang to serve transport flows connecting to the South China Sea, she said. The major investors atall three locations in Vietnam are Japanese companies, and they are also clients at Amata locations in Thailand. Amata VN expects 2018 revenue growth of 5-10% from 1.17 billion baht in 2017, all from Vietnameseoperations.

Source: Bangkok Post

https://www.bangkokpost.com/business/news/1604546/amata-eyes-yangon-for-next-foreign-play

Amata eyes Yangon for next foreign play3 January 2019


https://www.bangkokpost.com/business/news/1604546/amata-eyes-yangon-for-next-foreign-play

The cabinet on Wednesday approved a royal decree to expropriate 850 rai of land in 20 tambons (subdistricts) in three provinces and one district in Bangkok for construction of the 220-km high-speed railway linking DonMueang, Suvarnabhumi and U-tapao airports. According to government spokesman Buddhipongse Punnakanta, studies by consultants hired by the State Railway of Thailand (SRT) have proposed that the governmentneeds to expropriate land for the high-speed rail development in Lat Krabang district of Bangkok and 20 tambons in Chachoengsao, Chon Buri and Rayong, including a combined 850 rai and 245 buildings. Relatedagencies such as the Finance, Interior and Transport ministries were assigned to conduct details of the land expropriation, as well as estimate expropriation costs. The high-speed railway linking the three major airports isone of the most vital infrastructure projects to serve the government's much-touted Eastern Economic Corridor (EEC) scheme. The EEC spans the three eastern provinces of Chachoengsao, Chon Buri and Rayong. Theproject won the cabinet's approval on March 27, 2018 under the public-private partnership programme with a 50-year concession under which the government will invest in land expropriation while the private sectorinvests in civil works, trains and the signalling system. The railway involves extending Bangkok's present Airport Rail Link (ARL), which runs to Suvarnabhumi in Samut Prakan, to connect to Don Mueang in Bangkok andU-tapao in Rayong. The entire route will be approximately 220km long and reach a maximum speed of 250kph. The route comprises nine high-speed stations: Don Mueang, Bang Sue, Makkasan, Suvarnabhumi,Chachoengsao, Chon Buri, Sri Racha, Pattaya and U-tapao. It will take approximately 45 minutes to transport passengers from Bangkok to U-tapao, with a fare of 330 baht. Actual expropriation will be complete by theend of next year, with construction taking five years. The government announced on May 24 the details of the terms of reference for the 224.54-billion-baht project to link the three airports. The winning bidder is expectedto be announced soon. In related news, the cabinet also approved in principle allocating 19.09 billion baht to upgrade R&D in the EEC. The programme comprises a prototype biorefinery in the Eastern Economic Corridorof Innovation (EECI) worth a combined 3.41 billion baht, the Synchrotron radiation facility valued at 9.22 billion baht and R&D spending on food, biotechnology, digital, logistics and energy worth 6.46 billion baht. The firsttwo projects will run from 2020 to 2026, while the final spending scheme will be implemented during 2020-24.

The cabinet also approved the state-owned Export-Import Bank of Thailand's plan to offer insurance coverage against political risk for Thai overseas investment, and in principle three projects worth 16 billion baht forwater management in Chaiyaphum, Ayutthaya and Phitsanulok.


https://www.bangkokpost.com/business/news/1604510/cabinet-oks-land-use-for-airport-rail

Cabinet OKs land use for airport railExpropriation of 850 rai in Bangkok, 3 provinces3 January 2019


https://www.bangkokpost.com/business/news/1604510/cabinet-oks-land-use-for-airport-rail

