YOG INFRA Q3 2024 insights
THAILAND is undertaking development of large transport and clean energy infrastructure projects across ports, roads, e-mobility (EVs charging infra) and urban infra sectors. We see new focus areas in terms of clean energy transition with an increased number of rooftop solar, floating solar projects, small nuclear reactors; along with a planned rules for Direct Power Purchase Agreements (DPPAs) in the country. We also see multiple projects being developed under PPP route; as well as investments being made in bilateral or regional projects.
Read more about key developments in Infrastructure and PPPs in the country in our latest insight for the country.
JULY 2024
PLAN TO BUILD KORAT DRY PORT COMES CLOSER TO FRUITION
Thailand plans to build a dry port and will explore a Public-Private Partnership (PPP) model. An initial study by the government shows that Nakhon Ratchasima is one of four provinces that would be best suited for a dry port project, connecting Thailand with Laos, and Myanmar. The transport ministry has assigned the Port Authority of Thailand to study possible project locations in Nakhon Ratchasima. The government will consider PPPs as well as other forms of partnerships with the private sector.
The development of a dry port will help promote domestic and international logistics operators who must transport goods via road, connect to rail, and water through the dry port to have lower transportation costs than road transport alone. The area covers both road and rail transport and is 320 kilometres from Laem Bang Port. It has important strengths: it has important export products such as agricultural products such as cassava flour, rice, and sugar. It is also an industrial estate area that focuses on domestic transport.
It will help improve the service to be more convenient and faster, reduce waiting times, and reduce the country’s logistics costs, and support the growth of freight transport via coastal ships and railways that will occur from the Laem Chabang Port Development Project, Phase 3, and create the country’s overall competitiveness, which will be a mechanism to help push Thailand to become the logistics hub of the region.
MOU SIGNED TO SOURCE RENEWABLE POWER IN THAILAND AND MYANMAR
Myanmar-based CAG Engineering Company Limited, a subsidiary of the CAG Group, has signed a memorandum of understanding (MoU) with Thailand-based PEA Encom Company Limited, I Power Company Limited, R & J Company Limited, Mega Prime Group, and Z Carbon to use traditional and renewable energy (RE) for sourcing power in both the countries. The agreement encompasses a range of renewable and traditional power sources, including solar, wind, hydro, and natural gas projects, with a future potential collaboration on geothermal power generation. This partnership aims to ensure a more secure and diverse energy future for both countries.
CAG Engineering Company Limited is leading Myanmar’s solar energy development, with five solar projects totalling 210 MW. The first project, with a capacity of 90 MW, has already been implemented in the Nay Pyi Taw Council Area. Other projects are planned for Ayeyawady, Mandalay, Magway Regions, and southern Shan State.
WORK ON THB 1 TRN BRIDGE PROJECT IN THAILAND TO START IN 2026
The Government of Thailand has announced plans that the first of three phases of the THB 1-Trn (USD 29.49 Bn) Southern Land Bridge project will start operations in 2030. The project aims to link the Gulf of Thailand with the Andaman Sea. It involves the construction of ports, an inter-city motorway, and railway tracks. The first of three construction phases will start in 2026 and commence operations in late 2030, with the second phase beginning in 2031 and completing in late 2034, and the third phase starting in 2035 and concluding in late 2036.
The project includes a THB 330.81 Bn (USD 9.76 Bn) port in Ranong, facing the Andaman Sea, and a THB 305.67 Bn (USD 9.02 Bn) port in Chumphon, facing the Gulf of Thailand, with the inter-city motorway and railway tracks costing THB 358.52 Bn (USD 10.58 Bn). The design and environmental impact assessment for the ports is expected to be completed by the end of 2024. The design of railway tracks and the inter-city motorway will be finalized in 2025, and the government plans to select a contractor by Q3 2025, signing the contract in early 2026.
MOU SIGNED TO ENHANCE GREEN LOGISTICS AND EV INFRASTRUCTURE IN THAILAND
China-based U Power Limited has signed a memorandum of understanding (MoU) with Pattaya AI Terminal Company Limited to enhance green logistics and electric vehicle (EV) infrastructure in Thailand. This joint venture will combine Pattaya AI’s logistical expertise with U Power’s proprietary battery-swapping technology to offer electrified solutions tailored to Thailand’s commercial logistics and passenger transportation markets. The partnership aims to enhance the efficiency of Thailand’s logistics chain by deploying U Power’s battery swapping and charging stations across key cities and logistics hubs.
