SRT approves delayed Lat Krabang container depot overhaul
Revamp project to go ahead, Transport Ministry to endorse next month
After years of frustrating delays, the State Railway of Thailand (SRT) is finally pushing forward with a 40 billion baht upgrade of Bangkok’s Inland Container Depot in Lat Krabang and the green light couldn’t come soon enough.
The SRT board last Thursday, May 15, approved a long-awaited study into the project’s future, identifying a public-private partnership (PPP) under a net cost structure as the best business model. Under this scheme, the private operator will manage revenue collection and share profits with the state, in a bid to finally get the project rolling.
SRT governor Veeris Ammarapala confirmed that a contract is expected to be signed later this year, following years of stalled negotiations and missed deadlines since bidding began in 2019.
“This is a key step in moving the Lat Krabang project forward. The board has approved the study, and we’re aiming to submit it to the Transport Ministry by June.”
The updated feasibility study, conducted by Thammasat University, also recommends extending the concession period from 18 to 20 years, a move aimed at improving the project’s financial viability and ensuring stronger returns for the SRT.
The decision follows a Cabinet resolution on January 17, which ordered the SRT to accelerate the project and revise the study to reflect current economic realities.
The project’s chosen bidder, ALG Joint Venture (Thailand), has signalled its readiness to proceed, despite the long delay. According to the SRT, the updated study reveals significantly improved returns, giving both parties renewed confidence to enter a new round of contract negotiations, reported Bangkok Post.
“This updated model offers better investment incentives and will attract stronger private sector engagement,” Veeris added.
The Inland Container Depot is a vital logistics hub for Thailand, acting as a key node for the movement of goods in and out of Bangkok. Its expansion is critical to easing congestion at ports and improving the country’s freight transport capacity.
Pending the final go-ahead from the Cabinet, expected in the second half of the year, the long-delayed Lat Krabang revamp might finally be getting back on track, bringing with it hopes of modernisation, investment, and economic growth.
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