The Board of Investment (BoI) has laid out a plan to attract aerospace investment at U-tapao airport in 2019 as part of the government's Eastern Economic Corridor (EEC) development. The first phase develops 6,500 raifor the airport and an aviation hub, which includes a new terminal to accommodate 15 million passengers in the next five years, a second runway, a business zone, a maintenance, repair and overhaul (MRO) facility, andair cargo space. The Royal Thai Navy plans to announce a winning bidder for the first phase in March, with the document submission deadline on Feb 28. The project's construction is expected to be completed by 2023,and operations are to begin by 2024. The navy also aims to launch terms of reference for the MRO facility's second phase at U-tapao airport in February. The EEC Office is planning to develop the next step, an"aerotropolis" that stretches 30 kilometres from U-tapao airport. The aerotropolis is a planned location for 600 companies related to the aerospace, medical, fashion and e-commerce industries. BoI secretary-generalDuangjai Asawachintachit said the agency plans roadshows in 2019 to focus on the aerospace industry, one of 10 targeted sectors. She said the roadshow will be designed to attract investment from Europe and the USto Thailand's aerospace industry, which is still quite new. The aviation industry is likely to have steady growth over the next 5-10 years, while global aircraft sales are expected to increase 50%, with 20% of that growthcoming from Asia. The EEC Office expects aircraft volume over the next 20 years to reach 40,000, 20,000 of which will be based in Asia. Thailand will likely benefit from its geographic position and become an aviationhub, making the new MRO pragmatic, Ms Duangjai said. Applications for investment in the EEC were expected to reach 300 billion baht in the first nine months of 2018. Applications for the 12 targeted S-curve industriesincreased by 69% from 525 projects, worth 290.48 billion baht, from January to September in 2018. Ms Duangjai said roadshows for the other 10 targeted industries were also organised in Japan, China, South Korea andHong Kong to focus on high-tech industries. The agency expects BoI applications in 2018 to have reached 720 billion baht. Regarding big infrastructure projects in the EEC, Ms Duangjai said a high-speed rail linking threemajor airports and the aviation city both require a large investment, for which companies could not submit applications by 2018 because of a delay in the bidding process. She said the last quarter of each year normallysees many applications, with 200 billion baht worth of applications being submitted in the last two months of 2017. The BoI reported 1,125 investment applications over the first nine months in 2018 with a total value of377.05 billion baht. The number of applications for the period rose 10%, while value rose just 0.8%, from 373.91 billion baht in the same period of 2017. The agency will report investment conclusions for 2018 and targetsfor 2019 to the board meeting that will be chaired by Prime Minister Prayut Chan-o-cha on Jan 11. In 2019, the BoI plans to conduct a campaign to promote a "golden year" for investment, even though the global economyis likely to grow only 4% next year, down from 4.2% this year, a result of uncertainty from the US-China trade war and Brexit. The BoI board last month approved the policy to attract investors by next year. Investors arerequired to start operations within 36 months after the BoI issues an investment certificate. "The agency expects Japanese investment to maintain the No.1 rank in 2019, while China's applications are expected todramatically increase," Ms Duangjai said. In the first nine months of 2018, Japanese applications accounted for 240 projects worth 34 billion baht, while China had applications for 55 projects worth 22 billion baht. MsDuangjai said the BoI also aims to promote inclusive growth in the economy, through a new policy allowing large companies to help community businesses and smart farmers, not only in the agricultural sector but intourism, agri-business and One Tambon One Product operations. The agency plans to cooperate with the government agency on R&D to support local economies by using research to develop their businesses. MsDuangjai said the BoI will also focus more on the goals of the Strategic Talent Center to help investors provide valuable expertise for high-tech projects.


https://www.bangkokpost.com/business/news/1604582/boi-gears-up-to-snare-aerospace-investors-for-u-tapao

BoI gears up to snare aerospace investors for U-tapaoRoadshows in 2019 will focus on the planned aerotropolis as officials pull out all the stops to get the project rolling, writes Chatrudee Theparat3 January 2019


https://www.bangkokpost.com/business/news/1604582/boi-gears-up-to-snare-aerospace-investors-for-u-tapao

Thai aerospace is ready to take off with the huge opportunity of maintenance, repair and overhaul (MRO) services, but airline competition will continue to intensify as low-cost carriers broaden their networks. With therapid growth of aviation and aerospace across Southeast Asia, Thailand is taking advantage of the trend with its central location and booming tourism industry. US plane maker Boeing forecasts demand for new aircraft inAsia-Pacific to increase 2.8 times over the next 18 years, from current demand of 6,139 to 16,977 aircraft. For Thailand, the number of aircraft movements at the six international airports operated by Airports of ThailandPlc (AoT) grew by 5.4% to 833,084 flights in the budget year that ended in September 2018, while passenger numbers grew by 9.4% and freight and postal parcel volume rose by 9.7%. Aviation and related businessapart from MRO, logistics, catering and land transport service will be developed. As a result, Thailand is expected to assume a new role as a regional hub for both aviation and non-aviation. Sumeth Damrongchaitham,president of Thai Airways International Plc (THAI), said maintenance services will generate more revenue for the company, alongside the commercial, catering and cargo business. THAI and its subsidiaries posted a netloss of 3.68 billion baht for the third quarter of 2018, narrowing by 1.87 billion baht compared with the same quarter a year earlier. The flag carrier remains optimistic about the future. THAI signed an agreement with Airbuson maintenance, repair and operations opportunities at U-tapao airport in 2017, and it inked a deal with Rolls-Royce in 2018 on Trent XWB engine research and development at THAI's maintenance centre in Bangkok."Non-airline business is a new opportunity for THAI," Mr Sumeth said. "The collaboration with foreign partners will enable Thailand to become a service centre for the region.“ THAI's new MRO will have capacity to service80-100 aircraft a year. In addition, the airline is developing its MRO campus near U-tapao airport for completion in 2023. The campus aims to become one of the most advanced aerospace centres in Asia.

Puttipong Prasarttong-Osoth, president of Bangkok Airways Plc, said the carrier is eyeing investment in MRO facilities near U-tapao airport on the Eastern Seaboard. The "boutique" airline is also working on its secondmaintenance centre at Sukhothai airport, scheduled to open in 2019. The eastward drift of THAI and Bangkok Airways is aimed at taking advantage of the economic and logistical boom from the government's EasternEconomic Corridor initiative. Mr Puttipong said airline competition in Thailand and in the global market will continue to be tough because of global economic instability, the proliferation of budget airlines and rising jet fuelprices. "Thailand in particular will face even more difficulty in 2019, so we have to shift our focus from expanding domestic routes and opening new routes in Indochina, along with seeking new business like maintenanceand duty-free," he said.

International aviation experts are scheduled to discuss the outlook and challenges at the Civil Aviation Southeast Asia Summit in Bangkok next September. Topics will include how the region will prepare humanresources, particularly pilots and technical experts, to cope with speedy growth. Besides aviation, Thailand's tourism industry is also predicted to continue its growth in 2019, despite experiencing a decline in the Chinamarket. With economic growth and more middle-class tourists, intra-regional air travel in Southeast Asia is forecast to increase 7.7% a year over the next 20 years. Hitoshi Morimoto, regional manager for Thailand,Indochina and the South Asian subcontinent at Japan Airlines, said the airline and tourism industries in the region will continue to face obstacles. More intensive marketing will be a difference maker in the market, he said,especially for low-cost airlines. Carriers will try to secure target markets and focus on emerging countries like Myanmar, Laos, Cambodia, Vietnam and Indonesia, Mr Morimoto said.


https://www.bangkokpost.com/business/tourism-and-transport/1604586/mro-takes-centre-stage-as-sector-expands

MRO takes centre stage as sector expands3 January 2019


https://www.bangkokpost.com/business/tourism-and-transport/1604586/mro-takes-centre-stage-as-sector-expands

The 22-kilometre Brown Line monorail project linking Khae Rai in Nonthaburi and Lam Sali in Bangkok worth 48.38 billion baht will be developed under the public-private partnership (PPP) model. Yesterday's meeting ofthe Land Traffic Management Commission chaired by Deputy Prime Minister Somkid Jatusripitak approved the PPP scheme for the Brown Line, to be handled by the Mass Rapid Transit Authority of Thailand (MRTA).The Brown Line will connect with seven other lines. They are the Purple Line (Tao Poon-Klong Bang Phai in the western suburbs), the Pink Line (Khae Rai-Min Buri in eastern Bangkok), the Red Line (Bang Sue-Rangsit),the Green Line (Mor Chit-Khu Khot in Pathum Thani), the Grey Line (Watcharaphon to Rama IX Bridge), the Yellow Line (Lat Phrao-Samrong in Samut Prakan) and the Orange Line (Thailand Cultural Centre-Min Buri).The monorail's development will include 7.25 billion baht for expropriation costs, 34.67 billion baht for construction costs, 1.25 billion baht for consultant costs and 5.20 billion baht for other costs. The Brown Line will have20 stations. Starting at the Khae Rai intersection, the route will head east along Ngam Wong Wan Road towards Bang Khen and the Kasetsart intersection. Continuing along Prasert Manoonkij road, the route will take asouthbound right turn at the Nawamin intersection, towards Bang Kapi. The route will terminate service at the Lam Sali intersection. The Brown Line will act as a feeder system for the seven larger routes. ChaiwatThingkamkoon, the transport permanent secretary, said the Brown Line is expected to take three years to build, in line with construction of the other seven lines. Once the proposal is endorsed by the cabinet, the MRTAwill start handling design work for the project. According to Mr Chaiwat, the Office of Transport and Traffic Policy and Planning will later include the Brown Line in the mass transit master plan for Bangkok and surroundingprovinces. The master plan envisions 10 mass transit lines. In a related development, the commission yesterday authorised the Expressway Authority of Thailand (Exat) to implement the third-phase expressway'snorthern section in Bangkok from the Bang Yai intersection in western Bangkok to the Kasetsart intersection (known as the N1 section) and from the Kasetsart intersection to Nawamin Road (the N2 section). Mr Somkidordered Exat to build an expressway accompanying the Brown Line. The expressway would make use of the pillars along Prasert Manoonkij Road, part of an abandoned project from 1994. The construction of theexpressway will be divided into two phases. The first 12.2km phase will run from the Bangkok's third-phase expressway's northern section from the Kasetsart intersection to Nawamin Road, linking to the Outer Ring Road.The second phase will be 7km in length, from Klong Bang Bua to Klong Bang Khen, running parallel to the Don Muang tollway. Mr Chaiwat said the commission also approved a feasibility study of rail and rail-relatedindustry development. The study showed that Thailand is appropriate to establish train manufacturing because of high domestic demand.


