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Thailand to Build Railway with China in September

| Jan 16, 2015 03:41 AM EST

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Following the talks between China and Thailand in Dec. 2014, a Thursday announcement revealed that construction of the $12.22-billion joint rail project will commence in Sept. 2015.

Thailand's deputy prime minister, Air Chief Marshal Prajin Junthong, told reporters: "We expect it . . . will be completed within two and a half years." 

The Thai-China agreement was made during a visit by Premier Li Leqiang to Bangkok, where he spoke with Prime Minister Prayut Chan-o-cha. The project is one of several major plans for the Thai government, which is seeking to rejuvenate an economy in decline.

The planned rail line will connect the Thai-Laos border with the eastern part of Thailand, where the Southeast Asian's industrial and shipping sectors are prominent.

Additionally, Thailand's old rail network is in fairly urgent need of an upgrade. China also has a vested interest in the railway scheme, as it eventually wants to link Kunming to Thailand via Laos, which both governments hope will also stimulate the entrance of Chinese tourists.

Furthermore, China and Thailand have agreed that the former's technical expertise will be recruited to construct the massive undertaking.

Construction of the rail line will occur in accordance with four separate sections. According to Prajin, who is also the transport minister, work on the first two sections, spanning 133 kilometers and 246 kilometers, respectively, will begin in September.

The project team will then start on the third and fourth sections, totaling 493 kilometers, several months later, in December.

The first two sections will be completed by Dec. 2017, while the remaining sections will be ready in March 2018.

The China Railway Corporation was cited as the manager of the overall project last year, but Prajin added on Thursday that 12 to 15 private companies have expressed interest in becoming involved.

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