The private sector will be encouraged to invest in commercial land development near Mae Nam and Bang Sue railway stations in a bid to ease the heavy debts of the State Railway of Thailand (SRT).
Deputy Transport Minister Omsin Cheevapruek on Friday urged SRT governor Wutthichart Kalayanamitr to persuade private firms to invest in real estate on the SRT-owned land near Mae Nam and Bang Sue stations.
Mr Omsin said the plan will increase the value of the land and relieve the SRT's debts, of 60-70 billion baht, over the next six years.
He also ordered the SRT to urgently provide development plans for the land close to both stations as soon as possible. A source at the SRT said the company hired a consultant to study the benefits of land development projects.
The 260 rai of land near Mae Nam station in Yannawa district — worth around 10 billion baht — will be developed for real estate. The results of the study, and a proposal for the land, are expected to be completed within six months.
For Bang Sue station, the land will be divided into four zones. Zone A is designated for offices and hotels, while Zone B will be allotted for convention halls and condominiums, with a total budget for the two zones estimated at 3.3 billion baht.
Zone C will be developed as shopping malls and a sports complex, while a green zone, restaurants and a monorail connecting Bang Sue station with Mor Chit BTS station will be built on Zone D.
The full results of the study will be wrapped up by the end of this year.
Aside from the two projects, the SRT also plans to set up a real estate business on the 359 rai of land, costing around 18 billion baht, near the 11th kilometre marker on Phahon Yothin Road.
The project aims to expand the development of communities in its proximity and also to build an international business centre.
The land will be separated into three zones — a recreational area, SRT offices, and commercial buildings.