Cabinet Approves Three Southern Dual-Track Railway Projects Worth 106.8 Billion Baht
Macro
The Cabinet's official off-site meeting in Songkhla Province has approved the State Railway of Thailand to proceed with the construction of the second phase of the southern dual-track railway, comprising three projects with a total investment of 106,798.32 million baht, to enhance the transport network and support the southern economy. The Chumphon–Surat Thani section, worth 36,892.32 million baht, will take seven years; the Surat Thani–Hat Yai Junction section, worth 61,534.55 million baht, will take eight years; and the Hat Yai Junction–Padang Besar section, worth 8,371.45 million baht, will take six years. The government will bear all costs, with the Budget Bureau allocating annual budgets and the Ministry of Finance arranging domestic loans with guarantees. Adjustments to project details are necessary to manage volatile cost risks and ensure quality standards, including updating construction prices to reflect current material and diesel costs, which have risen due to the Middle East conflict, and increasing supervision fees from 2.25 percent to 2.75 percent of construction costs. The project budgets have increased from the 2025 proposal: the Chumphon–Surat Thani section by 6,469.79 million baht, the Surat Thani–Hat Yai Junction–Songkhla section by 11,186.46 million baht, and the Hat Yai Junction–Padang Besar section by 598.55 million baht. However, to avoid exceeding the budget ceiling, the SRT will first construct only the Surat Thani–Hat Yai Junction section and postpone the Hat Yai Junction–Songkhla section, worth 15,922.42 million baht, until the issue of encroachers is resolved. Additionally, the Cabinet approved in principle three other second-phase dual-track railway projects: the Pak Nam Pho–Den Chai, Den Chai–Chiang Mai, and Chira Junction–Ubon Ratchathani sections, instructing the SRT to review their feasibility based on the National Economic and Social Development Council's observations, as passenger and cargo forecasts may be lower than expected.