https://www.bangkokpost.com/business/news/1604918/brown-line-monorail-gets-nod-under-ppp-framework

Brown Line monorail gets nod under PPP framework4 January 2019


https://www.bangkokpost.com/business/news/1604918/brown-line-monorail-gets-nod-under-ppp-framework

NOD TO BROWN LINE4 January 2019

13

The Land Traffic Management Committee yesterday approved a plan by the Mass Rapid Transit Authority of Thailand to build a Brown line rail route from Khae Rai to Lam Sali, at an cost of Bt48billion.

It has also assigned the transport agency to open bidding for the project under the public private partnership programme in the year 2022, Chaiwat Thongkamkoon, permanent secretary of TransportMinistry said after a meeting, chaired by deputy prime minister Somkid Jatusripitak.

He added that the project will be a monorail system, costIng Bt34.6 billion for construction, Bt7.2 billion for land expropriatIon, and Bt6.2 billion In advisors' fees .

Source: THE NATION




UDON THANI: Efforts are under way to push for an inland container depot (ICD), known in the shipping industry as "a dry port'', to be developed in the northeastern province.

On Wednesday, a panel set up by the provincial governor held its first meeting to draw up a proposal for the project. The meeting was chaired by deputy governor Sithichai Chindaluang and attended by various agencies,representatives from the private sector, academics and investors in the provincial industrial estate.

A representative from the industrial estate pointed out the Udon Thani dry port development project has the support of the provincial and regional joint committees of the public and private sectors.

During a recent mobile meeting in Phetchabun, the cabinet agreed that any province can submit a proposal for an ICD development, although the investment would be made by the private sector.

Those at the meeting agreed that Udon Thani is well-equipped to begin the project immediately on a 594 rai site.

The location is near the Bangkok-Udon Thani railway, two kilometres away from Mittraphap Road, 13km away from the provincial international airport and 500km away from a port.

The panel will submit its proposal to the Office of Transport and Traffic Policy and Planning (OTP). The OTP has come up with a master plan to develop more inland container depots across the country to lessen cargocongestion and shift volume from trucks to railways.

These dry ports must be located near railway routes and provide services such as customs clearance offices. These dry ports will be used for container loading and storing.

The containers will be transported to the ports by train. Currently, most inland container depots are located near seaports and cargo is mostly hauled by trucks.


https://www.bangkokpost.com/business/tourism-and-transport/1605946/udon-to-push-for-dry-port-development

Udon to push for ‘dry port’ development6 January 2019


https://www.bangkokpost.com/business/tourism-and-transport/1605946/udon-to-push-for-dry-port-development

