Transport
From The Report: Thailand 2014
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The Thai government is planning to build four high-speed rail lines linking Bangkok with the northern city of Chiang Mai, the Laotian border, the industrialised eastern seaboard and Malaysia, effectively joining all corners of the country. Thailand’s infrastructure plan aims to reduce the ratio of logistics costs to GDP by 2% from its current 15.2%, increase the speed of non-high-speed trains and boost the percentage of freight carried by rail from 2.5 to 5. Meanwhile, reopened to help relieve congestion at Suvarnabhumi Airport, Don Mueang Airport is also overcrowded, handling 16m passengers a year despite its capacity for 10.5m. The renovation of the airport’s second terminal will boost capacity to at least 20m. Located at the centre of the ASEAN Economic Community, which is due to take effect from December 2015, Thailand is positioning itself as the regional transport hub. It is opening transfer depots and centres in anticipation of an increase in trade, while shipping is also set to benefit. Vast improvements to neglected areas of the country’s infrastructure are also important for Thailand’s future economic wellbeing, irrespective of the AEC.

This chapter contains interviews with Chadchart Sittipunt, Minister of Transport; Sorajak Kasemsuvan, Former President, Thai Airways International; and Prapat Chongsanguan, Governor, State Railway of Thailand.

Articles from this Chapter

Overview

All to play for: Huge transport infrastructure programme on hold as AEC dawns
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That the devil is in the details has rarely been exemplified better than by Thailand’s proclamation that it planned to enter the high-speed rail (HSR) business in a hurry. The announced projects include four lines that connect Bangkok with the northern city of Chiang Mai, the Laotian border, the industrialised eastern seaboard and Malaysia. The trains would travel at 250 km per hour, cutting the travel time from Bangkok to northern Thailand by two-thirds. Instead of eating up half a day, the journey…

Interview

Building from the ground up: OBG talks to Chadchart Sittipunt, Minister of Transport
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Interview:Chadchart Sittipunt What role can the transport infrastructure plan play in Thailand’s sustained economic development? CHADCHART SITTIPUNT: If you consider the long-term growth drivers for Thailand, including urbanisation, automotive manufacturing, tourism, domestic consumption and the prospect of ASEAN Economic Community (AEC) integration, they all require good infrastructure. Without proper investment for this, the nation is likely to experience significant reductions in foreign…

Analysis

On the right track: The government is focusing on reviving the rail segment
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A report by the Asian Development Bank (ADB) in 2013 put it pretty bluntly. “Without aggressive and sustained support and restructuring, the Thailand railway system is likely to become irrelevant within 10 years,” the ADB said in March 2013. Given the falling number of passengers, declining freight usage and frequent derailments in recent years, the process might seem to have started already. However, a bold plan for the revitalisation of the whole system is now being touted by State Railway…

Analysis

Parts of the whole: Bangkok’s public transport system is en route for eventual integration and extensive upgrades
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By coordinating its extensive, if fragmented and disjointed, network of buses, underground trains, elevated trains and boats, Bangkok can lay claim to the whole being greater than the sum of the parts, depending upon its degree of success. The elevated Skytrain is run by the private firm Bangkok Mass Transit System (BTS) Public Company. The underground mass rapid transit (MRT) system is run by the Mass Rapid Transit Authority (MRTA), as are the city’s buses. A mix of public and private companies…

Interview

OBG talks to Sorajak Kasemsuvan, Former President, Thai Airways International
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Interview:Sorajak Kasemsuvan What impact has the rise of low-cost carriers (LCCs) had on the aviation market in the ASEAN region? SORAJAK KASEMSUVAN: The aviation industry has entered into a new chapter of fierce competition on a number of fronts. Legacy airlines, like Thai Airways, now have competition from LCCs in both domestic and regional markets. LCC growth is continuous and very intense, and we are also faced with the expansion of Middle Eastern airlines. I think most legacy airlines…

Interview

OBG talks to Prapat Chongsanguan, Governor, State Railway of Thailand (SRT)
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Interview:Prapat Chongsanguan To what extent will the introduction of high-speed rail in Thailand promote opportunities for development outside of Bangkok? PRAPAT CHONGSANGUAN: The development of high-speed rail can be considered a significant milestone in the broader trajectory of Thailand’s economic development, as well as being the next chapter in the country’s rail network. Thailand will change dramatically as a result of this project, as it will give rise to a new commuter class,…