A key focus of this partnership will be the development of automatic and semi-automatic charging stations. These stations will be compatible with U Power’s vehicles and tailored to meet the unique demands of the Thai market. The joint venture’s goal is to provide a comprehensive, efficient solution for Thailand’s EV infrastructure, supporting the country’s shift towards sustainable transportation.
The collaboration between U Power and Pattaya AI is poised to make a significant impact on Thailand’s EV landscape. The two companies are well-positioned to lead the charge in green logistics and EV infrastructure development. This partnership not only marks a strategic expansion for U Power but also promises to bring advanced, sustainable transportation solutions to Thailand, benefiting both the environment and the economy.
LAOS, THAILAND MARK FIRST DIRECT PASSENGER TRAIN BETWEEN BANGKOK, VIENTIANE
The passenger service commenced for the first Bangkok-Vientiane passenger train, departing from Bangkok’s Thep Aphiwat station, arriving at Vientiane’s Khamsavath station. This train service is a cooperative project between the governments of Laos and Thailand, aimed at enhancing travel and transportation between the two nations.
The train will carry 500 passengers. The increase in foreign tourists to Laos, with Vientiane being a popular destination and transit point, likely contributed to the higher passenger count. The new train service not only provides tourists with an additional travel option but also strengthens transportation links between Laos and Thailand.
THAILAND MULLS SMALL NUCLEAR POWER PLANTS
Thailand’s energy authorities plan to undergo feasibility studies for the development of small nuclear power plants. The plants will be in the form of Small Modular Reactors (SMR) with up to 300 MW, roughly one-third of traditional nuclear reactor capacity. Under Thailand’s revised power development plan (PDP), two small reactors will be developed targeting operations near the end of the PDP, scheduled for 2027. The country’s state-run Electricity Generating Authority is expected to develop and operate the small nuclear reactors. It had previously carried out studies on traditional nuclear plants in 2009-2011 before the Fukushima nuclear accident.
Nuclear reactors run without emitting carbon dioxide or producing air pollution, so they are considered cleaner than fossil fuel-fired plants. The power tariff is expected to average 3 baht per kilowatt-hour, slightly higher than the rate for electricity generated by larger nuclear power plants. In contrast to fossil fuel-fired power plants that release carbon dioxide, nuclear power reactors operate without producing air pollution or carbon dioxide emissions. New SMR projects in the pipeline are expected to require an investment of approximately THB 5.95 Trn (USD 176 Bn).
THAILAND PLANS NEW RULES FOR DIRECT PPAs
Thai authorities are preparing to discuss direct power purchase agreement rules for clean energy with local and international investors. The National Energy Policy Council has cleared a pilot project permitting businesses - especially data centre operators - to buy electricity directly from producers. The direct PPAs must not exceed 2 GW.
Thailand has so far not allowed peer-to-peer renewables power trading. The officials will work with ambassadors of countries in Asia and Europe, along with the US to push ahead with discussions with prospective foreign investors. Potential foreign investors are interested in data centre projects but are awaiting clarity on the direct PPA policy to facilitate renewable power trade among firms.
THAILAND PLANS PPP TENDER FOR BANGKOK ROAD EXTENSION
The Thai government is looking to procure a THB 31 Bn (USD 914.45 Mn) highway extension project close to Bangkok in the Public Private Partnership (PPP) mode. The proposed extension of the Don Mueang toll way will cover the construction of a 22km section connecting Ransit city in Pathum Thani province and Bang Pa-In district of Phra Nakhon Si Ayutthaya province neighbouring Bangkok. The government will form a joint venture with the private sector for the project, with details to be finalised within the coming two weeks and submitted to the cabinet.
The authority will fund the land acquisitions while the private sector will pay for the civil engineering, operations and maintenance. It will collect toll revenues and pay the private sector investor after the construction is completed. The government expects to launch a PPP tender and select the investor by the third quarter of 2025. The contract will be signed in 2026 while construction will take place during 2027-2030.
The total project cost of THB 31 Bn (USD 914.45 Mn), about THB 77 Mn (USD 0.22 Mn) will be used for land acquisitions. Don Mueang toll way is an elevated toll road in Bangkok, connecting the Thai capital city’s upper central region, northern region and northeastern region.
AUGUST 2024
THAILAND PLANS PPP MODEL FOR USD 337 MN SAMUI PORT
The Thailand government will seek bids for Koh Samui cruise port project to be developed at an estimated cost of THB 12 Bn (USD 337 Mn) port using the Public-Private Partnership (PPP) model on Samui Island. The government will likely issue a request for proposals around July 2025, with the winning bidder to be selected and a contract signed in January 2027.
