Prayut guarantees transparency of rail deal with China

The deal was reached when Prayut met with Chinese President Xi Jinping and Premier Li Keqiang on the sidelines of Asia-Pacific Economic Cooperation (Apec) summit in Beijing. 

The project was discussed in the context of the Beijing-sponsored land and maritime “Silk Road” to expand trade routes from China throughout the region and to Europe, he said. 

“Chinese leaders said Thailand and China should cooperate on the project to have regional physical links, since we already have the routes, so we just [need to] upgrade and improve them,” Prayut told reporters.

“China agreed to cooperate and fully support the development of double 1.435-metre standard-gauge [rail lines] to complete the linkage between China and Asean.”

Prayut said his government had plans to build many rail lines and China agreed to support the construction of routes from Bangkok to Nong Khai and from Bangkok to Map Ta Phut, as well as a sub-route from Kaeng Khoi to Map Ta Phut on the Eastern Seaboard.

Prayut guaranteed transparency of the project, saying it was a deal between the two governments without private-sector involvement. 

“Of course, many countries are interested in development of rail projects but in other routes, not this one. 

“We have to talk to them later,” he said. 

“What we have to do for the rail system is to increase the length of the rail [lines] and speed of the trains. The single light rail [line], as used currently, must be upgraded to standard gauge and the speed should be 160km/h; for the high-speed trains – 250km/h – we need further study about its viability,” he said. 

While in Beijing, Prayut also met executives of three Chinese private firms – C&G, China Northern Locomotive, and China Medical Equipment – to exchange views on investment in Thailand. 

The three Chinese conglomerates showed considerable interest, while the Thai prime minister said they must ensure fair benefits for Thais and environment protection.

He said he ordered Thai government agencies such as the Board of Investment to study rules, regulations and laws to facilitate investment by the Chinese firms, based on fair practice.

C&G – a leading waste-to-energy investor and operator in China – told Prayut the company wanted to set up a waste-processing plant in Thailand but it faced restrictions on investment capital. 

Initially, the firm wanted to invest Bt3 billion in setting up a plant in the Rojana Industrial Estate or Navanakorn Industrial Estate. However, Thailand has a law that restricts investment capital to Bt2 billion.

Prayut said his regime was amending investment-related law for joint-venture firms, so the Chinese firm could wait for the law to be amended soon. He also called for C&G to consider carefully the health of people and environmental impact on nearby areas.

China Northern Locomotive, which has already sold  rolling stock to the Bangkok Metropolitan Administration, also wants to join the Thailand’s high-speed-rail project.

Prayut said this project had been negotiated under a government-to-government contract, so China Northern should talk with its government.

China Medical Equipment, meanwhile, said it wanted to build a plant in Thailand in the near future to use as a manufacturing base for exports to third countries. So far, this company has only shipped products to Thailand.