For all the hype surrounding Thailand's planned high-speed railway lines, their economic impact will be minimal without better planning to improve urban amenities and productivity in the services sector, say Japanese researchers. Based on current plans, the rail projectswould improve the kingdom's gross domestic product (GDP) by only 0.1% by 2035, according to a research paper by the Institute of Developing Economies at the Japan External Trade Organization (IDE-Jetro). Daisuke Hiratsuka, president of the Jetro Research Center inBangkok, agrees with the overall aim of the rail projects but says "maybe something is missing from the EEC", referring to the Eastern Economic Corridor, the centrepiece of the government's innovation economy vision. IDE conducts research on economic, political and socialissues in developing economies to support Japanese trade and investment plans abroad. It has created a geographic simulation model that combines economic data as well as information on transport networks in 30 Asian economies. Train frequency will be a key, saysDaisuke Hiratsuka, president of Jetro Research Center. The four high-speed rail (HSR) projects connect Bangkok with Nong Khai in the Northeast, Chiang Mai in the North, the beach resort of Hua Hin to the South, and Rayong in the East. The Bangkok-Rayong route is thekey as it will link three major airports and the EEC that straddles Chon Buri, Rayong and Chachoengsao provinces. The IDE expects the line to be "commercially successful" given high demand for travel to and from Suvarnabhumi, Don Mueang and U-tapao airports. It seesthe 240-kilometre route will stimulate the service sector in Bangkok, Samut Prakan, Rayong and some other provinces near the capital. Based on a simulation of EEC activity, the Bangkok-Rayong rail route is expected to generate about five times greater impact than it wouldif there was no link with the three international airports.Train frequency is a very important factor. If demand for airport connections doubles the operational frequency of trains from once an hour to once every 30 minutes, the impact would increase by more than four-fold, onescenario shows. IDE expects the 615km Bangkok-Nong Khai route could generate greater impact than the shorter Bangkok-Rayong route, by increasing both services and the manufacturing activity in the connected HSR provinces. The benefits will also be dispersed amongmany other provinces, as a simulation indicates that "the longer the distance of the HSR, the greater the impact". "Considering the transit time by high-speed rail, the longer-distance routes will encourage a switch from the existing road and air transport networks," the reportadded. But despite the optimistic outlook, Dr Hiratsuka sees impact on national GDP as minimal. The IDE simulation shows that the service sector in the connected provinces will not meet its potential given a lack of urban amenities. "I was disappointed (by the simulationresults) because the impact will be very small," said Dr Hiratsuka. "But in the scenario that assumed a 10% increase of service sector productivity, it could generate a huge impact, especially on the EEC area, and contribute to higher economic growth for Thailand.“ The IDEsimulation showed that an increase by 9.3% in national GDP could be achieved from HSR projects led by the services sector if Bangkok and districts with train stations succeeded in increasing service sector productivity by 10%. However, manufacturing activity might actuallybe reduced in the affected provinces as faster rail connections would encourage service businesses to disperse to areas within in a short distance from the core city, while manufacturing would move farther out. "This simulation result suggests that the benefits … will dependon how much the districts with HSR stations improve the local urban amenities through urban planning," the report said. As a result, Dr Hiratsuka said improving service sector productivity in the EEC is the key concern. Many studies suggest that higher employment densityspurs service sector productivity. For example, when the amount of jobs in London doubled, the productivity of the service sector in the city increased by 10%. "So the density of employment may be crucial, which leads us to another question and that is how to increase thedensity of jobs within the EEC," he said. Dr Hiratsuka suggests that railway and urban development should be done alongside each other but that will "generate a huge cost". One proposal by IDE is to emphasise passenger rail transport more than freight, and cot focus on"strategic" stations, such as Chon Buri, to develop mixed-use complexes with retail and residential space, a university and a hospital. "If this kind of railway station is established in the EEC area, such as in Sri Racha and Pattaya, it will create a higher density of jobs which willincrease the productivity of the service sector in the area," Dr Hiratsuka said. "Pattaya's image should be changed from a 'bad boy' to 'good boy' so that highly talent people would want to work there," he added, suggesting that Thammasat University should open a campus atan EEC station to attract talent. He also believes the HSR projects should be linked to the existing transport network, such as connecting Sri Racha in the east to the Airport Rail Link station in Makkasan district of Bangkok, as well as those of the Mass Rapid Transit Authority(MRTA). That would further increase passenger demand and convenience. "Inner-city railway service that improves urban amenities, and increases the productivity of the services sector, will achieve a greater economic impact than the inter-city railway network," the IDEreport stated. "The inter-city railway service should be closely linked with the inner-city railway transport system in order to attract high quality human resources.“ As for the impact on neighbouring countries, the IDE expects only a 0.1% gain in the GDP of Myanmar, Laos andCambodia as a result of better transport to and from Thailand. "The Bangkok-Rayong HSR and the EEC will not affect the neighbouring countries. This observation indicates that congestion will not be a factor due to development of the Bangkok-Rayong HSR and the EEC,"the report suggested. At present, the Bangkok-Nong Khai and Bangkok-Rayong routes are at the advanced planning stage while the 252km Bangkok-Nakhon Ratchasima route, the first phase of the longer Bangkok-Nong Khai route, will be the first HSR in Thailand andSoutheast Asia. The piling work of the first phase linking Bangkok and Nakhon Ratchasima, a contract worth 179 billion baht, began on Dec 21, and service is scheduled to start in 2022. Meanwhile, the State Railway of Thailand (SRT) aims to operate the 193km Bangkok-Rayong high-speed Thai-Japanese railway by 2023, with ticket prices starting at 20 baht with an increase of 1.80 baht per km. Trains are set to run at 250km per hour on 1.4-metre standard-gauge rails.


https://www.bangkokpost.com/business/news/1606654/high-speed-rail-needs-help-to-make-an-impact

