No easy way out of three-airport rail deal, says Anutin

Thai Prime Minister Anutin Charnvirakul has expressed his belief that it will not be an easy task for the CP Group-led consortium to exit the stalled three-airport rail project. The consortium, Asia Era One, is seeking to terminate the contract for building the high-speed rail project and cancel the agreement to operate the Airport Rail Link. However, existing contract conditions make this a challenging endeavor.

Terminating a contract with the government before its expiration would result in the company being blacklisted from bidding for any future state projects, said Anutin. The consortium, led by Charoen Pokphand, also includes SET-listed Italian-Thai Development Plc and China Railway Construction Corporation. Asia Era One signed a 220-billion-baht agreement in 2019 to build a high-speed line connecting Don Mueang, Suvarnabhumi, and U-tapao airports.

Construction of the high-speed rail tracks has not begun due to years of delays, mainly caused by contractual disputes over payment structures. The project is seen as a vital transport backbone for the Eastern Economic Corridor and is attractive to investors in new industries for Thailand's economy.

Anutin, who chairs the EEC Policy Committee, plans to discuss the matter with Chula Sukmanop, secretary-general of the EEC Office, and possibly the State Railway of Thailand (SRT) soon. The Airport Rail Link contract is set to expire at the end of September, and the SRT is the main state agency responsible for the two train lines. Its subsidiary, SRT Electrified Train Co, owns the Airport Rail Link.