Thailand turns to transport infrastructure to boost economy

By Andy Brown26 August 2020


Traffic in Bangkok, Thailand

Thailand’s government is reported to be planning on increasing spending on road and rail projects when the country’s fiscal year begins in October in a bid to boost an economy that has been hit by a Covid-19 related decrease in exports and tourism.

The financing will be a combination of the ministry’s annual budget allocation from the central government, revenue from state enterprises and income from various funds.

The transport budget in the new fiscal year will be around 232 billion baht (US$7.4 billion), up about 32% from the current period.

Thailand’s economy saw its biggest annual contraction in 22 years and a record quarterly fall in the April-June period as it fell 12.2% in the second quarter compared to the same quarter in 2019.

One of the key programmes is the development of a national rail hub in Ayutthaya, north of the capital of Bangkok. The transport plan is to connect the high-speed lines being built in the north of the country and promote the development of Ayutthaya Province.

Roengsak Thongsom, a director of the Office of Transport and Traffic Policy and Planning, said Ayutthaya was one of three cities chosen for the “transit-oriented development projects”.

The government are also said to be looking to expand Bangkok’s mass-transit network and expressways linking several nearby provinces and the nation’s eastern seaboard. The capital contributes approximately half of Thailand’s gross domestic product but suffers from severe road congestion. 

Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Is electric equipment the answer?
Construction equipment is rapidly evolving to become greener and cleaner
Why ESG-linked loans are impacting construction finances
A way to help fight the climate crisis or a pile of greenwash? How ESG-linked loans are entering the corporate mainstream 
Meeting productivity demands: new compaction equipment
How new roadbuilding and compaction equipment is meeting productivity demands, while keeping emissions low
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail:
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: