SRT aims for B600 billion revenue target

The State Railway of Thailand (SRT) has set a target of earning at least 20 billion baht of revenue a year under a 30-year plan for generating income through various land development projects.

The SRT owns plots of land totalling 38,000 rai nationwide. They can be included in its commercial land development scheme, which could bring in about 600 billion baht over the next 30 years, acting SRT governor Anon Luangboriboon said.

Of the 38,000 rai, some plots have already been leased while others will be put up for rent by those interested in developing the land, he said.

Both the renewal of lease contracts on SRT land and new contracts to be signed with bid winners will last 30 years, he said.

The plots are in prime locations in the city including land already leased out to department stores and large hotels, he said.

Three key plots of land, valued at 290 billion baht in total, in the development plan are the 350 rai plot behind the headquarters of PTT Plc, a riverside plot of 277 rai and another plot of 32 rai code-named Plot A which forms part of the SRT’s Bang Sue central rail station, he said.

These plots are estimated to require initial investments of between 10 billion baht and 180 billion baht, he said, adding some of the land in the development scheme could be leased out by means of bidding to be called as early as the middle of next year. The rest will be leased out via a bidding process by the end of next year.

The State Enterprise Policy Commission, also known as the superboard, chaired by Prime Minister Prayut Chan-o-cha, has approved the SRT’s proposal to set up a subsidiary company to specifically manage and develop the SRT’s assets, he said.