High-speed rail needs help to make an impact7 January 2019


https://www.bangkokpost.com/business/news/1606654/high-speed-rail-needs-help-to-make-an-impact

The Mass Rapid Transit Authority of Thailand (MRTA) has launched a campaign to invite the private sector and local administrative bodies to invest in a mass-transit project in Phuket worth almost 35 billion baht. Thefocus is a 58.5-kilometre light rail (tram) worth 34.82 billion baht, which would run from Tha Noon in Phangnga province to Chalong intersection in the southern part of the resort island. It is one of several mass-transitprojects the MRTA is looking to pursue as it caters to more commuters and tourists in Phuket. MRTA deputy governor Theeraphan Tachasirinugune said the feedback and suggestions gleaned from the campaign wouldbe used to design a public-private partnership (PPP) model. The Phuket tram project is being divided into two phases: a 41.7km section from Phuket airport to Chalong intersection and a 16.8km stretch from Tha Noon toMuang Mai. The MRTA plans to build the first phase, which will have 21 stations. It said tram fares would be calculated based on the distance travelled, but the maximum fares would likely be 100-137 baht. The economicreturn for the scheme is 12.51%. The next market sounding has been scheduled for this Friday in Bangkok. The MRTA expects to seek cabinet approval for the project in the middle of this year, with construction likely tobegin in 2020. It should be operational in 2023. Phuket governor Pakkapong Tawipat said the province has experienced rapid growth and worsening traffic, adding that an efficient mass transit system was urgentlyneeded to accommodate tourists. He said the resort island welcomes over 10 million visitors a year and this is expected to rise annually for the foreseeable future. The MRTA is also eyeing a three-route tram project inChiang Mai. The Red Line would have 12 stations over 12.45km, worth 28.72 billion baht; the 10.47km Blue Line would be worth 30.39 billion baht; and the 11.92km Green Line would have 10 stations worth 36.19 billionbaht.


https://www.bangkokpost.com/business/tourism-and-transport/1607710/phuket-seeks-tram-bidders

Phuket seeks tram bidders9 January 2019


https://www.bangkokpost.com/business/tourism-and-transport/1607710/phuket-seeks-tram-bidders

The government has allowed the Thai-Chinese high-speed railway planned from Bangkok to Nong Khai to secure funding from overseas financial institutions, instead of from only domestic ones as earlier stipulated.Nathporn Chatusripitak, an adviser to the Prime Minister's Office Minister, said the cabinet yesterday approved a proposal from the Finance Ministry to allow the ministry to borrow 166.34 billion baht from overseasfinancial institutions for the development of the Thai-Sino high-speed railway from Bangkok to Nong Khai. In July 2017, the cabinet approved the Finance Ministry borrowing the same amount only from domestic financialinstitutions for the State Railway of Thailand to finance the Thai-Sino high-rail development from Bangkok to Nong Khai. The first phase of the network from Bangkok to Nakhon Ratchasima, spanning 252.5 kilometres, isunder construction. The Transport Ministry is scheduled to ask for cabinet approval of the second phase of the project, running 350km from Nakhon Ratchasima to Nong Khai, before the general election. Mr Nathpornsaid overseas loans from many sources are relatively cheaper than those provided by domestic ones. For instance, the Export-Import Bank of China offers a 2.3% interest rate for loans compared with an average of2.86% extended by domestic financial institutions. He said the Finance Ministry needs to study further whether Thailand should borrow from the Export-Import Bank of China ahead of the 27th joint Thai-Chinese railwaycommittee meeting that will be held from Jan 23-25 in Beijing. "The government will consider the fund that offers the cheapest interest rate, be it the World Bank, Japan International Cooperation Agency, or AsianDevelopment Bank," said Mr Nathporn. He insisted there is no reason for Thailand to borrow only from the Export-Import Bank of China. Mr Nathporn said the Thai government wants to borrow 15% of the loans fromdomestic sources and 85% from abroad. The government needs to settle the borrowing plan within three months, he said. In a separate development, the cabinet yesterday approved extending the 2,000-baht visa-on-arrival fee waiver to foreign tourists from 21 countries to April 30. The starting date for waiving visa-on-arrival fees for 21 nationalities was Nov 15. The exemption was to run until Jan 13. Mr Nathporn said the governmentexpects to lose 2.14 billion baht in revenue from the extension, but 6.42 billion in income is expected to be generated from foreign visitors. The cabinet yesterday also approved the state budget plan for fiscal 2020, set at3.2 trillion baht, up 200 billion from fiscal 2019 ending Sept 30, 2019. The budget deficit would be 450 billion baht, equivalent to the previous fiscal year. The cabinet also approved tax breaks for victims of the Pabuk storm,allowing repair bills for flooded homes and cars to be deducted from personal income tax calculations. The maximum deductions cannot exceed 100,000 baht for home renovations and 30,000 baht for car repairs.


