Bangkok: Thailand's rail system has encountered significant obstacles over the past two years, with financial losses and delays in major projects burdening the State Railway of Thailand (SRT). The SRT has experienced four consecutive years of financial deficits, with a projected loss of 20,060 million baht in 2025. These losses are attributed to high expenses in depreciation, employee benefits, and locomotive maintenance. Meanwhile, the Thai-Chinese high-speed rail project is only 52.4% complete, lagging behind its target, and a recent crane collapse resulted in 32 fatalities, marking the deadliest accident in recent history.
According to Thai News Agency, the government has responded with the enactment of the Rail Transport Act of 2025, effective March 27, 2026, which allows private sector participation in operating rail networks. Additionally, a Rail Transport Policy Committee has been established to address financial burdens, enhance safety, and expand the rail network. The government is also reviewing the 224.5 billion baht contract for the three-airport rail link and advancing the Phase 2 double-track railway plan.
Despite these challenges, the rail system has seen a rise in passenger numbers, from 27.79 million in 2023 to 30.3 million in 2024, indicating a strong demand for rail travel. However, the SRT's cost structure remains misaligned with its revenue, necessitating further reforms.
The Thai-Chinese high-speed rail project from Bangkok to Nakhon Ratchasima is behind schedule, with completion now expected between 2031-2032 instead of 2030. The Phase 2 extension to Nong Khai has a budget of 341,350 million baht, with plans to start bidding for civil works by 2026 and begin service in 2031.
Unresolved issues persist, including the investigation into the crane collapse, ongoing negotiations for the three-airport rail link contract, and discrepancies in reported financial losses of the SRT. Compensation claims for victims of a train-bus collision are also under negotiation.
Long-term policy proposals emphasize expediting land handovers, reforming workforce safety standards, and enhancing construction safety oversight. The Rail Transport Act encourages public-private partnerships, while joint venture agreements with foreign entities are under review for flexibility and stringency. Expanding international rail cooperation remains a priority to position Thailand as a regional logistics hub.