Jirayu Huangsab, a spokesperson from the Office of the Prime Minister, revealed that the cabinet meeting on Tuesday has resolved to approve the construction of Nakhon Ratchasima-Nong Khai High-Speed Railway (Phase Two), a 357.12 kilometers high-speed railway project, under the budget of THB 341,351.42 million over eight years (FY 2025-2032), with the government assuming full financial responsibility for the endeavor.
Suriya Jungrungreangkit, Deputy Prime Minister and Minister of Transportation, disclosed that, following the approval of the cabinet, the project is expected to be tendered for contractors and begin the construction within 2025, with the commercial operation date within 2031. The high-speed railway would allow fast and safe travel for Thai citizens, while also being a strategic connection for trading with Laos and China.
The Thai-Chinese high-speed railway from Bangkok-Nong Khai is part of an agreement between Thailand and China to develop railway infrastructure, which was approved by the cabinet on 11 July 2017, with the State Railway of Thailand (SRT) leading the project.
The first phase of the project was scheduled for a four-year construction (FY 2017-2020). However, due to delays, with the current progress sitting at 35.74%, the railway is expected to be operational in 2028.
Meanwhile, the second phase was divided into two parts: 1. The construction of the railway, consisting of five stations, including Bua Yai, Ban Phai, Khon Kaen, Udon Thani, and Nong Khai Station; 2. The construction of the Na Tha transshipment center in Nong Khai province, which would be used to transfer goods from trains with 1.45-meter gauge railway and 1-meter gauge railway as a comprehensive one-stop service.
Brokers suggested that Thailand’s four major construction companies including Stecon Group PCL (SET: STECON), CH. Karnchang PCL (SET: CK), Italian-Thai Development PCL (SET: ITD), and Unique Engineering and Construction PCL (SET: UNIQ) could directly benefit from the project bidding, while companies in the construction material sectors such as The Siam Cement PCL (SET: SCC) could also benefit from the project’s construction.
Meanwhile, Charoen Pokphand Group Co., Ltd. (CP) may also be interested in the project, as the group was once shown interested in a high-speed railway project to connect three airports, but the project did not come to fruition. The Thailand-China railway, on the other hand, could entice CP Group, as it is the connection toward China.