https://www.bangkokpost.com/business/tourism-and-transport/1607730/thai-chinese-high-speed-rail-opened-up-to-foreign-finance

Thai-Chinese high-speed rail opened up to foreign finance9 January 2019


https://www.bangkokpost.com/business/tourism-and-transport/1607730/thai-chinese-high-speed-rail-opened-up-to-foreign-finance

Local train manufacturing plant on agenda9 January 2019

18

The Transport Ministry is studying the possibility of setting up a train assembly plant in Thailand in keeping with the country’s policy to expand investments in infrastructure projects, especially morethan 10 rail projects until 2022, Deputy Transport Minster Pailin Chuchottaworn said yesterday.

He said setting up a train assembly plant would generate more than 500 jobs for local people. It also will reduce imports worth up to Bt70 billion a year, to only Bt7 billion a year. Production from theplant could also be exported to other countries in Asean such as Cambodia, Laos, Myanmar, and Vietnam, who are also expand investments in their infrastructure, including rail systems.

“There are foreign investors from Japan, South Korea and Germany interested in expanding their investments in train and rail assembly plants in Thailand including investors. We believe that in thenext two to three years from now, we will have train and rail assembly plants in Thailand,” he said.

Source: THE NATION




The Mass Rapid Transit Authority of Thailand (MRTA) will call bids for a light rail system in Phuket in the third quarter of this year, pending cabinet approval.

MRTA deputy governor Theeraphan Tachasirinugune said on Friday investors could join the bid for the 34-billion-baht project on the resort island in the third quarter after the MRTA receives the green light from thecabinet in mid-2019.

The agency is gauging the interest and reactions of potential investors, local administrative organisations and other sectors before putting forward the proposal to the government.

It had said earlier that the project would be in the form of a public-private partnership.

The rail is aimed at easing traffic problems in Phuket, especially Phuket airport. The first line of 41km will be built from the airport to Chalong intersection, with 21 stations along the route. It will become operational in 2023.

Mr Theeraphan said on Friday BTS Group Holdings Plc, Bangkok Expressway and Metro Plc, big construction companies and local firms, including Phuket City Development Co, are among interested investors.

He added the winner will be granted a 30-year concession from 2023 to run the line.

.


https://www.bangkokpost.com/business/tourism-and-transport/1609474/mrta-to-call-bids-for-phuket-mass-transit-in-q3

MRTA to call bids for Phuket mass transit in Q311 January 2019


https://www.bangkokpost.com/business/tourism-and-transport/1609474/mrta-to-call-bids-for-phuket-mass-transit-in-q3

BoI to focus on rail and cruise ship port investment11 January 2019

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Thailand Board of Investment (BoI) has developed two strategies to attract investment, including the development of the Kingdom's rail system and the construction of a tourist port for cruise tourism.“Prime Minister Prayut Chan-o-cha stated that he wants the BoI to support both foreign and domestic investment into the country’s rail system,” BoI secretary-general, Duangjai Asawachintachit, saidat a press conference after a BoI meeting with the Prime Minister. Under the BoI investment package, business projects concerning the rail system and related sectors that apply for BoI promotions byDecember, 2021, will receive a tax reduction of 50 per cent for three to five years, she said. Projects that are located in the northeastern region of Thailand such as Korat and Khonkaen province andsurrounding areas, will receive the tax reduction for five years, she said. Duangjai also said that the BoI is looking to encourage investment in the construction of Thailand’s own train assembly factoryas it will help reduce the burden on the country’s imports. “Research suggests that in order to make the construction of a train factory financially sound, there needs to be sufficient demand in thecountry and the factory will have to assemble at least 300 trains per year,” she said. “Seeing that the demand for rail transport is projected to increase significantly throughout all regions in the country,the BoI is looking to support the construction of a train assembly factory.” There are currently 3,600 trains in the Kingdom, including double and single track trains, mass transit trains in Bangkok andhigh-speed trains. To meet rising demands, Thailand will need to have up to 10,000 trains in the next 20 years, Duangjai said. Foreign investors are interested in our rail system, she said. Recently,the Prime Minister met with the various German investors in the rail sector during his visit to Germany, Duangjai said. The second BoI initiative to attract investment is through the tourism industry.“Another initiative which the BoI will be looking at in 2019 is the potential to introduce cruise tourism businesses into the country,” she said. “In order to develop cruise tourism, we will first have to investin constructing a tourist port which will welcome tourist cruises. “Cruise tourism is a promising industry for Thailand as it brings in high-quality tourists that come in large volume. “We have set a criteriafor projects to invest in the construction of a tourist port to have a value of at least Bt100 million,” she said.

