Over the past few decades, Thailand has consistently focused on formulating comprehensive strategies to meet its infrastructure needs such as those in transportation, energy, telecommunications and public utilities – all with an eye on future infrastructure needs.

However, in recent years, “future” infrastructure development has been altered somewhat due to global changes. For example, globalization has lead to integration of various regional groupings. A “leap” in technological change has lead to a faster convergence of technologies while there is greater free flow of migrants and labor across borders. Couple these changes with an aging society and dramatic changes in natural resources and the Earth’s environment, all countries in the world, including Thailand, face increased challenges in development.

With these challenges in mind, the Tenth National Economic and Social Development Plan for the years 2007-2011 sets a framework for Thailand to integrate principles of a “Sufficiency Economy”, guideline for both conceptual framework and action plans.

Despite several government administrations, national priority has always focused on comprehensive infrastructure development.

One of the first policy statements of the government, headed up by Prime Minister Samak Sundaravej, was the Policy Statement of the Council of Ministers presented to the National Assembly on 18 February 2008.

In the Policy Statement, the Prime Minister reiterated the government’s commitment for the continued development of Thailand’s infrastructure.

The government committed to:

• Develop and expand infrastructure services to all regions extensively and sufficiently by providing necessary basic public utilities such as potable water, telecommunications services, and housing to upgrade people’s qualify of life.
• Develop the transport system and link together rural, urban, and international logistics networks, giving priority to the development of infrastructure and rail transport serves as part of, multimodal transport networks to reduce the cost of exporting goods and services;
  Develop water transport and the merchant marine industry, both domestic and international, deep-water ports in the South, and community ports and Thai fleets, to improve efficiency and reduce energy use in the transport sector while linking to new trade gateways and promote tourism
• Develop Suvarnnabhumi Airport, regional airports, and Thailand’s aviation industry for Thailand to become a leading aviation, tourism and air cargo hub in Asia and the world
• Expedite the country’s important investments such as the development of the nine rapid mass transit lines in Bangkok and its environs, high speed trains, double-tracked trains, commuter trains, and “fishbone” railway networks connecting provinces without regular passenger and cargo rail service, while improving the capabilities of international airports to build confidence to drive the economy forward continuously and improve the country’s competitiveness.

Despite the influences of “global change”, the Thai Government is moving ahead with its planed infrastructure projects.

Following is a summary of the major projects:

Mass Transit
The Government, investing over 770 billion Baht (approximately US$23 billion) over the next seven years should complete the selection of contractors for the four new Bangkok mass-transit routes within the next couple of months according to Finance Minister Surapong Suebwonglee.

First, is the second phase of the Red Line running from Bang Sue to Rangsit and the Blue Line from Bang Sue via Tha Phra and Hua Lamphong to Bang Khae. Also under review is the Purple Line from Bang Sue to Bang Yai, the Light Green Line which will run from Onnuj to Samut Prakan, and the Dark Green Line from Mor Chit to Saphan Mai.

The Japanese Bank for International Co-operation is currently reviewing financing plans for the Red Line. JBIC has offered assistance to the government with the rest borrowed from domestic financial institutions and from the central budget.

Railway
As of 1951, the State Railway of Thailand, the largest state enterprise of Thailand, oversaw the railway system in Thailand and employed 26,412 people. Though Thailand, with 4,346 kilometers of rail lines, currently ranks second in the ASEAN region in terms of total rail line distance (behind Indonesia with 6,458 kilometers), transportation heavily relies on road transport, despite the fact that Thailand is ideally sized for rail transport. A modern and efficient railway would significantly decrease the logistics industry’s reliance on trucking, and thereby reduce overall logistics costs.

Toward this end, the Thai government has allocated approximately US$ 10 billion to build double track rail lines for both passenger and cargo transport. The original proposal was for a 71 kilometer track spanning from Chachoengsao to Sriracha to Laemchabang; since the original proposal, an additional budget of 6,650 million Baht was approved for a 106 kilometer route from Chachoengsao to Klong 19 to Kaengkoi. Neither rail line has begun construction. The State Railway of Thailand (SRT) has completed the design and feasibility study stages of the first project and has hired Pacific Consultants International (Thailand) Co., Ltd. and Asian Engineering Consultants Co., Ltd. to manage the bidding process and supervise the construction. A committee created by SRT has already begun to draft the Term of Reference (TOR) document for the bidding process. At present, SRT is in the process of requesting to extend the originally approved budget of 5,235 million Baht to 5,850 million Baht and the deadline of completion from 2007 to 2010.

