Expansion Management

Thailand Approves Infrastructure Projects to Reduce Logistic Costs

March 19, 2013

The projects will help Thailand become a regional hub of Asean.

Thailand’s cabinet has approved a 2.2-trillion-baht (US$68 billion) loan bill proposed by the Transport Ministry for high-speed railway and other transportation mega projects.

“This investment will help lower logistic costs, fuel consumption and travel time,” Finance Minister Kittiratt Na-Ranong told the Bangkok Post.

The transportation network development would reduce logistical costs from 18% to about 10% and strengthen the trade competitiveness of Thai manufacturers, Pongsak Assakul, chairman of the Board of Trade of Thailand, said.

The seven-year project involves 200 high-speed trains on lines linking the capital Bangkok with the north, south and east of the country.

"The projects, which will focus on electric trains and dual tracks, will completely change Thailand, and they will start next year," said Transport Minister Chatchai Sitthipan.

"The investment will stimulate the real GDP growth between 2013 and 2020 by 1.0% annually and will also create more than 500,000 jobs," added the Finance Minister.

Assakul said on Tuesday the government's planned development projects to be funded under the legislation would help Thailand become a regional hub of ASEAN (Association of Southeast Asian Nations.)

The high-speed rail lines will be built in two stages and eventually link Bangkok with the Malaysian and Lao borders, as well as the northern city of Chiang Mai, the seaside resort of Pattaya and areas further to the east.

Bangkok will also get a metropolitan rail network.

The new trains will be capable of travelling at up to 155 miles per hour, reducing travel time from Bangkok to northern Thailand to four hours from 12 hours, a cabinet document said.

After receiving the cabinet’s approval the bill will now be forwarded to Parliament.

Prime Minister Yingluck Shinawatra told the press after the cabinet meeting on Tuesday that the management of the massive budget for the project will be graft-free and transparent.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.