Private-sector groups suggest ad hoc body for infrastructure
The Board of Trade of Thailand and the Thai Chamber of Commerce - two of the leading private-sector organisations - yesterday called on the government urgently to conduct clearer feasibility studies and public hearings so that the Bt2-trillion infrastruct
“The projects are very useful, but since they involve a huge chunk of the national budget, the government needs to ensure that the spending will be transparent. To prevent any delay, the government should have clear evidence and a special organisation to handle the project,” said Isara Vongkusolkij, who is chairman of both outfits.
Many businesses have expressed extreme concern about the stalled projects, which they believe will not only cut logistics costs, but also increase Thailand’s efficiency so that it can become a regional logistics hub. The projects would also help promote a sustainable economy.
The two groups said the government should set up an organisation to monitor the huge budget for the projects, as the various agencies involved could not ensure that the projects advance because those agencies have many other tasks under their responsibility.
To ensure that the country will not face a huge fiscal burden, the chamber also urged the government to prioritise each project.
The most desirable projects to traders are the laying of dual railway tracks, as they could greatly help reduce logistics costs, followed by the development of coastal shipping.
Road transport has hidden costs such as motor-vehicle accidents and pollution. The railway projects would reduce those problems as well as the cost of transport.
According to a study by the chamber, the cost of road transport is Bt1.72 per kilometre per tonne, while rail transport is 93 satang and water transport is 64 satang.
Logistics accounts for 15.2 per cent of gross domestic product. Of this, 7.2 per cent is transport costs, 6.7 per cent is warehousing and insurance costs, and 1.3 per cent is operating costs.
Thailand could reduce the cost of transport and storaghe if the infrastructure projects can be implemented, the chamber believes.
Chamber vice chairman Bhumindr Harinsuth said the government should urgently develop human resources to serve the Bt2-trillion infrastructure project. Many professionals will be needed to work on many plans under the project, but the government has no plan to develop human resources and train workers.
The chamber also called on the government to study carefully whether Thailand really needs high-speed trains, to ensure spending goes to the most worthwhile projects and to prevent huge losses from overspending.