Source: THE NATION




The government will hold its first roadshow in Japan's Kansai, Osaka and Kobe from Jan 30 to Feb 2 to attract investors, according to Deputy Prime Minister Somkid Jatusripitak.

He said Kansai and Osaka are important industrial zones in Japan specialising in electronics and medical devices, which are emerging domestic manufacturing sectors.

In addition, Osaka governor Ichiro Matsui will lead a group of Japanese high technology investors on a visit to Thailand and the Eastern Economic Corridor (EEC) next month, he said.

Japanese applications to the Thailand Board of Investment (BOI) support programme in 2017 accounted for 238 projects and 89.7 billion baht in investment. The total from 2018 has yet to be calculated.

Mr Somkid also said the chief executive of Hong Kong, Carrie Lam, will visit Thailand this Feb to open an Economic and Trade Office office in Bangkok.

On Ms Lam's last visit in May, the two countries agreed on a number of joint initiatives -- in particular, a move to give Thailand more access to Hong Kong as a route to the Guangdong-Hong Kong-Macao Greater BayArea (GBA).

The GBA is a Chinese government scheme to link nine cities in the coastal province of Guangdong -- Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing -- with HongKong and Macao in a move to establish a new business hub.

Mr Somkid said Thailand and Hong Kong agreed to jointly develop closer economic ties between the GBA and Thailand, which will also serve as a gateway for Chinese investors to reach the Cambodia, Laos, Myanmar,Vietnam and Thailand (CLMVT) axis.

He said the first meeting between Chinese and Japanese investors about cooperating to invest in other countries will be held in Thailand this March.

"The event will be an important opportunity for investment in Thailand and the region because Thailand is the first location of this meeting," he said.

The BOI also plans to inaugurate an annual seminar this March to focus on the role of Thailand as a link to the CLMVT countries, in a further potential boost to development, he said.


https://www.bangkokpost.com/business/news/1610658/govt-takes-investment-roadshow-to-japan

Govt takes investment roadshow to Japan14 January 2019


https://www.bangkokpost.com/business/news/1610658/govt-takes-investment-roadshow-to-japan

Debate on CP rail-link offer today15 January 2019

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THE selection committee of the Bt224.5-billion high-speed railway project will today discuss a “special proposal” from Charoen Pokphand Group (CP Group) and its allies, while State Railway ofThailand (SRT) has called for a two-week extension to the negotiation period before contract signing. Worawut Mala, acting SRT governor, said CP’s plan included social development and that aftertoday’s meeting on the proposal, the next process of negotiations with the group will take another two weeks. CP Group, controlled by billionaire Dhanin Chearavanont, proposed the lowestgovernment subsidy for the rail-link project connecting Don Mueang International Airport, Suvarnabhumi International Airport and U-Tapao Airport in the eastern province of Rayong. The contractsigning date is set for January 31. Worawut said if the CP Group-headed proponents did not have any additional proposal, the selection committee will start negotiations with the group on the details oftheir special proposal. Based on the group’s financial proposal, the project’s net present value (NPV) was set at Bt117.227 billion, about Bt52.707 billion lower than that of the other bidder – the BSRJoint Venture comprising BTS Group Holdings, Sino-Thai Engineering and Construction and Ratchaburi Electricity Generating Holding, as well as the no-more-than-Bt119.425-billion budget theCabinet had agreed for the joint project. If negotiations with CP Group failed, the selection committee will invite BSR Joint Venture to forward its special proposal and start negotiations. The projectwinner will gain the rights to develop and manage the high-speed railway project and administer the Makkasan area for 50 years. Of the total investment, Bt168 billion will be invested in the railwaysystem connecting the three airports, Bt45.1 billion for property development and Bt10.6 billion for the rights to Airport Rail Link operation, with an estimated economic return of about Bt700 billionthroughout the contract period. The 220-kilometre high-speed system will have a top speed of 250 kilometres per hour linking Suvarnabhumi to U-Tapao, and 160 kilometres per hour from DonMuang to Suvanabhumi. There will be nine stations along the route – Don Mueang, Bang Sue, Makkasan, Suvarnbhumi, Chachoengsao, Chon Buri, Sri Racha, Pattaya and U-Tapao. The project willalso involve the commercial development of 150 rai (24 hectares) in Makkasan and 25 rai at Sri Racha station.

Source: THE NATION




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