Cabinet approves 18 billion baht loan for State Railway of Thailand
Cabinet has approved an 18 billion baht loan for the State Railway of Thailand (SRT) to address its financial shortfall and plans to auction SRT assets to generate revenue
Government spokesperson Siripong Angkasakulkiat announced that the Cabinet has approved a proposal for the State Railway of Thailand (SRT) to borrow 18 billion baht to cover its operating expenses for the fiscal year 2026, due to insufficient revenue to meet costs.
The Ministry of Transport explained that SRT has been facing continuous losses due to the need to allocate revenue for interest payments and loan repayments. The remaining funds must cover maintenance expenses for railway infrastructure such as rail ties, tracks, bridges, signaling systems, and nationwide crossings. Additionally, SRT incurs high maintenance costs for aging infrastructure, including stations, locomotives, passenger cars, freight cars, and carriages. Ongoing operational costs, including vehicle operation expenses, management costs, and pension liabilities, have resulted in SRT’s revenue being insufficient to cover operational expenses.
SRT currently has a cash deficit of 18 billion baht, which is essential to alleviate its liquidity issues for fiscal year 2026 and to maintain cash flow for its operations. In light of this, the Ministry of Transport proposed that the Cabinet approve a loan of 18 billion baht to cover the shortfall.
Siripong also mentioned that during the Cabinet meeting, Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, informed the Prime Minister about the current accumulated debt of SRT and the organization’s inability to generate sufficient income to cover its expenses. However, SRT still owns significant assets that have not been fully utilized.
Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, proposed during the meeting that the Ministry of Finance would consider the matter further, particularly by preparing to auction SRT's valuable assets through private sector companies. This would be a strategy to generate revenue and assist SRT in overcoming its financial difficulties in the long term.
The Cabinet’s approval of the loan and the proposal to manage SRT’s assets marks a key step in addressing the state enterprise’s financial challenges while exploring sustainable solutions through asset management.
