State railway sees ‘huge promise’ in 28 land plots

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To a company for area development and management, thousands of rent contracts were transferred.

PUBLISHED: 6 Nov 2024 at 17: 22

State Railway of Thailand (SRT) governor Veeris Ammarapala (third from right) hands over 12,333 land lease contracts to Pol Col Supakorn Supasincharoen, an executive of SRT Asset Co, on Monday. Looking on (in yellow jacket) is Deputy Transport Minister Surapong Piyachote. (Photo: SRT public relations Facebook page)
State Railway of Thailand ( SRT ) governor Veeris Ammarapala ( third from right ) hands over 12, 333 land lease contracts to Pol Col Supakorn Supasincharoen, an executive of SRT Asset Co, on Monday. Looking on ( in yellow jacket ) is Deputy Transport Minister Surapong Piyachote. ( Photo: SRT public relations Facebook page )

The State Railway of Thailand ( SRT ) is pinning its hopes on planned commercial development of 38, 500 rai of land it owns, including 28 plots with “enormous” potential, to bring in 20 billion baht in revenue over the next four years.

According to information released by the National Economic and Social Development Council ( NESDC ), the SRT lost 17.8 billion baht last year. The state organization is perpetually losing money, and it also has an accumulated bill of about 300 billion ringgit.

SRT Asset Co, a house management online established in 2020, has so far taken over the administration of 12, 233 lease agreements covering 38, 469 ray of property, SRT government Veeris Ammarapala said on Wednesday.

The plots fall under the category of “non-core,” meaning they are not intended to be used for key road operations or related activities.

The SRT is one of the country’s largest owners with 240, 880 ray in all, almost 202, 000 ray of which is considered core business area. But, not all the non-core company area has the ability to be developed for professional purposes.

SRT Asset has had little exercise to time, with revenue last year of merely 660, 000 ringgit, according to the NESDC.

Of the 12, 233 area lease contracts it has acquired, 5, 856 were previously handled by the SRT’s asset management office, 6, 369 by the coach operations section and the other eight by the signal and communications division, said Mr Veeris.

SRT Asset is also in charge of finding new plots of land to purchase for development projects and finding private partners to work together to develop either existing or new narratives, according to the government.

According to Mr. Veeris, the SRT anticipates a 5 % share of all development projects ‘ online income from SRT Asset Co., adding that the SRT will continue to be the owner of the land while its company will handle it.

He claimed that three phases are being used to divide the development of 28 plots that are deemed to have great possible.

Starting next year, the first phase will involve seven plots: the Bang Sue-Klong Tan (RCA ) project, Sila At, Klong San Market, Ratchaprarop, Phahon Yothin, Bang Sue Area and the Nong Khai station project, Mr Veeris said.

The other two aspects may be carried out from 2026 through 2029, he added.