Thai - Chinese rail plans

[Spitfire]

Rail plans with China endorsed
Published: 8/09/2010 at 12:00 AM
Newspaper section: Business

The cabinet yesterday approved joint investment plans with China for three high-speed train routes: Nong Khai-Bangkok, Bangkok-Padang Besar, and Bangkok-Rayong.

However, ministers scrapped a proposal to borrow US$400 million from China, saying the lending conditions were unacceptable.

The Beijing government, through the Export-Import Bank of China, planned to charge 3% annual interest on the 15-year loans, plus A 0.5% management fee and 0.5% fine in case the loans fail to be fully disbursed.

Chinese products must also make up at least 50% of expenses, and principal and interest must be paid twice a year.

Originally, the Transport Ministry planned to use the loans from China to finance the purchase of 50 locomotives, and to improve existing rail lines in northern and southern provinces.

However, it was the Transport Ministry itself that proposed the borrowing be scrapped since the cabinet had already approved 170 billion baht to upgrade the rail system nationwide.

Transport Minister Sohpon Zarum said the borrowing was no longer needed, and in any case the Thai and Chinese governments are now planning to jointly invest in a high-speed train network, which would need funding on a much more substantial scale.

Deputy government spokesman Vachara Kannikar said the two routes _ 580 km from Nong Khai to Bangkok and 940 km from Bangkok to southern Thailand _ would cost about 300 billion baht. The 220-km route from Bangkok to Rayong would cost 20-30 billion.

The joint investment framework would cover technology transfer, appropriate routes and rail management.

Mr Vachara said the Chinese and Laotian governments had already agreed to build a standard-gauge line of 420 km from Kunming, to Vientiane. Construction would take about four years.

The transport ministries of Thailand, Laos and China are scheduled to meet soon to discuss connection spots on the regional high-speed routes.

Comment: Interesting one this, if it is realised then great, some high speed rail links are badly needed, but you have to be a bit cynical about it. Interesting that the terms from China for the loan was considered as unacceptable by the Thais. I know we've talked about it before but it's the SRT factor, got to get those dinosaurs into the 21st century too. Got to admire the Chinese will to get their products/services etc into every corner of everywhere, at least 50% MUST be Chinese on this deal, not fools, as the devil's in the detail.

[The understudy]

Hi there Spitfire

As for Train Technology them Chinese had bought up the best of French, German and Japanese Train technology modified it to fit their country's needs and now they want to sell the modified relabeling as Chinese developed trains to other countries? We all know them Chinaman are Pro's in knock offs.
But... In defense for our neighbor to the north it's influence in Southeast Asia is surely growing and it's clout is growing by the day and when California's Governor Arnold S. Is counting also among others considering buying trains from the Chiinese!!!

Your's The understudy!!!!