Thailand’s long-delayed high-speed rail project connecting Don Mueang, Suvarnabhumi and U-Tapao airports could be terminated within weeks, as transport officials prepare to decide whether the CP Group-led consortium building the line can keep its contract. The Eastern Economic Corridor Office has scheduled a meeting of its joint investment contract management committee for July 15 to weigh two options: amending the contract under terms already discussed with the government, or ending it altogether, according to several news sources this week.
The decision matters because the roughly 224 billion baht project has stalled for years, first slowed by the COVID-19 pandemic and more recently by the private partner’s struggle to secure financing. Asia Era One, the CP Group-led company holding the concession, told the State Railway of Thailand and the EEC office that banks and financial institutions are unwilling to fund the project as currently structured. State Railway of Thailand governor Anan Phonimdaeng said lenders lost confidence in the route’s commercial viability after the pandemic sharply reduced passenger forecasts.
If the July 15 committee session settles on a recommended path forward, that option will go to the full Eastern Economic Corridor Policy Committee, chaired by Prime Minister Anutin Charnvirakul, for a final decision expected around August.
The contract, signed in 2019, lists five specific grounds for termination: the concession period expiring, failure to hand over land to the contractor, a force majeure event, default by either party, or a change in government policy. Officials have not said which of these, if any, would be formally invoked if the agreement is ended.
Ending the contract would not be simple. State Railway of Thailand officials have said a new tender process would take up to two years and further delay the broader Eastern Economic Corridor rail network. EECO secretary-general Chula Sukmanop has said there is currently no plan to reopen bidding, since the existing investment structure has not drawn strong investor interest. Instead, the agency is examining whether to develop the existing double-track railway line and accelerate parts of the Red Line suburban rail network, including the Bang Sue-Phaya Thai-Makkasan-Hua Mak section, so it can connect with the Airport Rail Link that already serves Suvarnabhumi.
The stakes extend beyond the high-speed line itself. The Airport Rail Link, which currently runs between Bangkok and Suvarnabhumi Airport, is operated by Asia Era One under a separate agreement due to expire in September 2026. If the joint investment contract is terminated, the State Railway of Thailand has said it would not be able to extend that operating agreement with Asia Era One, meaning the rail authority would need a separate plan to keep the airport link running without interruption.
The high-speed rail project was first awarded to the CP Group-led consortium in December 2018 following a competitive bid, with construction meant to link Bangkok’s two main airports to U-Tapao International Airport in the Eastern Economic Corridor. The route has faced repeated delays tied to land access disputes, contract amendments and, most recently, financing troubles linked to lower-than-expected ridership projections.
The project is also tied to the wider development of U-Tapao Airport and the planned Eastern Aviation City, both of which depend on rail access to move passengers and cargo between Bangkok and Thailand’s eastern seaboard. Officials involved in the review have said the outcome of the contract decision could influence the pace of those broader development plans.
No public timeline has been given for when the outcome of the July 15 committee meeting will be announced, and officials have said any final decision on termination or amendment would still require sign-off from the EEC Policy Committee and, potentially, the Cabinet.
