CP seeks state solution for three-airport rail after 12bn-baht investment
CP Group reaffirms its commitment to the high-speed rail link connecting three airports, while seeking a fair path forward with the state
- CP says it has invested more than 12 billion baht in the project.
- The company remains ready to work with the government under the PPP framework.
- Suphachai says rail is not CP’s core business, but the group joined because the project is nationally important.
- CP cites Covid-19, global volatility, geopolitical conflict, changing investment costs and incomplete site handover as major obstacles.
- The company says any solution should protect national interests, ensure fairness and preserve investor confidence.
Charoen Pokphand Group has reaffirmed its commitment to the high-speed rail project linking three airports, saying it has already invested more than 12 billion baht and remains ready to work with the government to find a way forward.
Suphachai Chearavanont, senior chairman of Charoen Pokphand Group, said the group still viewed the project as a key infrastructure investment that could strengthen Thailand’s long-term competitiveness.
The three-airport high-speed rail project is designed to link Don Mueang, Suvarnabhumi and U-Tapao airports, forming one of the major transport schemes supporting the Eastern Economic Corridor. The project is being developed under a public-private partnership agreement signed in October 2019 between the State Railway of Thailand and Asia Era One Co Ltd, in which CP Group is a major shareholder.
Suphachai said CP had decided to join the bidding process because the state had opened the way for private-sector participation in nationally important infrastructure.
Although rail is not CP’s core business, he said the group believed the project could become an important mechanism for upgrading Thailand’s transport system, connecting the country’s main airports, supporting the EEC and improving national competitiveness over the long term.
“If we had no confidence in the project, the company would not have joined the bidding, signed the joint investment contract or invested more than 12 billion baht in the project,” Suphachai said.
He said the project had faced several major challenges since the joint investment contract was signed in late 2019, including the Covid-19 pandemic, global economic volatility, geopolitical conflict, changing investment costs and market conditions that had shifted significantly from the early stage of the project.
At the same time, he said implementation had been constrained by incomplete handover of construction areas under the contract, particularly utility relocation and work in some sections, preventing construction from moving ahead at full capacity.
“This type of project is a joint investment between the public and private sectors. Its success therefore requires cooperation from all parties to resolve obstacles together and adjust the approach in line with changing circumstances,” Suphachai said.
He said the company had continued discussions with state agencies to consider appropriate ways to push the project forward, based on protecting the national interest, ensuring fairness for all sides and maintaining long-term investor confidence.
The approaches now under consideration are part of the joint consultation process under the contract and relevant laws, he said. The aim is to reach a suitable conclusion that reflects changed circumstances while preserving the country’s interests and allowing the important infrastructure project to proceed.
“Charoen Pokphand Group remains ready to work constructively with the government in every possible way so that this project can move forward on the basis of cooperation, transparency and fairness, and deliver the greatest benefit to the country, investors and the people,” Suphachai said.
He added that CP still believed the high-speed rail link connecting the three airports was an important project that would create long-term value for Thailand.
