Thailand to launch massive infrastructure program

Infrastructure spending of about Bt100 billion is earmarked this year says Thailand Transport Minister Chadchart Sittipunt. Under the grand plan, 55 projects worth Bt2.27 trillion (US$66.29 billion) are to be completed by 2020. These projects are part of the government’s long-term development plan but are being expedited by a commitment to infrastructure investment, the opening up of Myanmar, and the implementation of the ASEAN Economic Community (AEC).

Of the total budget of Bt2.2 trillion, 64% will fund 31 rail-related projects, 24% will go to 13 road projects, 7% to seven water-transport projects, and 4.75% to four air-transport projects.

Ultimately, these projects are expected to improve linkages between Thailand and its ASEAN neighbours, reduce logistics costs, deal with growing traffic congestion, and boost tourism revenue.

New investments in rail projects are designed to reduce logistics costs, which now account for 15.2 per cent of gross domestic product, against 8.3 per cent in the United States.

As much of the investment will go to rail projects, the government also needs to make sure that the State Railway of Thailan