Amidst the sprawling fields and buzzing tracks of the State Railway of Thailand (SRT), a wave of optimism is steaming along its rails. The SRT has set its sights on an ambitious commercial venture across a staggering 38,500 rai of land parcels it owns, envisioning a hefty revenue target of 20 billion baht in the forthcoming four-year stretch. With 28 of these plots touted as possessing ‘enormous’ potential, the railway’s plans are as grand as its historical legacy, promising to transform losses into lucrative opportunities.
This strategic endeavor couldn’t come at a more pressing time. The SRT has been navigating stormy financial waters, posting a heavy loss of 17.8 billion baht last year as broadcasted by the National Economic and Social Development Council (NESDC). The financial chasm has deepened over the years, with an amassed debt soaring around 300 billion baht, looming large over its balance sheets like an impatient creditor at the door.
Time, however, for a fresh lease of life! Enter SRT Asset Co, the fledgling property management arm born in 2020 with a singular focus on land development. So far, it has taken the reins of 12,233 lease contracts, blanketing an expanse of 38,469 rai. This marks the onset of a new chapter, with SRT governor Veeris Ammarapala promising new vistas of growth and opportunity upon these vast lands. Interestingly, this shift sees the SRT stepping outside its iron-clad core operations, diversifying towards unlocking the commercial potential of ‘non-core’ lands.
As one of the largest landholders in the realm, boasting a whopping total of 240,880 rai, the SRT’s land bank includes about 202,000 rai categorically aligned with its core train operations. However, that leaves a sizable portion ripe for transformation beyond the domain of tracks and transit. Yet, despite the lethargic start — with SRT Asset’s revenue barely scratching 660,000 baht last year — hopes are pinned high on this pioneering venture.
Over the years, 5,856 contracts from the asset management department, 6,369 from train operations, and eight from the signalling and telecommunications department have transitioned under the wing of SRT Asset. But it doesn’t end here — this subsidiary is also on a mission to scout out new land for purchase and recruit private partners for joint development initiatives. According to Mr. Veeris, both SRT and its land-holding minions will reap the benefits, eyeing a targeted 5% share of net revenues from these pioneering projects while the master, the SRT, retains the ownership of the land.
The vivacious journey of these high-potential plots will unfurl in stages. The initial phase, set to kick off next year, will spotlight seven strategic locations: the much-anticipated Bang Sue-Klong Tan (RCA) venture, Sila At, the vibrant Klong San Market, bustling Ratchaprarop, Phahon Yothin, the burgeoning Bang Sue Area, and the frontier-bound Nong Khai station project.
The adventure doesn’t conclude there. Phases two and three await, envisioned to progress from 2026 through 2029, laden with plans destined to reshape landscapes and redefine potential. With these ambitious timelines mapped out, the SRT isn’t just laying down tracks for trains; it’s paving avenues filled with possibilities, eager to steer its legacy into future horizons with both historical pride and modern commercial momentum.
I think SRT’s plan to unlock the potential of their land is a smart move. But why did it take them so long to realize this potential?
Probably because they’ve been focused solely on rail operations, and it’s hard to break out of old habits.
Breaking away from traditional roles is tough, but absolutely necessary. Hopefully, the SRT doesn’t repeat past mistakes.
Well, it looks like they’re finally trying to address their financial issues instead of just operating in the red perpetually.
Agreed, Carter. It’s just a matter of whether they can execute these plans effectively without falling into old traps.
Sounds like another government project that’s doomed to fail. How many times have we heard these grand promises before?
The debt situation is alarming! How did they even let it get this bad?
It’s typical with public institutions. Low accountability and long bureaucratic processes don’t help.
Mismanagement, negligence, or maybe both. But if they pull this off, it could set a precedent for public sector reform.
True, but they’ll need to be extremely transparent and effective this time to regain trust.
They can turn it around if they focus on sustainable development and smart urban planning.
I don’t know why people are pessimistic about this. It’s about time SRT made its assets work for them.
As a train enthusiast, I hope they don’t forget about improving train services while focusing on these land projects.
The SRT should have gone green with these projects. Imagine the eco-friendly reputation they could have built!
Exactly! There is a huge opportunity in renewable energy projects and sustainable urban developments.
Let’s hope they factor in environmental impact as they move forward. It would be a missed opportunity otherwise.
This seems like a ploy to make it look like changes are being made, but in reality, the old systems will stay in place.
Cynicism aside, restructuring is difficult. They need all the support they can get to truly reform.
That’s fair, Dr. Alex, but my skepticism stems from past experiences with state-run projects.
Revenue targets like 20 billion baht make for fancy headlines, but let’s see some results first.
Agreed. And any delay would affect their credibility severely. Execution needs to match these ambitious goals.
Exactly. They rarely hit these targets historically, so let’s wait and see.
I’m just thrilled about the urban development possibilities! Thrilling times in Thailand’s infrastructure scene!
If done right, this could signal a shift in how we handle land asset development across many sectors.
I’m all for turning a profit from unused land, but stealing green spaces for malls and condos isn’t progress.
Yes, balance is key. Overdevelopment can have drastic effects, so community voices need to be heard.
I hope SRT Asset Co is ready for the immense responsibility they’ve taken on. Managing that much land isn’t a small feat.
It’ll require skilled leadership and clear vision. Let’s see if they’re up to it.
Why hasn’t anyone talked about the corruption angle? These projects often lead to that.
Corruption is a risk, especially with such high-value projects. Oversight and accountability will be crucial.