EEC chief ready for talks with co-investor on U-Tapao Airport development

In the absence of high-speed rail link, initial scaling down of project a possibility

 

The chief of Thailand's Eastern Economic Corridor Office (EECO) has expressed readiness to engage in discussions with U-Tapao International Aviation Co Ltd (UTA) regarding progress in construction of the U-Tapao Airport and Eastern Aviation City development project. 

 

Construction is expected to begin in the first half of 2025 without the need for contract amendments, while plans are underway to involve the State Railway of Thailand (SRT) in the construction of a high-speed rail tunnel.

 

EECO secretary-general Chula Sukmanop said on Thursday that his office was prepared to consult with UTA, the private co-investor in the U-Tapao Airport and Eastern Aviation City development project. 

 

This substantial project encompasses over 6,500 rai (approximately 2,600 acres) within the EEC region, with a total infrastructure investment exceeding 290 billion baht. This announcement follows UTA's statement that it will proceed without waiting for the high-speed rail project connecting three airports.

 



 


"The development of both the U-Tapao Airport project and the high-speed railway should begin within the first half of 2025. Regarding the U-Tapao Airport development project, we will not need to amend the contract; it can be managed under the existing agreement, even if the private sector decides to reduce the project's scale in the initial phase," Chula said.


 

He acknowledged that the EECO understands the private sector's position, as they cannot fully advance the project without the high-speed rail link. Without construction of the high-speed rail project, passenger numbers at the airport may not meet projected targets.


 
Therefore, it is essential to find ways to maximise the use of existing resources. While scaling down the passenger terminal is a possibility, the private sector must expand passenger capacity once utilisation reaches 80%.

 

Regarding the construction of a high-speed rail tunnel beneath the U-Tapao Airport passenger terminal, the private sector had previously requested the government to decide how to proceed if the high-speed rail project was delayed and could not be connected. 

 

The EEC chief indicated they were currently considering solutions, potentially involving the State Railway of Thailand (SRT) to prepare for the tunnel investment.

 


"U-Tapao Airport must have a high-speed rail station. If the private sector is not yet involved, the SRT will prepare the tunnel in advance. Once the U-Tapao development project begins and a second runway is constructed, it would be impossible to excavate a tunnel beneath it. All these matters require further discussion, though the main points have already been addressed with the government and the SRT," the EEC secretary-general explained.


 

When questioned about potential adjustments to benefits, given UTA's plans to expedite the project without waiting for the high-speed rail, Chula admitted that further negotiations would be required if the private sector requests additional benefits. 

 



 

However, there are numerous other business opportunities within the U-Tapao Airport area, and interested private investors can apply directly to the EEC for benefits. Although these benefits are currently awaiting Cabinet approval, preliminary discussions can still take place.
 

  

Regarding the high-speed rail construction project, the SRT is currently finalising contract details and preparing to submit them to the Railway Committee for approval within the next 1-2 weeks. The contract will then be sent to the Office of Attorney-General for review before seeking Cabinet approval.

 

The project is expected to be completed by April 2025.

 

 

Partnership with HSBC to attract THB500 bn

Meanwhile, the EECO signed a memorandum of understanding (MoU) with HSBC Thailand on Thursday to attract investment to the EEC region through HSBC's international network spanning 58 countries and territories. 

 

This initiative aims to create investment opportunities from key markets including China, Europe, Southeast Asia, the Middle East, India, Taiwan, and Japan.

 

The collaboration between the two organisations targets securing actual investments totalling 500 billion baht in the area within five years. 

 

It will also drive growth in five key target industry clusters: modern automotive, digital, medical and health, green BCG (Bio-Circular-Green Economy), and service industries.

 

In 2025, HSBC Thailand will support roadshow activities to promote investment in the EEC region across important economic corridors, including China, Singapore, Europe, Taiwan and Japan.

(2025/02/27-00:00)