Groups expressing an interest include businesses in Phuket and Samui, port operators as well as shipping lines from Japan. The project will be in Laem Hin Khom district of Samui Island in Sura Thani province. Samui is off the east coast of Thailand and has many luxury resorts, private villas, and bungalows. The passenger terminal of the port will cover an area of at least 7,200 sq metres, with a capacity to process 1,200 passengers per hour.
The cruise terminal will be able to accommodate two cruise ships at the same time - one with a capacity for 4,000 passengers and the other for 2,500 passengers - and up to 80 yachts and up to six ferries. The port will also feature a pier with a length of 362 meters and a depth of 12 meters, as well as a passenger terminal capable of accommodating 3,600 people.
The private investor will be responsible for preparing an environmental and health impact assessment report. Construction is scheduled to start in January 2029 and the asset is planned to be commissioned by January 2032. The operations period is 30 years. The transport ministry is also conducting studies for cruise terminal projects in Pattaya's Bali Hai district and on Phuket Island.
THAILAND PREPARE TENDER FOR TRANSPORT HUB BORDERING LAOS
The Thai government intends to develop a THB 2.9 Trn (USD 82 Mn) Chiang Kong Freight Transport Interchange Centre Project in the country’s northernmost Chiang Rai province under Public-Private Partnership (PPP) modality.
The private investor will fund the cost of freight handling equipment, office equipment and other components needed for the freight and logistics management of the project. It will also be responsible for all operations and maintenance and will pay the government annual concession fees for a period of 15 years. The government will be responsible for the land acquisitions and infrastructure construction.
The 847 acre Chiang Kong Freight Transport Interchange Centre Project will be located in Wiang subdistrict of Chiang Khong, close to the Fourth Thai-Laos Friendship Bridge bordering Laos. The facility, which is also close to east Myanmar and southwest China’s Yunnan province, will serve as a hub to handle international freight transports on Thailand's R3A Route that connects Thailand, Laos and Yunnan.
The project will also support the change of freight transport modes from road and rail with its proximity to the Den Chai-Chiang Rai-Chiang Khong double-track railway project.
RED LINE MONORAIL PLANNED TO ENHANCE CONNECTIVITY IN PATTAYA CITY
The Government of Thailand has announced plans to develop a Red Line monorail, a new public transportation project aimed at boosting economic growth and enhancing connectivity in Pattaya City. The monorail will span 17.37 km connecting Thappraya Intersection and major roads such as Thap Phraya Road, Jomtien Second Road, Chaiyaphruek 1 Road and Chaiyaphruek 2 Road before terminating at the Eastern National Sports Training Centre, covering 10 stations.
The proposed monorail stations will be spaced approximately 1 km apart. The preferred investment model for this project is a Public-Private Partnership (PPP), which is considered the most viable option for financing and managing the development. This project is part of a broader initiative to enhance Thailand’s transportation infrastructure, which includes similar plans for Phuket.
EGAT LAUNCHES TENDER FOR 182 MW FLOATING SOLAR HYBRID PROJECT
The Electricity Generating Authority of Thailand (EGAT) has launched a tender for a hydro-floating solar hybrid project to be developed at the Srinagarind Dam in Kanchanaburi province. This project is part of EGAT’s broader initiative to integrate renewable energy with existing hydroelectric facilities, enhancing Thailand’s energy mix and sustainability efforts.
The project will involve the design, supply, construction, and commissioning of a 182 MW floating solar power plant. The scope of the project will include a floating PV system, an anchoring and mooring system, a 33 kV electrical system, transmission lines, and a control and monitoring system. This hybrid setup will complement the existing hydroelectric power station at the dam, which has a generation capacity of 720 MW.
This project is part of EGAT’s larger plan to develop 16 floating solar projects across nine dams, with a total capacity of 2,725 MW, aligning with Thailand’s Power Development Plan. In 2024, EGAT launched its second floating solar hybrid project, a 24 MW array that has already commenced commercial operations.
STATE RAILWAY OF THAILAND COMPLETES TRACK DOUBLING OF THE 421-KM-LONG SOUTHERN LINE
The State Railway of Thailand (SRT) has completed the track doubling of the 421 km southern main line, stretching from Nakhon Pathom, west of Bangkok, through Ratchaburi, Phetchaburi, Prachuap Khiri Khan, and ending at Chumphon. This new double track runs parallel to the existing metre-gauge track and includes elevated sections to eliminate level crossings. A new three-level station at Hua Hin has been constructed, blending with the architectural style of the original station. The E-token electronic interlocking system along the route is currently 61 % complete, with full deployment expected by 2025.
