State Railway of Thailand given 18-billion baht lifeline
Cabinet approves loan for chronically indebted agency to cover operating costs through 2026
The cabinet has approved a Ministry of Transport proposal to allow the State Railway of Thailand (SRT) to borrow 18 billion baht in the 2026 fiscal year to cover operating expenses amid continuing financial losses.
The ministry made the proposal after the SRT reported insufficient revenue to meet its operating costs. The funding would provide liquidity and allow the agency to continue to operate smoothly throughout fiscal 2026, which started on Oct 1, dovernment spokesperson Siripong Angkasakulkiat said on Tuesday.
The SRT has consistently recorded losses, primarily due to heavy financial obligations such as interest payments and loan servicing, he said.
Much of its remaining income must be allocated to infrastructure maintenance, including track foundations, rails, bridges, signalling systems, safety barriers and lights nationwide.
In addition, the SRT bears high maintenance costs for ageing assets including stations and rolling stock that require frequent repairs. Pension benefits are also a big contributor to an accumulated debt that has reached 300 billion baht.
As a result, the SRT’s expenditures continue to outstrip its income, creating a cash deficit of 18 billion baht. The approved borrowing will help ease liquidity pressures and provide working capital for ongoing operations.
Source: https://www.bangkokpost.com/thailand/general/3131152/state-railway-of-thailand-given-b18billion-lifeline
