BANGKOK, Thailand – The CP Group-backed private operator has reaffirmed its intention to terminate the contract for Thailand’s high-speed rail link connecting three airports, prompting the Transport Ministry to seek urgent negotiations to keep the Airport Rail Link running.
Deputy Transport Minister Siripong Angkasakulkiat said Asia Era One Co., a CP Group affiliate, sent a second letter to the State Railway of Thailand (SRT) on Aug. 24 reaffirming its request to terminate the high-speed rail contract.
Siripong said the private operator’s unilateral request does not automatically end the contract under the joint-investment agreement. Contract termination can occur through mutual consent, implied termination, a court order or termination by the government, he said. The immediate concern is the Airport Rail Link, which is operated under an arrangement connected to the project. With the current memorandum of understanding due to expire on Sept. 30, the SRT has been instructed to urgently negotiate with the private operator on Aug. 27 to ensure services continue without disruption to passengers. If the operator refuses to continue running the Airport Rail Link, the SRT may have to find another company to take over the service.
The government is also seeking talks over work that overlaps with the Thai-Chinese high-speed rail project between Bangkok’s Krung Thep Aphiwat Central Terminal and Don Mueang. The SRT has been instructed to discuss removing that section from the private sector’s scope so the state can handle it separately.
Siripong said separating the overlapping work could reduce the private operator’s financial burden and allow the wider high-speed rail project to move forward. The results of Thursday’s negotiations on both the Airport Rail Link and project scope will be submitted to the Eastern Economic Corridor Policy Committee for consideration.
Siripong said the government would seek the solution that best serves the public interest. If negotiations fail, the dispute could move into legal and civil proceedings to determine responsibility for any resulting damages. The private operator has also continued to seek changes to the payment structure, proposing that the government move from paying after construction is completed to a “build-and-pay” arrangement. Siripong said such a change would require careful consideration to ensure the state does not lose out.