This project is part of SRT’s broader strategy to expand Thailand’s railway network. SRT is also working on two new lines from Den Chai to Chiang Khong on the Laos border and from Ban Phai to Nakhon Phanom. The plan includes further track doubling on seven lines, including Khon Kaen – Nong Khai and Chumphon to Surat Thani, with a total investment of THB 292.5 Bn (USD 8.62 Bn). Once these projects are completed by 2029, Thailand will have an extensive double-track network spanning more than 2370 km, significantly increasing the country’s capacity for freight and passenger transport, reducing travel times, and cutting logistics costs.
NEW TRAIN ROUTE CONNECTING BANGKOK AND PENANG TO BE INTRODUCED
The Governments of Thailand and Malaysia have been expanding their rail cooperation with the introduction of a new train route connecting Bangkok’s Bang Sue Grand Terminal to Penang, Malaysia. The plan aims to enhance travel, tourism, and economic ties between the two countries. The service is expected to launch within two to three months, with an initial six-month trial period.
The MySawasdee tourist train from Malaysia to Thailand will be extended from Hat Yai Junction Station to Surat Thani Station due to high demand. The cooperation also includes discussions on expanding cross-border freight transport and increasing the frequency of the ASEAN Express train service, which currently operates between Malaysia, Thailand, Laos, and China.
These developments are part of a broader strategy to strengthen rail connectivity in the region, promoting economic growth and positioning Thailand as a regional hub for tourism and logistics.
THAILAND TO GET A 100-KM-LONG RAIL BRIDGE
The Government of Thailand has announced plans to build a 100-km-long rail bridge that bypasses the Malacca Strait and connects the Pacific to the Indian Ocean. Upon completion, this bridge will be one of the longest in the world, offering a faster, cheaper, and shorter route for shipping between the Pacific and Indian Oceans.
The bridge will enhance Thailand’s position in regional trade and allow China overland access to Thailand’s planned deep-sea ports in the south.
SEPTEMBER 2024
WORKS TO BEGIN FOR A NEW 11-KM-LONG MONORAIL IN THAILAND IN 2027
The Pattaya city council has approved plans for an 11 km monorail line, known as the Purple Line, to begin construction in 2027 in Thailand. The project will be completed in two phases through a Public-Private Partnership (PPP) model. The line will run from the Thap Phraya intersection on the west side of the city to Nong Mai Kaen in the east, with 12 stations spaced 800m to 1km apart.
The project will require the expropriation of 635 plots of land and will impact over 460 buildings. The new line is expected to boost urban development in the area.
TOTALENERGIES ENEOS COMPLETES 2 MWp SOLAR ROOFTOP INSTALLATIONS AT NTN AND NTPT PLANTS IN THAILAND
TotalEnergies ENEOS has successfully installed two solar rooftop systems with a combined capacity of 2 megawatt-peak (MWp) at the NTN Corporation (New Technology Network) and NTPT Company Limited (North Thin Ply Technology) plants in the Pinthong industrial area, Chonburi Province, Thailand.
The installation, consisting of approximately 3,450 solar modules, will generate around 2,700 megawatt-hours (MWh) of renewable electricity annually, supplying about 15% of each facility’s energy needs. This will lead to significant cost savings and reduce carbon emissions by approximately 1,620 tons annually equivalent to removing about 350 cars from the road or planting over 24,300 trees.
Under a long-term Power Purchase Agreement (PPA), TotalEnergies ENEOS fully funded, installed, and will operate the solar systems for the next 20 years, with NTN and NTPT only paying for the electricity generated, with no upfront costs.
LONGI PARTNERS WITH FATONI UNIVERSITY TO BUILD A GREEN CAMPUS WITH SOLAR POWER
LONGi has partnered with Smart Solar Corporation Co., Ltd. to install solar modules at Fatoni University in Thailand, helping the university to embrace sustainable development energy solutions to meet their growing energy needs.
The shift to solar power has been a resounding success for Fatoni University. The newly installed solar system generates a total output of 563,921 kWh, resulting in monthly savings of approximately THB 194,060 (USD 5,390) and a total of THB 2,650,430 (USD 73,623) over 13 months. The environmental impact has been equally significant, with a reduction in carbon emissions by 268 tons to date. These savings allow Fatoni University to allocate more resources to campus construction and educational investments, thereby enhancing the learning experience for students.
List of Transactions - Thailand Q3 2024
Source: YOG INFRA, Public Information
ABOUT YOG INFRA
Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.
YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.
With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.
For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com
©2024 YOG INFRA. All rights reserved.
Comments