Private firm plans to build rail workshop
A THAI investor plans to build a train repair and refurbishment centre in the Eastern Economic Corridor (EEC) to take advantage of the government’s decision to extend the railway system.
The Siam Railway Development Co plans to build the large repair centre – the first of its kind to be |run by a private company – in Chachoengsao province’s Bang Nam Prieo district, said company director Sekbud Buaduang.
The company has acquired 30 rai (4.8 hectares) of land adjacent to the Bang Nam Prieo railway station along the Eastern line, and had saved a lot of money by moving early on that purchase, he said.
He said the company would start to build the repair facility after the State Railway of Thailand (STR) approved a short line to link it to the rail network.
Investment cost is estimated at Bt500 million and the company expects to break even in 5-7 years.
Sekbud said facility was needed because the STR’s repairing unit could not currently handle a large volume of work.
He also noted that the government plans to build double-track railways to increase passenger and goods transport and, in particular, to support the development of EEC projects.
The company has consulted with private firms such as Siam Cement Group and PTT that own cargo trains that need repair and maintenance.
If the investment goes as planned, the company is expected to begin operations in 2019. Services will include repairing diesel-powered locomotives, passenger bogies and freight trains, and related technical works.
The company plans to recruit about 100 workers of whom 80 will be engineers and technicians. It is also looking forward to providing services in Myanmar, Laos, Cambodia and Vietnam in the future, Sekbud said.
He said foreign investors had shown interest in investing in the company because they saw its potential. Foreign investors were also keen to have a local partner so they could qualify for participation in new projects from the STR. With registered capital of Bt1 million, Siam Railway is wholly owned by CI Group, a listed firm on the Market for Alternative Invest-ment(MAI) that operates air-conditioning unit and parts manufacturing.
The company will raise more funds from investors, or seek joint ventures and borrow some capital from financial institutions, said Sekbud.
Its financial plan has not yet been finalised but Thai investors intend to hold the largest equity in the company, he added.
