China’s importance to the region was given another boost with the news that Thailand’s military junta has approved a 741.4 billion baht (€17.2 billion) project to connect two high-speed railways with China’s rail network by 2021.
China has plans to build a 3,000km line stretching from Kunming in Yunnan province to Singapore, passing through Laos, Thailand and Malaysia.
The project is expected to boost the gross domestic products of China and the other countries involved by €280 billion, if it goes ahead as planned.
One route will connect Nong Khai, just south of the Laos capital Vientiane, with Map Ta Phut, southeast of Bangkok. This section of rail is projected to cost 392.5 billion baht (€9.12 billion) and will run 737km.
The second line will run between Chaing Khong, along Thailand’s northern border, and Ban Phachi, in the central Ayutthaya regions, just north of Bangkok.
This track will be 655km long and cost 348.8 billion baht (€8.1 billion).
Bilateral deal
The bilateral deal for the railway was originally struck by Thailand’s previous prime minister,
Yingluck Shinawatra
, who was ousted by a military coup in May.
The project was supposed to be paid for partially in rice and loan funding but the project was deemed unconstitutional and was left hanging in the absence of a government.
The junta, known as National Council for Peace and Order, headed by Gen Prayuth Chan-ocha, suspended many infrastructure projects introduced by the outgoing administration, and there were fears the high-speed rail project would not go ahead.
Thailand’s secretary for transport, Soithip Traisuth, said the maximum speed of the trains to be operated on the new routes would have to be cut to 160km/h from the usual 200km/h.
She said a study would also examine ways to bring down the cost per kilometre of track.