The State Railway of Thailand (SRT) is optimistic about the commercial development of 38,500 rai of land, including 28 high-potential plots, to generate 20 billion baht in revenue over the next four years.

On November 6, 2024, SRT Governor Veeris Ammarapala transferred 12,333 land lease contracts to Pol Col Supakorn Supasincharoen, an executive of SRT Asset Co, an SRT subsidiary focused on land development and management.

SRT, historically a loss-making entity with a 17.8 billion baht deficit last year and around 300 billion baht in accumulated debt, owns a total of 240,880 rai of land.

About 202,000 rai are designated for core railway operations, leaving significant potential for the non-core land.

Since its inception in 2020, SRT Asset Co has taken over management of 12,233 leases, previously managed by various departments within SRT.

Despite its large holdings, SRT Asset generated only 660,000 baht in revenue last year.

The entity is tasked with acquiring new land and partnering with private investors for development.

The planned development is divided into three phases, starting in 2025 with the first phase involving seven plots: Bang Sue-Klong Tan (RCA) project, Sila At, Klong San Market, Ratchaprarop, Phahon Yothin, Bang Sue Area, and Nong Khai station.

Phases two and three will occur between 2026 and 2029.

SRT retains land ownership while SRT Asset Co manages the development.

The initiative is crucial for SRT's financial recovery strategy.