Currently, the SRT offers cross-borders services at the border of Thailand and Malaysia alone; here, at Sugai Kolok in the east and Badang Besar in the west, goods can enter freely without having to unload for inspection. Such a streamlined cross-border process allows for relatively quick transport to nearby Kuala Lumpur, Ipoh, Penang (from the Sungai Kolok Station) or Singapore (from the Padang Besar Station).

Roads
Nearly 97.5% of all roads in Thailand are paved, ranking third in the region with the highest average number of roads at 125.7 kilometers per 1,000 square kilometers. Using a conservative estimate, the total number of vehicles traveling on the road network total is around 28 million, growing 5% to 10% per year. Moreover, different transportation regulations across ASEAN countries, such as vehicle specifications and weight limits cause significant barriers to trade when crossing the border to neighboring countries, including Laos, Myanmar, Vietnam and Cambodia. Attempting to resolve this issue, the Ministry of Transportation has made efforts to form fair cross-border agreements that will standardize these laws and regulations with Thailand’s neighboring countries.

A 1.6-kilometer bridge, costing US$ 70 million, was constructed linking Mukdahan in Thailand with Savannakhet in Laos in December 2006, improving trade among the countries in the Mekong Region. This bridge is a part of an initiative to connect Thailand, Myanmar, Laos, and Vietnam which will reduce travel time from 2 weeks to 3 days.

In addition, construction of a 1 billion Baht (32 million U.S. Dollars) bridge between Thailand and Laos is expected to begin in mid-2008. The new bridge - to link Thailand’s northern province of Chiang Rai with Laos’ Huayxai province - is expected to open in 2011. The bridge will serve to link northern Thailand with Kunming, the capital of southwest China’s Yunnan province, passing through Laos.

The planned opening of the new bridge in 2011 would facilitate a second port in Chiang Saen district of Chiang Rai, due to open at around the same time, and would help boost trade between the three countries in the future.

The new bridge will also assist roads now under construction, from Chiang Khong district in Chiang Rai to Luang Nam Tha in Laos and on to Kunming. The total distance of the roads is about 1,500 km.

Highways will also be constructed on the North-South Economic Corridor between Kunming, China and Thailand as well as on the East-West Economic Corridor to connect Vietnam, Cambodia and Thailand. While construction in Vietnam, China and Thailand is nearing completion, the projects in Laos and Myanmar are not making significant progress even though Japan—a major stakeholder in Thailand—via the Asia Development Bank (ADB) has helped fund these projects.

Seaways
While the growth rate of Thailand’s sea freight industry, at 5.3% per annum, is lower than that of air freight by a little over 2 percentage points, sea freight continues to be the main mode of transportation for international trade.

Established in 1951 by the Port Authority Act, the Port Authority of Thailand (PAT) is an autonomous agency under the Ministry of Transport and Communications. Its mission is to make Thailand’s ports globally competitive by encouraging investment in port promotion business, modernizing the current cargo transportation system, and improving the ports’ supply chain management.

The PAT has jurisdiction over all 6 ports that are currently operating in Thailand: Bangkok Port, Laem Chabang Port, Chieng Saen Port, Chieng Klong Port, Ranong Port, Bangkok Coastal and Barge Domestic Terminal. Of these, the two largest, in terms of volume of goods transported through them, are Laem Chabang Deep Sea Port and Bangkok Deep Seaport.

In 2006, Laem Chabang handled the highest volume, 2.1 million twenty-foot container units (TEUs), of containers for export, while Bangkok Port handled the second highest volume, 789,707 TEUs. All private ports together handled a total container volume of 80,588 TEUs, just slightly more than the Bangkok Port; this volume declined 4.1% from last year’s total.

In hopes of repeating the success of the Laem Chabang and Bangkok Ports and meeting the need for a modernized, deep-sea port in the South, the Thai government has proposed building Pak Bara Deep Sea Port.

Strategically located on the west coast of Southern Thailand, Pak Bara could potentially become the regional hub for cargo container shipping, as ships stopping here would be allowed to bypass the Malacca Strait. Construction of the port and its supporting facilities will cost around 7 billion Baht.

For more information: http://www.boi.go.th:8080/issue_content.php?issueid=43;page=5