Shared benefit guarantee needed for China-Laos-Thailand rail link, ex-minister says
THE joint development by China, Thailand and Laos of a standard-gauge railway connecting Kunming, Vientiane and Bangkok is in need of an agreement that would guarantee equal benefit for all three nations, according to former finance minister Chalongphob S
Deputy Transport Minister Arkhom Termpittayapaisith said yesterday that the feasibility study for all legs of the rail project linking Nong Khai and Bangkok, Kaeng Khoi (Saraburi) and Map Ta Phut (Chon Buri) was expected to be complete by August.
Arkhom was delivering a keynote speech at a seminar arranged to celebrate the 10th anniversary of the Neighbouring Countries Economic Development Cooperation Agency (NEDA). He said construction of two sections, Bangkok-Kaeng Khoi and Kaeng Khoi-Map Ta Phut, was expected to begin in October. The third section of the project, linking Kaeng Khoi and Nong Khai via Nakhon Ratchasima, is expected to begin construction at the beginning of next year.
Chalongphob, who served as finance minister under the Surayud Chulanont regime, said: “The benefit-sharing system is not complete. Laos is a transit country in this deal with an economy that is less than 5 per cent of Thailand’s gross domestic product, and it stands to gain the least from the construction of the Kunming-Vientiane-Bangkok railway.
“There must be a system that would guarantee a discussion among Thailand, Laos and China on the overall plan, who will invest how much, where and what kind of benefits can be shared from the construction of the railway.”
For example, Thailand could strike a deal that would guarantee a transfer of technology and know-how from China and Japan. It could make an agreement with those two countries to ensure that equipment and other material for the construction of the railway is produced here in the Kingdom.
Chalongphob said China had made a similar deal with Airbus when it agreed to purchase aircraft from the French company. Included in the transaction agreement was the provision that Airbus must assemble aircraft parts in China and the Chinese must be able to make the part themselves within 10 years.
China has long wanted to build a 3,000-kilometre high-speed rail line from Kunming all the way down to Singapore, passing through Laos, Thailand and Malaysia. According to China Railway Corp, the Kunming-Singapore line will be constructed in four stages, from Kunming to Vientiane, Vientiane to Bangkok, Bangkok to Kuala Lumpur, and Kuala Lumpur to Singapore.
“Thailand’s increasing dependence on the import of capital goods will shake the country’s macroeconomic structure in the next 10-20 years,” Chalongphob said. “We are already spending around Bt50 on imported capital goods for every Bt100 of investment.”
