Sak Siam Remodel, which leases 15 thousand railway contracts, focuses on revenue – maximum benefits

Saksanam Chidchob, Minister of Transport Follow up the progress of the establishment of a subsidiary to manage assets of the State Railway of Thailand

On April 22, 2022, Mr. Saksiam Chidchob, Minister of Transport Meeting to follow up the policy on the progress of the establishment of a subsidiary to manage assets of the State Railway of Thailand The top executives of the Ministry of Transport are Mr. Chayatham Phromsorn, Permanent Secretary of the Ministry of Transport.

Mr. Soraphong Paitoonpong, Deputy Permanent Secretary, Ministry of Transport Head of Transport Mission Group, Mr. Panya Chupanich, Director of the Office of Transport and Traffic Policy and Planning, Mr. Pichet Kunathammarak Deputy Director-General, Department of Rail Transport Ms. Trithip Sivakritkul, Director of Railways and Acting Managing Director/Executive Committee of SRT Asset Company Limited and Governor of the State Railway of Thailand join the meeting

The results of the meeting were as follows:

1. The State Railway of Thailand has reported the progress of the area handover of the State Railway of Thailand to SRT Asset Company Limited, with details as follows:

1.1 Land of the State Railway of Thailand There are 15,528 lease agreements, divided into 3 groups: 1) Group of land with existing lease agreements such as group of leases that have not expired. and the rental contract of the operating department as a counterparty, etc.

2) Free space group (Large land development project or area groups that are issued new benefits), such as the Thonburi plot and land plots in Hua Hin (Hotels), etc.

and 3) groups that do not deliver to SRT Asset Co., Ltd. (the Company) to manage, namely government agency lease contracts, entrance-exit contracts, crossing line contracts and contracts for railway transport customers, etc.

1.2 The State Railway of Thailand and the Company have an action plan to determine the rate of administration fees. and sign an employment contract will be able to complete in September, 2022, therefore, the State Railway of Thailand can begin handing over the area to the Company. After signing the contract

1.3 The benefits that the State Railway of Thailand will receive is a significant increase in income. Shorten the time to consider renewing the lease or issuing new benefits. Reduce cost of asset management management and promote good image in asset management

2. The Company has reported the operating results for the past 1 year, which can be summarized as follows:

2.1 The Company has set up relevant systems to draft regulations/criterion as well as study the guidelines for the development of large project areas to prepare for property services

2.2 Business goals It is expected that in 2023 there will be an estimated revenue of 4,000 million baht, and in 2027 there will be an estimated revenue of 8,000 million baht and in the 30-year period, there will be an estimated total revenue of 600,000 million baht. (excluding income from other businesses from the establishment of a subsidiary)

2.3 The Company has started to study 4 different projects, details as follows:

2.3.1 Hua Hin Railway Van Project : Due to the epidemic situation of the Coronavirus Disease 2019 which directly affects the tourism industry of the country Therefore, it is necessary to review the results of the new study. and appraising the value of the current leasehold rights and buildings Including other new related assets. Able to negotiate with tenants because it is close to the expiration of the contract

2.3.2 Thonburi Project : developed to be a leading medical center and green society Preparation of the Master Plan for the Thonburi Station Project The Company proposed the establishment of committees and working groups from relevant agencies. to achieve integrity in the development of the area

2.3.3 Bang Sue Project: The study of the Smart City Company structure is in the process of hiring a consultant to prepare a plan.

2.3.4 Area projects along the Rama IX route (RCA – Khlong Tan) : Currently in the process of checking the status of the contract. and make a summary of the areas that can be allocated

In which Mr. Saksiam Chidchob, Minister of Transport, has acknowledged the operation and has given orders to the two agencies as follows:

1. The Ministry of Transport shall appoint a working group consisting of the Department of Rail Transport. Railway Technology Research and Development Institute State Railway of Thailand, SRT Asset Company Limited and related agencies to expedite the delivery of the area within 30 days

2. Determination of the Company’s operational indicators May consider from the income that the State Railway of Thailand will receive must be consistent with the situation and the reality of space

3. Land development The development principle must be based on the suitability of the development to match the potential of the area. Not attached to the original development model for the best benefits, but the State Railway of Thailand and the Company

Read the original news: Sak Siam Remodel, which leases the railway for 15 thousand contracts, emphasizing on income – the highest benefit

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