Plan seeks to lower costs of logistics

Thailand is expected to invest extensively in transport infrastructure ranging from rail and marine to airports over the next five years as the 12th National Economic and Social Development Plan aims to cut the country’s logistics costs to 12% of GDP by 2021.

This is down from 14% in 2016, when the 11th plan (2012-16) ended.

According to Danucha Pichayanan, deputy secretary-general to the National Economic and Social Development Board, the nationwide transport infrastructure development project was installed during the 11th plan. To adhere to the existing plan, Thailand needs to speed up key transport infrastructure projects from this year onward.

Infrastructure development is vital for supporting the country’s economic development, redistributing income and reducing the income gap, he said.

According to Mr Danucha, the 12th plan will call for transport infrastructure development not only in the main cities and border towns, but it will also facilitate connectivity to neighbouring countries. The plan aims to raise the rail transport load to 4% of total transport from 1.4% and goods transported through waterways up to 15% from 12%, while reducing road transport load to 80% of total transport in 2021 from the existing 88%.

The plan also aims to provide internet access to 85% of the country’s villages nationwide, up from 30% in the previous plan.

Chaiwat Thongkamkoon, the directorgeneral of the Office of Transport and Traffic Policy Planning (OTTP), said rail development will be instrumental in reducing logistics costs.

Currently, the double-track rail network accounts for only 8-9% of total rail transport. The 12th plan calls for the development of 14 double-track rail projects, which will increase the double-track rail network’s coverage to 2,500 kilometres by 2021, up from only 359km now.

There are three planned high-speed rails under the Thai-Sino project linking Bangkok and the Northeast, Bangkok to Phitsanulok, and Bangkok to Rayong.

The government is also looking to promote the development of high-speed rail networks in main cities including Khon Kaen, Chiang Mai, Hat Yai and Phuket.

The rail management will be more efficient once the Rail Transport Department has been established.

Deputy Prime Minister Somkid Jatusripitak confirmed recently he is certain the establishment of the proposed department will be completed by the end of the year.

Mr Somkid said once the department has been established, it will be assigned to oversee rail management across the country and rail technology transfer from the Thai-Sino high-speed rail project.

The new department is expected to coordinate between the Council of Engineers, the Council of Architects and universities nationwide to adopt technology from the Thai-Sino high-speed rail project, said Mr Somkid.

In December last year, the cabinet ordered the Rail Transport Department to be set up to help separate the roles of the rail regulator and rail operator.

According to Mr Chaiwat, the government has also authorised the OTTP to study the development of economic areas along the double-track rail routes and high-speed rail networks.

The developments would help raise economic returns for the rail projects.