Idea floated again to invite foreign investment in train assembly plant
The vice minister of transport will suggest that the Transport and Industry ministries jointly invite foreign investors to bid on setting up an electric-train assembly plant in Thailand to serve the development of 10 mass-transit-route projects.
Prapat Chongsanguan said the 10 projects would create demand for more than 1,000 trains, enough to attract investment for their assembly in Thailand. Assembly here would reduce the cost of train purchases and create jobs while and transferring technology.
He said he would discuss the idea with Transport Minister Charupong Ruangsuwan.
He added that attracting foreign investment in a train-assembly plant in Thailand was not something new but was raised during the premiership of Thaksin Shinawatra. Such companies as Germany’s Siemens at that time showed interest but the government of the day did not put the idea into action.
If the idea goes ahead this time, the government will need to determine the train specifications and the benefits for potential investors as well as the local-content ratio and expected job creation to draw up the terms of reference. Then it would invite foreign firms to bid on establishing the plant.
Ronnachit Yamsa-ad, deputy governor of the Mass Rapid Transit Authority, said many countries with mass-transit development projects had used this method.
One of the 10 mass-transit routes is the 66.5-kilometre Green Line (Lam Luk Ka-Samut Prakan). It is an extension of the Mo Chit-On Nut Skytrain line, of which the On Nut-Bearing part is in operation already while the Bearing-Samut Prakan section is under construction. Bidding on the Samut Prakan-Bang Pu section will take place next year and that of Mo Chit-Saphan Mai this year.
Other routes are the 15.5km Light Green Line (Yod Se-Bang Wa), 55km Blue Line (Bang Sue-Hua Lamphong-Ta Pra-Buddha Mondhol 4), 42.8km Purple Line (Bang Yai-Rat Burana), of which the Bang Yai-Bang Sue section is under construction and expected to be completed by 2015, the 80.8km Red Line (Thammasat Rangsit Campus-Mahachai), of which the Bang Sue-Rangsit section is in the bidding process, and the 54km Light Red Line (Salaya-Hua Mak), of which Bang Sue-Taling Chan is under construction.
The rest are the 32.5km Orange Line (Charan Sanitwong-Min Buri), of which bids for the Cultural Centre-Bang Kapi-Min Buri section will be launched this year, the 36km Pink Line (Kae Rai-Min Buri), for which bidding will launch this year, the 30.4km Yellow Line (Lat Phrao-Samrong), for which bidding will launch next year, and the 50.3km Airport Rail Link, for which bidding on the Don Mueang-Bang Sue-Phyathai section will launch next year.
